PROPERTY NEWS - 2026 is lining up to be an encouraging period for tenants who are considering becoming homeowners, according to Remax Southern Africa.

While renting has its benefits, does it really compare with the returns of owning your own home? Many South Africans might be asking themselves this same question as the new year approaches. 

But with interest rates expected to ease even further, rising rental prices, and changing lifestyle preferences, 2026 might be a more favourable year for first-time buyers.

“Many South Africans have delayed buying because the price gap between renting and owning felt too wide during the height of the interest rate cycle,” says Adrian Goslett, CEO and Regional Director of REMAX Southern Africa. 

“Fortunately, the landscape is shifting and if current forecasts hold up, 2026 could be the year when renting and buying costs are close enough that ownership becomes the smarter long-term move.”

One of the main driving factors towards home ownership is the ongoing easing in borrowing costs. 

In November 2025, the Monetary Policy Committee (MPC) announced that interest rates will be cut by 0.25%, lowering the repo rate to 6.75% and the prime lending rate at 10.25%. 

While this may seem like a small rate change, it can have a significant impact on first-time homebuyers.

According to a post on the REMAX Blog, Goslett commented on this change noting that, “As a result of stagnant economic growth, this small rate cut can provide a financial buffer for homeowners and prospective buyers across the country.” 

Even small decreases in the prime lending rate can translate into meaningful monthly bond savings, lifting affordability and improving approval chances for first-time buyers.

For renters, another key headwind is the rental inflation. 

PayProp’s national rental data reported that average rents have been rising at an increasing speed over the last eight years, reaching around 5.6% year-on-year early this year. 

In many areas across South Africa, these increases in rental prices have outpaced wage growth, steadily narrowing the cost gap between renting and buying.

“Homeownership isn’t just about what you pay each month, it’s about what you keep as a bond repayment allows you to build equity in your own asset instead of someone else’s,” Goslett adds. 

“With interest rate relief expected to filter through into the new year, and as rental prices continue to rise, the most financially sound route is hard to ignore.”

REMAX Southern Africa advises tenants who are considering home ownership in 2026 to start preparing now by checking their credit profile, understanding their affordability range and comparing rental costs to potential bond repayments. 

Working with a qualified REMAX agent can help buyers identify properties within their budget, understand true running costs, and negotiate effectively in the market.

‘We bring you the latest Garden Route, Hessequa, Karoo news’