Areas where it’s cheaper to buy than rent


Areas where it’s cheaper to buy than rent

Posted on Wednesday, August 29 2012 at 2:37 PM

RP Data has released its annual Buy Versus Rent report that lists 283 suburbs and towns across Australia where it’s cheaper to service a mortgage than pay rent.

Queensland tops the list with 84 areas
across the state, including 16 in Brisbane itself. New South Wales records 54
areas, with 22 in Sydney, while Victoria fell well behind its east coast
counterparts with just 10 areas in total.

RP Data’s research director Tim Lawless
says Adelaide is one of the country’s more affordable cities, with 20 suburbs
where it’s cheaper to buy than rent. Hobart has 12 while Perth recorded three.

The list is based on a standard variable
principal and interest loan. Using an interest-only loan, the list expands to a
whopping 1320.

A number of prime spots even appear in the
rankings. The inner-Sydney suburb of Rushcutters Bay makes the list for units.
Similarly, it’s cheaper to buy a unit in West Perth than rent by about $77 a
month.

Flat property market conditions combined
with lower mortgage rates have resulted in improved housing affordability,
Lawless says.

“With lower mortgage rates, tight rental
markets resulting in some rental increases, and lower home values, many buyers
may see now as a good time to either re-enter the market or buy their first
home,” he says.

Nationally, capital city home values have
slid by 5.9 per cent since October 2010. It’s good news for those renting who
are considering stepping onto the property ladder, he says.

For the free report and suburb-by-suburb
statistics, visit www.rpdata.com.au/buyorrent

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