Is property a good investment?

Today's changing realities are challenging the old belief that property equals security.

- By Jamie Benjamin

Is owning a residential property still considered the ideal route to financial security? High interest rates, remote working and increasing mobility are causing South Africans to question the long-held belief that buying a house is the best investment.

This was the focus of the latest Money Cents webinar hosted by Neesa Moodley, Daily Maverick's business editor. She was joined by Rhys Dyer, the chief executive at ooba, and Warren Ingram, a personal finance author and certified financial planner at Galileo Capital.

The panel tackled the question by exploring the realities of property ownership.

The South African property market has been turbulent. Dyer highlighted that some homeowners have seen repayments rise "upwards of 40%" over recent years, despite the interest rate cuts over the past year. Demand, he noted, remains subdued.

Ingram urged caution: "If a 0.5% difference in interest rates makes a property affordable to you, I'm going to argue the property is not affordable. You shouldn't be doing it." He advised homeowners to maintain a buffer capable of handling 50% to 60% increases in mortgage repayments to avoid financial strain.