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Buying is cheaper than renting for 27% of homes


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:

  • Northern Territory = 98% of homes are cheaper to buy than rent

  • Western Australia = 62%

  • Queensland = 51%

  • Tasmania = 41%

  • South Australia = 34%

  • ACT = 29%

  • New South Wales = 9%

  • 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.

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