Guest The Pom Queen Posted March 19, 2014 Share Posted March 19, 2014 New RP Data research has found that in 3,230 suburbs across Australia it’s cheaper to pay the interest on a three year fixed interest rate mortgage (based on 5.15% rate*), than it is to pay rent to a landlord. That’s a 180% increase on last year, which stated there were just 1,153 suburbs across the nation which were cheaper to buy in than to rent in. (Based on figures from June 2012.) Link to comment Share on other sites More sharing options...
Guest The Pom Queen Posted March 19, 2014 Share Posted March 19, 2014 New South Wales The largest number of suburbs where paying a mortgage is currently more affordable than renting can be found in the Sydney region, where there are 73 in total. Three suburbs in NSW where it’s more affordable to buy than rent: Units Haymarket Sydney, CBD. Median monthly asking rent $3,120. Monthly mortgage repayment estimated $2,327 Waverly 6 km from CBD. Median monthly asking rent $2,730. Monthly mortgage repayment estimated $1,829 Winston Hills 23km from CBD. Median monthly asking rent $1.950. Monthly mortgage repayment estimated $757 Houses Tregear 41km from CBD. Median monthly asking rent $1,387. Monthly mortgage repayment estimated $957 Silverdale 55km from CBD. Median monthly asking rent $2,817. Monthly mortgage repayment estimated $1,928 Watanobbi 70km from CBD. Median monthly asking rent $1,560. Monthly mortgage repayment estimated $1,091 Link to comment Share on other sites More sharing options...
Guest The Pom Queen Posted March 19, 2014 Share Posted March 19, 2014 Queensland The Sunshine state has 71 suburbs where paying a home loan could be better for your long-term finances than renting. Three suburbs in QLD where it’s more affordable to buy than rent: Units Spring Hill 1km from CBD. Median monthly asking rent $2,102. Monthly mortgage repayment estimated $1,578 Brisbane City 2km from CBD. Median monthly asking rent $2,817. Monthly mortgage repayment estimated $1,835 Mount Gravatt 8km from CBD. Median monthly asking rent $1,918. Monthly mortgage repayment estimated $1,364 Houses Goodna 21km from CBD. Median monthly asking rent $1,430. Monthly mortgage repayment estimated $976 Holmview 31km from CBD. Median monthly asking rent $1,647. Monthly mortgage repayment estimated $1,103 Burleigh Waters 79km from CBD. Median monthly asking rent $1,560. Monthly mortgage repayment estimated $1,172 Link to comment Share on other sites More sharing options...
Guest The Pom Queen Posted March 19, 2014 Share Posted March 19, 2014 Northern Territory Three suburbs in NT where it’s more affordable to buy than rent: Units Darwin CBD. Median monthly asking rent $2,730. Monthly mortgage repayment estimated $1,997 Brinkin 11km from CBD. Median monthly asking rent $1,950. Monthly mortgage repayment estimated $1,472 Gray 16km from CBD. Median monthly asking rent $1,907. Monthly mortgage repayment estimated $1,371 Houses Johnston 8km from CBD. Median monthly asking rent $3,467. Monthly mortgage repayment estimated $1,108 Rosebery 15km from CBD. Median monthly asking rent $2,947. Monthly mortgage repayment estimated $2,104 Katherine 250km from CBD. Median monthly asking rent $1,907. Monthly mortgage repayment estimated $636 Link to comment Share on other sites More sharing options...
Guest The Pom Queen Posted March 19, 2014 Share Posted March 19, 2014 WA Three suburbs in WA where it’s more affordable to buy than rent: Units Perth 1 km from CBD. Median monthly asking rent $2,817. Monthly mortgage repayment estimated $1,934 Mount Hawthorn 4km from CBD. Median monthly asking rent $2,600. Monthly mortgage repayment estimated $1,072 Sorrento 16km from CBD. Median monthly asking rent $2,513. Monthly mortgage repayment estimated $1,458 Houses Burswood 4km from CBD. Median monthly asking rent $4,279. Monthly mortgage repayment estimated $2,740 Bullsbrook 37km from CBD. Median monthly asking rent $1,928. Monthly mortgage repayment estimated $1,398 Wundowie 1,950km from CBD. Median monthly asking rent $1,950. Monthly mortgage repayment estimated $1,011 Link to comment Share on other sites More sharing options...
Guest The Pom Queen Posted March 19, 2014 Share Posted March 19, 2014 SA Three suburbs in SA where it’s more affordable to buy than rent Units: Athol Park 8km from CBD. Median monthly asking rent $1,419. Monthly mortgage repayment estimated $973 Ferryden Park 7km from CBD. Median monthly asking rent $1,343. Monthly mortgage repayment estimated $988 Salisbury North 20km from CBD. Median monthly asking rent $1,062. Monthly mortgage repayment estimated $718 Houses: Ethelton 13km from CBD. Median monthly asking rent $1,733. Monthly mortgage repayment estimated $1,323 Elizabeth East 23km from CBD. Median monthly asking rent $1,083. Monthly mortgage repayment estimated $781 Port Augusta 283km from CBD. Median monthly asking rent $1,170. Monthly mortgage repayment estimated $853 Link to comment Share on other sites More sharing options...
