Australian suburbs where it’s cheaper to own than rent

You could save up to $8,000 a year if you buy rather than rent in these suburbs.

Exclusive new analysis has revealed the Aussies suburbs where it is cheaper to own than rent.

According to a Compare the Market analysis, Aussies can be better off owning in a number of suburbs within easy commuting distance of the CBD, rather than renting and can save up to $8,000 a year in the process.

Skyrocketing rents in our capital cities and also in the regions have characterised Australia’s cost of living crisis over the past two year, and have mirrored the continued boom in home prices.

However, there remain many good lifestyle suburbs where it is cheaper to play off a mortgage than forking out your hard earned in rent.

Here’s they are.

WHERE IT’S CHEAPER TO OWN THAN RENT IN SYDNEY AND NSW

The exclusive Compare the Market analysis has revealed there are 11 Greater Sydney suburbs where it’s become cheaper to buy than rent.

The analysis has compared median monthly rental prices, loan sizes and median house prices with a 20 per cent deposit. Those living in apartments in Western Sydney suburbs Lakemba, Auburn, Harris Park, Rosehill, Regents Park and Mays Hill, would be paying more in rent than those who were paying off a mortgage.

There are 11 Greater Sydney suburbs where it’s become cheaper to buy than rent.

Units in Sydney’s South West were also found to be cheaper for mortgage holders than renters in Wiley Park, Bankstown and Warwick Farm.

One inner Sydney suburb also met the criteria, in Mascot, the median monthly mortgage repayment stood at $4041, while renting cost $4,267.50.

There were 31 areas where houses were cheaper to buy than rent across regional NSW, including Lismore, Gundagai, Casino, Grafton, Deniliquin and Gunnedah.

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WHERE IT’S CHEAPER TO OWN THAN RENT IN MELBOURNE AND VICTORIA

Melbourne tenants could save up to $660 a month paying a mortgage on a unit instead of renting it.

But families needing a house have to go to regional Victoria for a better deal as an owner than as a renter. Compare the Market data and insights from real estate guru Andrew Winter shows mortgage repayments on an apartment, assuming the buyer put down a 20 per cent deposit, were less expensive than monthly rental costs in 10 suburbs by at least $290 a month.

They include Abbotsford, Docklands, North Melbourne, Travancore, Notting Hill and Box Hill.

And in regional Victoria, tenants could save up to $281 a month by purchasing a house in suburbs like Morwell, Mooroopna and Portland, and up to $445 buying a unit in areas such as Mildura, Echuca and Shepparton.

Compare the Market property expert Andrew Winter said rising interest rates and soaring property prices meant most buyers coming into the market today would spend more on their mortgage repayments than they would on monthly rent.

“But owning a property still has advantages if you have a deposit saved and can afford to meet the repayments,” Mr Winter said.

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WHERE IT’S CHEAPER TO OWN THAN RENT IN BRISBANE AND QUEENSLAND

Shock new figures show home ownership is even further out of reach of many Queenslanders, with five out of six suburbs cheaper to rent in than buy despite record rental price rises.

Latest analysis from Compare The Market found an overwhelming surge in suburbs where rent has escalated – costing as much as $6,000 a month in the worst-hit suburb Broadbeach Waters on the Gold Coast and over $4,800 in Brisbane’s most expensive area Bulimba.

Despite that, more than 500 suburbs were cheaper to rent in than buy a home – thanks to record home prices pushing mortgage repayments out to as much as double monthly rent.

In 185 suburbs across Queensland, both houses and units were considered cheaper to rent than buy because of high mortgage costs – though there were some bright spots for unit buyers in 15 Greater Brisbane suburbs that were marked as better to buy in now.

These included units in inner city suburbs like Spring Hill – where mortgage repayments were almost $395 a month less than rent, Fortitude Valley and Bowen Hills (over $230 difference) and expanding to outer areas like Goodna and Bundamba (almost $300 less).

Broadbeach Waters is one suburb where it is cheaper to own then rent.

The data also found that in some suburbs rent versus buy costs were close enough to warrant renters making the leap into home ownership if they could – certainly before prices escalate any further.

Greater Brisbane suburbs Russell Island ($1,839.98 to rent versus $1,929.78 to buy) and Macleay Island ($1,963.46 versus $2,121.52) were among those Compare the Market found close enough to make the leap.

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WHERE IT’S CHEAPER TO OWN THAN RENT IN ADELAIDE AND SOUTH AUSTRALIA

While it used to be cheaper to buy a house than rent in many suburbs, new data reveals that is no longer the case anywhere in metropolitan Adelaide, and there are now just three suburbs where you’re better off paying off your own unit than someone else’s.

According to Compare the Market, buyers can save, on average, $235.13 a month by buying a city unit or apartment over renting one, with monthly repayments on a median-priced home coming in at $2329.25 as opposed to the $2564.38 you would be paying to rent a median-priced unit or apartment.

Renters can save the most money by buying in St Peters as opposed to buying there. Picture: Naomi Jellicoe

Those looking to escape the rental market can also save $209.10 by buying a Salisbury unit than renting one, while those buying a Mawson Lakes unit can save themselves $10.44 per month by buying.

The savings were far greater for those looking to buy a house in rural SA rather than renting one.

Renters in Solomontown, near Port Pirie, stand to save $612.50 per month by switching to owning, with monthly repayments of $1000.20 significantly cheaper than the $1612.69 they would be paying in rent.

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Originally published as Australian suburbs where it’s cheaper to own than rent