Estate agents attack rentals
More people are having to decide whether they are better off renting or buying their main residence
RISING property prices in the big previews towns have left more and more people having to decide whether they are better off renting or buying their main residence.
Orpi estate agent president Bernard Cadeau says it looks worthwhile to stay as a tenant in the short term, but it cannot pay off in the long run. “It is impossible to pay a rent on a suitable home and save money at the same time. If you are repaying a mortgage on the other hand, then it becomes a forced saving and you are therefore cashing in for the future.”
Marc Darnault of Optima retirement advisers told Le Figaro that buying a home was essentially in anticipation of retiring. It was one of the first things people should do
once they had the means.
He was backed by estate agency president Guy Hoquet, who said: “Those who have had the wisdom to become property owners at 30 or 40 years of age will not have any rent
to pay once they reach the age of retirement.”
Even in a rising market, some buyers are seeing the wisdom of buying property as an investment.
Century 21 rentals manager Sylvain Jutteau said they were seeing more employees buying buy-to-let properties, making up nearly 20 per cent of buyers in 2010.
The return to the safety of bricks and mortar, he said, was an essential part of people preparing for their retirement. It was especially valuable once prices started to rise and, with them, the value of rentals.
He also highlighted another trend: the reduction in students who are renting. Figures showed that the numbers had dropped from 23 per cent in 2001 to 3.6 per cent in 2010.
Over that time, rents rose 32 per cent and most students were now opting to stay with their parents
