According to new data, buying is now cheaper than renting for nearly a third of Australian homes, although expected rate increases are making it harder for homeowners to make mortgage repayments.
In Australia, 27% of homes are more cost-effective to buy than rent over the next 10 years based on current prices, according to PropTrack’s latest Buy or Rent Report. Cheaper prices in regions and smaller capital cities mean buyers can get better value for their purchase there than in Sydney and Melbourne, The Australian reported.
In New South Wales, it is currently cheaper to buy than rent only 9% of properties thanks to the massive price increases during the recent housing boom, The Australian reported. In Queensland, 51% of properties are cheaper to buy than rent compared to South Australia, where it’s cheaper to buy 34% of properties. On the other hand, buying is cheaper than renting in 7% of cases in Victoria.
While renting may be cheaper than buying in many places in the short term, Ray White Chief Economist, Nerida Conisbee said that homeownership is a long game.
“The reality is, it is always cheaper to buy as you get growth in equity, and repayments over time will be cheaper in relative value to your home,” she told The Australian.
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