Suburbs where it’s cheaper to buy a home than rent

“When we look at what we’re seeing now in the City of Melbourne, it really reflects the decline in average value over time as a lot of supply has come online and as a result mortgage repayments have been driven down while rents continue to rise a little bit further,” he said.

“Parramatta has hosted a large number of unit developments over the last few years, so again there is a broader story of supply coming in big chunks against the level of demand.”

Conventional wisdom suggests that rent money is dead money, but Burg did not think that was the case, stating that tenants may not be in a position to buy.

“Ultimately you’re buying shelter, and that’s usually the lowest cost,” he said.

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“The difficulty of climbing the stairs in the first place [is] The deposit is the biggest obstacle.”

Homebuyers hoping for a home rather than a unit will face a larger increase in costs compared to renting in the same area.

The analysis showed that the smallest difference in Melbourne was in the Melton-Bacchus Marsh area, where mortgage repayments were $520 more per fortnight than rent. Sunbury followed with an extra $522, and Casey South and Wyndham counties followed with $536.

No Sydney region made the national top 20 rankings.

The research comes after Westpac on Wednesday found that consumers’ views on whether it is a good time to buy a house fell in March to the lowest point of this cycle and well below average levels.

A previous Productivity Commission survey found housing If more houses are built, it will be more affordable.

PRD chief economist Diaswati Mardiasmo thought there was more home inventory in some areas where buying a home is relatively affordable.

“There is more stock available in the Melbourne CBD unit market. It’s almost the same as Sydney, although the difference is much larger in the Melbourne CBD,” he said.

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“There are definitely more units available and this has made the Melbourne CBD one of the more competitive markets. Melbourne units are definitely the place to go for first home buyers to try their luck.

“Liverpool [and western Sydney] the same but not to the same extent. They had an influx of units. Currently only stock available.”

Mardiasmo added that in practice first home buyers must not only cover their mortgage repayments but also collect a deposit. They also had to pay council fees, house corporate fees and maintenance costs, he said.

“Your mortgage repayments may change,” he said, adding that the list of suburbs where it is cheaper to buy than rent could differ over the next 12 months.

“There’s that security where you live, there’s that equity… that would be the reason you would buy instead of rent being $300 cheaper.”