Rising living costs are forcing Australians to re-evaluate the buy-versus-rent equation. A recent analysis, reported in the Daily Mail Australia, pinpoints suburbs across Australia where mortgage repayments can be lower than rental costs, presenting unique opportunities and potential risks for property professionals.
The research identifies suburbs like Goodna (QLD), Orelia (WA), Salisbury (SA), Warwick Farm (NSW), Werribee (VIC), Moulden (NT), Mowbray (TAS), and Lyons (ACT) where buying a unit could be more affordable than renting, often due to lower property values and tight rental markets. For instance, in Warwick Farm (Sydney), the study reveals that monthly mortgage repayments for a unit are roughly 15% lower than renting a similar space.
However, property professionals must advise clients to consider the broader context, including potential flood risks in some areas mentioned in the report, interest rate fluctuations, infrastructure development, and individual financial circumstances. While these suburbs offer investment opportunities, comprehensive due diligence is key. Factors such as vacancy rates, property maintenance, infrastructure development, and local economic conditions should all be carefully considered.
Furthermore, renting offers flexibility and lower upfront costs that may outweigh the benefits of ownership for some. Ultimately, informed advice, transparent communication, and a holistic approach are crucial for guiding clients towards sound property decisions.
