You're a working professional with a steady income, and perhaps it's time to take the leap and buy a home.
Kieno Kammies speaks to Just Property CEO Paul Stevens to discuss the pros and cons of renting versus buying and hidden costs involved.
He talks about the options of buying investment property versus buying a home in which to live. He says it is a personal choice but advises people to live within their means and seek professional advice.
It is vital to understand the long-term effect of property, he says.
Over time property always gains value.— Paul Stevens, CEO - Just Property
He says it almost never stays stagnant and never decreases in value, this despite recent media coverage about property prices dropping.
He does acknowledge that the fast escalating Cape prices have resulted in a current cyclical downtown.
But over the long term, it doesn't slump.— Paul Stevens, CEO - Just Property
It's all about strategic timing and property is not a short-term investment, he adds.
Take into account the costs such as rates and taxes, utility bill deposits, levies, security, and maintenance, which can be considerable.
His advice? Speak to a professional before buying.
It's not just your upfront costs, but your down the line costs that need to be considered.— Paul Stevens, CEO - Just Property
Despite everything, Stevens says getting into the property market over the long-term is advisable.
Property very, very often far outstrips other investments.— Paul Stevens, CEO - Just Property
Take a listen to the interview below:
This article first appeared on CapeTalk : Rent or Buy? 'Property is not a short-term investment'