A recent set of headlines from specialist financial blogs right through to broadsheets boldly say that people are better off buying a home than renting one. In fact, they’re almost £900 per year better off.
It is always important to take property headlines with a pinch of salt, but this is a story worth considering. So, let’s look at some of the reasons behind it.
Halifax has published a report looking at June’s average monthly costs of owning a 3-bedroom home (£672) vs the average monthly rent cheque on such a house (£745). In essence, lower overall house prices and increasing variety in mortgage products have lowered the cost of buying.
Rent, on the other hand, keeps growing. On average, renters pay about 10% (£73) more each month.
One of the most important figures behind the headlines is that this is the reverse of the situation back in 2008. Then, it was almost 50% more expensive to buy than rent!
So, what do you do with this headline?
Well, it’s a perfect reason to look at your own financial situation, and consider your options. You might be in a good position to consider investing in property, or buying your own home instead of renting it. But, a word of caution: an average headline does not always apply to you.
Here at Limetree, we often repeat ourselves when we say: it’s always a good idea to look at a variety of options, and carefully consider your own situation. So, lets talk about yours.