With interest rates in Australia at historical lows, many people renting as well as Australian expats are considering buying their own home or future residence. While many are concerned about how quickly property prices across the country have risen, there are still many suburbs where it’s cheaper to buy than it is to rent.
A recent study by CoreLogic found that there are 3,411 suburbs across the country where it’s cheaper to buy than rent, with Queensland and New South Wales offering some of the key opportunities. According to the Reserve Bank of Australia (RBA), they found that average interest rates on mortgages for owner-occupiers have fallen from 3.21% in Feb 2020 to 2.4% in May 2021. There are many owner-occupier interest rates in the high 1’s at present also.
The report found the following key data, highlighting that regional areas across the country were amongst the most affordable for people to buy than it is to rent. As should come as no surprise to most, the increase in Sydney residential property prices has meant that it is still cheaper to rent than buy in 95.1% of suburbs.
Source: CoreLogic 2021
Across the various states, the report also drilled down into the areas within each area to highlight where it was in fact cheapest to buy than rent. We’ve summarised the key finding below:
The study found that the northern suburbs of Adelaide were cheaper to buy in 68.4% of suburbs, followed by the South at 51%.
Logan – Beaudesert was found to be the cheapest region with 81.8% of suburbs cheaper to buy, closely followed by Ipswich at 80%.
The West was found to be cheaper to buy in 5.9%, followed by the Inner East at 4.9%.
In Perth, the North East was found to be the cheapest to buy at 64.9% of suburbs, followed by the South East at 62.8%.
The South West was found to be the cheapest for 10.6% of suburbs, followed by Parramatta being a close second at 10.5%.
The Far West and Orana were found to be the cheapest region for 89.1% of suburbs, followed by New England and the North West at 87.4%.
The Queensland Outback was found to be the cheapest to buy for 94.9% of suburbs, followed by Townsville being a close second at 94.6%.
The South Australian Outback was found to be the cheapest region to buy for 88% of suburbs.
The West and North West was found to be the cheapest area for 82.8% of suburbs.
The North West was cheapest for 87.1% of suburbs followed by Shepparton at 78.7%. This was a stark difference to the Melbourne suburbs.
The Northern outback was found to be the cheapest region for 95.8% of suburbs, followed by the southern outback for 86.4% of suburbs.
It’s clear that there are some very affordable areas across most of Australia at present, particularly for those able to save a deposit. If you’re not quite sure about how much you need, or how to get started with buying your own property, reach out to our team to book a complimentary appointment and start exploring your options.
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