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It is now cheaper to buy than to rent in many areas around Australia, according to Aussie executive chairman John Symond.
Mr Symond told radio show Mamamia Today this was down to all-time low interest rates and high rents driven by a housing shortage.
“There are a range of suburbs around Australia where mortgage repayments are now less than the amount it costs to rent. We are talking properties that are under $500,000 in some suburbs,” he said.
Mr Symond said it is worthwhile for renters to consider what they are paying in rent and if they could be better off spending money repaying a mortgage instead.
“In addition to this, first home buyers may still be eligible for grants towards buying a new home, particularly a home to be constructed, and this further supports the case to buy rather than to rent,” he said.
A recent RP Data report named 283 suburbs across Australia where it is cheaper to buy than rent.
RP Data’s research director Tim Lawless noted the 5.9 per cent drop in average capital city home values as a factor in the increased affordability of many areas.
“These conditions, in conjunction with discounted variable mortgage rates - having fallen by around 100 basis points since October last year - have resulted in improved housing affordability,” he said.
“With lower mortgage rates, tight rental markets resulting in some rental increases and lower home values, many buyers may see now as a good time to either re-enter the market or buy their first home,” added Mr Lawless.
