According to ANZ and CoreLogic's new housing affordability report, which examined the cost of housing as a proportion of average income, there is an increasing number of locations across the nation where it is cheaper to buy than rent. The proportion of income needed to pay the rent is approximately equivalent to the proportion of income required to serve a mortgage in Australia, according to the report.
On average, tenants
contribute 30.3 percent of their income to the price of housing,
which is only slightly lower than the 30.6 percent of mortgage
payers. ANZ and CoreLogic reported that rental costs have risen since
the end of 2016, representing an 8.6% increase in rents between the
end of 2016 and June 2019, while household incomes have risen by
5.3%.
CoreLogic’s Head
of Research, Tim Lawless said: “We see more urgency coming back
into the market, especially in Melbourne and Sydney where housing
values have risen 6 percent and 5.3 percent since May. If this trend
continues, we could see property prices reach new highs early next
year.
To prospective buyers and renters though, there are still some good news. The research shows that households have now committed the smallest proportion of their income to paying a new mortgage loan for investment property since early 2004, and since 2007 tenants have spent the lowest proportion of their income on housing.
ANZ and CoreLogic
have listed almost 80 regions across Australia as areas where
purchasing is cheaper than renting. Some of the locations include
Molonglo, Ipswich, Broken Hill, Snowy Mountains, Dubbo, Kwinana,
Armidale, Brighton (Tas) and Darwin city and suburbs.
Article Source Here: Cheaper To Buy Than Rent
