Reader TH sent us an email detailing his situation and why for him it makes absolutely no sense to buy despite having the means. TH has been pre-approved for a bond but his rent is so low - less than R3 500/month for a townhouse in the Southern Suburbs (which is crazy good value) with a nice landlord and great neighbours - that it really isn't worth it. Just the amount spent on transfer and buying costs is probably about two years rent.
In fact he lives virtually rent free because the interest earned solely from his money market investments is more than double his rent for the year. And that does not include his interests in the stock market (which is lot easier to sell if things turn south) or the fact that he's saving nearly half his salary every month.
For the amount he pays in rent it just isn't worth it.
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