For many years, owning a home has been seen as a major financial achievement. It has often been viewed as a symbol of security, success, and a reliable way to build wealth.
However, rising property prices, higher living costs, and changing lifestyles are causing many people to rethink whether buying a home is always the best financial decision. While property can still be a good investment, it’s important to consider whether it suits your current circumstances and financial goals.
According to Bertie Nel, Head of Financial Planning at Momentum, the traditional advice was to buy a property as soon as you could afford the deposit. Today, the situation is more complicated.
“With higher interest rates, increasing living expenses, and rising municipal costs, owning a home has become more expensive,” says Nel. “Property can still help you build wealth, but it should be part of a broader financial plan and not the only investment you rely on.”
Buying vs renting: A different picture
The cost of owning a home is about more than just paying a bond each month. Homeowners also need to pay rates and taxes, insurance, maintenance costs, and levies, which can put pressure on their budgets.
As a result, more people are choosing to rent by choice, not because they cannot afford to buy. Renting can offer more predictable monthly expenses and allows people to invest their money elsewhere.
On the other hand, buying a property allows you to build equity over time and benefit from any increase in the property’s value.
Nel says the decision should not be seen as a competition between buying and renting.
“Both options can work well, depending on your personal situation,” he explains. “It’s important to remember that property is not a liquid asset. You cannot easily turn it into cash when you need money urgently.”
He adds that a common mistake is putting all available money into a home. While this may increase wealth in the long term, it can leave people with valuable assets but little cash available for emergencies.
A healthy financial plan should include a balance between property, emergency savings, and retirement investments.
Growing demand for flexible living
As people’s lifestyles change, so do their housing needs. Sectional title developments, security estates, and shared ownership options have become increasingly popular.
These options appeal to first-time buyers, professionals, and families looking for convenience, affordability, and security.
For example, sectional title ownership often includes levies that cover security and external maintenance, reducing some of the responsibilities that come with owning a standalone home.
These property models reflect a growing demand for flexibility, convenience, and community-focused living.
Property decisions and life changes
Buying a home is not only a financial decision. Major life events often influence whether it makes sense to buy a property.
Getting married, having children, changing jobs, relocating, or getting divorced can all affect the type of home you need and what you can comfortably afford.
“There is no single ‘right time’ to buy property,” says Nel. “What matters most is whether you are financially ready.”
For example, a young professional who expects to relocate in the next few years may find that the costs of buying and selling a property outweigh the benefits. In contrast, a growing family looking for long-term stability may benefit from owning a home.
Without considering your future plans, you could end up making a long-term property commitment that limits your flexibility.
Why professional advice matters
Because buying a home is one of the biggest financial decisions most people will make, it is often helpful to seek professional advice.
A financial adviser can help you look beyond the emotional appeal of a property and determine whether it fits into your overall financial plan.
They can assess affordability, debt levels, and the potential impact on long-term goals such as retirement.
“When a home purchase supports your broader financial goals, it can become a valuable asset that contributes to long-term financial security,” says Nel.
