Athlone’s Sherry FitzGerald O'Meara has recently carried out a survey weighing up the options between buying and renting a home and is encouraging the public to buy now.
The property market has changed dramatically over the past 18 months with values falling by 30 per cent from their peak. The popular selling agents have outlined a number of reasons why they believe that “buying a home is better then renting”.
Advantages for purchasing a house compared to renting, they say, are that you will own your own home and have security of tenure. Falling interest rates equal cheaper mortgages. In light of the recent reductions and the ECB rate at 2.5 per cent, with increased mortgage interest relief to 25 per cent for first time buyers.
Rent allowed scheme, allows purchasers to rent a room/s in your own home and not pay tax on a rental income of €10,000. Your capital repayments decrease during the term of the mortgage. The following is an illustration of a property with a purchase price of €200,000 compared with renting the property.
Sherry FitzGerald O'Meara say they have found in today’s climate that with some of the government measures, it is actually cheaper to buy than rent a house.
For example a property purchased at €200,000 with a 92 per cent mortgage over a 35 year period for a first time buyer and assuming mortgage interest relief of 25 per cent deducted at source – repay €646.93 per month. Rent a Room Allowance and rental from a tenant of €280 per month would substantially reduce repayments. Rental for this type of property would be €750 per month.