The suburbs where it may be cheaper to buy than rent

MARIA BEKIARIS
CoreLogic has tracked down the suburbs around Australia where mortgage payments may be less than the rent by as much as $1,000.

There’s no denying that home affordability is an issue around Australia. What might surprise you, though, is that there are a number of locations around Australia where mortgage repayments may actually be cheaper than rent.

CoreLogic has done the number-crunching to find the suburbs where that is the case. The calculations assume you have a 20% deposit, as well as enough money to pay stamp duty and any other upfront costs that come with buying a property.

Darwin units top the list of the capital cities where it is cheaper to buy than rent. The monthly home loan repayments are $1,078 less than what it would cost you to rent a unit! The monthly difference is not quite as big in some of the other cities.

Of course, it helps that interest rates are at historic lows as the repayments are based on paying 2.44%pa. If interest rates were higher some of the locations might not be cheaper to buy than rent.

Something else to keep in mind is that owning a home will cost you more than just the mortgage repayments. Some of the other ongoing expenses you’ll need to budget for include insurance, council rates as well as repairs and maintenance.

 

Buy v rent
Image source: Dmitry Demidovich (Shutterstock.com)

Greater Brisbane

There are opportunities in Brisbane to save between $600 and nearly $800 a month by buying a house or unit instead of renting. Top of the list is Kilcoy, which is about an hour out of Brisbane.  The monthly repayments on a house are potentially $793 less than the cost of renting. There are also a number of locations closer to Brisbane including units in Spring Hill and Fortitude Valley.

Greater Brisbane Houses

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Suburb SA4 Region Median
rent
Median
value
Monthly
payments
Monthly
rent
Monthly
difference
Kilcoy Moreton Bay
North
$395 $293,137 $919 $1,712 -$793
Macleay Island Brisbane East $379 $291,736 $915 $1,644 -$729
Russell Island Brisbane East $346 $255,455 $801 $1,501 -$699
Kingston Logan-
Beaudesert
$383 $317,504 $996 $1,658 -$662
Bellbowrie Brisbane West $608 $630,268 $1,977 $2,633 -$656
Riverview Ipswich $331 $249,787 $783 $1,435 -$651
Goodna Ipswich $367 $299,910 $941 $1,589 -$649
Waterford
West
Logan-
Beaudesert
$401 $348,071 $1,092 $1,738 -$646
Eagleby Logan-
Beaudesert
$376 $315,360 $989 $1,629 -$640
Logan Central Logan-
Beaudesert
$369 $312,017 $979 $1,599 -$620
Source information for all tables:

Source: Core Logic. Data as at 31 March, 2021. This used median value and rent data to March 2021 to determine the average monthly cost to service a mortgage vs rental payments based on the following assumptions: Loan based on 80% of median value, meaning 20% of the property value is required as a deposit; an interest rate of 2.44%pa (based on RBA Lending rate); repayments are principal and interest over a loan term of 30 years. Suburbs with less than 50 sales, 20 rental observations and 100 valid avm’s were excluded from the analysis.

Greater Brisbane Units

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Suburb SA4 Region Median
rent
Median
value
Monthly
payments
Monthly
rent
Monthly
difference
Deception Bay Moreton Bay
North
$356 $260,430 $817 $1,544 -$727
South Brisbane Brisbane
Inner City
$505 $470,411 $1,475 $2,188 -$713
Eight Mile
Plains
Brisbane South $445 $393,723 $1,235 $1,928 -$693
Woodridge Logan-
Beaudesert
$281 $169,878 $533 $1,218 -$685
Springwood Logan-
Beaudesert
$360 $281,340 $882 $1,560 -$677
Eagleby Logan-
Beaudesert
$315 $221,115 $693 $1,363 -$670
Spring Hill Brisbane
Inner City
$433 $385,806 $1,210 $1,875 -$665
Fortitude Valley Brisbane
Inner City
$436 $393,115 $1,233 $1,887 -$654
Brendale Moreton Bay
South
$359 $292,163 $916 $1,556 -$640
Runcorn Brisbane South $392 $341,522 $1,071 $1,700 -$629

Source: CoreLogic. Details on assumptions can be found here (or under the Greater Brisbane Houses table displayed above).

 

Central Coast
Central Coast, NSW. Image source: Taras Vyshnya (Shutterstock.com)

Greater Sydney

When looking at houses all 10 locations to feature on the list are on the NSW Central Coast which is about one hour away from Sydney. The monthly difference between loan repayments and rent are quite modest ranging from $223 to $364.

