Buying vs Renting

[silbo]

Hi, I am 33, I have rented my whole life, currently my rent is about 20% of my takehome pay.

I am saving and investing with the goal of one day buying a house of about 2 Million.

I am currently at about 700-800k. I am putting away about 20k ( at a maximum) into the S&P500 , which should grow at 9% on average?

My question is, I have noticed in South Africa, the interest rates on loans is insanely high, given that its like 11% , does it make more sense in my case to continue renting, investing, saving. Until i can one day buy a house cash?

 

[faith4l]

@silbo I suggest you start with previous post which has some resources already to go over that can assist in comparison.

 

[jctvcbn]

@silbo Since you're about a year or two away it's definitely better to wait to buy full price. If you take a 20 year home loan you're easily paying 6mil for a 2mil home.

Rent now buy at about 2.5M - 3M in savings (for 2M house).

 

[ulyss]

@jctvcbn asuming that the housing market doesnt crash and prices dont double over the period hes saving

 

[eddiec593]

@silbo If the place you want to buy will come to the same monthly cost as your rent when you take the mortgage with the 800k deposit, then buy now.

If it is more, then save upt till it gets to that point.