South Africa has some of the most competitive rent and mortgage prices in the world, with the 1st smallest price difference between rent and house prices.The research by Compare The Market analysed average house and rent prices around the world to reveal which countries have the smallest (& largest) margins between rent and house prices.

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You can view the research in full here: https://www.comparethemarket.com.au/home-contents-insurance/features/renting-vs-buying-2021/

The top 10 countries with the smallest price difference between renting and buying property

 

Rank
  Country 
Average rent 
  (three bedrooms)
Estimated monthly mortgage payment
Difference between house prices and rent
1
South Africa
$865
$872
0.8%
2
South Korea
$1,176
$1,259
7.1%
3
Estonia
$747
$816
9.2%
4
Israel
$1,485
$1,641
10.5%
5
Japan
$1,382
$1,534
11.0%
6
Lithuania
$692
$775
12.1%
7
Belgium
$1,224
$1,384
13.1%
8
Switzerland
$2,599
$2,961
13.9%
9
Poland
$951
$1,089
14.5%
10
Norway
$1,708
$1,958
14.6%

South Africa ranked first for the smallest margin (0.8%) between rent and house prices with the average rent price of US$865 and estimated monthly mortgage payments costing $872 – a price difference of just under $10.

South Korea and Estonia followed closely with price gaps of 7.1% and 9.2%, with the average rent and mortgage payments still having an affordable price difference of under $100.On the other end of the scale, the research showed the countries with the biggest difference between house and rent prices. Luxembourg has the greatest margin of 51%, with monthly mortgage payments of $4,558 and the average rent at $3,017.

You can view the research in full here.

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