Revealed: The suburbs near the beach where it’s cheaper to buy than rent provided you look outside of Sydney and Melbourne
- Only 36.2 per cent of properties across Australia are cheaper to buy than rent
- But areas by the beach despite booming house prices affordable for borrowers
- On the Gold Coast, 62.5 per cent of homes are better for borrowers than tenants
Property is still cheaper to buy than rent in a handful of coastal sea change areas that are experiencing a price boom.
Across Australia, only 36.2 per cent of properties have mortgage costs that are less than honouring a lease, with Sydney, Melbourne and Canberra having nothing in the affordability category.
Satellite regional areas like Newcastle, the Central Coast, Wollongong, Geelong, Bendigo and Queensland‘s Sunshine Coast are also much harder for buyers, as house prices have surged to record highs during the pandemic.
But a new CoreLogic report has revealed areas by the beach where it is still financially easier to be a home borrower than a tenant, with the banks offering mortgage rates of 2 per cent.
Property is still cheaper to buy than rent in a handful of coastal sea change areas that are experiencing a price boom. On the Gold Coast (pictured is Surfers Paradise), 62.5 per cent of homes are still cheaper to buy than rent, mainly owing to the huge supply of apartments
CoreLogic’s head of research in Australia Eliza Owen said low borrowing costs and tight rental vacancies meant buyers were often better off.
‘The low interest rate environment is still conducive to better serviceability in many parts of the country,’ she said.
‘The analysis is a good reminder for renters to weigh up housing costs and savings, to see if it is time for a change in tenure.’
On the Gold Coast, 62.5 per cent of homes are still cheaper to buy than rent, mainly owing to the huge supply of apartments.
In Cairns, that jumps to 88.8 per cent and rises to 91.5 per cent in the Whitsunday region.
The New South Wales North Coast is still better for buyers with 59.1 per cent of homes in Coffs Harbour in this category.
The Mid-North Coast, covering Port Macquarie and Forster, had 57 per cent of properties favouring buyers over renters.
For those who want to stay living in a capital city, Brisbane has pockets of affordability near the coast and even the city centre.
An oversupply of apartments in Brisbane’s city centre (pictured is Southbank across the river from the city centre) has made 52.9 per cent of homes more affordable to buy than rent
An oversupply of apartments in Brisbane’s city centre has made 52.9 per cent of homes more affordable to buy than rent.
For those who want a house near the beach, 52.1 per cent of homes in Brisbane’s east are more attainable for buyers than renters.
That rises to 63.3 per cent in the northern part of Moreton Bay, covering Caboolture and Bribie Island.
In Perth, 59.6 per cent of homes were more attainable for buyers, with every area in this category except inner-city areas near the Swan River.
In Adelaide’s south (pictured is Glenelg), taking in areas near the beach, 51 per cent of homes are still easier to buy than rent
The coastal satellite city of Mandurah had 74 per cent of homes where being a borrower was more economical than being a renter.
In Hobart, a bare majority of 50.2 per cent of homes are cheaper to buy than rent, in a city where house values have surged 19.2 per cent during the past year.
In Adelaide’s south, taking in areas near the beach, 51 per cent of homes are still easier to buy than rent.
In Darwin, 86.5 per cent of homes were in this category.
The CoreLogic data was based on borrowers having a 20 per cent mortgage deposit saved up.
In Hobart (pictured is the Salamanca Markets), a bare majority of 50.2 per cent of homes are cheaper to buy than rent, in a city where house values have surged 19.2 per cent during the past year