Recent research from Barclays cements the perception that buying property is far better than renting in financial terms.
It’s always been mooted that owning your own home is a wise investment however, latterly, you would be forgiven for thinking that buying a property was akin to gambling your hard won savings on the roulette wheel of a dodgy casino.
The fact is that home owners are some £200,000 better off than those that rent.
Take a standard house and equate the mortgage costs in interest and capital repayment terms, maintenance, stamp duty and the like and the cost over a 50 year period is around £429,000, says the High Street bank (that has a massive vested interest in encouraging you to take out a mortgage).
Renting is a significantly higher burden at £623,000 apparently.
The difference is even more startling when you consider of course that ultimately one owns the property at the end of the mortgage term whereby renting yields you little in bankable conclusion. Will your property increase in value over 50 years? Oh, yes, even the grimsters at HousePriceCrash.com would concede that particular reality. And Barclays puts the overall buying advantage at £595,000 when you factor in the asset value.
Every Englishman can rest easy that, in monetary terms, his house is still his castle and a pretty impregnable one at that.