PROPERTY
NEWS HEADLINES
Zoopla research statistics findings that tenants pay 14% more on average in rent than owners pay in servicing mortgages, confirm only what is known already,” says Deirdre Fibiger, Principal of Property Network.
Zoopla’s analysis of the cost of renting compared to servicing a mortgage reveals that renting a typical two-bedroom property is over R10000 more expensive per year than paying an interest-only mortgage on an equivalent home.
The difficulties faced by first-time buyers in getting a
mortgage have pushed up the cost of renting. Buying is now cheaper than renting
across 86% of the UK’s cities, up from 84% one year ago.
“As a general rule it is always much more cost-effective in the long term to own a property than rent it,” said Fibiger, adding that this was particularly true in Port Elizabeth and similar economic areas, where a big gap has opened up between the cost of renting and owning.”
“Would-be buyers are still finding it hard to get bond finance, which has forced more of them into the rental sector,” she said. “. This has had the dual effect of pushing up rents and keeping a lid on property values, making owning a great option.”
“It is our opinion that this is still a very favourable buyers market,” she said and encourages buyers to make use of depressed prices while they still last. “Those playing wait and see before buying could well find themselves paying the price for delaying.”
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