Saw this article on the news and just thought it might be handy for those that didn't catch it…
http://www.myrp.com.au/buyorrent
Despite the rising number of renters across the country, it's more affordable to buy in 238 postcodes, based on a principal and interest loan with a variable mortgage rate.
Using an interest only loan, the list expands to 1320 suburbs and towns.
Experts say escalating rents, falling house prices and recent rate cuts have contributed to more favourable conditions for paying off a home loan than paying a landlord.
RP Data’s annual Buy versus Rent report shows that Queensland has the most places where it’s more affordable to buy; Brisbane has 16 suburbs while in the regional areas of the state there are 68 towns.
Buying vs. renting: See the full list of suburbs here
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New South Wales has 54 suburbs; 22 are in Sydney, while the remaining 32 are in the regional parts of the state.
Victoria has just 10 areas where a property is now cheaper to buy than rent, with two suburbs in Melbourne and eight in regional belts.
One of Australia’s most affordable housing markets, Adelaide, has 20 suburbs where buying is currently cheaper than renting, while there are three regional South Australian towns that qualify.
Hobart has 12, compared to 13 in regional Tasmania, and Canberra has just one suburb where it’s cheaper to buy.
Western Australia has 35; three in Perth with the remaining 32 largely in the state’s resource-driven areas.
In the Northern Territory, Darwin has no suburbs where it’s cheaper to buy, while there are six in regional areas of the Territory.
Tim Lawless RP Data research director said house price and interest rate falls had contributed to making home ownership more affordable than renting in many areas.
“Nationally, capital city home values have fallen by 5.9 per cent from the October 2010 peak. These conditions, in conjunction with discounted variable mortgage rates falling by around 100 basis points since October last year, have resulted in improved housing affordability,” Mr Lawless said.
“With lower mortgage rates, tight rental markets resulting in some rental increases, and lower home values, many buyers may see now it as a good time to either re-enter the market or buy their first home.”
The RP Data research is based on costs involved in servicing a mortgage on median house and unit values compared with median asking rents across each suburb and town across the country.
Top suburbs for buying over renting
SYDNEY
Warwick Farm
Campbelltown
Rushcutters Bay
Mount Druitt
Ambarvale
MELBOURNE
Carlton
Dallas
BRISBANE
Bundamba
Boronia Heights
Bellbird Park
Brisbane CBD
Woodridge
ADELAIDE
Gilles Plain
Elizabeth Downs
Elizabeth East
Davoren Park
Munno Park
PERTH
Mount Hawthorn
Burswood
Perth CBD
HOBART
Herdsman Cove
Risdon Vale
Gagebrook
Chigwell
Bridgewater
CANBERRA
Hackett
NORTHERN TERRITORY (REGIONAL)
Alice Springs
Braitling
The Gap
Sadadeen
Desert Springs
It's an interesting article. I remember CBA putting out a similar report a few years back.
Interesting to see that only one Canberra suburb made the cut – and it's not a cheap suburb to buy into.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Be interesting to see the whole equation. Does the debate consider all ongoing property costs such as rates, insurance, repairs, etc all of which are borne by the land owner?
The other point seemingly overlooked is that interest rates are very low at the moment – what happens when rates increase by 0.5% – how many suburbs fall off the report on that basis?
For some of those suburbs it could well be an 'at this point in time' argument.
I have been following this as well and would say at the very least it is pointing to higher yielding suburbs, some under your nose I found.
I also doubt the opportunity cost of owning is factored in either.
very interesting, Rushcutters bay!
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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