Cost of long term renting less than buying
15/04/2010 - Tenants pay less over 25 years
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Latest research shows that it is not cheaper to buy then rent. The researchers based at Lettingsearch compared the basic costs of renting and that of buying a property over a period of 25 years and found that it would be much cheaper by £11,342.54 to rent an average home than to buy it.
The figures were based on an average property costing £164,455. The average tenant pays £685.23 per month or the equivalent of £8,222.75 per year in rent across 25 years the tenant would pay £299,795.42 in rental payments and with letting agents fees on a calculation of moving an average four times in that period, would increase the figure paid out to £301,175.74.
The cost of buying an average property would mean a deposit of £32,891 with the average capital and repayment mortgage rate at 5.5% over 25 years, the home owner pays £275,267.00 on basic housing costs, the cost of stamp duty, solicitor fees and property maintenance and redecoration pushes the figure well above the cost of renting over the same period.
