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Buying vs. Renting in Johannesburg: Which is Better ? (Full Cost Breakdown)
The age-old debate: Should you buy or rent in Johannesburg? With rising interest rates and shifting property prices, the answer isn’t as simple as it used to be.
Whether you’re a first-time buyer, an expat, or just weighing your options, this cost breakdown will help you decide which choice makes more financial sense for your lifestyle.
The Cost of Buying a Home in Johannesburg
Average Property Prices
- Apartment (2-bed): R1.2 million – R2.5 million
- House (3-bed in suburbs like Randburg/Fourways): R2.5 million – R5 million
- Luxury (Sandton/Waterfall): R5 million+
Upfront & Monthly Costs
Deposit: 10-20% of property value (R120k–R500k for most buyers)
Transfer & Bond Costs: ~6-8% of purchase price (R72k–R200k)
Monthly Bond Repayment (20-year loan at 11.5% interest):
- R1.2m property ≈ R13,000/month
- R3m property ≈ R32,000/month
Rates & Taxes: R1,500–R5,000/month (depending on suburb)
Maintenance: ~1% of property value yearly
Pros of Buying:
- Build equity over time
- Stable payments (if fixed-rate bond)
- Freedom to renovate
Cons of Buying:
- High upfront costs
- Long-term commitment
- Market risk (prices can drop)
The Cost of Renting in Johannesburg
Average Monthly Rent
- Apartment (2-bed): R8,000 – R15,000
- House (3-bed in suburbs): R12,000 – R25,000
- Luxury (Sandton/Pretoria East): R25,000+
Additional Costs
Deposit: 1-2 months’ rent (R8k–R50k)
Utilities: ~R2,000–R4,000/month (electricity, water, WiFi)
No maintenance fees (landlord covers repairs)
Pros of Renting:
- Flexibility to move easily
- No property taxes or major upkeep costs
- Lower financial risk
Cons of Renting:
- No investment return
- Rent increases yearly
- Limited control over property
Which is Cheaper? (5-Year Cost Comparison)
| Scenario | Buying (R1.5m home) | Renting (R12k/month) |
|---|---|---|
| Year 1 Cost | R260k (deposit + fees) + R156k (bond) = R416k | R144k (rent) + R24k (utilities) = R168k |
| Year 5 Cost | R780k (bond) + R90k (rates) = R870k | R864k (rent) + R120k (utilities) = R984k |
| Asset After 5 Years | You own ~25% of a property | No equity |
Key Takeaway:
- Short-term (1-3 years): Renting is cheaper.
- Long-term (5+ years): Buying usually wins (if property appreciates).
Who Should Buy vs. Rent?
Buy If You…
Plan to stay in Joburg for 5+ years
Have a stable income for bond repayments
Want to build wealth through property
Rent If You…
Need flexibility (might move cities/jobs)
Can’t afford a 20% deposit + extra costs
Prefer lower monthly commitments
Final Verdict: Which is Better for You?
- Financially, buying is smarter long-term—if you can handle the upfront costs.
- Lifestyle-wise, renting offers freedom and less stress for uncertain futures.
Still unsure? Use a rent vs. buy calculator (like on PrivateProperty.co.za) to compare your exact situation.
What’s Your Take?
Are you team #Buying or #Renting in Joburg?
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