Over 100 Perth suburbs offer cheaper mortgage than rent
Servicing a mortgage is now cheaper than paying rent in a huge part of Perth as the Western Australian capital continues to boast one of the most affordable property markets in Australia.
Despite strong price growth over the last 12 months, Perth’s median house price currently sits at $696,600, making it the fourth most affordable capital city following Hobart, Darwin and Adelaide.
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As such, new data from the Real Estate Institute of Western Australia (REIWA) has revealed it is now cheaper to buy than rent in 112 suburbs across the capital city, with first home buyer suburbs offering the best value.
“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,” according to REIWA president Damian Collins.
“The bulk of the suburbs on this list fall within the traditional first home buyer price range.”
According to Mr Collins, record-low interest rates, combined with “some of the most affordable housing in the country”, ultimately led to Perth’s general affordability.
“Even though Perth house prices have grown over the last 12 months, there is still an excellent opportunity for prospective buyers to exit the rental market and step onto the property ladder,” Mr Collins said.
Among the top 10 suburbs where it’s cheaper to buy than rent are Armadale, Parmelia, Camillo and Orelia, where median house sale prices sits below $300,000.
The top 10
Based on an analysis that assumes an 80 per cent loan-to-value ratio on the suburbs’ median price, as well as a 30-year loan repayment period and 2 per cent interest rate, here are the top 10 Perth suburbs where it’s cheaper to buy than rent:
|
SUBURB |
MEDIAN HOUSE SALE PRICE |
ESTIMATED WEEKLY COST OF MORTGAGE |
MEDIAN WEEKLY HOUSE RENT PRICE |
|
1. Brentwood
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|
$655,000 |
$573 |
$950 |
|
2. Medina |
$260,000 |
$227 |
$350 |
|
3. Parmelia |
$280,000 |
$245 |
$365 |
|
4. Bullsbrook |
$365,000 |
$319 |
$470 |
|
5. Orelia |
$275,000 |
$241 |
$350 |
|
6. Armadale |
$255,000 |
$223 |
$320 |
|
7. Camillo |
$270,000 |
$236 |
$330 |
|
8. Leda |
$290,000 |
$254 |
$350 |
|
9. Lockridge |
$286,500 |
$251 |
$340 |
|
10. Brookdale |
$295,000 |
$258 |
$350
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