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Rent vs buys a hone V2

Rent vs buy a house: Understand the costs

If you’re trying to decide whether to rent vs buy a home, then this handy comparison table will help you to understand the costs to make an informed decision.

If you’re trying to decide whether to rent or buy a home, then this handy comparison table will help you to understand the costs to make an informed decision.

Renting gives you a lot of flexibility. You can radically change your life plans at any moment – or at least with a month's notice – and you don't have to carry the costs of regular maintenance.

But buying your own home comes with attractive benefits. It gives you a greater sense of stability and security. It's an investment. And you're free to make all the improvements you want to create your dream home.

Going from tenant to homeowner is a big step. It's important to know all the additional costs involved before you work out your ideal price range for a property.

  Renting Buying
Up-front costs
  • Advance deposit of one months' rent
  • Plus the first month's rent 

Your deposit covers any outstanding rent or damage to the property during your lease

You get the deposit back when you move out, at your landlord’s discretion.

  • Deposit (optional)
  • Transfer duties
  • Conveyancing fees
  • Bank fees
  • Estate agent fees
  • Property registration fees

Remember these costs are once-off payments in a long-term investment.

Monthly payments

Your rent is subject to an increase every 12 months, usually between 8% and 10%.

Your repayments are fixed, but you can reduce the interest with extra payments.

Extra costs

Maintenance costs and building insurance are the landlord's responsibility.

Maintenance may include garden, pool or security services.

Next step

If you're interested in buying a home, use our home loans calculators to get an idea of how much you can afford. Alternatively, head to the property tips section of the Community to interact with other Standard Bank customers and bank consultants.