Autopilot Leads

Thursday, March 3, 2011

Buying cheaper than Renting

Buying a house is cheaper than renting

Falling house prices and rising rents have made it cheaper to buy a home than be a tenant.

Renting a home now costs an average of 10.5pc more than paying interest on a mortgage. Current problems in the mortgage market had left many people unable to buy their own home, boosting demand for rented accommodation. But the credit crunch had also hit landlords, with many investors also unable to borrow to expand their portfolios, creating a mismatch between supply and demand and driving up rents. While buying wins out over renting today, the impact of a possible rise in interest rates cannot be ignored.

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