Buying is cheaper than renting for 27% of homes

1 min read

Buying is cheaper than renting for 27% of homes

If you’re wondering whether it’s cheaper to buy or rent, a new report has answered that question.

It’s currently cheaper to buy 27% of homes in Australia, according to PropTrack, although the numbers vary significantly from state to state:

  • Northern Territory = 98% of homes are cheaper to buy than rent
  • Western Australia = 62%
  • Queensland = 51%
  • Tasmania = 41%
  • South Australia = 34%
  • ACT = 29%
  • New South Wales = 9%
  • Victoria = 7%

PropTrack’s analysis relied on a range of assumptions, including that buyers would pay stamp duty, put up a 20% deposit, pay a mortgage rate of 4.62%, experience capital growth of 3% per annum and hold the property for 10 years.

While PropTrack found 27% of the overall housing stock is cheaper to buy than rent, buying turned out to be the cheaper option for 31.2% of three-bedroom houses and 52.6% of two-bedroom units.

Wondering whether renting or buying would be cheaper for your personal scenario? If so, reach out and I’ll be happy to crunch the numbers for you.

Contact me if you want to enter the market.

Hit the button below to arrange a conversation with one of my loan specialists to find a deal that’s best for your situation.

We partner with over 50 lenders so you can find the perfect solution

Do you have questions about mortgages or loans?

Ask us in the comments below