Should you rent or buy a home?


“If you rent, the rent goes up every year. But if you buy a 25-year mortgage, the cost is fixed.”

That was said by American billionaire John Paulson. For a man with a net worth of $3.5 billion in 2021 according to Forbes, his advice is well worth following.

There are many reasons why a mortgage is a wise investment. Among them is the fact that the money made towards a person’s productive years goes into owning a property rather than renting it. A mortgage can actually see you paying what you have been paying in rent every month but towards a property, you’ll one day call yours for keeps.

Renting also has its advantages especially if you’re engaged in an activity with a limited duration.

But because the mortgage is less discussed out there, let’s explore more about it, even as we tell you why a mortgage loan from Absa Bank is a solution product after your own heart.

Did you know you can repay a mortgage in up to 25 years?

This is the biggest advantage of a mortgage, and Absa extended the loan repayment period to go up to 25 years to ensure manageable monthly instalments. You can decide to fast track your payments by paying a lumpsum over the years.

Annual interest of a mortgage is better than most loans.

Rather than keep borrowing and repaying, taking a mortgage gives you a lower interest rate every year. Absa has reduced the rate to a competitive 11.9 percent, and this is a big boost to anyone thinking of owning a home.

Mortgages link well with insurance products

A life insurance cover, a domestic cover, and a perils cover are among the products that enhance the life of a mortgagee. It is kind of fencing your home on all its four corners. When you take a mortgage from Absa, you get to enjoy great offers on comprehensive domestic insurance solutions and many more.

Absa will help you own a house you desire

Another great advantage of mortgages is that you do not have to stress out looking for a property. At Absa we can assist you to identify a home of your choice within the country, customised to your taste & wallet from our developer partners. In support of sustainability, Absa has partnered with developers with green developments.

In addition, affordable housing remains a key focus at Absa. We are in support of the Government agenda to drive affordable housing.

Chance to get an all-round service

When you’re dealing with a mortgage provider, you’re dealing with someone who has been in the property ownership scene for a while and understands things you might not know about. At Absa, they have a mortgage team that gives advice to clients. Procedures like conveyancing, valuation, stamp duty and others are simplified through your collaboration with a mortgage provider, which goes a long way in making you a happy homeowner. We have also partnered with various furniture companies to offer discounts on various selected items.

A mortgage can make you an instant landlord

Whereas you won’t ordinarily be allowed to let out a property you have rented, it is a different picture with mortgaging. You can take a property and let it out to a client. It is your house; you can do what you please with it.

So, are you considering giving the mortgage route a consideration? Absa has products that can help you construct a house, buy one, or re-mortgage. To mention but a few.

To know more, please call +254722130120 or WhatsApp Abby on +254710130000. Or visit their website.