May 11, 2021
Business News Property

Home truths: How Wicklow tenants can save €8,000 a year by buying their own place

Renters in Wicklow could save close to €8,000 per year by getting themselves on the property ladder.

The latest rental price report from Daft.ie reveals people in Wicklow renting one, two, and three bedroom properties are paying up to more than double the mortgage payment the landlord pays on that property.

It’s not all good news for landlords, however, as the report also reveals that families renting homes with four or more bedrooms are actually better off remaining in the rental accommodation rather than looking for a mortgage on a similar property.

The report found that mortgages on these four and five bedroom properties are actually marginally higher than the rents these properties can obtain.

The average rent on a one-bedroom property in Wicklow now stands at €1,074 per month. However, the mortgage comes in at just €499 per month – a €575 difference or 54% gap.

The tenant could save €6,900 per annum by getting a mortgage on a similar property.

It’s a similar story with two-bed properties, where the average rent is now €1,216 per month. However, the mortgage stands at €643 per month – a difference of €573 or 48%.

Those renting two-bed properties could save €6,876 per annum by buying a similar property.

People renting a three-bed property in Wicklow could save a staggering could save close to €8,000 by getting their feet on the property ladder.

The rent on a Wicklow three-bed stands at €1,803, while the mortgage on the property is €1,149 – a €654 per month difference or 36% gap, which equates to a €7,848 per annum saving if the tenant bought a home.

The report shows that landlords of four-bed homes are actually losing money by renting the property, receiving €1,564 per month on rent but paying €1,803 on their mortgage, representing a loss of €3,084 per annum to the landlord.

Owners of homes with five or more bedrooms are still losing money, only able to obtain €1,725 per month on rent, while forking out €1,878 on the mortgage – a €1,836 loss over the course of a year.

 

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