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Wales Rentals

In most areas of the United Kingdom renting makes little sense because over time it will end up costing people more money to rent their residences than it will to buy them. This is true in almost all areas of the United Kingdom but one: Wales. In Wales it is officially much cheaper, over time, to rent a piece of property than it is to buy one. In fact, according to research done by a top financial organization, renting saved people over sixty thousand pounds (over the course of twenty five years).

The financial gap between renting a residence and buying a residence has gone up from six percent to fifteen percent in just a single year. Some speculate that this is because of the ever rising cost of mortgages and interest rtes. Others, most notably Melfyn Williams of the National Association of Estate Agents, think that it might also be because traditionally the quality of rental housing in Wales has been very poor. Poor quality will always keep a rental cost down, but it looks like rental properties coming into the Welsh market now are of a higher quality than that which had been there previously.

Unfortunately the same cannot be said for Britain. In Britain it has always been much more prudent to buy your home instead of renting it. Of course, with housing prices on the rise, the ratio of money saved over a lifetime is shrinking dramatically.

Leading financial institutions maintain that Wales is one of the few exceptions to the rule (the others being the area North West of England and Northern Ireland) and that, throughout the rest of the United Kingdom, it is still more expensive to rent a residence and people are better off buying their homes…but just barely.

According to studies done, a family will only save a little over fifty five hundred pounds (over the course of twenty five years) by buying its property. Last year that savings was much more substantial: families saved an average of twenty four thousand pounds over the course of twenty five years. That is an incredibly large drop.

Financial experts have pointed out that, while the money saved can be great, there are still a number of benefits to buying a residence that aren’t available to renters, the largest being that while the renter might save some money, at least the owner still owns his or her house after he/she is done paying for it. The renter will always be paying for his or her residence, and never have a home to show for it.

Owning a home also builds equity and can provide residence to other family members, whereas rental agreements are often strict as to who can and cannot reside in a family residence. Owners are also able to make the necessary repairs and adjustments to their properties, while renters have to ask permission. The monthly cost of rent can also increase over time, while the mortgage payment usually shrinks the closer you get to paying it off.

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