The latest Commonwealth Bank ‘Where is it cheaper to buy than rent?’ report has revealed that it is becoming increasingly cheaper to buy a property than rent in a number of suburbs across the country.
The report uncovered a 27 percent increase in the number of suburbs across Australia where it has become cheaper to buy a unit or house than paying rent.
According to Ross McEwan, group executive of the Commonwealth Bank’s Retail Bank, the volatility in the changing rents and mortgage rates that has driven the changes in the report, underlines the importance of taking a long term view when making a home loan purchase decision.
“These results reinforce the changes that can occur in the market over a period of time, which must be factored into any home buying decision.”
Victoria and Queensland in particular have experienced significant increases in the number of suburbs where weekly rents exceed average weekly home loan repayments, with ten more suburbs identified in each state, compared with six months ago.
The report identified the most affordable metro and regional suburbs across the country, where it is cheaper to buy than rent. These include: Hackett in the ACT, Darlington in NSW, North Dubbo NSW, Wagaman NT, Beachmere QLD, Dysart QLD, Angle Park SA, Morgan SA, New Norfolk TAS, Strahan TAS, Carlton VIC, Hepburn Springs VIC, Glendalough WA and Baynton WA.
People who read this, also liked:
Crisis best time to rent
House prices set to rise: Lend Lease