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New research shows that weekly repayments on an average home loan could be less than or only slightly more than the median weekly asking rent in most capital cities.
Mortgage broker Mortgage Choice has compared prices for houses in most capital cities with weekly repayments on the average home loan, and found many on par.
In the December 2012 quarter for a house in Darwin, the median weekly rent was $650 per week. Darwin’s first homebuyers on the other hand paid $401 per week on a 30-year average loan of $293,200 (at a basic variable interest rate of 5.9%).
"Of course, home-ownership costs such as land tax, strata fees, council rates, water consumption, insurances and maintenance need to be factored into the equation, but the small difference between rent and loan repayments within some areas is encouraging for many potential buyers," said Mortgage Choice spokesperson Belinda Williamson.
"Making your first property purchase requires careful consideration of a range of aspects and detailed planning before you even commence the hunt, let alone think about applying for a home loan.
"Tenants who know their financial limitations and options are more likely to confidently leave the rental roundabout."
Lower interest rates, easing prices and improved affordability can often be the tipping point for previously content tenants to consider choosing home-ownership over paying rent.
Click ahead to see how our cities measure up
Feb 15, 2013