Domain has crunched the numbers to find out the share of suburbs around Australia in which it would be cheaper to buy than rent.
The answer is 13.8% of suburbs for houses and 21.0% for units.
Domain’s calculations were based on comparing the cost of renting a home with servicing a mortgage, and assuming buyers would provide a 20% deposit and pay a mortgage rate of 4.93%.
Crucially, though, Domain didn’t look at capital growth, which is where the real benefit of home ownership kicks in.
Australia’s median property price increased by a remarkable 382% in the 30 years to July 2022, according to recent research by CoreLogic.
So while buyers may have to pay more than renters in the short-term, they can build significantly more wealth in the long-term.