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There are now more than 690 suburbs across Australia where it is cheaper to own than rent.
New research from RP Data found there are 692 suburbs where it is cheaper to pay off a mortgage, as rents continue to climb across the nation.
According to research director Tim Lawless, the data may signify an opportunity for people to consider whether property ownership is a more financially viable option for them than paying out rent money.
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The RP Data Buy vs Rent report provides a complete list of suburbs across the country’s capital city and regional areas and analyses the difference between monthly mortgage repayments and rental payments, taking into account the median value of houses and units compared with median asking rents.
The research found there are 193 suburbs in NSW where it is cheaper to own than rent, 73 of which are located in Sydney.
Queensland has 242 suburbs, while Tasmania has 54 areas and Western Australia boasts 78.
Victoria has 45 suburbs, only two of which are located in Melbourne, and Adelaide has 45 suburbs.
“In some suburbs, it may actually be cheaper than renting, especially where we are seeing evidence of tight rental markets resulting in rental increases and lower home values. For many buyers, now may be a good time to consider either re-entering the market or buying their first home,” Mr Lawless said.
“Across the capital cities, it is typically apartment-style housing where renting can be more expensive than paying a mortgage. The buy-in price tends to be lower compared with weekly rents, providing a narrower gap between mortgage payments and rental payments.
“Our free [report] available at www.rpdata.com.au/buyorrent and accompanying appendix provides a buy versus rent scenario for every suburb nationally and is a great tool for anyone looking to buy a home to live in or for investors active in the market.”
