
To Rent or Buy – a Midlife Perspective
Deciding between renting or buying a home is a significant decision – one that could shape our financial strategy and lifestyle in profound ways. The age-old perception that buying a home is a rite of passage, a milestone achievement, is being re-evaluated in today’s ever-changing lifestyle and financial journeys. The real question is: Is owning a home the best decision for everyone?
Buying a home is probably the most expensive and largest investment you will make in your lifetime, and the view that renting only benefits someone else’s bond repayments, overlooks that home ownership might not suit everyone’s financial strategy or lifestyle preferences. There are advantages and disadvantages to renting or buying, and it all depends on your lifestyle preference, future plans, and financial strategy.
Lifestyle Considerations
Many people are opting to make changes to realign their lives with their values, including personal and professional goals. This may mean moving towns, cities or countries, changing jobs and looking for lifestyles that align more closely with their idea of living life to the fullest. I recently moved to Kwa-Zulu Natal with my family, and instead of buying a home, we opted to rent at first. The freedom of being bond and maintenance cost-free has been just what we needed to settle into our new lifestyle and get a feel for the area, schools, churches, etc., before committing to a long-term property investment.
You may be in a position where your children will leave home soon or need to care for your elderly parents. You may emigrate. In these instances, renting offers a level of freedom that homeownership cannot. But renting is not for everyone. For many, a home is not just an asset but a safe, comfortable space that represents security and a connection to the community. The key is to balance your emotions with the practicalities of your lifestyle, life stage and financial plan.
Financial Considerations
Properties are expensive, no matter how you look at it. Financially, the initial and ongoing costs of homeownership, including transfer duties, legal fees, rates, taxes, levies and maintenance, can be significant, and many people make the mistake of rushing into a purchase without assessing the actual cost of owning. In times of high property prices, realising a profit on your investment can take longer than anticipated, making renting an attractive short-term strategy for managing cash flow and maintaining lifestyle flexibility. Still, the long-term equity built through ownership is a significant consideration.
If you do decide to rent, it is crucial to do a thorough cost-benefit analysis. I simply valued my rental property and calculated the rental as a percentage of the market value. I realised that I could rent for far less than the bond repayment and interest on a home loan, which, over the short term, works for my lifestyle and cash flow needs. The fixed cost of property rental with no maintenance responsibilities also suits us as a family for the short-medium term while we still explore where we would eventually want to settle.
Emerging trends
The concept of global citizenship challenges the traditional view of property ownership: Renting a manageable property and freeing up equity might better align with financial plans and lifestyle goals, especially where rental markets are favourable.
Conversation starters to guide your decision:
- Does renting or buying align better with your financial goals?
- How do you view the long-term financial commitments of homeownership versus the comparative flexibility in disposable income that renting might offer?
- How do current market trends in property prices and rental rates affect your decision to buy or rent?
- Have you considered the additional expenses, apart from the initial capital outlay and bond repayments, associated with owning a property?
- How important is forming an emotional attachment to your home in your decision-making process?
- In your life’s current chapter, do you value stability or flexibility more?
- Could your retirement plans affect your decision?
- Do you foresee any changes in your lifestyle? (Reflect on job opportunities, getting married or starting a family, children leaving home or caring for elderly parents, etc.)
There is no one-size-fits-all answer when it comes to renting or buying. Although buying may give you security and stability and possibly future equity, renting may be just right for you if you’re thinking about moving cities or countries in the near future, in a state of flux and unsure where you’d like to settle eventually; just moved into a new area and want to get a feel for it first; or value flexible working arrangements with freedom to travel.
It is well worth discussing your decision with your financial planner, who understands your holistic needs and can help you navigate this decision in the context of your life plan, age, future plans, and financial plan.

