select
|

The real value of real estate home-ownership

There has been so much said, since the financial crisis that overtook the world in 2008, about real estate as a good or bad investment – so much analysis, discussion and dissection – that there is a danger of forgetting that what the South African real estate market is really about is the individual, human benefits of home-ownership.

So says Berry Everitt, MD of the Chas Everitt International property group, who believes that it’s time to re-focus on these home-ownership benefits, “the first of them being, as shown in many studies over the years, that homeowners are happier in their homes and in their neighbourhoods than tenants.

“According to Habitat for Humanity, for example, homeowners only move every eight years, on average, while the average length of stay for tenants is only two years.”

Writing in the Property Signposts newsletter, he says the second benefit of home-ownership, and probably the most important for those with families, is that the children of homeowners have been shown to do better in school, have more chance of obtaining a tertiary qualification, have less problems with alcohol or drugs, and earn more in their own adult lives than the children of those who remain tenants.

“This is probably not that surprising, since home-ownership also provides social stability, and makes for better neighbourhoods. Those with a longer-term stake in their area are of course more likely to participate in local organisations and work for the good of their community through schools, churches, neighbourhood watch and ratepayer associations. They are also more likely to garden!”

And generally, Everitt says, suburbs and neighbourhoods with high rates of home ownership will “give back” to those owners in terms of lower crime rates, better schools, more demand in the future from homebuyers and higher property values.

“Which brings us back to finances – but not just to the cold ‘investment value’ of home-ownership. There is a warm truth to the fact that home-ownership, unlike tenancy, enables individuals and families to create wealth with which to better their own lives and those of the people they care about.

“Just by paying off their home loan (instead of paying rent) they can build up equity that can then be used to educate children, start a new business or provide for their own retirement – all prospects that are much more ‘real’ and enduring for most prospective homebuyers than the possibility of making a killing in the next property boom.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 24 Apr 2018
      The thing about the property ladder is that at some point in our lives we all have reason to want to climb a rung or two higher. Sometimes, it’s because we’ve outgrown our previous dream home, or because we want to be in a better neighbourhood that’s closer to work or to schools. Sometimes it’s because our circumstances have changed, and we’re taking care of elderly parents or relatives. Sometimes, it’s just because we want a property that reflects the financial status our hard work has won.
    • 20 Apr 2018
      Whenever changes in the political ecosystem of a traditional property market create uncertainty, smart investors begin to look elsewhere for new opportunities. Property experts at IP Global have analysed the trends and crunched the numbers to find new markets to explore in Europe and the United States.
    • 20 Apr 2018
      Energy and water self-sufficiency are increasingly important factors in home buyers’ choice of property – especially in Cape Town where the extreme drought of the past few years has made municipal supply costly as well as uncertain.
    • 19 Apr 2018
      During the last decade, rampant development has progressively transformed Cape Town’s property landscape with densification being the order of the day, but there are still one or two hidden gems like Scarborough which have retained their original character, offering an inimitable lifestyle and an attractive investment opportunity.
    • 19 Apr 2018
      The rental market is a cut-throat sector of the real estate market that waits for nobody. According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, first-time renters need to be fully prepared before they even start the process of looking for a place to rent in order to avoid the disappointment of losing out on their ideal property.
    • 19 Apr 2018
      Choosing to buy your first home instead of continuing to rent is a big decision that will usually take some time to put into action, but the sooner you can save up a sizeable deposit, the closer you will be to reaching your goal.
    • 18 Apr 2018
      Selling your home is no small task and as you will quickly find out, there are a lot of misconceptions about the process. Gerhard van der Linde, Seeff's MD in Pretoria East lists the top 5 misconceptions when you are selling your home.
    • 18 Apr 2018
      The Cape Town municipality is now installing water-management devices at properties that have been non-compliant with the new level 5 water restrictions and there are talks of fines between R5,000 and R10,000 for households that use too much water.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK