Should I rent or buy?
There is no doubt that buying a house is a big commitment. In fact, it is the largest financial transaction that many Australians will make in their lifetime.
However, it turns out that purchasing property may be more affordable than renting in certain parts of the nation.
According to a recent report from RP Data, based on the median value and median asking rents of houses and units within suburbs across Australia, the estimated difference between monthly mortgage payments and monthly rental payments was cheaper in 388 locations.
Released last week (November 2), the RP Data Buy vs. Rent Report - Edition 2 illustrates that the mortgage rate would be less than the rental rate based on the interest variable and principal mortgage rate in those particular areas.
Despite the added expenses of property upkeep and maintenance, it seems that owning real estate may in fact be less of a financial burden than remaining in a property rental that continues to increase in price.
Budgeting and smart financial management will also play a role, but it may be worth looking into these 'buy over rent' suburbs to make your way into the property market.