Is Renting The Best Option?
Early October saw the publication of a survey that announced renting is now a cheaper option than buying!
The survey looked at rentals from private landlords during 2006 (i.e. not including local authority or housing association tenancies) and found that for an average two to three bedroom house the rental costs would work out to be less than the cost of a 100% mortgage. This is the first time for many years that renting a property has been considered more financially advantageous than buying; in the past renting has always been seen as the more expensive option.
With the recent rapid increase in house prices, some areas having seen a three-fold rise since 1994, 100% mortgages (or close to 100%) have been put out of the reach of many on lower or even average earnings. But during this same time period the costs of renting have remained quite stable, partly influenced by of the number of ‘buy to let’ properties that have come to the marketing through new investors keen to make money from the property boom.
With property prices around five times the average first-time buyer’s income, it’s not difficult to see why rentals are enjoying a resurgence in popularity. If you find yourself in a position where your mortgage is draining your finances, or you are in arrears with your lender, why not consider the option of selling your home and renting it back? This solution allows you to remain in your home, but as a tenant rather than a homeowner, and enjoy all the rights that tenants normally have in privately rented properties.
Talk to Property Rescue about how this scheme works. All discussions are in strict confidence and you won’t be put under any obligation to proceed if you decide that sell and rent back isn’t for you.
