Even in America, I think that there are families out there right now trying to take advantage of our dirt-cheap mortgage rates who wouldn’t otherwise be considering buying.
New York, NY (PRWEB) June 29, 2012
RoadFish.com men’s lifestyle today questioned a recent report made by UK publication the Metro, which quoted that purchasing a home can save up to 200,000 pounds ($310,700 in US dollars) as compared with renting. RoadFish.com warned readers and potential home-buyers that one must do a fully in-depth analysis of one’s five to ten year plan before making this sort of determination, as buying is not always the cheapest or best decision. In some circumstances, such as if a homeowner needed to relocate after living in his or her newly purchased abode for less than five years, it could even cost thousands more to buy and then have to sell quickly, losing closing costs and non-refundable fees to estate agents.
Fred Attewill of British news and sports publication the Metro reported recently about the real estate market in the UK. Attewill stated that the combination of paying a down payment on a house, plus paying the mortgage, coupled with the costs it takes to maintain a home comes out to an average of 429,000 pounds (or $666,451 in US dollars) over the course of 50 years. The article states that to rent a home for the same length of time, the cost to the tenant would be an average of 623,000 pounds ($967,830), a difference of nearly 200,00 pounds—or $310,700 total.
RoadFish.com believes that before prospective buyers start running to estate agents in hoards to put down a deposit on a home, they must evaluate their personal lifestyle very carefully to determine if buying is in fact the better way to go. RoadFish.com’s Senior staff writer is quoted as saying, “Even in America, I think that there are families out there right now trying to take advantage of our dirt-cheap mortgage rates who wouldn’t otherwise be considering buying. I strongly encourage people who are weighing their options to look at their five to ten year plan. If they’re planning on moving in seven years or less, chances are they’d lose money buying a home only to turn around and re-sell it so quickly. If people like to be mobile, or there’s the possibility of relocation, or simply there’s no security in their jobs and the income isn’t guaranteed long-term, it’s probably a better idea to rent than buy. Personal finances and future plans are the most important factors here.”
The above-mentioned Metro article does mention that it is cheaper to rent than buy, buy only in the beginning. Attewill reports that over time, rent will inflate (since landlords maintain to raise the rent every time a tenant signs a new lease,) as opposed to a property that one has purchased for a fixed price—especially if they are paying something like a 30-year fixed mortgage. The interest rate is locked in, never to fluctuate or increase the monthly mortgage. According to global financial services provider Barclays, owning property equates to financial security as the homeowner settles into retirement, since the buyer will own the house in full after paying the 25 to 30 year mortgage off. Barclay’s Head of Mortgages, Andy Gray, is quoted as saying, “The initial cost of stepping on or moving up the housing ladder can be a big barrier for many but the long-term benefits hugely exceed the initial expense.”
The above-mentioned Metro article states that owning a home in London costs an average of 343,522 pounds ($533,661) while the average rent for one year is a whopping 17,520 ($27,217). However, London’s house values rose to record highs just last month according to an article by UK new publication Bloomberg. The article by Scott Hamilton gives much higher numbers than the Metro does, quoting 469,314 pounds ($742,500) as the average asking price in the UK capital. This number represents a 9% increase from just April 2012, and marks the highest it has ever been since the records began begin recorded by Great Britain’s largest property website in 2002.
With this controversial information in mind, RoadFish.com stated that while the Metro article makes buying sound like the clearly obvious choice, potential house-shoppers need to get multiple sources for their data and put in their own homework before making a firm decision. RoadFish.com’s Senior staff writer is quoted saying, “Obviously it’s a major life choice, and not something that anyone takes lightly. But when it comes to buying property, it’s worth the extra footwork and evaluation that only you can do to determine whether it’s the best decision for your lifestyle, regardless of what other reports or professionals say.”
The above-mentioned Bloomberg article stated that typically, house sellers try to take advantage of the increased demand for home purchases in the springtime, however this year’s market is seeing a national decrease in the demand for first-time home buyers for this time of year.
About RoadFish.com
RoadFish.com is an online men's lifestyle and finance magazine targeted toward men in their 30's and 40's that have already attained a moderate level of success in life, and are striving toward more. It goes over current events of interest to this group, such things as exciting adventures, personal finance, consumer interests, hot chicks, and U.S. and international politics as well as ways to make more and save more money. It is a publication owned by Purpose Inc.
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