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Innuendo
02-06-2012, 12:36 PM
Seriously - Having a look through our local papers and Property24 at the rental prices of residential homes these days. :eek:

Wowee. Scary stuff.

Do you think there will be a dip in rental prices anytime soon? I don't understand how a person earning a middle class salary is supposed to afford the rental of a house these days.

peterson
02-06-2012, 01:18 PM
The recent Rode report indicates that South African house prices are 25% overvalued. We may not see a dip, but we may see no growth for the next 5 years.

ChilliGirl
02-06-2012, 01:19 PM
Have you seen the prices of the bonds lately?

moklet
02-06-2012, 01:36 PM
Well if they have to buy that same house they are renting they will pay a lot more on interest rates/repayments.

mercurial
02-06-2012, 02:35 PM
There are a few threads about this already, but yes, property is way too expensive and there is no way one can afford to buy unless one is really well off.

Tokenhole
02-07-2012, 12:27 AM
Renting a house has never been affordable to middle class people.
Most of us would just rent a flat, and try to save for a house.

robt
02-07-2012, 04:30 PM
I don't think renting is all that expensive - if you look at what you get here compared to overseas (first world countries) it isn't bad at all.

mercurial
02-07-2012, 08:42 PM
Have a look here. It's an article about most South Africans that do not qualify for home loans http://businesstech.co.za/forum/showthread.php/891-Most-in-SA-don-t-qualify-for-home-loans

peterson
02-07-2012, 11:00 PM
There is trouble in the South African housing market. When working people can not afford houses it must mean something has got to give.

ptashark
02-08-2012, 11:47 AM
I've bought my first house a year ago. The payments are loads more on the bond than rental would have been.

madeinjapan
02-08-2012, 09:15 PM
if you think DBN is expensive, try looking for a decent home in CPT, insane prices

fonoi
02-09-2012, 12:35 PM
I guess this all depends on the area.

I know in Cape Town a decent 3 bedroom house in a good area goes for 7-8k pm, considering that the vaule of houses in the area are 1.2 - 1.5 million you would pay 10k+ for a bond.

I think the difference of a few thousand rand to own versus rent is not bad. It does get bad when you factor in rates/refuse/water etc.

TonyA
02-10-2012, 07:43 AM
Think its optimistic to find 3 bed house in Cape Town Southern Suburbs for 7 -8k pm, more likely is 10 - 15k.

Windpomp
02-10-2012, 12:59 PM
I would rather pay for my own investment that pay someone else investment off

MegaTesla
02-10-2012, 01:30 PM
I agree, bond payments are more than rent, but in the end you score a house!

Hamster
02-10-2012, 06:01 PM
I agree, bond payments are more than rent, but in the end you score a house!

And what if I invest the money I save not paying off a bond? If you have the discipline and do it right you will end up with a lot of money which you can use to buy a house cash. It also gives you the flexibility to move when the job requires you to.

My friends disagree with me, but I reckon that while you are young, as in under 30, you are probably better off just renting.

twicode
02-10-2012, 09:44 PM
Municipal taxes have increased drastically.
Services such as refuse removal, gardening has resulted in big levies increases for town house complexes. My levy has increase more than 4 times in the past 10 years and that is with municipal tax was made separate a few years ago otherwise it would have been 6 times as much in a 10 year period. Scary stuff.