There are a lot of reasons why people want to own a home. Some are emotional – a sense of achievement, freedom, and pride. Owning a home means that you can make it your own, paint the walls any colour you want, and modify the property to suit your needs and preferences. There’s also the wonderful sense of accomplishment and a feeling of belonging to a community.  

Ultimately, homeownership represents stability, security, and a sense of pride that renting cannot match. But on a more practical level, people want to buy their own homes for the financial stability and benefits that this choice brings. You see, under the right circumstances, homeownership offers a significant wealth-building tool that provides meaningful financial benefits.  

Here is a review of the top 6 reasons why you should consider buying a home. 

You Can Build Your Own Equity 

Owning a home is both an investment and a form of saving. What we mean by this is that over time you can build up equity in a valuable asset, like a home. As you pay your monthly instalments you are reducing your loan amount while also increasing the value of your asset.  

This is a valuable way of establishing your financial future, because buying property comes with long-term benefits in the growth of your personal wealth and equity. Also, it makes far more sense than renting from a landlord and essentially paying off their home loan and building their equity.   

Your Financial Standing  

Paying off a home requires disciplined financial behaviour. The kind of behaviour that results in a positive credit record and increased financial stability. These two factors alone are absolutely vital when applying for future credit, so buying and paying off a home builds your profile.  

It’s A Buyer’s Market 

In housing terms, a buyer’s market refers to when there are more homes available than qualified buyers in the market. And according to Lightstone, leading provider of comprehensive data and analytics on property, automotive and business assets, the South African residential property market in 2023 is a buyer’s market. 

Look, there’s no denying that financial institutions are imposing stricter lending criteria as a result of the rising financial constraints and debt in South Africa. With fewer people qualifying for bonds, there aren’t as many buyers in financial good-standing, but even so… those buyers are in a great position to negotiate the asking price with sellers.  

This is the perfect time to pursue buying your own home, because you have a little more breathing room to do your homework and negotiate a fair deal. 

The Long-Term Investment Possibilities 

The property market is considered a sound investment option. If you’ve bought a property at a market-competitive price, in an established or up-and-coming area situated closed to major travel routes, popular facilities etc. then you’re almost guaranteed personal wealth growth.  

Just make sure that you make any necessary improvements and keep up with maintenance and repairs so that you can keep increasing the value of your property. 

You Can Make It Your Own 

Everyone is different, with their own unique requirements. For instance, you may have physical requirements, such as wheelchair access throughout your home. Whatever it is that you need or want for your home, it’s always going to be possible and easier to customise your property to suit any changes to your lifestyle or life stage than it would be to get permission from a rental agency or landlord.  

That said, we should point out that external upgrades and restructuring may still be subject to Body Corporate or Council approval.  

You Aren’t Confined To A ‘Lease Period’ 

When you aren’t confined to the lease period specified in a lease agreement, and aren’t subject to any unforeseen changes made by the landlord, you aren’t beholden to this level of stress and unpredictability. It’s peace of mind and security. Not to mention the savings you make by not having to move every time there’s an issue with the home you’re renting that causes you to leave. 

Feeling Informed? 

We trust that this advice is helpful and will help you make the right home-buying decision. 

Don’t forget that AA Inform is home to a range of useful tools and resources – including our Home Affordability Calculator which will give you an estimate of how much you can afford, as well as our Personal Loan Calculator, access to multiple car and home insurance quotes from the AA Insurance Supermarket, and much more.