Buy or Rent Report

A comprehensive financial comparison of buying and renting across

April 2021

Author: Paul Ryan, Economist Is it cheaper to buy or rent your next home?

Analysing the cost to buy & rent in suburbs across Australia, the REA Insights Buy or Rent Report identifies the areas where it is cheaper to buy and the areas where it is cheaper to rent. Conditions remain favourable for buyers, despite recent price growth

Analysis undertaken in this report reveals more than half of homes will be cheaper to buy than rent over the next 10 years, at current prices. This finding also suggests price growth will remain strong as buyers take advantage of these conditions. Rent growth is likely to remain slow, particularly outside of and Melbourne. Low borrowing rates attract home buyers

Analysis suggests it is cheaper to buy than rent around 57 per cent of dwellings across Australia. This is based on only modest housing price growth of 3 per cent per year over the next decade.

The results differ by property type. Just over half of houses are cheaper to buy over the next 10 years, but the share of units that are cheaper to buy is almost 75 per cent.

Buying conditions are particularly favourable outside of and Victoria. More than 80 per cent of houses, and almost all units outside of the most populous states are estimated to be cheaper to buy than rent. Affordability is driving demand and as a result it is likely we will continue to see strong regional price growth. The number of suburbs where it is cheaper to buy than rent Proportion of houses that are cheaper to buy by state 3

NT 98.5%

WA 77.0%

QLD 85.9%

NSW 31.9% SA 76.2% Number of Suburbs* (Share) ACT 69.8%

State All dwellings Houses (3BR) Units (2BR) VIC 25.3%

Australia 56.8% 4,561 (59.1%) 2 666(83.8%) 82.4% New South Wales 39.3% 966 (41.3%) 695 (69.1%) TAS

Victoria 34.7% 728 (42.2%) 384 (67.6%)

Queensland 89.2% 1 427 (85.4%) 627 (98.4% Proportion of units that are cheaper to buy by state 2 South Australia 79.8% 495 (73.6%) 363 (98.4%)

Western Australia 81.0% 434 (69.7%) 314 (98.4%)

Tasmania 85.0% 363 (73.2%) 137 (100%)

Northern Territory 99.1% 81 (97.6%) 55 (100%) NT 99.9% Australian Capital Territory 78.8% 76 (65.7%) 91 (100%)

WA 98.7%

QLD 98.9%

NSW 55.3% SA 98.5% ACT 99.6% VIC 62.2%

TAS 98.1%

Houses Units Bedrooms *Excludes suburbs with insufficient sale or rent valuation data 0% 100% Low mortgage interest rates are the main driver of favourable buying conditions. Interest rates can currently be fixed below 2 per cent per year and the Reserve Bank of Australia has committed to maintaining low interest rates until at least 2024. This certainty that mortgage costs are not going to increase rapidly provides comfort to buyers borrowing larger amounts.

2.05% Given low interest expenses, moderate property price growth 14.24% will likely offset the additional costs of owning. Owning costs include stamp duty, paid at the time of purchase, as well as ongoing costs like maintenance and council or strata rates. The cost to engage an agent and sell when it’s time to move must also be considered.

This analysis assumes buyers already have access to a 20 per cent deposit. But saving a deposit remains the biggest challenge for many buyers as prices have risen, particularly for those entering the market for the first time. Many would-be buyers can already afford loan repayments, but struggle to save a deposit while renting. Continued price growth may cause additional concern for many in this position. Rent falls in inner cities enable renters to live their dream lifestyle for less

Renting remains the cheapest option for many, particularly in Sydney and Melbourne. More than 70 per cent of houses, and just under half of units in New South Wales and Victoria are estimated to be cheaper to rent over the next 10 years.

While rents do not typically adjust as quickly as prices, the COVID-19 pandemic and the cessation of international travel saw significant reductions in asking rents in inner city Sydney and Melbourne. As such, renting in these inner-city areas is currently considered cheap, relative to their very high asking prices. Suburbs with the largest monthly saving to buy per greater capital city region Suburbs with the largest monthly saving to rent per greater capital city region

Houses 3 Houses 3

Greater Capital City Suburb Monthly Price Differential Greater Capital City Suburb Monthly Price Differential

