238 locales cheaper to buy than rent: RP Data

RP Data's annual Buy Versus Rent report shows 238 suburbs and towns in Australia where the mortgage repayment is lower than the median rent.

Australia has 238 suburbs and towns where mortgage repayments are lower than the median residential rent, based on a principal and interest loan on a variable mortgage rate.

Using an interest-only loan, the list expands to 1320 suburbs and towns.

Queensland has the most places cheaper to buy than rent - 16 locales are Brisbane suburbs, while 68 are regional Queensland towns.

NSW has 54 suburbs, 22 in Sydney and the balance in regional areas.

By comparison, Victoria has just 10 locales where residential property is cheaper to buy than rent - two suburbs in Melbourne and eight in regional Victoria.

"With recent cuts to mortgage rates and evidence of a modest increase in house prices over the recent June to July period, we may see consumers returning to the property market as they realise that residential property may not cost them that much more to own than rent," says RP Data research director, Tim Lawless.

"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."

To request a copy of the report, go to: www.rpdata.com.au/buyorrent

Number of suburbs cheaper to buy than rent across Australian regions

Source: RP Data