It's Official - Cheaper to Buy than Rent
13 March 09Forget renting, now is a great time to buy. There are many areas in Australia where it is cheaper to buy than rent. In one area you can save $3877 a month!
A new RP Data report shows 74 Australian suburbs where it is cheaper to buy than rent, reflecting the fundamental shifts in the property market.
The differences in savings ranged from as little as 42c a month to a whopping $3877.48 in Baynton, Western Australia.
The average state saving was also markedly different with Victoria recording the lowest at $32.96 and Western Australia storming in at $916.10.
The research identified areas where, on average, it is more affordable to purchase a home than to rent it.
RP Data national research director Tim Lawless says factors that have influenced this result include a moderate fall in property values (2.6% during the 2008 calendar year), interest rates at a 45-year low and dramatic growth of weekly rents.
“The effect of these combined factors means that renters are now doing their sums to determine whether paying off a mortgage is actually going to be cheaper than paying a landlord.”
The locations identified are split between regional suburbs and capital city metro areas, with regional areas accounting for 54 per cent of the total and capital city metro areas 46 per cent.
Mr Lawless says the major difference between regional and metro locations is the types of properties that are cheaper to buy than rent.
“Almost without exception, within the capital city metro areas, it is units rather than houses that are more affordable to buy than rent.
“This is most likely due to the strong rental demand for strategically located unit dwellings which are typically located close to major transport corridors, retail centres and working nodes.”
The regional locations noted were mostly in resource-intensive townships where rental rates have been driven up by strong demand for housing from mining workers.
To obtain a full report, visit www.myrpdata.com