Top 20 suburbs where its cheaper to buy then rent.

So I came across this list of suburbs where it’s cheaper to buy a house and units rather then rent and i was shocked to find out that the Commonwealth Bank, found that the number of suburbs in which it has become cheaper to service a monthly mortgage payment than a rental bill had increased from 74 to 94 in the six months to July. Crazy. If you have any more please add to the list.


Daniel Kanoon


The Top 20 suburbs where it’s cheaper to buy a house than rent are:

1. Rosebery (NT Palmerston) to buy is $249,000 but rent is $490 a week, with loan payment of $277.73 a week, saving $212.27.

2. Fern Bay (NSW Newcastle) to buy is $274,000 but rent is $450.00 a week, with loan payment of $305.62 a week, saving $144.38.

3. Cartwright (NSW Sydney South West) to buy is $250,000 but rent is $380 a week, with a loan payment of $278.85 a week, saving $101.15.

4. Farrar (NT Palmerston) to buy is $412,000 but rent is $550 a week, with a loan payment of $459.54 a week, saving $90.46.

5. Macgregor (ACT Belconnen) to buy is $296,500 but rent is $410 a week, with a loan payment of $330.71 a week, saving $79.29.

6. Windale (NSW Newcastle) to buy is $185,000 but rent is $250 a week, with a loan payment of $206.35 a week, saving $43.65.

7. Rosewood (QLD Brisbane West) to buy is $255,000 but rent is $327.50 a week, with a loan payment of $284.42 a week, saving $43.08.

8. Kenmore Hills (QLD Brisbane West) $650,000 but rent is $767.50 a week, with a loan payment of $725 a week, saving $42.50.

9. Berriedale (TAS Glenorchy) to buy is $225,000 but rent is $290 a week, with a loan payment of $250.96 a week, saving $39.04.

10. Larapinta (NT Alice Springs) to buy is $279,000 but rent is $350 a week, with a loan payment of $311.19 a week, saving $38.81.

11. The Gap (NT Alice Springs) to buy is $266,000 but rent is $335 a week, with a loan payment of $296.69 a week, saving $38.31.

12. Melbourne (VIC Inner Urban) to buy is $348,000 but rent is $425 a week, with a loan payment of $388.15 a week, saving $36.85.

13. Gagebrook (TAS Brighton) to buy is $142,250 but rent is $195 a week, with a loan payment of $158.66 a week, saving $36.34.

14. Queenstown (TAS Mersey) to buy is $90,000 but rent is $135 a week, with a loan payment of $100.38 a week, saving $34.62.

15. Coolaroo (VIC North) to buy is $229,250 but rent is $287.50 a week, with a loan payment of $255.70 a week, saving $31.80.

16. Bridgewater (TAS Brighton) to buy is $162,500 but rent is $212.50 a week, with a loan payment of $181.25 a week, saving $31.25.

17. Stuart Park (NT Darwin) to buy is $447,500 but rent is $530 a week, with a loan payment of $499.13 a week, saving $30.87.

18. Holmview (QLD Bayside South) to buy is $297,000 but rent is $360 a week, with a loan payment of $331.27 a week, saving $28.73.

19. Cringila (NSW Wollongong) to buy is $189,500 but rent is $240 a week, with a loan payment of $211.37 a week, saving $28.63.

20. Rocherlea (TAS Northern) to buy is $145,000 but rent is $190 a week, with a loan payment of $161.73 a week, saving $28.27.

The Top 20 Suburbs where it’s cheaper to buy a unit than rent are:

1. Rivervale (WA South East) to buy is $285,000 but rent is $500 a week, with a loan payment of $317.88 a week, saving $182.12.

2. Kingston (QLD Brisbane West) to buy is $120,000 but rent is $250 a week, with a loan payment of $133.85 a week, saving $116.15.

3. Earlville (QLD Cairns) to buy is $202,000 but rent is $310 a week, with a loan payment of $225.31 a week, saving $84.69.

4. South Wentworthville (NSW Sydney West) to buy is $324,500 but rent is $440 a week, with a loan payment of $361.94 a week, saving $78.06.

5. West Perth (WA City) to buy is $350,000 but rent is $460 a week, with a loan payment of $390.38 a week, saving $69.62.

6. Brisbane (QLD Brisbane North) to buy is $435,000 but rent is $550 a week, with a loan payment of $485.19 a week, saving $64.81.

7. West Wollongong (NSW Wollongong) to buy is $151,000 but rent is $232.50 a week, with a loan payment of $168.42 a week, saving $64.08.

8. Carlton (VIC Inner Urban) to buy is $225,000 but rent is $315 a week, with a loan payment of $250.96 a week, saving $64.04.

9. Lakemba (NSW Canterbury Bankstown) to buy is $195,000 but rent is $280 a week, with a loan payment of $217.50 a week, saving $62.50.

10. Newcastle West (NSW Newcastle) to buy is $305,000 but rent is $400 a week, with a loan payment of $340.19 a week, saving $59.81.

11. Perth (WA City) to buy is $397,000 but rent is $500 a week, with a loan payment of $442.81 a week, saving $57.19.

12. Katherine South (NT Katherine) to buy is $130,000 but rent is $200 a week, with a loan payment of $145 a week, saving $55.

13. Bonnyrigg (NSW Sydney South West) to buy is $264,750 but rent is $350 a week, with a loan payment of $295.30 a week, saving $54.70.

14. Bungalow (QLD Cairns) to buy is $175,250 but rent is $245 a week, with a loan payment of $195.47 a week, saving $49.53.

