August 29, 2012
Australian renters worried they might never afford their own homes may be better positioned than they think, a new report suggests.
RP Data has identified 238 suburbs and towns across the country where it's currently cheaper to buy than rent.
Queensland has the most, with 84 locations offering renters some hope of buying into the great Australian dream. They include 16 Brisbane suburbs.
NSW is next with 54, followed by Western Australia with 35, Tasmania 25, South Australia 23 and Victoria 10.
The Northern Territory has only six suburbs where it is cheaper to buy, and the ACT brings up the rear with just one.
RP Data research director Tim Lawless says lower interest rates and a rental market squeeze are closing the gap between tenants and home owners.
"Nationally, capital city home values have fallen 5.9 per cent from the October 2010 peak," Mr Lawless said in a statement.
"These conditions, in conjunction with discounted variable mortgage rates having fallen by around 100 basis points since October last year have resulted in improved housing affordability.
"With lower mortgage rates, tight rental markets resulting in some rental increases and lower home values, many buyers may now see now as a good time to either re-enter the market or buy their first home."
The comparisons used are based on a principal and interest loan based on a variable mortgage rate.
The report suggests the figure would rise to 1320 suburbs and towns if an interest only loan was used.
A full list of the communities can be found at www.rpdata.com.au/buyorrent
Top 10 places where it is cheaper to buy than rent in Australia
(Figures are the estimated difference between monthly mortgage payments and rental payments)
1) Mount Hawthorn, WA - $742
2) Burswood, WA - $545
3) Berkeley Vale, NSW - $385
4) Carlton, Vic - $307
5) Herdsmans Cove, Tas - $248
6) Flinders View, Qld - $237
7) Risdon Vale, Tas - $179
8) Gagebrook, Tas - $172
9) Logan Central, Qld - $154
10) Brisbane City, Qld - $138
NB: Ratings based on principal and interest loan on a variable mortgage rate.