Suburbs where it is cheaper to buy than rent

In nearly one in seven Australians outskirts Is it cheaper to have a mortgage in a House of what it is to rent.

The difference between paying a bank loan and paying a owner are flown in some parts of the country, in favor of the owners, due to a shortage of real estate for rent, which has skyrocketed asking for rents.

In 13.8 percent of suburbs nationally, Domain’s research has found that it costs less to have a mortgage than to be a tenant. For units, that applies to 21 percent of zip codes.

perth The city’s unit market has the biggest gap: There, it costs $584 less a month to own a mortgage than to rent. That’s the biggest gap in rent versus mortgage numbers, followed by Darwin city ​​units ($516 a month difference) and units in brisbane Wooldridge ($380 difference).

Suburbs where renting was more expensive than a mortgage were those with the highest levels of competition from short-term residents, students and young professionals, the Domain research team found.

However, the nation’s rising cash rate (back-to-back rate hikes since April added $815 per month to a $500,000 mortgage) has greatly reduced the number of suburbs where mortgage holders were better off than renters in compared to 12 months ago.

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The percentage of suburbs by capital city where it is cheaper to pay a mortgage than to pay rent. (Domain)

Last year, a crippling 50 percent of suburbs were more expensive to rent than to pay a mortgage (for houses and units). However, even though mortgage costs are rising, demand for rentals outstrips supply has prevented the ledger from breaking even, with the national vacancy rate at an all-time low of 0.8 percent.

Domain data is based on an interest rate of 4.93 percent and a 20 percent deposit, but excludes ancillary costs, including stamp duty and municipal fees.

Perth, Darwin and the regional region of Australia provide the widest opportunity for homeowners versus renters.

In rural Australia, it is cheaper to buy than to rent in almost a quarter of the suburbs for houses and 44.3 per cent of the suburbs for units.

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Cheapest mortgage rental data Domain
A snapshot of the suburbs where having a mortgage is cheaper than renting (indicated by the ‘-‘ symbols), or possible with only a small additional payment (indicated by the ‘+’ symbols). (Domain)

Dr. Nicola Powell, head of economics and research at Domain, said lower mortgage costs in regional areas could be due to a greater appetite for rentals, and therefore pressure on that market, because the population is more transient.

“We’re also seeing that the more premium a suburb is, the higher the mortgage payment becomes, relative to rent, and rent is higher than weekly mortgage payments in certain suburbs that have higher levels of resident competition.” short-term, students and young professionals,” Dr. Powell said.

In Sydney, Melbourne and Hobart there are fewer suburbs than in other capitals where it is cheaper to buy than to rent, Domain found.

For those cities, Domain crunched numbers on how little buyers needed to shell out a week to secure a mortgage that would be less than rent.

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Perth units have the biggest difference between mortgages and rents: it’s almost $600 cheaper to pay a mortgage on a unit than to rent. (Getty)

In Sydney’s Villawood, just $29 a week more for a unit will get the buyer a mortgage cheaper than suburban rental prices. Homeowners in Hobart’s Risdon Vale only need to pay $11 a week more to be better off with their home mortgage than the price of rent.

Melbourne’s Travancore has units with mortgages that are $28 per week cheaper than rentals. In Brisbane, Woodridge units are $95 a week cheaper than rentals.

At Mawson Lakes in Western Australia, prospective buyers will find they can sign up for a unit mortgage for $71 less per week than the rent.

Perth CBD offers unit mortgages that are $146 per week cheaper than renting. At Canberra’s Gungahlin, it’s $93 a week less for unit repayments to the bank than to the owner.

And in Darwin, CBD units can be purchased for a mortgage that costs $129 a week less than rental costs.

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