Greater Sydney Houses

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Suburb SA4 Region Median
rent
Median
value
Monthly
payments
Monthly
rent
Monthly
difference
Blue Haven Central Coast $495 $568,639 $1,783 $2,147 -$364
Lake Haven Central Coast $477 $544,806 $1,709 $2,065 -$356
Watanobbi Central Coast $473 $547,795 $1,718 $2,052 -$334
San Remo Central Coast $460 $532,877 $1,671 $1,993 -$322
Narara Central Coast $578 $705,396 $2,212 $2,504 -$292
Mannering Park Central Coast $467 $552,665 $1,733 $2,022 -$289
Kanwal Central Coast $464 $554,092 $1,738 $2,011 -$274
Lake Munmorah Central Coast $469 $560,945 $1,759 $2,032 -$273
Gorokan Central Coast $446 $534,971 $1,678 $1,931 -$254
Summerland
Point
Central Coast $479 $590,628 $1,852 $2,075 -$223

Source: CoreLogic. Details on assumptions can be found here (or under the Greater Brisbane Houses table displayed above).

Greater Sydney Units

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Suburb SA4 Region Median rent Median value Monthly payments Monthly rent Monthly difference
West Gosford Central Coast $455 $487,865 $1,530 $1,971 -$441
Gosford Central Coast $449 $490,256 $1,537 $1,945 -$408
Mount Druitt Blacktown $357 $387,245 $1,214 $1,547 -$332
Auburn Parramatta $427 $500,241 $1,569 $1,851 -$282
Woy Woy Central Coast $466 $556,144 $1,744 $2,018 -$273
Campbelltown Outer South West $393 $462,991 $1,452 $1,701 -$250
East Gosford Central Coast $493 $601,983 $1,888 $2,136 -$248
Penrith Outer West
& Blue Mount.
$388 $457,273 $1,434 $1,681 -$247
Jamisontown Outer West
& Blue Mount.
$355 $414,595 $1,300 $1,540 -$240
Toongabbie Blacktown $444 $539,469 $1,692 $1,924 -$232

Source: CoreLogic. Details on assumptions can be found here (or under the Greater Brisbane Houses table displayed above).

ACT

The nation’s capital has some of the largest differences between repayments and rents with the monthly difference ranging from $489 to $983. Based on the median values, renting a house in Chisholm would set you back $2,727 a month while the monthly repayments on a loan would be $2,019 – a difference of $708.

ACT Houses

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Suburb Median
rent
Median
value
Monthly
payments
Monthly
rent
Monthly
difference
Chisholm $629 $643,753 $2,019 $2,727 -$708
Holt $593 $611,743 $1,918 $2,568 -$650
Latham $603 $635,094 $1,992 $2,614 -$622
Charnwood $549 $572,085 $1,794 $2,379 -$585
Higgins $607 $653,225 $2,049 $2,629 -$581
Kambah $626 $681,635 $2,138 $2,711 -$574
Macgregor $592 $639,462 $2,005 $2,565 -$559
Dunlop $645 $718,256 $2,253 $2,795 -$542
Ngunnawal $597 $666,857 $2,091 $2,586 -$495
Rivett $629 $712,855 $2,236 $2,724 -$489

Source: CoreLogic. Details on assumptions can be found here (or under the Greater Brisbane Houses table displayed above).

ACT Units

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Suburb Median
rent
Median
value
Monthly
payments
Monthly
rent
Monthly
difference
City $608 $527,356 $1,654 $2,637 -$983
Lyneham $515 $414,462 $1,300 $2,232 -$932
Braddon $544 $455,366 $1,428 $2,356 -$928
Wright $505 $423,851 $1,329 $2,187 -$858
Watson $495 $418,054 $1,311 $2,143 -$832
Gungahlin $473 $389,296 $1,221 $2,052 -$831
Turner $578 $534,554 $1,676 $2,504 -$828
Phillip $472 $399,620 $1,253 $2,045 -$792
Franklin $479 $417,338 $1,309 $2,077 -$769
Greenway $487 $432,495 $1,356 $2,110 -$753

Source: CoreLogic. Details on assumptions can be found here (or under the Greater Brisbane Houses table displayed above).

 

Hastings Victoria
Winding boardwalk in Hastings, Victoria. Image source: Greg Brave (Shutterstock.com)

Greater Melbourne

In Melbourne you may have better luck with units rather than houses. As the table below shows, the monthly difference between repayments and rent could be as high as $467. This is based on a unit in Carlton. The gap is much narrower when looking at houses in Melbourne. In Somerville, for example, the monthly difference is just $3.

