Yahoo Finance Save $3,223 a month: Suburbs where it’s cheaper to buy than rent
Over the next year, rents are expected to keep rising, making it actually cheaper to buy than rent a property in some suburbs.
A new PropTrack Buy or Rent report analysed the cost to buy or rent in suburbs across Australia to identify the areas where it was cheaper to buy, and where it was cheaper to rent.
“More than a quarter of homes are estimated to be cheaper to buy than rent over the next 10 years, based on current prices,” the report said.
“This is despite the exceptional price growth we have seen over the past two years, and rising interest rates.”
Across the country, Proptrack identified 3,300 suburbs where it would be cheaper to buy a three-bedroom house than to rent one, and 2,149 suburbs where it would be cheaper to buy a two-bedroom unit.
So, here’s a breakdown of the suburbs that will save you money to buy in rather than rent.
Greater Sydney region
In Sydney there are only four suburbs where it is cheaper to buy a three-bedroom house than rent one.
For two-bedroom units, there is a top-10 list.
However, it should be noted that despite the report listing the suburbs as ‘Greater Sydney’, some are hundreds of kilometres from the CBD.
Price rises across Sydney have made renting houses cheaper than buying almost everywhere across the city, according to PropTrack.
“Renting appears particularly attractive to the north and east of the CBD in prestige suburbs,” the report said.
“However, there remain many pockets of the city to the south-west and west where the cost of buying is not estimated to be significantly higher than renting.”
Here’s where it is cheaper to buy a house and how much you could save per month, relative to renting.
Units across Sydney were estimated to mostly cost similar amounts when buying or renting across the city, the report found.
“While many parts to the north and east of the CBD appear cheaper to rent over the next 10 years, the majority of suburbs to the south and west appear either cheaper to buy units, or very similar in expected costs,” it said.
Here are the top 10 suburbs where it is cheaper to buy a unit and how much you could save per month, relative to renting.
Greater Melbourne region
Modest changes in advertised rents, relative to house prices, have made much of Melbourne cheaper to rent than buy over the next 10 years, according to PropTrack.
“This is particularly the case to the east and south of the CBD,” the report said.
“But there remain peripheral regions of the city to the north, east and west where the expected difference in costs is small and will contain attractive houses for buyers.”
Here’s where it is cheaper to buy a house and how much you could save per month, relative to renting.
Almost all suburbs across Melbourne are estimated to be cheaper to rent than buy units, despite modest price growth over the past 12 months of less than 2 per cent.
“Renting is estimated to be cheaper than buying, particularly to the north-east and south-east of the city,” the report said.
“However, there are many suburbs to the north and west of the CBD where both options are expected to have similar costs and are likely to contain good prospects for buyers.”
Here are the top 10 suburbs where it is cheaper to buy a unit and how much you could save per month, relative to renting.
Greater Brisbane region
Those looking to live in houses in the inner-city can save by renting, particularly in suburbs along the Brisbane River.
“Buying conditions are very favourable in more peripheral parts of Brisbane to the south and south-west of the CBD,” the report said.
“House price growth of 26 per cent over the past year has reduced the relative attractiveness of buying houses across Brisbane, particularly in the north and the west of the city.”
Here’s where it is cheaper to buy a house and how much you could save per month, relative to renting.
Units across Brisbane are almost universally estimated to be cheaper to buy than rent, based on PropTrack’s financial model, meaning there are great buying conditions for those looking for smaller but well-located dwellings.
Here are the top 10 suburbs where it is cheaper to buy a unit and how much you could save per month, relative to renting.
Greater Adelaide region
Families looking to live in a house in the inner city, as well as to the east, south and west, would find it cheaper to rent, the report found.
“Those looking to buy can find relatively cheap houses to the north of the city,” it said.
Here’s where it is cheaper to buy a house and how much you could save per month, relative to renting.
Buying conditions for units remain very favourable across Adelaide.
Units have increased in price by only 9 per cent over the past year.
Here are the top 10 suburbs where it is cheaper to buy a unit and how much you could save per month, relative to renting.
Greater Perth region
Prices remain favourable to buy for houses in almost all parts of Perth, except to the west of the CBD, where it is estimated to be cheaper to rent.
Here’s where it is cheaper to buy a house and how much you could save per month, relative to renting.
Units across all parts of Perth continue to be cheaper to buy than rent, based on PropTrack estimates.
In part, this is due to modest price growth over the past year, with unit prices up only 2 per cent.
Here are the top 10 suburbs where it is cheaper to buy a unit and how much you could save per month, relative to renting.
Greater Hobart region
Strong price growth across Hobart has made conditions less conducive for buyers than a year ago, according to the PropTrack report.
“In 2021, much of the city was estimated to be cheaper to own houses,” the report said.
“In 2022, we estimate buy-favourable regions have shrunk to pockets located only in the north-west and west of the CBD.”
Here’s where it is cheaper to buy a house and how much you could save per month, relative to renting.
Units continue to be cheaper to buy to the north of the CBD in Hobart, based on PropTrack’s estimates.
Price rises and higher-than-expected interest rates have made units to the south, in more expensive parts of the city, cheaper to rent.
Here are the top 10 suburbs where it is cheaper to buy a unit and how much you could save per month, relative to renting.
Greater Canberra region
Strong price growth has pushed prices up in almost all suburbs across our nation’s capital, to a point where it is cheaper to rent if looking for a house.
However, there are many suburbs to the north and east of Capital Hill, where both options are expected to have similar costs and there are likely to be attractive prospects for buyers.
Here’s where it is cheaper to buy a house and how much you could save per month, relative to renting.
Buying conditions remain very favourable for units across Canberra.
Units have increased in price by only 13 per cent in the ACT over the past year, making buying prices favourable, compared to renting, across the city.
Here are the top 10 suburbs where it is cheaper to buy a unit and how much you could save per month, relative to renting.
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