Cheaper to Buy Than Rent

Rents have risen so substantially in some locations that it is cheaper to make weekly mortgage repayments than rent.

Analysis by PropTrack found 340 house markets and 261 unit markets which offer cheaper weekly mortgage repayments than typical rents.

Australia’s median rent is $550 over the past year according to PropTrack senior economist, Paul Ryan. Assuming a 20% deposit and a 6.24% interest rate, a property would need to be priced less than $447,000 for repayments to be less than $550 per week.

In Sydney unit markets in Lakemba, Wiley Park and Punchbowl met the criteria, while in Melbourne unit markets including Carlton, Flemington, and West Footscray were suitable.

In Brisbane house markets in North Booval ad East Ipswich were cheaper to buy than rent.

In Adelaide house markets in, Davoren Park and Smithfield Plains were cheaper to buy then and in Perth it was Camillo and Armadale.

Tasmania’s Bridgewater and Risdon Vale house market were cheaper to buy than rent and in Darwin there were plenty of options including Darwin City and Nightcliff.