Renting a house may be financially more beneficial than owning one, according to a new research which claims that people often overlook the costs of building insurance and property maintenance when buying homes. The prospect of no longer having to pay rent, known as imputed rent, is often cited as a major incentive to owning a home. He believes a failure to properly account for these outgoings can cause householders to overestimate the financial benefits of owning versus renting. The new research provides a step-by-step explanation of how households can objectively compare the costs of renting versus buying a home, while taking their own personal circumstances and macro-economic conditions into account. "It is often thought that buying a house makes more financial sense in the long run: however renting is frequently more worthwhile than buying for financially-constrained households, as well as households likely to relocate within 10 years," said Tabner.

Source: dna January 15, 2017 15:04 UTC