Real estate Tasmania: where it’s cheaper to buy than rent

Savvy Tasmanian homebuyers are paying off their mortgages for less than rental repayment in a market full of opportunity. SEE THE SUBURBS >>

SAVVY homebuyers in sought-after Tasmanian locations are paying less than $250 a week in mortgage repayments, highlighting the great opportunity for renters to become owners in the current housing market.

House owners in Upper Burnie and Acton in Burnie, Ravenswood in Launceston and in George Town, Smithton and Queenstown are all making average monthly payments on their variable homes loans that are cheaper than monthly rental costs.

According to exclusive data provided by Aussie and CoreLogic, units in Newnham and Mowbray, Launceston also fall below the $250 per week threshold for weekly repayments.

Repayments for homeowners on fixed loans are even lower.

With interest rates set to remain at record lows for some time, CEO of Aussie, James Symond said now is the time for many Aussie to realise their home ownership dreams

Upper Burnie is full of opportunity for homebuyers.

“Our data confirms that in many suburbs across Australia, especially those outside the major capital cities, on a monthly basis, it is cheaper to buy than rent with many suburbs under the $250 a week threshold,” he said.

“Why pay your landlord – when you could potentially pay the same amount or less monthly – on a house or apartment you can call your own.

“The cost gap between buying and renting has tightened across the country over the last year with record lows in variable and fixed mortgage rates and government incentives for first home buyers, have made buying conditions generally more attractive for buyers.

“The Reserve Bank recently confirmed its expectation that interest rates would not rise in the foreseeable future, providing some certainty that interest rates will remain low for an extended period.”

According to CoreLogic’s latest Home Value Index, Australia’s housing values are growing at the fastest rate in 17 years. Homes values jumped 2.1 per cent in February, the biggest month-on-month change since August 2003.

Aussie CEO James Symond. Picture: Britta Campion / The Australian

Over the past year, in spite of the pandemic-induced recession, regional prices have grown 9.4 per cent as they outpaced the 2.6 per cent price growth in the combined capitals.

“As many Australians continue to work from home, there is expected to be further shift from metropolitan areas to cheaper outer-lying areas as they decide they no longer need to live close to their workplace,” Mr Symond said.

“ This current environment is good news for renters looking to become owner-occupiers.

“Buyers should do their homework to ensure they are paying the right price for a property with the right home loan.”

Part of Launceston are ripe for home buyers Picture: Christopher Testa

WHERE MORTGAGES ARE CHEAPER THAN RENT

Newnham, Launceston (units)

Upper Burnie, Burnie (houses)

George Town (houses)

Mowbray, Launceston (units)

Acton, Burnie (houses)

Ravenswood, Launceston (houses)

Smithton, Circular Head (houses)

Queenstown, West Coast (houses)