The suburbs where it is cheaper to buy than rent for both homes and units have been revealed.
More than half of properties across Australia are now more affordable to purchase than lease out, new analysis by realestate.com.au shows, as interest rates remain at record lows.
Economists crunched the numbers to determine 56.8 per cent of dwellings are cheaper to buy, taking into account current property prices and a decade-long analysis of finances associated with renting and buying.
Realestate.com.au economist Paul Ryan said interest rates at the moment can be fixed at less than two per cent a year, making buying a house a much more attractive option.
New analysis shows that in Brisbane City (pictured) buyers of two bedroom units are $1162 a month better off compared renters, based on a 10-year cost analysis
In Greater Melbourne, Frankston North is the top suburb where it is cheaper to buy than rent, to the tune of $794 a month
‘This certainty that mortgage costs are not going to increase rapidly provides comfort to buyers borrowing larger amounts,’ Mr Ryan said.
Across Australia’s capital cities, house prices are surging at a double digit annual rate as apartment values fall in the same markets.
In Sydney house prices have surged by $100,000 in just three months.
Some economists have forecast property prices will surge by as much as 20 per cent over the next year.
‘Part of the reason why prices are forecast to rise so strongly is because people can recognise that generally property is so much cheaper to buy than rent currently,’ Mr Ryan said.
Across Australia, the outer suburbs of Brisbane, Adelaide, Perth and Hobart are the cheapest to buy at the moment, along with regional areas.
In Wanneroo (pictured), Perth’s north, buyers are $1363 better off a month compared to renters for two bedroom units
In Adelaide, Elizabeth South is $772 a month cheaper to buy than rent for three bedroom homes
CHEAPER TO BUY THAN RENT
Greater capital city
Sydney
Melbourne
Brisbane
Adelaide
Perth
Hobart
Darwin
Canberra
Three bedroom houses
Tacoma
Watford Park
Kilcoy
Elizabeth South
Hilbert
Clarendon Vale
Zuccoli
Coombs
Two bedroom units
Kangy Angy
Frankston North
Brisbane City
Glanville
Wanneroo
Glebe
Darwin City
City
In the Greater Sydney region, Tacoma, on the Central Coast, tops the list of three bedroom homes that are cheaper to buy than rent, with the 10-year analysis showing a monthly price difference of $578.
Nearby Kangy Angy is the place where it is cheaper to buy than rent for two bedroom units in the Greater Sydney region, with homeowners $1206 better off than renters.
In Greater Melbourne, Watford Park is the number one suburb where buyers are better off than renters for three bedroom homes, to the tune of $472 a month, while for two bedroom units Frankston North comes out on top.
In Greater Brisbane, homeowners are most better off in Kilcoy, where buying is $1014 a month cheaper for three bedroom homes, and for two bedroom units, buyers in Brisbane City are $1162 better off than renters.
In Perth, Hilbert is the top suburb for buyers over rents, at a cost benefit of $811 a month for three bedroom and for two bedroom units, Wanneroo is the place to go as buyers are $1363 better off a month compared to renters.
Sydney’s median house price surged to a new record high of $1.309million in the March quarter as values soared $103,000 or by 8.5 per cent in just three months. Pictured is a Baulkham Hills house with a price guide of $1.6million
TOP 10 SUBURBS IN EACH CAPITAL CITY WHERE IT IS CHEAPER TO BUY
Greater Capital City
Sydney
Melbourne
Brisbane
Adelaide
Perth
Hobart
Darwin
Canberra
Three bedroom homes
Tacoma
Rocky Point
Warragamba
Hamlyn Terrace
Warnervale
Mount Victoria
Wadalba
Watanobbi
Doyalson
Blue Haven
Waterford Park
Rockbank
Mickleham
Millgrove
Wollert
Kurunjang
Kalkallo
Melton
Donnybrook
Kilcoy
Lockrose
Waterford
Toogoolawah
Logan Reserve
D’Aguilar
Kooralbyn
Yarrabilba
Crestmead
Regency Downs
Elizabeth South
Gawler West
Munno Para
Elizabeth Park
Wingfield
Elizabeth North
Hackham West
Smithfield Plains
Smithfield
Elizabeth Downs
Hilbert
Meadow Springs
Lakelands
Carramar
Stratton
Orelia
Wellard
Brabham
Koongamia
Port Kennedy
Clarendon Vale
Gagebrook
Risdon Vale
Herdsmans Cove
Chigwell
Derwent Park
Goodwood
New Norfolk
Warrane
Glenorchy
Zuccoli
Muirhead
The Narrows
Woolner
Lyons
Gray
Ludmilla
Moulden
Karama
Wagaman
Coombs
Denman Prospect
Moncrieff
Casey
Throsby
Bonner
Crace
Forde
Dunlop
Phillip
Two bedroom units
Kangy Angy
Stanhope Gardens
Vineyard
Warragamba
Banksmeadow
Canton Beach
Bayview
Belrose
Tascott
Leppington
Frankston North
Bangholme
Williams Landing
Woori Yallock
Burnside Heights
Roxburgh Park
Travancore
Notting Hill
Kealba
Melton South
Brisbane City
Woolloongabba
Kangaroo Point
Eight Mile Plains
Dutton Park
Durack
Macgregor
North Lakes
South Brisbane
Spring Hill
Glanville
Walkerville
Sturt
Happy Valley
Adelaide
O’Sullivan Beach
Mawson Lakes
Darlington
Keswick
Hillier
Wanneroo
Merriwa
Coodanup
Wattleup
Swanbourne
Yangebup
Padbury
Currambine
Munster
Kallaroo
Glebe
Herdsmans Cove
Mornington
Bridgewater
Rokeby
Chigwell
Moonah
Derwent Park
New Norfolk
Berriedale
Darwin City
Anula
Rosebery
Wagaman
Malak
Woodroffe
Moulden
Karama
Bakewell
Larrakeyah
City
Reid
Turner
Dickson
Crace
Denman Prospect
Wright
Braddon
Lawson
Oaks Estate
In Adelaide, Elizabeth South is $772 a month cheaper to buy than rent for three bedroom homes and Glanville is $994 a month cheaper to buy than rent for two bedroom units.
Victorian-based buyer’s agent and Real Estate Buyers Agents Association of Australia president Cate Bakos said regional areas were also proving attractive for those wanting to switch from renting to buying.
‘For a lot of tenants, they’re saying “why would I rent when – provided I can save a big enough deposit or get some help with some of the incentives on offer – I could have a mortgage that’s cheaper than my rent”,’ she said.
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