Reports Are Saying That It Is Cheaper To Buy Than To Rent In Many Areas
This is one of the criteria that you need to keep a watch on because although it means that the property prices are cheap in those areas which are good from that point of view, you may find that your return on investment is not so good, in this present financial climate anyway.
The best area for renters to buy is in Perth where the rent has stayed substantially buoyant, but property prices have slumped. Reports show that on average in Western Australia the saving between owning a home and renting is $916.10 per month. That is some saving!
It is a well known fact that Western Australia property prices have been hit quite severely due to problems in the resources sector.
It appears that within the city areas it is units that are more affordable to purchase and in the outer areas it is houses that are on major transport corridors, close to shopping centres or areas that are strongly supported by local employment.
Victoria had the least saving with only $32.96 per month, followed by SA saving $73 pm, NSW a saving of $107.31 pm, ACT saving $173.50 pm, NT with a saving of $211.67 and Qld saving $231.63 pm.
This information, given out by RP Data, is based on a loan ratio of 85%, a variable interest rate of 5.74%, a loan term of 30 years, the principal loan amount is factored as 85% of the median house or unit value for the suburb and monthly rental payments are based on the median advertised rental for the suburb.
Filed Under: Property Investment • Property Investment Tips • Property News
About the Author: 
