\n\t\tProperty is still a good investment, but not for the reasons many South Africans think.\n\t<\/p>\n
For years, people have been told that buying property is the ultimate wealth-building strategy. It is advice that has become almost a financial gospel: buy a house, and pay off the bond.<\/p>\n
Homeownership was seen as both a lifestyle milestone and a retirement strategy. Some even rent out their homes.<\/p>\n
But in 2026, with rising living costs, changing lifestyles and more investment options than ever before, is owning a property still considered the cornerstone of a financial plan?<\/p>\n
Yes and no<\/p>\n
Bryan Nicol, a certified financial planner (CFP) with Doshguide, says the answer is both yes and no to the question of whether owning a home is still a financial goal.<\/p>\n
\u201cProperty remains one of the most powerful tools for building long-term wealth, but it\u2019s important to distinguish between a home you live in and a property you buy as an investment,\u201d he says.<\/p>\n
\u201cA primary residence is first and foremost a lifestyle asset that provides security and stability, while an investment property is purchased to generate returns through rental income, capital growth or both. Although a home may appreciate in value over time, that doesn\u2019t necessarily make it the most effective retirement strategy.\u201d<\/p>\n
Mistakes many make when buying a home<\/p>\n
Nicol highlights that the biggest mistake many people make when buying property is assuming it is automatically a good investment because property prices increase over time. But that is not how a good investment work.<\/p>\n
\u201cWhat matters is the return you achieve after accounting for costs, interest, maintenance, rates and taxes, insurance, and the opportunity cost of tying up your money,\u201d he adds.<\/p>\n
While a home is often a family\u2019s largest asset, much of that wealth remains tied up in the property itself.<\/p>\n
\u201cUnlike retirement savings, shares or other investments, the house you live in doesn\u2019t provide an income stream when you stop working. The reality is that when you retire, you still need somewhere to live. Unless you\u2019re planning to sell or downsize, that value isn\u2019t generating an income for you. It\u2019s a distinction that many South Africans overlook.\u201d<\/p>\n
Other investment options<\/p>\n
He notes that investing has become more accessible<\/a> than ever. So people do not have to only focus on buying property as an investment.<\/p>\n \u201cInvestment products such as low-cost index funds, retirement products and tax-free savings accounts have lowered the barriers to entry, allowing ordinary South Africans to build diversified portfolios, often straight from their smartphones,\u201d says Nicol.<\/p>\n \u201cAs a result, building long-term wealth no longer requires millions of rand or taking on significant debt.\u201d<\/p>\n But he emphasises that property has not lost its appeal. \u201cProperty remains unique because it combines an asset with a practical need: a place to live.<\/p>\n \u201cFor many households, buying a home creates financial discipline that might otherwise be difficult to maintain. Every bond repayment gradually converts debt into equity, building wealth over time.\u201d<\/p>\n Should young professionals buy homes?<\/p>\n Nicol says that whether buying a home makes financial sense largely depends on individual circumstances.<\/p>\n \u201cSomeone who plans to stay in a property for a decade or longer may benefit significantly from ownership.<\/p>\n