Photo credit: ForeclosureDeals.com
Buying property beats renting it, according to this new infographic. The chart, published by Foreclosure Deals, reveals that in America, average house prices have dropped by 46 per cent since 2008, while national rental rates have risen by a hefty 60 per cent.
Highlighting the states with low prices in green and the higher prices in red, the diagram shows that while New York property remains expensive to purchase (at an average price of $406,000), the median rent has grown from $943 three years ago to $2,400 in 2011. At the other end of the scale, Nebraska's rent has also risen from an average of $622 in 2008 to $1,800 this year, but houses are now more affordable to purchase, with prices below $217,000.
This gap between low prices and high rents is only going to widen, according to Foreclosure Deals : "By the end of 2011 that figure will rise another 4.5%, and by at least another 3% in 2012."
Here is the full infographic:
The situation is now the same in the UK too. New research from Zoopla shows that buying property is cheaper than renting in 94 per cent of British towns.
The property website's report found that on average renting is now 15 per cent more expensive than purchasing a home across Britain. In London, for example, where the average asking price for two-bedroom flats is currently £442,036, renters pay £6,888 more each year than homeowners.
In fact, there are only three towns in the UK where renting is the cheaper option: Swansea, Plymouth and Bournemouth. In contrast, Milton Keynes comes top of the list of locations where buying beats renting, with rents costing 36 per cent more per year.
Nicholas Leeming of Zoopla.co.uk, said: "Although buying may be more cost-effective than ever compared to renting, many potential buyers aren't able to take advantage because they can't access mortgage finance. The shortage of financing, especially to first time buyers, has pushed demand for rental property through the roof. But for those lucky enough to be in a position to get a mortgage, there may never have been a better time to buy."
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