THE SYDNEY SUBURBS WHERE IT’S NEARLY CHEAPER TO BUY PROPERTY THAN RENT

SOME ‘GOOD NEWS!’

HOWEVER … we recommend before you sign up for a mortgage start off by having a look around the garage basement(s) for cracking to the floor and walls. Then look for water stains on the walls that are not natural sandstone ‘wet walls’ … that will give you an initial indication of how the apartment block is built!

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CAAN Photo permanent water stains; when it rains it falls here!

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CAAN Photo: the garage basement floors are covered in cracks

Following are links to some articles we have shared on this topic:

https://caanhousinginequalitywithaussieslockedout.com/2019/07/06/revealed-sydneys-30m-plus-in-apartment-defect-payouts/

A guide to defects:

We’ll take you through:

https://caanhousinginequalitywithaussieslockedout.com/2019/01/01/choice-apartment-building-defects/

https://caanhousinginequalitywithaussieslockedout.com/2019/06/20/faulty-apartments-create-generation-of-mortgage-prisoners/

https://caanhousinginequalitywithaussieslockedout.com/2019/06/29/building-defects-crisis-not-fixed-by-governments-package-lawyers/

Luke Hartin and his fiancee were able to buy a unit in Alexandria, costing them $300 less in mortgaged repayments compared to renting. Photo: Peter Rae

The Sydney suburbs where it’s nearly cheaper to buy property than rent

TAWAR RAZAGHI JOURNALIST

JUL 5, 2019

The gap between rental and mortgage repayment has narrowed in dozens of Sydney suburbs due to the biggest price correction since the 1980s and a drop in interest rates to levels not seen since the 1950s.

This perfect storm has allowed Luke Hartin and his fiancee to buy a two-bedroom apartment in Alexandria costing them $300 less in mortgage repayments a month than the price of renting a smaller property in Waterloo, the suburb next door.

“We’re actually paying less because of the rates we’re getting,” Mr Hartin said. “For us it was the right time. We’ve been saving for the deposit for quite some time,”

There are dozens of suburbs where up to an extra $100 could see Sydneysiders swap their weekly rent for a similar mortgage repayments on a unit, according to a Domain data analysis.

In Alexandria, the median weekly unit rent is $600, but for an extra $77 buyers could start paying off their own home.

As Mr Hartin found out, recent interest rate cuts meant he could shop around for a better deal.

“I think the repayments are $300 cheaper a month, conservatively, which I’m blown away by,” he said.

The analysis revealed houses could only be purchased with up to an extra $100 a week on the Central Coast, with two exceptions: Bardia in the south-west ($88) and Werrington in the west ($94).

It compared the median weekly rents and mortgage repayments across Sydney suburbs and presumed a mortgage rate of 3.5 per cent, but assumed a prospective buyer already had a 20 per cent deposit. It does not factor in housing costs such as stamp duty, council rates and maintenance.

“This brings down the cost of serviceability on a mortgage and narrows the margin between rental and mortgage payments,” Domain research analyst Eliza Owen said. “But lower interest rates make housing more expensive so the deposit is still going to be the biggest hurdle.”

Lakemba was the only suburb where it was cheaper to pay a typical mortgage on a unit than rent – by just $1.

“These are lower socio-economic areas … there’s a barrier to ownership, and this puts more pressure on the rental market and that would narrow the difference between renting and mortgage repayments,” Ms Owen said.

“A 20 per cent deposit is a real psychological barrier for aspiring home owners. Looking at the data like this at least shows us what life could be like beyond the deposit hurdle.”

Ms Owen said while cheaper properties were frequently bought, more expensive properties were rented, which accounted for the price differential in some suburbs.

“A cheaper property price would have a lower mortgage, which also could narrow the gap between mortgage repayments and what someone would typically rent,” she said. “The nature of what people are buying is different to the nature of what people are renting.”

