Page 40 - Kyalami Issue 4 December 2025

Kyalami Estates Corporate Brand Bible Design 26
3.0 Folder (Inner)
PROPERTY WISE

Renting is not just about

where you live now – it’s about

where you’re going next

lifestyle flexibility are key drivers for younger it still represents a major concentration of wrong decision, but it reinforces the idea
households choosing to rent. With interest your wealth in one place. That carries risk. that renting, when combined with smart
rates still elevated, many South Africans are financial planning, can be a strategic phase
waiting before entering the property market. Some investors argue that your money may in wealth creation.
Renting can help make this possible by be better put to work elsewhere. The long-
freeing up income to put towards a deposit term growth potential of equities, especially Whether your goal is a home or a stronger
and other costs. But this only works if the when held over the average term of a home investment portfolio, what matters is how
tenant avoids overcommitting. loan, can be significant. Investing early, even intentionally you use this time. Either way,
modestly, creates the opportunity to benefit renting gives you options. It offers more
A common mistake is signing a lease at from compounding returns. freedom and less commitment, more
the highest rent you can afford, simply for liquidity and less risk, more financial control
short-term comfort or lifestyle. Doing this This doesn’t mean buying property is the and less pressure.
undermines one of the key advantages
of renting – the ability to save. If your
rental takes up your full budget, there’s
little room to set money aside for a
deposit, emergencies or other goals.
Rather approach savings with the same
commitment you would apply to a bond.

A better strategy is to rent below your
affordability threshold. If you aim to buy a
R1.5 million home, the bond repayment for
that would be around R15 000 per month.
If you are disciplined and rent for R10 000,
you can save the R5 000 difference towards
your deposit; every year, you’d be putting
away R60 000 and would have your deposit
in just over two years – not counting interest
or investment growth if your savings are in
an interest-bearing account.

RENTING CAN ALLOW YOU TO
INVEST INSTEAD OF BUY
While many tenants intend to buy their
dream home one day, others believe that
renting offers the opportunity to grow wealth
through diversified investments, particularly
in shares, ETFs or unit trusts.

A home loan is one of the biggest debts
most of us will ever take on. Although it may
be productive debt tied to a physical asset,

38 Kyalami Estates • CONNECT • Issue 4 • 2025