Rents for houses have climbed 12.5 per cent over the past year to reach a record high median of $450 per week, reports Domain. While unit rents have remained stable at the previous record high of $400.
So it should come as little surprise that CoreLogic has uncovered more than 3,400 suburbs across Australia where it’s cheaper to buy than rent, reports news.com.au. This means more than a third of properties across Australia are cheaper to buy than rent.
In Queensland, paying off a mortgage saved someone $114 with a median mortgage sitting at $369, as opposed to $471 in rent.
The analysis assumes buyers have paid a 20 per cent deposit on the property. As we recently reported, the government is offering a truck load of assistance to buyers to get into a home with as little as a 5 per cent – or even a 2 per cent – deposit. This reduces the deposit hurdle, but increases your mortgage repayments.
So what should you make of all this number crunching?
Firstly, a broad brush average doesn’t reflect what’s happening in your neighbourhood so make sure you talk to local agents to find out what prices are doing.
Also, the decision to buy versus rent involves more factors than whether you can afford the mortgage. So if you need some help, seek some independent financial advice to find out what’s best for your hip pocket and lifestyle.