It is, says Tony Clarke, MD of Rawson Properties, perhaps regrettable that most discussions in the property media regarding residential property tend to focus on the financial aspects, in particular the prospects for capital gain and/or improving rentals.
'This,' he says, 'is obviously important to the investor but we have to accept that for the typical buyer, i.e. the man buying to live in the home himself, the real long term benefits go far beyond the building up of an asset base and the profit to be made on it. It is time we recognised and started talking more about the enormous social and psychological benefits of home ownership,' he said.
Numerous studies over the years, said Clarke, have shown that the purchase of a home gives the homeowner '“ and his family '“ an anchor, a sense of self worth and a focal point to their lives. In many cases, too, it establishes them as valued members of the local community and this can make a fundamental change in their lives.
Equally important, said Clarke, is the fact that a home (and a garden) gives the homeowner the joy and pleasure of working to maintain and improve their property and of entertaining friends in it.
'Most homeowners,' he said, 'build up a dream of how their home could or should look and they derive much satisfaction from brining this about bit by bit.
Tenants, on the other hand, said Clarke, tend to miss out all these satisfactions and joys. Average tenant stays in SA are ±18 months and even those who stay longer seldom feel the same motivation as the owners to look after the home and the garden '“ nor do they become community members.
'Tenants,' he said, 'are only too aware that they are living someone elses dream. This can give them a sense of lacking roots'
Just how attached homeowners can become to their property, said Clarke, was shown by the fact that in Berlin, after the Second World War, the vast majority of homeowners opted to return to their bombed out buildings rather than to start again elsewhere. Later, in the sixties, when trade unions urged downtime this was often rejected by their members because it might mean falling behind on their bond payments.
'The knowledge that you are in a sense doing a buyer a favour by helping to acquire a property is at least partially what makes estate agency work so worthwhile '“ and the good news is that with todays NCA criteria there is far less likelihood of the buyer over-committing financially'
For further information contact Tony Clarke on 021 658 7100 or email tony@rawsonproperties.com.
