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The suburbs in Sydney, Melbourne, Brisbane and Adelaide where it's cheaper to buy than rent

Houses are cheaper to buy than rent in pockets of suburban Australia and they aren’t all a long commute from the city.

With standard variable interest rates at record lows of little more than two per cent, Buyers’ agent Dream Design Property has revealed where repaying a mortgage is up to 60 per cent cheaper than honouring a lease. 

Their calculations were based on real estate newcomers paying off an interest-only loan and only needing to put in a five per cent deposit as part of the federal government’s $500million First Home Loan Deposit Scheme.

Houses are cheaper to buy than rent in pockets of suburban Australia and they aren't all a long commute from the city. Home buyers wanting to live in a house near a major city centre have more options in Brisbane. At Aspley, 13km north of the city, paying off a mortgage is 58 per cent cheaper than renting - $208 a week versus average weekly rent of $500

Houses are cheaper to buy than rent in pockets of suburban Australia and they aren’t all a long commute from the city. Home buyers wanting to live in a house near a major city centre have more options in Brisbane. At Aspley, 13km north of the city, paying off a mortgage is 58 per cent cheaper than renting – $208 a week versus average weekly rent of $500

DDP’s founder Zaki Ameer said government assistance, coinciding with the COVID-19 crisis, offered once-in-a-lifetime opportunities for home buyers.

‘Analysing the numbers, it’s actually much cheaper to buy property right now than to rent in Sydney and Melbourne, and we probably won’t see anything like this for decades,’ he said.

While the major banks are forecasting property price falls between now and 2021, Mr Ameer saw the worst economic crisis since the 1930s Great Depression as a chance for bargain hunters.

‘If we look at the history of the property market, despite economic downturns, property continues to go up in value over time,’ he said.

‘The pandemic will pass, the economy will rebound and before we know it property prices will be out of reach for many people again.’

In Adelaide, paying off a loan at Oaklands Park, 13km south-west of the city, is 60 per cent cheaper. Mortgage repayments for a three-bedroom house worth $490,000 are $196 compared with $485 a week for rent, in a suburb near the beach with a mid-point price of $497,000

In Adelaide, paying off a loan at Oaklands Park, 13km south-west of the city, is 60 per cent cheaper. Mortgage repayments for a three-bedroom house worth $490,000 are $196 compared with $485 a week for rent, in a suburb near the beach with a mid-point price of $497,000

Home buyers wanting to live in a house near a major city centre have more options in Brisbane.

At Aspley, 13km north of the city, paying off a mortgage is 58 per cent cheaper than renting.

DDP calculated it was possible to pay $208 a week servicing a mortgage, compared with $500 a week on average for rent, for a $520,000 house in a suburb where the median price is $612,212, going by CoreLogic data.

Melbourne also offers a similar deal at Thomastown, 17km north of the city.

Someone paying off a $500,000 house, in a suburb with a median price of $552,850, only needs to put aside $200 a week for a mortgage, compared with $460 a week for rent – a difference of 57 per cent.

Sydney residents wanting to spent less on a mortgage than on rents have a choice of either living in a very small studio apartment near the city, or in a house a long way from the city. A tiny Potts Point unit, selling for $395,000, costs $350 a week on average to rent while paying off a mortgage is 55 per cent cheaper at $158

Sydney residents wanting to spent less on a mortgage than on rents have a choice of either living in a very small studio apartment near the city, or in a house a long way from the city. A tiny Potts Point unit, selling for $395,000, costs $350 a week on average to rent while paying off a mortgage is 55 per cent cheaper at $158

Sydney residents wanting to spent less on a mortgage than on rents have a choice of either living in a very small studio apartment near the city, or in a house a long way from the city.

A tiny Potts Point unit, selling for $395,000, costs $350 a week on average to rent while paying off a mortgage is 55 per cent cheaper at $158.

Those wanting a house have to head 50km south-west from the city to Leppington, near the upcoming Western Sydney Airport at Badgerys Creek.

Weekly mortgage repayments there of $246 are 55 per cent less than average weekly rents of $550 for a $614,900 brand-new three bedroom house.

Median prices in this suburb stand at $718,468. 

In Adelaide, paying off a loan at Oaklands Park, 13km south-west of the city, is 60 per cent cheaper.

Mortgage repayments for a three-bedroom house worth $490,000 are $196 compared with $485 a week for rent, in a suburb near the beach with a mid-point price of $497,000. 

In Melbourne, at Thomastown, 17km north of the city, someone paying off a $500,000 house, in a suburb with a median price of $552,850, only needs to put aside $200 a week for a mortgage, compared with $460 a week for rent - a difference of 57 per cent

In Melbourne, at Thomastown, 17km north of the city, someone paying off a $500,000 house, in a suburb with a median price of $552,850, only needs to put aside $200 a week for a mortgage, compared with $460 a week for rent – a difference of 57 per cent

While the major banks are forecasting property price falls between now and 2021, Mr Ameer saw the worst economic crisis since the 1930s Great Depression as a chance for bargain hunters. Pictured is a NAB set of capital city property price forecasts

While the major banks are forecasting property price falls between now and 2021, Mr Ameer saw the worst economic crisis since the 1930s Great Depression as a chance for bargain hunters. Pictured is a NAB set of capital city property price forecasts

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Written by Angle News

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