Guest The Pom Queen Posted March 19, 2014 Share Posted March 19, 2014 Victoria Melbourne has the least suburbs where buying is a better option than renting, but Victoria as a whole has much to offer those thinking about making the move from the rental to owner market. Three suburbs in VIC where it’s more affordable to buy than rent: Units Melbourne 1 km from CBD. Median monthly asking rent $2,037. Monthly mortgage repayment estimated $1,541 Carlton 2km from CBD. Median monthly asking rent $1,690. Monthly mortgage repayment estimated $896 Corio 61km from CBD. Median monthly asking rent $1,029. Monthly mortgage repayment estimated $783 Houses Norlane 62km from CBD. Median monthly asking rent $1.040. Monthly mortgage repayment estimated $757 North Wonthaggi 103km from CBD. Median monthly asking rent $1,506. Monthly mortgage repayment estimated $988 California Gully 134km from CBD. Median monthly asking rent $1,268. Monthly mortgage repayment estimated $899 Link to comment Share on other sites More sharing options...
Guest The Pom Queen Posted March 19, 2014 Share Posted March 19, 2014 ACT Three suburbs in ACT where it’s more affordable to buy than rent: Units City 0km from CBD. Median monthly asking rent $2,492. Monthly mortgage repayment estimated $1,805 Evatt 9km from CBD. Median monthly asking rent $1,950. Monthly mortgage repayment estimated $1,463 Holder 10km from CBD. Median monthly asking rent $1,842. Monthly mortgage repayment estimated $1,380 Houses Crace 9km from CBD. Median monthly asking rent $2,340. Monthly mortgage repayment estimated $1,562 Casey 13km from CBD. Median monthly asking rent $2,297. Monthly mortgage repayment estimated $1,688 Forde 13km from CBD. Median monthly asking rent $2,643. Monthly mortgage repayment estimated $1,992 Link to comment Share on other sites More sharing options...
Guest The Pom Queen Posted March 19, 2014 Share Posted March 19, 2014 Three suburbs in TAS where it’s more affordable to buy than rent: Units Glenorchy 7km from CBD. Median monthly asking rent $1,083. Monthly mortgage repayment estimated $756 Oakdowns 10km from CBD. Median monthly asking rent $1,278. Monthly mortgage repayment estimated $973 Brighton 21km from CBD. Median monthly asking rent $1,170. Monthly mortgage repayment estimated $797 Houses Warrane 5km from CBD. Median monthly asking rent $1,300. Monthly mortgage repayment estimated $864 Berriedale 11km from CBD. Median monthly asking rent $1,300. Monthly mortgage repayment estimated $961 Ranelagh 28km from CBD. Median monthly asking rent $1,517. Monthly mortgage repayment estimated $1,151 Link to comment Share on other sites More sharing options...
Que Sera Sera Posted March 19, 2014 Share Posted March 19, 2014 Yep my mortgage is $100 a week cheaper than the renting a similar house.:yes: Link to comment Share on other sites More sharing options...
Guest Guest40285 Posted March 19, 2014 Share Posted March 19, 2014 Thats scary stuff, Oh how I miss having my own house, its dear as pioson to rent here ( Bryron Shire ) I mow a lot of rental properties that the tennants pay close to a grand a week, I pay $320 a week for a dog box. there is nothing around to siut my needs for under $500 a week, terrible and greedy landlords too. Link to comment Share on other sites More sharing options...
Xenon4017 Posted March 19, 2014 Share Posted March 19, 2014 Yep my mortgage is $100 a week cheaper than the renting a similar house.:yes: But you wouldn't pay stamp duty when moving into a rental. Or rates, Or, possibly, water. Or repairs. Of course, we're all grown ups and able to do the sums ourselves. And able to assess non-financial benefits or otherwise. But this kind of reporting makes me shake my head. It's purely there to encourage people into buying a house. Shameful really. Link to comment Share on other sites More sharing options...
wolvesaussie Posted March 19, 2014 Share Posted March 19, 2014 Its more propaganda trying to get you to buy to keep the prices high... they used to say it was cheaper to buy than rent including the repayments, I saw a study on this recently and I dont think there was any in Victoria at all now. Norlane and Corio are near me in Geelong, looks like they are trying to pass them off as suburbs of Melbourne. Most of the houses in these places are like a prefab type very small 1930's house in need of knocking down. Link to comment Share on other sites More sharing options...
PNE POM Posted March 19, 2014 Share Posted March 19, 2014 I've just put house on the market as I'm moving back to UK next year, yeah its great having your own home but the cost of the up keep with the rate etc is bloody expensive! I just paid out another $300 for my pool because the filtration pump tripped out while I was away :mad: I've worked it out that I will be saving an extra $600 per month renting in Subiaco, can't wait for the house to sell! Link to comment Share on other sites More sharing options...
