Most of us would claim that renting is cheaper than buying. We have finally done some basic calculations to find out whether this is another myth. Our conclusion is: average rent payments are HIGHER than average mortgage payments.

Maybe in the past the situation was different. Unfortunately, nowadays renting is no longer cheap.

Why is buying cheaper than renting? How do we explain this phenomenon?

It is normal that a home should have a high value. Some homes cannot be purchased by an individual with a lower or more or less average income. The market has its own rules and they are constantly changing. Landlords keep buying extra property and people have fewer options. More than that, interest rates have brought down the average mortgage repayment which, in turn, influences the increase.

Can we afford to own?

Payments we do on a monthly basis might be cheaper. Unfortunately, there’re more things to pay for. Some aspects might make us believe that renting is a better alternative. Of course, the first thing to consider is how much money you need to save to make a deposit. Large deposits mean that the repayment will be lower. A person can apply for a lower mortgage rate, but, since houses cost lots, even a ten per cent mortgage will make you pay big money. Once you become an owner of a house, you become responsible for its maintenance. You’ll be the one to pay for leakages and broken stuff.