Renting vs Buying

Many people in Zambia aspire to buy their dream house but in today’s heated housing market, renting is often perceived as a less-expensive option. Times are generally rough, with the declining economic performance; little to no disposable income for investments and most people living pay check to pay check, renting has proved to become a more preferred option by many people in Zambia.


Determining whether and when to purchase a home is a personal choice that demands careful deliberation. Also, because the Zambian culture idealises home ownership, emotional and social pressures can affect the decision almost as much as financial concerns.Given the hefty upfront costs associated with purchasing a home, most young people begin their independent lives renting an apartment. As they build careers, save money, and start families, many choose to save and ultimately buy a home. The other factor that would necessitate the need for most young people to rent is the nature of their jobs, which are usually not permanent. It makes more sense to rent rather than taking on the high transaction costs of purchasing a home.


There are pros and cons to renting a house, just as there to owning a home. Both-options have their own advantages and disadvantages, for example renting allows you more expendable money in the short term, while owning a house gives one the sense of security as it is considered a long-term investment. However, buying a house may have an immediate impact on your cash flow but on the plus side, you are investing in a long-term asset.



Renting a house on the one hand gives you less flexibility. Owners can do whatever they like to their house without having to seek the tenant’s permission (as long as it’s legal). If you rent a house and want to subdivide an office with false walls, not only may your business plans be held back while the landlord looks at them, but you may even have to pay to have the work reversed when you leave.

So those are the main differences between buying and renting a house. It’s worth remembering that you will have to pay utility bills and land rates whether you buy or rent a house.

But the good news is that Nkwashi – your preferred partner in making you realise your dreams of owning your dream home has a flexible and affordable payment plan that are designed to meet  everyone’s needs. Nkwashi is about enabling you to own a plot that is fully serviced with tarred roads, water and sewerage access, electricity and access to parks and recreational areas…all in a new town where you will have communal security, garbage collection and even schools. Prices start from K300 per month and you could start building your house as early as one-year into your payment plan.