Greater Melbourne Houses

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Suburb SA4 Region Median
rent
Median
value
Monthly
payments
Monthly
rent
Monthly
difference
Hastings Mornington
Peninsula
$502 $595,641 $1,868 $2,176 -$308
Melton West Melbourne $341 $408,591 $1,281 $1,477 -$196
Kurunjang West Melbourne $361 $474,856 $1,489 $1,566 -$77
Koo Wee Rup South East
Melb.
$439 $585,582 $1,836 $1,900 -$64
Melton South West Melbourne $364 $486,234 $1,525 $1,578 -$53
Diggers Rest North West
Melb.
$427 $578,334 $1,814 $1,851 -$37
Harkness West Melbourne $375 $513,446 $1,610 $1,626 -$15
Meadow Heights North West Melb. $392 $538,712 $1,689 $1,698 -$9
Somerville Mornington
Peninsula
$545 $751,459 $2,357 $2,360 -$3

Source: CoreLogic. Details on assumptions can be found here (or under the Greater Brisbane Houses table displayed above).

Greater Melbourne Units

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Suburb SA4 Region Median
rent
Median
value
Monthly
payments
Monthly
rent
Monthly
difference
Carlton Inner Melbourne $378 $373,813 $1,172 $1,639 -$467
Hastings Mornington
Peninsula
$385 $418,576 $1,313 $1,669 -$356
Craigieburn North West
Melb.
$359 $402,480 $1,262 $1,554 -$292
Cranbourne South East
Melb.
$345 $393,408 $1,234 $1,497 -$263
Sydenham West Melbourne $370 $435,934 $1,367 $1,605 -$238
Dandenong South East
Melb.
$343 $399,609 $1,253 $1,487 -$233
Sunbury North West
Melb.
$361 $427,042 $1,339 $1,564 -$224
Melbourne Inner Melbourne $397 $479,379 $1,503 $1,720 -$216
Werribee West Melbourne $330 $390,608 $1,225 $1,430 -$205
Abbotsford Inner Melbourne $449 $556,499 $1,745 $1,946 -$201

Source: CoreLogic. Details on assumptions can be found here (or under the Greater Brisbane Houses table displayed above).

Greater Hobart

Only three suburbs made the unit list in Hobart – Glenorchy, Kingston and Sandy Bay. There are more options when it comes to houses. In Risdon Vale, for example, the monthly difference between repayments and rent is $773.

Greater Hobart Houses

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Suburb SA4 Region Median
rent
Median
value
Monthly
payments
Monthly
rent
Monthly
difference
Risdon Vale Hobart $439 $359,738 $1,128 $1,901 -$773
Rokeby Hobart $480 $420,627 $1,319 $2,078 -$759
New Norfolk Hobart $421 $354,072 $1,110 $1,825 -$715
Glenorchy Hobart $474 $435,326 $1,365 $2,053 -$688
Bridgewater Hobart $434 $381,179 $1,195 $1,881 -$685
Claremont Hobart $456 $428,845 $1,345 $1,976 -$631
West Moonah Hobart $485 $512,276 $1,607 $2,102 -$495
Dodges Ferry Hobart $438 $458,527 $1,438 $1,896 -$458
Midway Point Hobart $452 $496,021 $1,556 $1,958 -$403
Lenah Valley Hobart $558 $660,422 $2,071 $2,417 -$346

Greater Hobart Units

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Suburb SA4 Region Median
rent
Median
value
Monthly
payments
Monthly
rent
Monthly
difference
Glenorchy Hobart $388 $372,078 $1,167 $1,683 -$516
Kingston Hobart $420 $465,198 $1,459 $1,821 -$362
Sandy Bay Hobart $485 $580,480 $1,820 $2,101 -$281

Source: CoreLogic. Details on assumptions can be found here (or under the Greater Brisbane Houses table displayed above).

 

Downtown area of Adelaide city
Downtown area of Adelaide city. Image source: ymgerman (Shutterstock.com)

Greater Adelaide

Top of the list in Adelaide are houses in Elizabeth Park where the monthly difference between repayments and rent is $665. Units in Mawson Lakes are close behind with a monthly difference of $663.

Greater Adelaide Houses

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Suburb SA4 Region Median rent Median
value
Monthly
payments
Monthly
rent
Monthly
difference
Elizabeth North Adelaide North $291 $190,873 $599 $1,263 -$665
Christie Downs Adelaide South $373 $305,502 $958 $1,615 -$657
Elizabeth Downs Adelaide North $301 $206,488 $648 $1,303 -$656