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AU Hot spots: Cheaper to buy than rent

Property Here - Friday, May 31, 2013

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TIRED of renting? The weekend is here and presents endless opportunities for home buyers - and that's you, because there great suburbs in your capital city where it is cheaper to buy than rent. Here are our pick.

You've been told time and time again that buying a home is a better financial option than renting. That's not always the case but rates cuts are making home ownership more achievable with almost 500 locations across Australia now where it is cheaper to buy a home than rent one.

While many of these are in country towns where you would expect to find cheap homes, there are some inner city gems and we have picked the top five in each capital.

This  is calculated on the most popular borrowing scenario of a combined principal and interest loan on a variable mortgage rate of 5.65 per cent and compares it to average weekly rents across the country.


The harbour city is not only expensive to buy and rent in by Australian standards but world standards too.The upside is, there are a variety of mortgage price points where it is better to buy than rent, such as sought-after Enmore and The Rocks near Sydney's CBD to outer first-home buyer belt suburbs.

Paying the mortgage on a unit in St Leonards bought for the median price of $703,923 is $351 a month cheaper than paying $4008 average monthly rent.

Those on a tighter budget may want to consider Fairfield, 23kms from the city where paying the mortgage on a unit bought for the median price of $265,734 is $136 cheaper a month than paying $1517 average monthly rent.



Source: News Limited

Sydney suburbs where it's cheaper to buy than rent

St Leonards (House)

Enmore (Unit)

Fairfield (Unit)

Campbelltown (Unit)

Lethbridge Park (House)

The Rocks (Unit)


Melbourne provides many reasons for renters to  ditch the landlord. It has several trendy inner city suburbs where it's cheaper to buy than rent

Buying a Carlton unit for the suburb median price of $249,866 is $305 more affordable every month than the $370 a week ($1603 a month) it costs to rent.

For those with a bigger bank balance, it's $846 a month cheaper to buy than rent a house in Docklands where the median for a house $630,000.



Source: No Source

Melbourne suburbs where it's cheaper to buy than rent

Docklands (House)

Carlton (Unit)

Abbotsford (Unit)

Albion (Unit)

Melbourne CBD (House)


In Queensland, you can pick up a Brisbane city unit more cheaply than rent one, and there are multiple locations on the Gold Coast, Cairns, Ipswich and Townsville where units and houses can be paid off more cheaply than a landlord. Like Melbourne, the CBD presents the best option within the city itself to buy rather than rent.   



Source: News Limited

Brisbane suburbs where it's cheaper to buy than rent

Brisbane CBD (Unit)

Flinders View (Unit)


Hillcrest (Unit)

Waterford (Unit)


In Adelaide topping the list is Gilles Plains, 10km north-east of the CBD, where mortgage holders have it on easy street compared to renters.

Paying off the principal and interest of a variable loan on a unit, buyers are better off by $227 a month.

Along with Gilles Plains, homeowners in Davoren Park in the northern suburbs win out, followed by Reynella, Elizabeth Downs and Elizabeth Vale.



Source: News Limited

Adelaide suburbs where it's cheaper to buy than rent  

Gilles Plains  (Unit)

Davoren Park (House)

Elizabeth Downs (Unit)

Elizabeth Vale (Unit)

Northfield (Unit)


Those looking to purchase a home could be paying less than they would in rent if they choose a house in Burswood or a unit in Perth's CBD.

Home buyers looking for value for money do not have to be confined to one part of Perth either, Ascot, Orelia, Girrawheen and Brookdale are now also cheaper to purchase than to rent.

In Ascot a renter could pay $515 rent a week for a unit or buy a place and pay a $2,132 a month towards a mortgage.

That means mortgage holders could save more than $200 a month on what they would otherwise pay to rent.



Source: No Source

Perth suburbs where it's cheaper to buy than rent

Burswood (House)

Perth (Unit)

Ascot (Unit)

Orelia (Unit)

Girrawheen (Unit)

Mt Hawthorn (Unit)


Hobart is Australia's cheapest city to buy and rent and has many great options for those wantingto commit to a mortgage. Chigwell, 11km north of the city tops the list. Those wanting to buy a home would save $213 a month over monthly rent on a $193,000 mortgage.    



Source: News Limited

Hobart suburbs where it's cheaper to buy than rent

Chigwell (House)

Risdon Vale (House)

Warrane (House)

Goowood (House)

Rokeby (House)

Source: RP DATA

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