This post reviews the first 5,000 entries in the rent-or-buy calculator put up on the site in April. While almost half of all entries were considering a loan-to-value of 90%-95%, many of those are looking at terms of 25 years or less – a sign that times have changed. Those who changed the defaults were generally more pessimistic about the future growth of house prices (and rents). The calculator has been quite balanced in its results, with the ‘buys’ having the slight edge over the ‘rents’ at this point.
This post launches a rent-or-buy calculator that allows people to put in their own details, including assumptions about interest rates and growth in house prices and rents over the coming decades, and compares their wealth at the end of the period if they rented or bought. It also discusses some of the assumptions underpinning the calculator and answers to FAQs about it.
This post takes five sample properties in Dublin and explores the rent-or-buy question. It first explains why potential first-time buyers should care about rents and shows how current yields in residential property compare with mortgage costs and yields at the height of the boom. It then examines the 25-year costs of renting or buying, before discussing some of the wider economic benefits of a nation of renters.
Figures from this blog on the rent-or-buy decision featured in today’s Irish Independent and have started some discussion on the most important factors for current prospective first-time buyers. This post includes a poll asking for your input on the topic, which will inform future posts on the topic.
Is it the right time to rent or buy? Vote now