15. Smithfield (QLD Cairns) to buy is $210,000 but rent is $282.50 a week, with a loan payment of $234.23 a week, saving $48.27.

16. Punchbowl (NSW Canterbury Bankstown) to buy is $200,000 but rent is $270 a week, with a loan payment of $223.08 a week, saving $46.92.

17. South Brisbane (QLD Brisbane West) to buy is $380,000 but rent is $470 a week, with a loan payment of $423.85 a week, saving $46.15.

18. Port Douglas (QLD Cairns) to buy is $211,500 but rent is $280 a week, with a loan payment of $235.90 a week, saving $44.10.

19. Reid (ACT Canberra) to buy is $387,000 but rent is $475 a week, with a loan payment of $431.65 a week, saving $43.35.

20. Melbourne (VIC Inner Urban) to buy is $365,000 but rent is $450 a week, with a loan payment of $407.12 a week, saving $42.88.
 
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4. South Wentworthville (NSW Sydney West) to buy is $324,500 but rent is $440 a week, with a loan payment of $361.94 a week, saving $78.06.

Hmm, my relatives recently sold their Wentworth IP for $330k and it did not command anywhere near $440 pw in rent. They were receiving market rent too...
 
The mortgage payments might be less than the rent, but once you add on insurance, repairs, body corporate (where applicable), rates etc I doubt whether there are many places where renting is cheaper.
 
ok fair enough, for the victorians,

there is only 2 suburbs, CBD and carlton,

so does that mean that it is a wiser investment to look at these suburbs, as other suburvs might only be yielding 4% or so, which is a big difference??
 
What a crock. Those rent amounts are bull. Have a look at realestate.com and compare.
What LVR is the repayment amount calculated on?
How many suburbs are there in Australia?

Meaningless garbage.
 
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All the Tas suburbs are housing commission areas with low demand. The medians seem to be a little off too. Might be based on low volume months.
 
"The Top 20 suburbs where it’s cheaper to buy a house than rent are:

1. Rosebery (NT Palmerston) to buy is $249,000 but rent is $490 a week, with loan payment of $277.73 a week, saving $212.27."


Show me a house you can buy in Rosebery for $249,000 renting for $490/week and I'll buy it.

http://www.realestate.com.au/cgi-bi...la,Warehouse&cu=fn-rea&pxe=any&t=res&s=nt&o=p

I can't see any house for sale in Rosebery under $450,000...even then the cheapest is a duplex unit.

The cheapest listed house for sale is $498,000. Rents in this area are at a yield of about 5%.

http://www.realestate.com.au/cgi-bi...tached,House,Terrace,Villa,Warehouse&o=p&p=30
 
I would say this list is out of date. Macgregor ACT was selling that cheap 2 yrs ago when I bought my house here - but not any more. You can now add an extra 100k on that price tag, although the rent is about right.
 
What a crock. Those rent amounts are bull. Have a look at realestate.com and compare.
What LVR is the repayment amount calculated on?
How many suburbs are there in Australia?

Meaningless garbage.

You took the words right out of my mouth.

Cartwright (for example) is a housing commission area.
I'd like to see a place there get $380 a week. More likely half that.
Plus it costs more than the buying price to purchase (stamp duty, solicitors fees etc) which all has to be paid THEN you pay interest on that too. If comparisons are going to be made EVERYTHING should be taken into account.

Show me a house that costs $250,000 where I can get $380 a week rent and I'll buy it tomorrow.

Plus find m a place in Bonnyrig for $265,K and I'll buy that too.

Most of the areas mentioned say rents are $300-400+. Rubbish.

Also, as mentioned, there is a lot more to the costs than just the interest rates.
 
ok fair enough, for the victorians,

there is only 2 suburbs, CBD and carlton,

so does that mean that it is a wiser investment to look at these suburbs, as other suburvs might only be yielding 4% or so, which is a big difference??

A lot of the cheaper CBD inner-suburban and Carlton 'properties' would be serviced or student apartments. Some are strictly tenants only - ie no owner occupiers.

So even if you wanted to move in you may be prevented from doing so, making the figures above invalid.

Someone at work bought a 3br townhouse in Yarraville but will be letting out two bedrooms. He reckoned that the board plus the no longer paid rent should approximately break even.
 
...and all this in the week where projections of a 2% rate increase in the near future are splashed across every paper. Anyone who thinks they can go and buy for less than they can rent in all but the most obscure suburbs have a very short term view indeed.
 
If you read the fine print, what they did was take the median rent for the suburb and compare it with the median mortgage payments people were currently making in the same suburb at the time of the report.

Then some bright spark decided that if the current rental was higher than the current mortgage payments, then it was cheaper to buy than rent in that suburb.

Useless.

Nowhere was current rent compared with what it would cost to pay the mortgage on the current house price.
Marg
 
I don't know how this sort of thing is allowed to be printed, it's very misleading and with interest rates to rise, I think the equation would change quite quickly anyhow. I think it prays on young potential home-owners who may not fully cost everything up before buying.
 
I have to say for CBD Melbourne, you can not compare rent with simply loan repayments.

Most units are in high density apartments which equals high BC/OC costs (which are usually embedded into the rent). So a nasty surprise for any unfortunate who looks at articles like this on face value.....

At a moderate $3k pa maintenance cost, this would add ~$60 per week to your costs ... so even if loan repaymetns were $400, it would be equivalent to $450 out of pocket a week, and that is still not allowing for rates, repairs and other ancillary services...!

Cheers,

The Y-man
 
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