SYD Tacoma NSW 2259 $578 SYD Vaucluse NSW 2030 $11,413

MEL Waterford Park VIC 3658 $472 MEL Toorak VIC 3142 $8,672

BRI Kilcoy QLD 4515 $1,014 BRI Teneriffe QLD 4005 $2,725

ADE Elizabeth South SA 5112 $772 ADE Rose Park SA 5067 $2,856

PER Hilbert WA 6112 $811 PER Peppermint Grove WA 6011 $6,491

HOB Clarendon Vale TAS 7019 $993 HOB Battery Point TAS 7004 $2,834

DAR Zuccoli NT 0832 $1,449 DAR Brinkin NT 0810 $760

CAN Coombs ACT 2611 $1,001 CAN Griffith ACT 2603 $3,252

Units 2 Units 2

Greater Capital City Suburb Monthly Price Differential Greater Capital City Suburb Monthly Price Differential SYD Kangy Angy NSW 2258 $1,206 SYD Barangaroo NSW 2000 $3,547 MEL Frankston North VIC 3200 $794 MEL Sorrento VIC 3943 $1,998 BRI Brisbane City QLD 4000 $1,162 BRI Shorncliffe QLD 4017 $1,255 ADE Glanville SA 5015 $994 ADE North Brighton SA 5048 $1,002 PER Wanneroo WA 6065 $1,363 PER Dalkeith WA 6009 $1,010 HOB Glebe TAS 7000 $1,413

DAR Darwin City NT 0800 $1,336

CAN City ACT 2601 $1,634

Bedrooms Price differential to buy or rent a house in Sydney 3 Cheapest to buy suburbs in Greater Sydney region (relative to renting)

Cheaper to buy (-$) (+$) Cheaper to rent Rank Suburb Monthly Price Rank Suburb Monthly Price Diffe Differential Differential Diffe Differential Differential

1 Tacoma NSW 2259 $578 6 Mount Victoria NSW 2786 $327

2 Rocky Point NSW 2259 $388 7 Wadalba NSW 2259 $322

3 Warragamba NSW 2752 $366 8 Watanobbi NSW 2259 $321

4 Hamlyn Terrace NSW 2259 $338 9 Doyalson NSW 2262 $298

5 Warnervale NSW 2259 $327 10 Blue Haven NSW 2262 $282

Cheapest to rent suburbs in Greater Sydney region (relative to buying)

Rank Diffe Suburb Monthly Price Rank Suburb Monthly Price Differential Differential Diffe Differential Differential 1 Vaucluse NSW 2030 $11,413 6 Rossmore NSW 2557 $9,180

2 Kemps Creek NSW 2178 $10,925 7 Terrey Hills NSW 2084 $9,034

3 Dover Heights NSW 2030 $10,645 8 Tennyson Point NSW 2111 $8,875

4 Bellevue Hill NSW 2023 $9,341 9 Double Bay NSW 2028 $8,867

5 For buyers looking to get a foot on the property ladder, apartments in middle and outer suburban regions Bringelly NSW 2556 $9,239 10 Northbridge NSW 2063 $7,999 are generally cheaper to buy than rent.

Families looking for more space will find it only marginally more expensive to buy a house outside of inner-city regions.

Bedrooms *Suburbs with insufficient sale or rent valuation data displayed in white Price differential to buy or rent a unit in Sydney 2 Cheapest to buy suburbs in Greater Sydney region (relative to renting)

Cheaper to buy (-$) (+$) Cheaper to rent Rank Suburb Rank Suburb Monthly Price Monthly Price Differential Differential Diffe Differential Diffe Differential Kangy Angy NSW 2258 Canton Beach NSW 2263

1 $1,206 6 $944

Stanhope Gardens NSW 2768 Bayview NSW 2104

2 $1,148 7 $860

Vineyard NSW 2765 Belrose NSW 2085

3 $1,063 8 $843

Warragamba NSW 2752 Tascott NSW 2250

4 $973 9 $835

Banksmeadow NSW 2019 Leppington NSW 2179 5 $960 10 $790

Cheapest to rent suburbs in Greater Sydney region

(relative to buying)

Rank Suburb Rank Suburb Monthly Price Monthly Price Differential Differential Diffe Differential Diffe Differential Barangaroo NSW 2000 Bella Vista NSW 2153

1 $3,547 6 $2,427

Point Piper NSW 2027 Seaforth NSW 2092

2 $3,186 7 $2,351

Dawes Point NSW 2000 Yowie Bay NSW 2228

3 $2,909 8 $2,314

Beacon Hill NSW 2100 Bilgola Plateau NSW 2107

4 $2,803 9 $2,237

Collaroy Plateau NSW 2097 Cabarita NSW 2137 For those looking to live in a house in the inner city, it’s cheaper to rent than buy, particularly for prestige 5 $2,528 10 $2,162 suburbs such as Point Piper and Bellevue Hill.

