Property News > Does It Make More Sense To Rent Than Buy?

Does It Make More Sense To Rent Than Buy?

The debate on renting versus buying is one that will be never-ending. Ultimately the pros and cons change as the market changes and with studies suggesting rent is now cheaper per month than mortgage repayments, it could be time to be thinking about renting over purchase.Our rent versus buy season has found that currently rental fees are cheaper in over half of UK cities, but does that mean we should simply forget about buying and stick to handing over rent at the beginning of every month?Well, perhaps not. Ultimately, renting is money you’re still never going to see a return on in comparison to buying, where at the end of your mortgage you will be the rightful owner of your property.What the rental market does currently offer though is an opportune moment. With rent now cheaper than mortgage repayments and the growth of rent fees steadying over the past six months. That’s giving the perfect opportunity for first time buyers to start to save for a deposit while the market is in its current position.It’s expected that the market will readdress itself, with mortgage payments coming back down to compete with rental costs, and during that time first time buyers have the chance to get themselves in a good position.Of course, there are all the usual benefits to renting. You’re not tied down to an area, you can move quickly if needed and you won’t have to pay for any repairs or renovations, but it’s also the time to get saving, particularly for couples wanting to buy.Taking the average wage for a couple, which would stand at around £42,000 after tax, a couple would spend around £8,300 on rent, leaving £33,700 to pay bills, expenses and groceries.It takes on average eight years for first time buyers to save for a deposit, with the average currently standing at £51,000. Across this period, this would mean saving around £6,400 per year, which  would leave around £27,000 for all other expenses. It’s therefore a good time to be thinking about saving for a house, while the market isn’t as attractive as it’s been. That will undoubtedly readdress itself and taking advantage of current rental fees will put you at the front of the queue when it does.

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