To buy housing in Scotland, more profitable than renting

27.04.2011 16:55
Articles about real estate | To buy housing in Scotland, more profitable than renting According to a study conducted by the leading banking organizations in the region this spring in the market buying a home in the Scottish mortgage conditions more favorable lease.

According to the publication Property Wire reports referring to the analysis of market conjuncture, the staff member Bank of Scotland, the average mortgage payments have fallen by almost 40% compared to figures of 2008.

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In March, average mortgage payments when buying a house with three bedrooms were the most? 514 in a month. This is 3% (? 17) below the average rent (equal? ??531) for a similar quality and location of housing.

For comparison: three years ago, the average size of monthly payments when buying real estate is 59% higher than average rental rates. In general, the UK average loan repayments in the home buying now, almost 14% lower than the cost of the lease.

According to analysts, a significant decrease in average monthly cost of consumers when purchasing a property is associated primarily with the systematic and purposeful reduction of bank interest rates on mortgages, which began in 2008. Thus, the mortgage rate for a person who applies for a loan for the first time in March 2008 was 5.82%, and this spring, decreased to 3.59%, which allows us to reduce monthly mortgage payments by 38% over the same time period.

Expenditure on housing is approximately 27% of the total income of the average Scot, while the lease payments represent about 28%. In 2008, the cost of buying an apartment or house "ate" a lot of middle-income buyers, as opposed to rents, accounting for 51% to 32%, respectively.

Each year mortgage housing becomes more affordable and simplified the procedure for its acquisition. Tightening of credit conditions, which occurred in 2007, has led to many potential buyers hesitated to apply for a loan, but this phenomenon was temporary. The average down payment when buying a home mortgage is almost not changed since 2009 and accounts for approximately 27% of project cost.

Transaction costs, including fees and charges relating to property acquisitions, constitute a considerable share of total expenditure for the purchase. The average value fees when buying a house with three bedrooms in March 2011 was? 1385, up 17% (? 288) lower than in March 2008. In this case, buyers who purchase a home for the first time, generally are exempt from duty if the value of property does not exceed? 250 000.

In the near future, the difference between payments when buying on credit and leasing is expected to decrease. Interest rates on bank loans will begin to grow again, but long-term benefit of investing surplus funds in the "bricks and mortar" are likely to persist, and the purchase of real estate mortgage will still viewed favorably by many buyers.

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