Compare the costs of buying vs renting with different property growth scenarios
Historical UK average is around 3-4% annually, but this varies significantly by location and time period. Property values can fall, especially during economic downturns.
As a homeowner, you're responsible for all maintenance and repairs. Budget around 1% of property value annually.
Renting offers more flexibility to move. Selling a property takes time and incurs estate agent fees (typically 1-3%).
Mortgage rates can change when you remortgage. Fixed-rate periods typically last 2-5 years.
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It depends on your circumstances. Buying typically builds equity and can be cheaper long-term if property values rise, but requires a deposit and has upfront costs. Renting offers flexibility and lower initial costs but doesn't build equity. Use our calculator to compare costs based on your situation.
Buying costs include deposit, stamp duty, legal fees, mortgage payments, maintenance, and insurance. Renting costs include monthly rent, deposit, agent fees, and renters insurance. Also consider opportunity cost – the return you could earn by investing your deposit instead.
Property maintenance typically costs 1-2% of the property value per year. This covers repairs, replacements (boiler, roof, etc.), and general upkeep. Our calculator uses 1.5% as a standard estimate, though actual costs vary.
Opportunity cost is the potential investment return you forgo by using your deposit to buy property. If you rent and invest your deposit instead (e.g., in stocks/bonds), that investment could grow. Our calculator factors this in to show the true cost comparison.
If you expect property prices to fall or remain flat, renting can be financially advantageous in the short to medium term. Use our calculator with negative or 0% property growth to model this scenario and see how it affects the buy vs rent decision.