With housing affordability improving across Australia, a Commonwealth Bank report has found it’s cheaper to buy then rent in 94 suburbs around the nation.

Another property report from Domain found 80 suburbs where it was cheaper to service a monthly mortgage than pay the median rental bill.

But property experts are warning that it’s the quick or the left-behind at this stage of the cycle, as first home buyers start pushing up the prices of cheaper suburbs and make prices rise.

The Commonwealth Bank report found that the number of suburbs in which it has become cheaper to service a monthly mortgage payment than a rental bill had increased from 74 to 94 in the six months to July, a rise of 27 per cent.

“The case to buy is looking stronger,” the report says. “Property values fell through most of 2008 however, the market has recovered virtually all those losses through the first five months of 2009, interest rats have fallen to a 49-year low and weekly rents have recorded several years of dramatic growth.”

The affordability figures improve further after factoring in the $14,000 first home buyer's grant, with the number of suburbs where it was cheaper to buy than rent more than doubling to 203.

The report based its methodology on borrowing 85 per cent of a home’s median value at the current variable interest rate of 5.74 per cent per annum over a 30-year term. The buying cost was compared with monthly rental payments based on the median advertised rental for the suburb.

"Within the metro areas, almost without exception, it is units rather than houses that are more affordable to buy than rent," the Commonwealth report says.

On a state-by-state basis, the report finds that the majority of suburbs identified as being cheaper to buy in than rent were located in Queensland, accounting for 26 of the 94 suburbs. NSW had the second-highest number of suburbs where it was more affordable to buy than rent.

NSW suburbs included:

Darlington units, which have a value of $252,157 and monthly mortgage payments of $1,249 compared to monthly rental payments of $1,820, saving -$570.57.

Rosehill units, which have a value of $215,717 and monthly mortgage payments of $1,069 compared to monthly rental payments of $1,260, saving -$191.13

Plumpton units, which have a value of $259,004 and monthly mortgage payments of $1,283 compared to monthly rental payments of $1,400 , saving -$116.64

Wetherill Park units, which have a value of $422,836 and monthly mortgage payments of $2,095 compared to monthly rental payments of $2,200, saving -$104.86

Lakemba units, which have a value of $214,110 and monthly mortgage payments of $1,061 compared to monthly rental payments of $1,120, saving -$59.09

Wiley Park units, which have a value of $215,228 and monthly mortgage payments of $1,066 compared to monthly rental payments of $1,120, saving -$53.55

Katoomba units, which have a value of $224,709 and monthly mortgage payments of $1,113 compared to monthly rental payments of $1,140, saving -$26.58

Fairfield units, which have a value of $216,197 and monthly mortgage payments of $1,071 compared to monthly rental payments of $1,090, saving -$18.75

Mount Druitt units, which have a value of $214,782 and monthly mortgage payments of $1,064 compared to monthly rental payments of $1,080, saving -$15.76

Berkeley Vale units, which have a value of $215,026 and monthly mortgage payments of $1,065 compared to monthly rental payments of $1,080, saving -$14.55

Miller houses, which have a value of $269,989 and monthly mortgage payments of $1,338 compared to monthly rental payments of $1,340, saving -$2.21

North Dubbo houses, which have a value of $119,477 and monthly mortgage payments of $592 compared to monthly rental payments of $960, saving -$368.00

Coomba Park houses, which have a value of $143,290 and monthly mortgage payments of $710 compared to monthly rental payments of $1,040, saving -$330.00

Islington units, which have a value of $381,007 and monthly mortgage payments of $1,888 compared to monthly rental payments of $2,200, saving -$312.12

Captains Flat houses, which have a value of $201,529 and monthly mortgage payments of $999 compared to monthly rental payments of $1,220, saving -$221.43

Narrandera houses, which have a value of $165,388 and monthly mortgage payments of $819 compared to monthly rental payments of $960, saving -$140.51

Holbrook houses, which have a value of $160,230 and monthly mortgage payments of $794 compared to monthly rental payments of $930, saving -$136.07

North Lismore houses, which have a value of $210,031 and monthly mortgage payments of $1,041 compared to monthly rental payments of $1,140, saving -$99.30

Lismore Heights units, which have a value of $219,022 and monthly mortgage payments of $1,085 compared to monthly rental payments of $1,160, saving -$74.75

Taree units, which have a value of $161,367 and monthly mortgage payments of $800 compared to monthly rental payments of $870, saving -$70.43

Rutherford units, which have a value of $217,162 and monthly mortgage payments of $1,076 compared to monthly rental payments of $1,120, saving -$43.97

The Rock houses, which have a value of $146,418 and monthly mortgage payments of $725 compared to monthly rental payments of $760, saving -$34.50

Millfield houses, which have a value of $189,293 and monthly mortgage payments of $938 compared to monthly rental payments of $960, saving -$22.06

Adelong houses, which have a value of $240,179 and monthly mortgage payments of $1,190 compared to monthly rental payments of $1,200, saving -$9.92

Victorian suburbs included:

Carlton units, which have a value of $250,301 and monthly mortgage payments of $1,240 compared to monthly rental payments of $1,480, saving -$239.77