VERYSTORMY Posted March 19, 2014 Share Posted March 19, 2014 I would say the figures for WA look a bit "strange" the suburbs close to Perth would require an enormous deposit / very low mortgage to get it down to them levels. A lot of the houses in that area are getting towards the $1 million mark. But, I do think owning a property is far better than renting. We have researched this pretty well - over 4 years! We decided the best value was to build our own. Not only do we get what we want, but it is costing me $500k to build a property that based on the plans local agents have said is worth $640-680k. We will be paying more mortgage than we pay rent, but we have a VERY cheap rent ($300 a week for a 3 story house with pool and spa next to the beach) Link to comment Share on other sites More sharing options...
Sammy1 Posted March 19, 2014 Share Posted March 19, 2014 I would say the figures for WA look a bit "strange" the suburbs close to Perth would require an enormous deposit / very low mortgage to get it down to them levels. A lot of the houses in that area are getting towards the $1 million mark. But, I do think owning a property is far better than renting. We have researched this pretty well - over 4 years! We decided the best value was to build our own. Not only do we get what we want, but it is costing me $500k to build a property that based on the plans local agents have said is worth $640-680k. We will be paying more mortgage than we pay rent, but we have a VERY cheap rent ($300 a week for a 3 story house with pool and spa next to the beach) I agree with you. I am building and my mortgage will be $5.00 more a week than my rent.The lots near the land I am building up are going up in price each month. Link to comment Share on other sites More sharing options...
leajk Posted March 19, 2014 Share Posted March 19, 2014 What are those figures based on ? only a 100% mortgage would mean its cheaper to buy than rent. If its based on the 'average' mortgage then that could mean the you would also have to find a 20-30% deposit or what ever the 'average' deposit is !!! Obviously the capital repayment shouldn't be taken into account at this is like putting money into a savings account. To give a true reflection it should only be the interest payments on the loan vs rental payment on an equal value property without a deposit. Link to comment Share on other sites More sharing options...
colinmaclec Posted March 19, 2014 Share Posted March 19, 2014 I do find this hard to believe. I pay $510 pw rent to live in a nice suburb 20Km from CBD to buy here would cost $550k-$600k. Lets say i had $100k to put down and borrowed $450k then my repayments would be $2457 pm not including LMI a slight increase even with large deposit and that's before i take into account rates etc. Link to comment Share on other sites More sharing options...
vickyplum Posted March 19, 2014 Share Posted March 19, 2014 Depends on if you have a good wedge of deposit and how large the mortgage is in the first place. I would struggle to get mortgage repayments at less than my current rental price, unless my quality of living decreased dramatically (ie, I moved to a studio on the outskirts of the city) or I had a big lump sum to put down. But each to their own I say - takes all sorts to make the world go around... :rolleyes: Link to comment Share on other sites More sharing options...
Xenon4017 Posted March 19, 2014 Share Posted March 19, 2014 Depends on if you have a good wedge of deposit and how large the mortgage is in the first place. I would struggle to get mortgage repayments at less than my current rental price, unless my quality of living decreased dramatically (ie, I moved to a studio on the outskirts of the city) or I had a big lump sum to put down. But each to their own I say - takes all sorts to make the world go around... :rolleyes: Well, as a rule of thumb, each 1000$ you borrow costs you 1$ per week. This seems to be how REAs suggest a rent too. A house valued at 350k costs about 350$ per week to rent. This is based on an interest rate of 5.2%, curiously close to the fixed 3 year rate of 5.15% which was in the OP. So, would a 500k house cost you less than 500$ per week to buy? Broadly speaking, yes. But house ownership has quite high fixed costs initially (conveyancing, stamp duty, making essential renovations), plus ongoing annual costs (rates, fixing stuff). Whereas renting is is pretty much PAYG. Obviously, the longer you stay in your bought home, the longer these costs can be spread out. Right now, with interest rates at a low point in the cycle, the interest repayments look quite manageable compared to renting. But, the better question would be; what happens if/when interest rates go up? Mortgage repayments will rise rapidly, but will rents go up at the same pace? I don't see why. After all, the money paid to rent a house (or a car or anything else) is proportionate the the sale price of the item rented, not the cost to the owner. Link to comment Share on other sites More sharing options...
Dazken Amac Posted September 8, 2016 Share Posted September 8, 2016 I THINK ITS TIME TO REVAMP THE DISCUSSION ON THIS TOPIC WITH THE CURRENT REAL ESTATE PRICES IN MELBOURNE..s As per me depending on where you buy the house the factor of renting vs buying comes into play. If more towards the developed city yes rent may be cheaper but if you go slightly away say around 40 km away your EMI to repay the loan, will come exactly to the amount of rent you pay. SO actually you are still paying the same rent but getiing your property appreciation.. Ofcourse the repairs and other add ons like coucil charge etc. come into play but is equivalent to the interest on the bond that you are losing out.. The key is to sell the property at the right time, and move on in a manner where you gain from the sale price after deducting your loan amount. So if your balance loan NET repayment is less than your current NET property sell price (i.e. after paying all the charges) sell the house and live on rent till you find a more suitable home further in at a lesser price. Link to comment Share on other sites More sharing options...
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