Gap between buyers and renters widens
Gap between buyers and renters in Chelmsford crosses £800k
New research from Countryside has shown that tenants in Chelmsford would be better off by up to £809,120 on average over 25 years if they bought instead of rented a typical property.
Researchers compared the lifetime gain or loss of someone renting a property to the lifetime gain or loss of buying an average home. Because buyers will own an asset once they have paid off their mortgage, this is creating a remarkable divide between buyers and renters, leading to a property divide whose wealth will be substantially less than those buying over a 25 year period.
It may seem as though renting can be the cheaper option, but overtime, the property winners are those who buy and are left with an asset after 25 years.
Looking at the costs of buying or renting an average Chelmsford house priced at £334,475, buyers gain over £800,000. Those who purchase higher priced properties could find themselves being property millionaires.
Chris Bladon, Managing Director of Countryside’s New Homes & Communities Eastern Region, said the difference between renting and buying is creating a property wealth divide in Chelmsford. One of the key challenges that tenants are faced with is saving up for the deposit. But, with help-to-buy and stamp duty relief for first-time buyers this has made buying a property far easier for first-time-buyers.
He added apart from being a good investment for the future, home buyers in Chelmsford can look forward to benefitting from a wide choice of shopping, dining and leisure facilities. Some of the best performing schools, like King Edward VI Grammar School for Boys and Chelmsford County High School for Girls, offer further advantages for those with families.