Mortgage repayments are now cheaper than rent in some Australian suburbs. Is yours among them?
Summary
In some Australian suburbs, mortgage repayments have become cheaper than renting, due to rising rents and falling property prices. This situation is happening mainly in areas with lots of new apartments and some mining regions, where buying costs are now close to or below rental costs.Key Facts
- Median rents in Australia rose 5.5% over the year to reach $713 per week.
- Median property prices have mostly stayed flat or fallen in some places over the past year.
- Mortgage repayments are cheaper than rents in certain Melbourne suburbs like Carlton and Southbank.
- The analysis assumes a new 30-year loan with a 6.2% interest rate and a 5% deposit.
- In Sydney, mortgage repayments are only about $100 more per week than rents in some suburbs.
- Areas with many new apartments tend to have lower buying costs compared to rents.
- In Darwin, buying is cheaper than renting in about a quarter of suburbs, partly due to high rents and the presence of temporary workers.
- Higher interest rates have increased repayments in most places, but where property values dropped sharply, repayments have also gone down.
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