So, whether you are like Themba, and on your way to financial freedom, or you are a bit more like Sihle, we believe we can all learn something from this case study to see how renting vs buying a home affected their experiences...
He is the breadwinner for his family and earns R27,000 per month as a HR manager.
For the last 10 years Sihle rented a 3 bedroom flat rather than buy a house - that way he could afford those "something extras" that he likes...
When he first moved into his flat it was brand new but now the building has deteriorated - despite this the rent has gone up from R3,000 per month then to R6,500 today!
Sihle lies awake at night, worrying!
Because of the rent increases he has not been able to save money and he just doesn't know how he is going to pay for his son's after school education - and without some type of tertiary qualification his son won't find it easy to get a job.
If you want to find out how much renting will cost you in the time it would take you to buy a home use our rental trap calculator by clicking here.
And also meet Themba
Themba works as a sales manager at the same company as Sihle and also earns R27,000 per month.
Ten years ago Themba bought a beautiful 3-bedroom house for R400,000. At the time he only earned R14,000 per month and so they had to make a few sacrifices to pay the R4,200 bond repayments.
Now, 10 years on, the bank payment is still about the same but his salary has gone up and so financially things are definitely easier these days.
He loves to surprise his family at Christmas - and this year's surprise is going to be the best ever... The bank has granted him a loan of R120,000 against the equity he has built up in his home - so he can afford to send his daughter to university.
"She's going to be the first doctor in the family!".
You can read the more detailed case study of Sihle vs Themba by downloading our free guide to "Freeing Yourself from the Rental Trap".
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