Melton West units, which have a value of $193,620 and monthly mortgage payments of $959 compared to monthly rental payments of $1,000, saving -$40.62

Craigieburn units, which have a value of $241,128 and monthly mortgage payments of $1,195 compared to monthly rental payments of $1,200, saving -$5.22

Hepburn Springs houses, which have a value of $301,918 and monthly mortgage payments of $1,496 compared to monthly rental payments of $2,800, saving -$1,304.01

Robinvale houses, which have a value of $185,046 and monthly mortgage payments of $917 compared to monthly rental payments of $1,200, saving -$283.10

Miners Rest houses, which have a value of $254,636 and monthly mortgage payments of $1,262 compared to monthly rental payments of $1,420, saving -$158.29

Avoca houses, which have a value of $155,214 and monthly mortgage payments of $769 compared to monthly rental payments of $920, saving -$150.92

Murtoa houses, which have a value of $100,143 and monthly mortgage payments of $496 compared to monthly rental payments of $640, saving -$143.80

Neerim South houses, which have a value of $230,642 and monthly mortgage payments of $1,143 compared to monthly rental payments of $1,240, saving -$97.18

Canadian units, which have a value of $132,796 and monthly mortgage payments of $658 compared to monthly rental payments of $720, saving -$62.00

Dunolly houses, which have a value of $145,582 and monthly mortgage payments of $721 compared to monthly rental payments of $770, saving -$48.65

Mitchell Park houses, which have a value of $236,688 and monthly mortgage payments of $1,173 compared to monthly rental payments of $1,220, saving -$47.22

Dimboola houses, which have a value of $114,155 and monthly mortgage payments of $566 compared to monthly rental payments of $610, saving -$44.37

Yallourn North houses, which have a value of $127,080 and monthly mortgage payments of $630 compared to monthly rental payments of $670, saving -$40.32

Tongala houses, which have a value of $147,768 and monthly mortgage payments of $732 compared to monthly rental payments of $740, saving -$7.82

Wurruk houses, which have a value of $199,639 and monthly mortgage payments of $989 compared to monthly rental payments of $990, saving -$0.79

Queensland suburbs included:

Beachmere units, which have a value of $124,143 and monthly mortgage payments of $615 compared to monthly rental payments of $1,000, saving -$384.88

Sunnybank Hills units, which have a value of $316,121 and monthly mortgage payments of $1,566 compared to monthly rental payments of $1,680, saving -$113.63

Highland Park units, which have a value of $289,328 and monthly mortgage payments of $1,434 compared to monthly rental payments of $1,960, saving -$526.39

Bethania units, which have a value of $186,309 and monthly mortgage payments of $923 compared to monthly rental payments of $1,000, saving -$76.84

Sippy Downs units, which have a value of $213,364 and monthly mortgage payments of $1,057 compared to monthly rental payments of $1,540, saving -$482.79

Minyama units, which have a value of $292,499 and monthly mortgage payments of $1,449 compared to monthly rental payments of $1,760, saving -$310.68

Peregian Springs units, which have a value of $444,308 and monthly mortgage payments of $2,202 compared to monthly rental payments of $2,480, saving -$278.47

Wurtulla units, which have a value of $321,793 and monthly mortgage payments of $1,594 compared to monthly rental payments of $1,600, saving -$5.53

Dysart houses, which have a value of $405,999 and monthly mortgage payments of $2,012 compared to monthly rental payments of $4,000, saving -$1,988.29

Moranbah houses, which have a value of $454,917 and monthly mortgage payments of $2,254 compared to monthly rental payments of $4,000, saving -$1,745.90

Blackwater houses, which have a value of $280,939 and monthly mortgage payments of $1,392 compared to monthly rental payments of $2,000, saving -$607.96

Sapphire houses, which have a value of $158,232 and monthly mortgage payments of $784 compared to monthly rental payments of $1,240, saving -$455.97

Blackbutt houses, which have a value of $207,802 and monthly mortgage payments of $1,030 compared to monthly rental payments of $1,400, saving -$370.35

Woree units, which have a value of $176,239 and monthly mortgage payments of $873 compared to monthly rental payments of $1,160, saving -$286.74

Moura houses, which have a value of $265,930 and monthly mortgage payments of $1,318 compared to monthly rental payments of $1,600, saving -$282.32

Cloncurry houses, which have a value of $259,129 and monthly mortgage payments of $1,284 compared to monthly rental payments of $1,520, saving -$236.02

Blackall houses, which have a value of $139,766 and monthly mortgage payments of $693 compared to monthly rental payments of $920, saving -$227.46

Forrest Beach houses, which have a value of $329,063 and monthly mortgage payments of $1,630 compared to monthly rental payments of $1,800, saving -$169.50

Highfields units, which have a value of $230,207 and monthly mortgage payments of $1,141 compared to monthly rental payments of $1,280, saving -$139.33

Ingham houses, which have a value of $263,773 and monthly mortgage payments of $1,307 compared to monthly rental payments of $1,390, saving -$83.01

Emerald units, which have a value of $283,767 and monthly mortgage payments of $1,406 compared to monthly rental payments of $1,480, saving -$73.94

