Reports indicated that although buying a home might seem to be a more bigger investment than renting, recent statistics show that the price difference between the two are closing in more than ever before. This was due to the decline in the value of mortgage rates, making buying less expensive than it used to be. So, who wins in the battle of renting vs buying?
As reported by The Independent, first time buyers were able to save £56 in paying the upkeeps and necessary expenses when one buys a home as compared to those who rented at a rate of £722 for a standard three-bedroom house.
Recent statistics show that the gap has increased farther away from each other in the battle of renting vs buying.
Since mortgage rates have declined over the years, especially for first-time buyers, it might be the best optimal choice for people who are troubled as to where they may be able to save more money on. Furthermore, since rental costs have risen altogether, owning your own home may be regarded as a safer investment than renting.
In fact, renters were able to pay an extra £1,018 per year compared to first-time home buyers.
Accordingly, FT Adviser also reported that average rents have increased in value at a rate of 23% for this year's period.
Last year, the values rose up to £85 during 2014, and a whopping £56 for 2015. Meaning, buying could have won the battle against renting for this season.
The study was conducted comparing values of renting and buying in London alone, saying that the largest difference between the two was savings that were equated at a monthly rate.
While these numbers indicated that the first-time buyers are getting a lead on savings, the statistics revealed that there has been a rise of number of homebuyers equating to 135,000 for this year alone.
Truly, buying has won the renting vs buying battle as the latter provides more savings that the other.