To sell or to rent, that is the question which every house owner in South Africa has to answer at least once in their life. There has never been a higher demand for real estate before than now, especially when the demands abroad in the UK and the US are falling. The government is investing a lot in real estate development to meet the rising need. Under these circumstances, both renting and selling a residence are good options with their own pros and cons. Let’s compare these advantages and disadvantages to clarify if it’s better to place houses for sale in Soweto or lease it to a tenant.
Reasons Renting The House Is Better
There is a huge shortage of real estate property in South Africa, which means that if you sell one now you may not find another property for some time and even if you do it will probably cost a lot.
On the other hand, due to the hikes in banks’ interest rates most people are reluctant about borrowing a loan for a new home and prefer paying rent instead. So you will find more customers looking for a rented accommodation than those buying one. This rising need for to let also means that you can charge more.
Moreover, tenants can be a steady source of monthly income and a considerable one at that at a time when the rents are high but buying is costlier.
Market values have and will always fluctuate. By placing houses for rent, you can earn while you wait for the right moment to sell your property at a good price and invest in a better one. Most leaseholders prefer staying for a few months before moving so you may not even have to wait for long.
Inversely, your residence’s market value may not be much. You could earn the amount it would sell for over a period of months.
And last but not least, the home belongs to you. You can choose who lives under your roof after a background check and you can set a few ground rules
Reasons Selling The House Is Better
While tenants are a great source of revenue, they are also a great source of headache. As the landlord, you will be responsible for the maintenance of the place.
Also, if your lessee defaults on their dues, it could take some time before you can evict them thanks to the Prevention of Illegal Eviction (PIE) Act. So, while you are filling the formalities the defaulter could stay at your residence for months free of cost while you pay their water and electricity as well.
Occupants prefer residing for a short term before moving on, most will move out after a year after which you are stuck looking for new ones. There is also a good chance that your room will stay empty for a long time.
Putting houses for sale in Soweto will ensure that you earn a lot of cash at once which you can use as you see fit. You can even invest the amount on a new mansion.
Inversely, if you wait for too long the market rates of houses for sale in Goodwood could drop low enough to turn the wait bitter.
So to put in short placing your houses for rent will bring you a steady income and a lot of headaches, but placing houses for sale in Goodwood will give you a lot of cash but it may not be enough for your long term needs. Whether selling the estate is better or renting it is, depends on which path will earn you more in the long term.