Rising rental prices, stable interest rates and evolving financial products are making it increasingly difficult to choose between buying or renting in 2025.

We spoke to property finance consultant at SA Home Loans, Francisca Naicker, who weighed in on the pros, cons and common misconceptions around both renting and owning property in the current market.

According to Naicker, renting is often seen as the easier option, especially for people in transition or those who have not yet built up a strong credit profile. But it has its limitations.

“There’s no wealth creation, rent increases are out of your control and you don’t have the freedom to customise your space,” she said.

Renting may be a smart short-term solution for students, people living in CBDs, or those with poor credit.

“Rather rent while correcting your credit behaviour so that home ownership becomes easier down the line,” she advised.

While renting might seem cheaper month to month, it does not build long-term wealth.

“Home ownership builds equity. And if your circumstances change, you can always sell or rent out your property,” she said.

Home ownership does come with costs that renters do not face, such as rates, homeowners’ insurance, bond registration, transfer costs and maintenance expenses.

“These costs are manageable with proper planning, which is why prequalification and speaking to a home loan consultant is so important,” she said.

Interest rate fluctuation is another factor to consider. Homeowners with variable-rate loans will feel the impact of interest hikes or cuts in their monthly repayments, while renters are somewhat shielded, though landlords may pass those increases on through higher rent.

Naicker advised maintaining a healthy credit history, paying bills on time and limiting new loan applications.

So, is 2025 a good time to buy? Naicker believes it could be, if your finances are in order.

“Interest rates have remained relatively stable and are even reducing slightly after recent hikes. Property prices are still negotiable in many areas. Buying now means getting in before the next upswing.”

According to the PayProp Rental Index, rental prices have increased by an average of 5.6% in the first quarter of 2025. Affordable housing segments are also showing signs of recovery.

Ultimately, the decision to rent or buy in 2025 depends on your lifestyle, financial stability and future plans.

Stay in the loop with The North Coast Courier on Facebook, X, Instagram & YouTube for the latest news.

Mobile users can join our WhatsApp Broadcast Service here or if you’re on desktop, scan the QR code below.