It’s the perennial renter question: at the rate of rent I’m paying, would it just be better to buy?
And while rental rates have plummeted in the last year across Sydney, they’ve increased stratospherically in other cities, like Hobart, where rental rates are now on average 9.8 per cent higher than they were this time a year ago, the latest Domain Rental Report reveals.
With this in mind, Domain did the numbers on where in Australia renters are better served by buying.
The property platform’s research assumed a 20 per cent deposit, and doesn’t account for transfer duties, council rates and maintenance costs.
Across Greater Sydney, Domain found only one suburb where it was cheaper to pay off a mortgage than make weekly rental payments.
Buyers in Lakemba would pay an average $369 a week on their mortgage, only $1 less than what renters currently pay to live there ($370).
The news is sunnier in Queensland. Here, 45 suburbs are considered cheaper to buy than rent, most lying in Ipswich, Logan and Moreton Bay.
Waterford homeowners would be paying off a mortgage at $367 a week, while renters would pay an average $400.
When it comes to houses, Bellmere and Loganholme buyers are saving $31 and $30 respectively.
And when it comes to apartments, Eagleby homeowners have an extra $79 in their pockets, compared to renters. The same goes for Bowen Hills, where owners are making an extra $78.
There are no suburbs in Canberra where it’s cheaper to buy a house than to rent.
But the story is different for unit owners. There are several suburbs in and around the CBD where buyers are paying up to $101 less than their renter counterparts.
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In fact, those who own a unit in the city itself are saving an extra $101 a week.
In Melbourne, it’s generally cheaper to pay off a mortgage on an apartment than to rent. However, the same can’t necessarily be said for houses.
Unit owners in Melbourne itself are $79 better off than renters, followed by those in Southbank who are paying an average $41 less.
Dandenong unit owners are paying $23 less than renters, followed closely by those in North Melbourne.
Unfortunately, there were no suburbs where it was cheaper to buy a house than rent. However, homeowners in Melton are paying a relatively small $50 extra to buy a house than rent.
Buyers in Adelaide’s north will enjoy significantly cheaper - think $81 - mortgage repayments than rental rates for both units and standalone houses.
Units were cheapest in Salisbury, while those looking for a house should seek out homes in Elizabeth Park, Elizabeth Downs, Munno Para and Davoren Park.
Bridgewater, New Norfolk, Glenorchy, Sorell, Midway Park and Claremont are all suburbs savvy property hunters should be checking out. If they bought in Bridgewater, they’d be looking at savings of around $100, with rental rates $320 and mortgage repayments at $221.
There are 26 suburbs in Perth where buyers are saving money over renters, particularly around Perth itself and West Perth.
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In these regions, buyers are likely to find homes where they’ll pay $20 less on their mortgage repayments than weekly rental rates.
In Swan View, for example, an average mortgage would cost $323 to renters’ $330.
Up in Darwin, the savings are extreme. A homeowner in Muirhead who owns a house would be paying an average repayment of $327.
That’s nearly half the $630 weekly rental price.
If buyers were to purchase a unit in Darwin City, they’d also be looking at pocketing an extra $84 a week in savings.
In Palmerston suburbs Gunn and Durack, buyers were also better off than renters, saving a weekly average of $67 and $11 respectively.
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