Emerald houses, which have a value of $348,527 and monthly mortgage payments of $1,727 compared to monthly rental payments of $1,800, saving -$73.06

Capella houses, which have a value of $309,882 and monthly mortgage payments of $1,535 compared to monthly rental payments of $1,600, saving -$64.55

Thangool houses, which have a value of $165,367 and monthly mortgage payments of $819 compared to monthly rental payments of $880, saving -$60.61

Marian houses, which have a value of $371,274 and monthly mortgage payments of $1,840 compared to monthly rental payments of $1,880, saving -$40.35

Cranbrook units, which have a value of $228,067 and monthly mortgage payments of $1,130 compared to monthly rental payments of $1,170, saving -$39.93

South Australian suburbs included:

Angle Park units, which have a value of $199,774 and monthly mortgage payments of $990 compared to monthly rental payments of $1,220, saving -$230.13

Gilles Plains units, which have a value of $225,800 and monthly mortgage payments of $1,119 compared to monthly rental payments of $1,300, saving -$181.17

Greenhill houses, which have a value of $437,145 and monthly mortgage payments of $2,166 compared to monthly rental payments of $2,200, saving -$33.96

Morgan houses, which have a value of $168,789 and monthly mortgage payments of $836 compared to monthly rental payments of $1,000, saving -$163.66

Whyalla units, which have a value of $149,649 and monthly mortgage payments of $742 compared to monthly rental payments of $880, saving -$138.49

Wallaroo units, which have a value of $141,532 and monthly mortgage payments of $701 compared to monthly rental payments of $800, saving -$98.71

Snowtown houses, which have a value of $118,751 and monthly mortgage payments of $588 compared to monthly rental payments of $680, saving -$91.59

Whyalla Stuart houses, which have a value of $237,504 and monthly mortgage payments of $1,177 compared to monthly rental payments of $1,260, saving -$83.17

Whyalla Norrie houses, which have a value of $236,433 and monthly mortgage payments of $1,172 compared to monthly rental payments of $1,240, saving -$68.48

West Australian suburbs included:

Glendalough units, which have a value of $236,960 and monthly mortgage payments of $1,174 compared to monthly rental payments of $1,200, saving -$25.87

Baynton houses, which have a value of $752,508 and monthly mortgage payments of $3,729 compared to monthly rental payments of $8,000, saving -$4,271.34

Dampier houses, which have a value of $747,930 and monthly mortgage payments of $3,706 compared to monthly rental payments of $6,000, saving -$2,294.03

South Hedland houses, which have a value of $528,107 and monthly mortgage payments of $2,617 compared to monthly rental payments of $4,700, saving -$2,083.25

South Hedland units, which have a value of $446,865 and monthly mortgage payments of $2,214 compared to monthly rental payments of $3,500, saving -$1,285.80

Millars Well units, which have a value of $502,502 and monthly mortgage payments of $2,490 compared to monthly rental payments of $3,400, saving -$910.12

Utakarra houses, which have a value of $233,562 and monthly mortgage payments of $1,157 compared to monthly rental payments of $1,280, saving -$122.71

Kalgoorlie houses, which have a value of $297,211 and monthly mortgage payments of $1,473 compared to monthly rental payments of $1,480, saving -$7.33

Tasmania suburbs included:

New Norfolk units, which have a value of $179,836 and monthly mortgage payments of $891 compared to monthly rental payments of $960, saving -$68.92

Derwent Park houses, which have a value of $223,218 and monthly mortgage payments of $1,106 compared to monthly rental payments of $1,120, saving -$13.96

Strahan houses, which have a value of $223,878 and monthly mortgage payments of $1,109 compared to monthly rental payments of $1,300, saving -$190.69

Railton houses, which have a value of $184,753 and monthly mortgage payments of $915 compared to monthly rental payments of $1,080, saving -$164.55

Shorewell Park houses, which have a value of $155,287 and monthly mortgage payments of $769 compared to monthly rental payments of $860, saving -$90.56

Campbell Town houses, which have a value of $165,976 and monthly mortgage payments of $822 compared to monthly rental payments of $850, saving -$27.59

Rocherlea houses, which have a value of $146,623 and monthly mortgage payments of $727 compared to monthly rental payments of $750, saving -$23.49

Northern Territory suburbs included:

Wagaman units, which have a value of $237,597 and monthly mortgage payments of $1,177 compared to monthly rental payments of $1,440, saving -$262.71

Alawa units, which have a value of $254,052 and monthly mortgage payments of $1,259 compared to monthly rental payments of $1,440, saving -$181.18

ACT suburbs included:

Hackett units, which have a value of $237,579 and monthly mortgage payments of $1,177 compared to monthly rental payments of $1,440, saving -$262.80

Hughes units, which have a value of $243,467 and monthly mortgage payments of $1,206 compared to monthly rental payments of $1,360, saving -$153.63

Do your research! 

onthehouse.com.au offers property sales data for you to do your property research.

• Check out Listings and Latest Sales Prices in your area for FREE!
• Sign up for our Premium Reports to do some in-depth research on historical property sales.

Share This Page: