Aussie suburbs where it’s cheaper to buy than rent

Think renting is cheaper than buying? Think again

09 November 2020|3 minute read

big house with lawn

Buying a home is a big step, so it’s easy to assume that renting is more affordable. And it may have been in the past. But new data reveals that those days may be over.

Aussie’s Buy vs Rent report shows that in almost 60% of suburbs around the nation, it could cost less to pay down a home loan each month that to pay rent.

This is great news for first home buyers, who may not realise that buying a property could reduce their housing costs in the long term. And we’re talking savings that have an impact.

Get into the detail

Download Aussie’s Buy vs Rent report

Here are a few places where buying could be cheaper than renting:

  • Carlton, Melbourne – mortgage repayments could be $675 less than rents per month. 
  • Logan, Brisbane – monthly repayments could be $590 less than rents.
  • Coolangup, Perth – monthly loan repayments can be as much as $597 less than what you’ll pay in rent. 
  • Liverpool, Sydney – buying a home here could mean saving $194 each month compared to renting.

Record low interest rates are the key

So, what’s driving up savings of owning over renting? The answer is record low interest rates.

Rates were already low at the start of 2020, but they tumbled in March following back-to-back cuts by the Reserve Bank.

Today, we’re seeing home loan rates that start with a ‘1’ – the lowest since records began in 1959.

Better still, the Reserve Bank has signalled that interest rates will stay at historic lows for at least another three years.

That’s giving home buyers some certainty that interest rates will remain low for an extended period of time.

A big opportunity for first home buyers

Our report shows there’s a big choice of suburbs where owning a home could be a lot kinder on your budget than renting.

And along with low rates, first home buyers could also be eligible for financial support to get started – from state-based grants and stamp duty savings through to the $25,000 HomeBuilder Grant.

In more good news, October saw an extra 10,000 places opened up for the First Home Loan Deposit Scheme, which makes it possible to buy with a 5% deposit and no lenders mortgage insurance.

Your Aussie Broker can explain how these grants and schemes work, offer guidance on whether you’re eligible, and even help you apply.

Top suburbs where it is cheaper to buy than rent – by region

See the areas in each region where it is cheaper to buy rather than rent a house or a unit.

  1. Greater Sydney
  2. Regional NSW
  3. Greater Melbourne
  4. Regional Victoria
  5. Greater Brisbane
  6. Regional Queensland
  7. Greater Adelaide
  8. Regional South Australia
  9. Greater Perth
  10. Regional Western Australia
  11. Greater Hobart
  12. Regional Tasmania
  13. Greater Darwin
  14. Regional Northern Territory
  15. Greater Australian Capital Territory


Read the Aussie Buy vs Rent Report 2020

Check out Aussie’s Buy vs Rent Report to find the suburbs where it can cost you less each month to be a home owner than a renter. Then go straight to your local Aussie Broker to discover what you can do to quit the rental treadmill and move into a place you can truly call your own – sooner.

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