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