Property: it may be better to rent - Personal Finance Financial | IOL Business | IOL.co.za
It’s folly to rent property if you can afford to buy it. After all, investing in property is the best way to create wealth over the long term. Right? Not necessarily. You may be far better off renting and investing in equities.
If you do a straight comparison between the performance of property as an investment and the performance of shares, over the long term shares significantly out-perform property.
Over the past 45 years, the equity market has delivered a real (after-inflation) return of eight percent a year (including dividends), according to the FTSE/JSE All Share index, whereas property prices have increased at an average rate of 1.5 percent a .........
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