INDUSTRY NEWSNEWSWA

The Perth suburbs where it’s cheaper to buy than rent

It is cheaper to buy a home than rent in 112 Perth suburbs with buyers able to save almost $400 a week in some areas, new figures show.

The latest data from the Real Estate Institute of Western Australia (REIWA) shows it’s $377 per week cheaper to buy a house in Brentwood than to rent one.

Brentwood has a median house sale price of $655,000, which equates to an estimated weekly mortgage payment of $573 compared to a weekly median house rent of $950.

Other suburbs offering buyers good value include Medina, where it’s $123 per week cheaper to buy a house than rent, and Parmelia, where it’s $120 a week more affordable to buy.

REIWA President Damian Collins said Western Australia was one of the most affordable places in the country to buy property in. 

“It is more affordable to pay the costs associated with servicing a home loan than pay the weekly rent in 112 Perth suburbs, which should give tenants encouragement that home ownership is within reach,” Mr Collins said.  

Of the top 10 suburbs where it is cheaper to buy than rent, nine have a median house sale price below the Perth median of $520,000, with eight of those below $300,000.  

“The bulk of the suburbs on this list fall within the traditional first-home buyer price range,” Mr Collins said. 

“Even though Perth house prices have grown over the last 12 months, there is still excellent opportunity for prospective buyers to exit the rental market and step onto the property ladder.

“And as the REIWA analysis shows, servicing a loan is cheaper than paying rent in a lot of Perth suburbs.”

REIWA analysis assumes an 80 per cent loan-to-value ratio on the suburb’s median house price, with a 30-year loan repayment and two per cent interest rate. Plus, it also factors in one per cent of the median house sale price to account for maintenance and other ownership costs like council rates. 

“Record low interest rates combined with some of the most affordable housing in the country, has led to a surge of Perth suburbs becoming more affordable to buy in than rent,” Mr Collins said.

“Once buyers have saved a deposit, the decision to buy a property is more financially advantageous than renting in these suburbs.”

Source: REIWA

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