In the increasingly challenging housing market, accumulating enough finance to own a home is becoming extremely difficult for the vast majority of people, especially in urban areas. So renting is definitely an easier and gentler option than making monthly mortgage payments. But what about buying one?
In recent research of comparemarket.com, the pros and cons of buying or renting a house in 39 countries was based one factors like monthly rent cost of 3 bedrooms houses and mortage plus monthly insurance premium to own that house. The research is based on data from the Organization for Economic Cooperation and Development (OECD) and the cost of living data platform Numbeo.
Of the countries surveyed, Luxembourg, despite its small size, has the highest mortgage fees. Homebuyers here will pay about $4,558 per month, about 50% more than the median rent of $3,017. In second place is Latvia, where the $830 mortgage payment is 42 percent higher than the average rent of $582. Italy and Finland are the only two countries where buying a home is considered cheaper than renting, although the difference is not much.
The chart below shows three columns including monthly rent, monthly mortgage payment, and percentage difference for easy comparison (left to right). However, these numbers are indicative only, as prices can vary from region to region within a country and visa and immigration policies play an important role in deciding whether to buy or rent a house in another country.
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