For those willing to pay an extra $50 on their rent, here’s the good news– you can say goodbye to your landlord and be a homeowner yourself.
Latest RP Data figures show it’s now cheaper to buy than rent in a record 388 suburbs across Australia with softer property prices proving a boon to renters.
The RP Data Buy vs Rent report analyses the difference between monthly mortgage payments and monthly rental payments based on the median value of houses and units.
The data published by News Ltd shows that there has been a 63 per cent increase in the number of suburbs where it is now cheaper to pay a mortgage than pay a landlord.
In August, only 238 suburbs fit the criteria.
Looking at the state-wise breakdown, Queensland has the most number of suburbs and towns – 147 - where it is cheaper to buy than rent.
Although most are located in regional areas including Mackay, the Darling Downs, Gold Coast and Sunshine Coast, Brisbane city also accounts for 42 suburbs, primarily in Logan and Ipswich.
New South Wales comes in second with 88 suburbs across the state where a home mortgage is cheaper than renting.
Enmore and Rushcutters Bay are among the surprise entrants.
RP Data estimates reveal those wanting to buy a unit in Enmore with an interest only loan based on 5.9 per cent, would pay $691 less a month than the current median rent.
Victoria is home to just 17 suburbs where it is now cheaper to buy than rent. Three of those were close to the Melbourne CBD and others were in country towns like Mildura, Bendigo and around the Wimmera.
In South Australia and Western Australia, there were 48 and 44 suburbs and towns respectively, while in Tasmania and the Northern Territory there were 30 and 11.
South Australia had 31 suburbs out of the 48 that were located within Adelaide where it’s cheaper to be a home owner rather than a renter
Download the full report here http://www.myrp.com.au/buyorrent