- Security – when you buy a property it feels like a home because it really is your home. As a homeowner you are safe and secure – as long you pay your mortgage you have the right to live in the property.
- The stability factor – a rolling stone gathers no moss; there is no better feeling than putting down your roots by taking ownership of a fixed property.
- The community factor – a sense of belonging and becoming part of a community that makes up the local school, church, support system and opportunity to build lifelong friendships.
- Invest rather than spend – paying rent to a landlord is money you’ll never see again, while buying a home of your own is an investment in your own asset and secure future.
- Long-term cost-effective living – buying rather than renting is a more cost-effective and disciplined form of saving. Long-term rentals are subject to inflation, which end up costing you more over time; while your mortgage interest payments should reduce over time as the amount you owe decreases.
- Financial benefits – owning your home provides useful financial benefits e.g. the ability to make a secured loan when necessary and the foundation for a stable financial track record.
- Living by your own rules – owning your home provides a sense of independence and privacy; you may come and go and do as you please and are not beholden to independent third parties.
Rental can have a negative effect on your long-term financial health. Debt charities warning – those with poor pensions may struggle to pay their rents in retirement while older owner-occupiers should see their monthly expenses decrease as they finally clear their mortgages.
The solution? South African expats may now cash-in their retirement annuities before the generally accepted retirement age of 55.
Where to start? Get your free personal South African financial report to discover how much money you have available in retirement annuities to use as a deposit on a home of your own in your new home country.