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Renting is a sensible option in the UK
According to Tim Lambert, head of consulting at Ducalian and an industry expert, it may well be more sensible at the moment to rent a property in the UK rather than invest in a home.
He said that the majority of people are currently inclined to believe that renting a property is better than buying one, particularly considering the factors affecting the market, such as a lack of mortgage availability.
A main attraction of renting for many is that rental costs are likely to remain steady on a monthly basis, while mortgages can swing considerably over the years, adding a factor of unpredictability. This is due he said, to interest rate rises which are then passed on to mortgage holders through the lenders.
He further explained that there is likely to be a rise in interest rates throughout 2012. So although buying may look attractive now, this may not be the case in three or four years and buyers need to be aware of what they may be paying in the future, not just what they are paying now.
Now may also be a good time to become a landlord, he noted, as demand for rental property will probably remain high for the foreseeable future.
Posted: 05 May 2011
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