Buying Could be Cheaper than Renting

Posted on September 3rd, 2012 · Posted in News

Australians looking to get a foot on the property ladder will be lifted by news that in some parts of the country it is cheaper to own a home than it is to rent one.

With interest rates still relatively low, home loans are far more affordable than they once were, while at the same time rents have risen dramatically.

According to new figures from RP Data, there are 238 suburbs in Australia where it is more cost effective to take out a mortgage and take ownership of a property – if you can rustle up a deposit that is.

In some instances, homeowners can find themselves $742 better off than their renting counterparts.

Sydney has 22 suburbs that are more expensive for rental properties than they are to buy and Brisbane has 16.

With lower mortgage rates, tighter rental markets resulting in some increases and lower home values, many buyers may see now as a good time to either re-enter the market or buy their first home.