Is renting really more expensive than buying property?

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According to Zoopla buying property is now cheaper than renting in 47 of the 50 largest towns and cities across the country.

However Zoopla have been a little bit loose with their maths to arrive at that conclusion.

They have taken a 100% Loan-to-value mortgage product (which probably does not exist) and compared the monthly costs with renting.

TIP! Always do research before buying a property. Many people jump into the property market too quickly, make bad purchases, and end up losing a lot of money and time.

The website “letting agent today” goes on to explain that to compare the cost of buying versus renting, Zoopla analysed the current asking prices and rents of over 78,000 two-bedroom flats currently on the market, comparing the rental cost to the cost of ownership based on servicing an interest-only mortgage at 5% pa.

If you want to move, do some research on the internet about different communities and neighborhoods. Using the web, you can nearly become an expert on the area without even leaving your home. Consider the salary margins, population and unemployment rate of your desired location before purchasing a house there so you ensure that you will love where you live.

TIP! Do not buy a home along a busy road if you can avoid it. These houses can appear to be attractive due to the fact that they cost less than houses that are further away from busy roads; however, there is a good reason why they cost less.

Swansea, Plymouth and Bournemouth are the only three locations on the list of 50 towns where it remains cheaper to rent than buy today.

In contrast, Milton Keynes comes top of the list of locations where buying beats renting and where renting is 36% more expensive than owning, leaving renters £2,436 per year worse off on average.

Get a warranty for the house. When you are buying a new home from the person who built it, or from an owner, get a warranty. Builders should be willing to warranty their home products for a certain time period. Previous owners should be willing to purchase a home warranty for at least a year to help you offset any impending repairs.

TIP! Set aside a fund for unexpected expenses linked to the new property. Closing costs are generally calculated based on the down payment, interest rates the bank charges, and real estate taxes that have been pro-rated.

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