At the other end of the market, the typical weekly mortgage repayment of a house in Vaucluse is $5554 compared to the suburb’s median weekly rent of $1900. 

CommSec senior economist Ryan Felsman said people were forced to rent before the property market took a turn two years when affordability was at its worst.

“The big thing attracting people back to the property market is home loans is back to levels of the 1950s,” Mr Felsman said. “People are sitting on the sidelines, cashed up and ready to go, waiting for the property market to stabilise.

“There are fewer investors … it means renters have also had some pricing power … it’s a good time to rent and buy, which is why you’re seeing that gap between the two close.”

†

SYDNEY SUBURBS WHERE MORTGAGE REPAYMENTS ARE CHEAPER THAN RENTS
PROPERTY TYPEWEEKLY MORTGAGE REPAYMENTWEEKLY RENTDIFFERENCE BETWEEN BUYING AND RENTING
LakembaUnit$ 369$ 370-$1
GranvilleUnit$ 425$ 420$5
Mount DruittUnit$ 339$ 330$9
GuildfordUnit$ 415$ 400$15
Harris ParkUnit$ 423$ 400$23
St MarysUnit$ 353$ 328$26
GosfordUnit$ 406$ 380$26
CampbelltownUnit$ 427$ 400$27
PunchbowlUnit$ 408$ 380$28
Warwick FarmUnit$ 411$ 380$31
BankstownUnit$ 461$ 430$31
MerrylandsUnit$ 441$ 410$31
ArncliffeUnit$ 613$ 580$33
BlacktownUnit$ 433$ 400$33
Blue HavenHouse$ 463$ 428$35
FairfieldUnit$ 388$ 350$38
LiverpoolUnit$ 424$ 380$44
San RemoHouse$ 415$ 370$45
The EntranceUnit$ 415$ 370$45
UltimoUnit$ 645$ 600$45
AuburnUnit$ 498$ 450$48
WyongHouse$ 442$ 390$52
GorokanHouse$ 423$ 370$53
RiverwoodUnit$ 544$ 490$54
Wiley ParkUnit$ 414$ 360$54
WadalbaHouse$ 555$ 500$55
Wolli CreekUnit$ 675$ 620$55
North RydeUnit$ 585$ 530$55
WaterlooUnit$ 751$ 695$56
Buff PointHouse$ 452$ 395$57
CabramattaUnit$ 378$ 320$58
GwandalanHouse$ 470$ 410$60
PenrithUnit$ 442$ 380$62
Homebush WestUnit$ 566$ 500$66
ToongabbieUnit$ 516$ 450$66
WestmeadUnit$ 529$ 460$69
HomebushUnit$ 599$ 530$69
HillsdaleUnit$ 569$ 500$69
RockdaleUnit$ 590$ 520$70
WyomingHouse$ 524$ 450$74
KanwalHouse$ 475$ 400$75
AlexandriaUnit$ 677$ 600$77
KingswoodUnit$ 404$ 325$79
Hamlyn TerraceHouse$ 565$ 485$80
ZetlandUnit$ 813$ 730$83
BardiaHouse$ 618$ 530$88
North GosfordHouse$ 518$ 430$88
ParramattaUnit$ 581$ 490$91
ToukleyHouse$ 452$ 360$92
BudgewoiHouse$ 449$ 355$94
WerringtonHouse$ 494$ 400$94
WoongarrahHouse$ 594$ 500$94
Wentworth PointUnit$ 645$ 550$95
North ParramattaUnit$ 507$ 410$97
Baulkham HillsUnit$ 599$ 500$99
KogarahUnit$ 580$ 480$100
Source: Domain

SOURCE: https://www.domain.com.au/news/the-sydney-suburbs-where-its-nearly-cheaper-to-buy-property-than-rent-855882/?fbclid=IwAR0SGFfbEaKjjkuAr_XX4nyQHYF3wXUhMPATiM7fFGfYN_lN3T1W9jfsQ9g

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