Bedrooms *Suburbs with insufficient sale or rent valuation data displayed in white Price differential to buy or rent a house in Melbourne 3 Cheapest to buy suburbs in Greater Melbourne region (relative to renting)

Cheaper to buy (-$) (+$) Cheaper to rent

Rank Suburb Rank Suburb Monthly Price Monthly Price Differential Differential Diffe Differential Diffe Differential Waterford Park VIC 3658 Kurunjang VIC 3337

1 $472 6 $253

Rockbank VIC 3335 Kalkallo VIC 3064

2 $311 7 $250

Mickleham VIC 3064 Melton VIC 3337

3 $289 8 $245

Millgrove VIC 3799 Donnybrook VIC 3064

4 $278 9 $238

Wollert VIC 3750 Donnybrook VIC 3751 5 $266 10 $238

Cheapest to rent suburbs in Greater Melbourne region

(relative to buying)

Rank Suburb Rank Suburb Monthly Price Monthly Price Differential Differential Diffe Differential Diffe Differential Toorak VIC 3142 Flinders VIC 3929

1 $8,672 6 $5,771

East Melbourne VIC 3002 Canterbury VIC 3126

2 $8,308 7 $5,705

Main Ridge VIC 3928 Eaglemont VIC 3084

3 $7,646 8 $5,671

Red Hill South VIC 3937 Middle Park VIC 3206

4 $7,576 9 $5,333

Deepdene VIC 3103 Balwyn VIC 3103 5 $7,047 10 $5,060 Upgraders have favourable buying conditions across most suburbs, with it costing only a little more to buy than rent at the moment.

Bedrooms *Suburbs with insufficient sale or rent valuation data displayed in white Price differential to buy or rent a unit in Melbourne 2 Cheapest to buy suburbs in Greater Melbourne region (relative to renting)

Cheaper to buy (-$) (+$) Cheaper to rent

Rank Suburb Rank Suburb Monthly Price Monthly Price Differential Differential Diffe Differential Diffe Differential Frankston North VIC 3200 Roxburgh Park VIC 3064

1 $794 6 $546

Bangholme VIC 3175 Travancore VIC 3032

2 $682 7 $535

Williams Landing VIC 3027 Notting Hill VIC 3168

3 $658 8 $533

Woori Yallock VIC 3139 Kealba VIC 3021

4 $622 9 $530

Burnside Heights VIC 3023 Melton South VIC 3338 5 $563 10 $525

Cheapest to rent suburbs in Greater Melbourne region

(relative to buying)

Rank Suburb Rank Suburb Monthly Price Monthly Price Differential Differential Diffe Differential Diffe Differential Sorrento VIC 3943 Keilor VIC 3036

1 $1,998 6 $793

Deepdene VIC 3103 Ivanhoe East VIC 3079

2 $1,425 7 $793

Balnarring VIC 3926 Warranwood VIC 3134

3 $1,100 8 $781

For those hunting their first property, moderate prices make most units in the CBD and to the North and 4 Kooyong VIC 3144 9 Strathmore Heights VIC 3041

West of the city cheaper to buy than asking rental costs $896 $739

Canterbury VIC 3126 Mont Albert North VIC 3129 5 $882 10 $715 Those looking to live in prestige suburbs in the inner East, such as Toorak, will find it significantly cheaper to rent at current selling prices.

Bedrooms *Suburbs with insufficient sale or rent valuation data displayed in white Price differential to buy or rent a house in Brisbane 3 Cheapest to buy suburbs in Greater Brisbane region (relative to renting)

Cheaper to buy (-$) (+$) Cheaper to rent

Rank Suburb Rank Suburb Monthly Price Monthly Price Differential Differential Diffe Differential Diffe Differential Kilcoy QLD 4515 D'Aguilar QLD 4514

1 $1,014 6 $862

Lockrose QLD 4342 Kooralbyn QLD 4285

2 $977 7 $854

Waterford QLD 4133 Yarrabilba QLD 4207

3 $890 8 $847

Toogoolawah QLD 4313 Crestmead QLD 4132

4 $872 9 $832

Logan Reserve QLD 4133 Regency Downs QLD 4341 5 $870 10 $826

Cheapest to rent suburbs in Greater Brisbane region

(relative to buying)

Rank Suburb Rank Suburb Monthly Price Monthly Price Differential Differential Diffe Differential Diffe Differential Teneriffe QLD 4005 Brookfield QLD 4069

1 $2,725 6 $1,610

Chandler QLD 4155 Ascot QLD 4007

2 $2,134 7 $1,463

New Farm QLD 4005 Pallara QLD 4110

3 $2,080 8 $1,376

Camp Mountain QLD 4520 Gumdale QLD 4154

4 $1,679 9 $1,354

Those looking to live in houses in the inner-city can save by renting, particularly in suburbs along the 5 St Lucia QLD 4067 10 Highgate Hill QLD 4101 Brisbane River. $1,672 $1,317

Buying conditions are very favourable across Brisbane; upgraders and first home buyers alike can save money by buying houses outside of the inner-city, particularly to the North or South-East of the CBD, or units right across the city.

