Request An Appraisal
· Join Up
PRD  →  Real Estate News  →  Suburbs in capital cities where it’s cheaper to buy than rent

Suburbs in capital cities where it’s cheaper to buy than rent

Suburbs in capital cities where it’s cheaper to buy than rent

Home loan affordability declined in the past 3 months to December Quarter 2020, to 28.7 index points. In the same time frame rental affordability also declined, taking up 24.0% of median weekly family income. Many first home buyers, as well as renters, are feeling the pinch of the property market.

In an instant when both affordability measures are declining, rare suburbs where the weekly mortgage payment is lower than median weekly rent, emerge.

In Sydney, in 2020, there was only 1 suburb in which purchasing a unit would be cheaper than renting: Lakemba. In Quarter 1 2021, there are 4 suburbs: Merrylands, Punchbowl, Wiley Park, and Lakemba.

See where it’s cheaper to buy than rent for Sydney

Similarly, in Melbourne, in 2020, there were only 3 suburbs in which purchasing a unit would be cheaper than renting: Notting Hill, Travancore, and Carlton. In Quarter 1 2021 there are 7 suburbs: Truganina, Sydenham, Epping, Bundoora, Notting hill, Travancore, and Carlton.

See where it’s cheaper to buy than rent for Melbourne

In the Gold Coast, in 2021, there were 4 suburbs where purchasing a house would be cheaper than renting: Coomera, Upper Coomera, Nerang, and Pimpama. Now, in Quarter 1 2021, there are 7 suburbs: Tugun, Southport, Coomera, Pimpama, Ashmore, Upper Coomera, and Nerang.

See where it’s cheaper to buy than rent for Gold Coast

Brisbane on the other hand, have shown market stability, with the same number of suburbs cheaper to buy than rent between 2020 and Quarter 1 2021.

See where it’s cheaper to buy than rent for Brisbane

Often, the above-mentioned suburbs have experienced an increase in weekly median rent prices, outweighing the weekly repayment cost of a mortgage. These suburbs are normally located in the fringes of the CBD and are overlooked as a place to buy, however have the necessary liveability factors (infrastructure, public transport, etc) to make it a “hidden gem”.

These findings provide hope for first home buyers and those who are debating whether to buy or rent.

Popular

Latest

 Connect with us