Think renting is cheaper than buying? Think again
09 November 2020|3 minute read
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.
Here are a few places where buying could be cheaper than renting:
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.
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.
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.