South Australia: A buyer's market
Australians looking to make the transition from renting to homeownership may want to look at the residential property market in South Australia.
According to recent figures from RP Data, the state boasts 58 suburbs where it is cheaper to buy than rent, with 40 of those locations based in Adelaide.
The results, which are based on a variable home loan rate of 5.65 per cent, may encourage more people to break into the real estate market.
Low interest rates and affordable house prices may also be another incentive, with favourable economic conditions working to the buyer's advantage.
"For many consumers, residential property may not cost them that much more to own than rent and for many buyers now may be a good time to either re-enter the market or buy their first home," RP Data national research director Tim Lawless explained.
With the average cost of a property in Gilles Plains in Adelaide currently at $254,559, it is considerably cheaper to buy than to pay the average rent of $358 a week.
"Capital city dwelling values are now 5.5 per cent lower than when they peaked, and discounted variable mortgage rates are 150 basis points below their 2011 peak," Mr Lawless added.
Other suburbs that offer cheaper mortgages than rental prices in Adelaide include Davoren Park, Reynella, Evanston and Elizabeth North.