Bedrooms *Suburbs with insufficient sale or rent valuation data displayed in white Price differential to buy or rent a unit in Brisbane 2 Cheapest to buy suburbs in Greater Brisbane region (relative to renting)

Cheaper to buy (-$) (+$) Cheaper to rent

Rank Suburb Monthly Price Rank Suburb Monthly Price v Differential Differential Diffe Differential Differential

1 Brisbane City QLD 4000 $1,162 6 Durack QLD 4077 $1,109

2 Woolloongabba QLD 4102 $1,156 7 Macgregor QLD 4109 $1,105

3 Kangaroo Point QLD 4169 $1,125 8 North Lakes QLD 4509 $1,098

4 Eight Mile Plains QLD 4113 $1,122 9 South Brisbane QLD 4101 $1,094

5 Dutton Park QLD 4102 $1,119 10 Spring Hill QLD 4000 $1,082

Cheapest to rent suburbs in Greater Brisbane region

(relative to buying)

Rank Suburb Monthly Price Diffe Differential Differential

1 Shorncliffe QLD 4017 $1,255

2 Tennyson QLD 4105 $538

Units across Brisbane are almost universally cheaper to buy, meaning great buying conditions for those looking for smaller but well-located dwellings

Bedrooms *Suburbs with insufficient sale or rent valuation data displayed in white Price differential to buy or rent a house in Adelaide 3 Cheapest to buy suburbs in Greater Adelaide region (relative to renting)

Rank Suburb Rank Suburb Monthly Price Monthly Price Differential Differential Diffe Differential Diffe Differential Elizabeth South SA 5112 Elizabeth North SA 5113

1 $772 6 $723

Gawler West SA 5118 Hackham West SA 5163

2 $753 7 $709

Munno Para SA 5115 Smithfield Plains SA 5114

3 $748 8 $702

Elizabeth Park SA 5113 Smithfield SA 5114

4 $736 9 $697

Wingfield SA 5013 Elizabeth Downs SA 5113 5 $730 10 $691

Cheapest to rent suburbs in Greater Adelaide region

(relative to buying)

Rank Suburb Rank Suburb Monthly Price Monthly Price Differential Differential Diffe Differential Diffe Differential Cheaper to buy (-$) (+$) Cheaper to rent Rose Park SA 5067 St Peters SA 5069

1 $2,856 6 $2,079

Unley Park SA 5061 Malvern SA 5061

2 $2,778 7 $1,976

Medindie SA 5081 Walkerville SA 5081

3 $2,368 8 $1,908

Tusmore SA 5065 Glenunga SA 5064

4 $2,262 9 $1,889

5 Toorak Gardens SA 5065 10 Tennyson SA 5022 Families looking to live in the inner city – to the North, East and South – will find it cheaper to rent $2,237 $1,883 houses there.

Those looking to buy can find relatively cheap houses to the North of the city.

Bedrooms *Suburbs with insufficient sale or rent valuation data displayed in white Price differential to buy or rent a unit in Adelaide 2 Cheapest to buy suburbs in Greater Adelaide region (relative to renting)

Rank Suburb Monthly Price Rank Suburb Monthly Price Diffe Differential Differential Diffe Differential Differential

1 Glanville SA 5015 $994 6 O'Sullivan Beach SA 5166 $870

2 Walkerville SA 5081 $967 7 Mawson Lakes SA 5095 $860

3 Sturt SA 5047 $946 8 Darlington SA 5047 $845

4 Happy Valley SA 5159 $912 9 Keswick SA 5035 $831

5 Adelaide SA 5000 $908 10 Hillier SA 5116 $831

Cheapest to rent suburbs in Greater Adelaide region

(relative to buying)

Rank Suburb Monthly Price Diffe Differential Differential

Cheaper to buy (-$) (+$) Cheaper to rent 1 North Brighton SA 5048 $1,002

2 Urrbrae SA 5064 $168

3 Stepney SA 5069 $84

4 Hackney SA 5069 $15

First home buyers looking for apartments have their pick of locations. Almost all units are cheaper to buy than rent at the moment which makes now a great time to get into the market.

Bedrooms *Suburbs with insufficient sale or rent valuation data displayed in white Price differential to buy or rent a house in Perth 3 Cheapest to buy suburbs in Greater Perth region (relative to renting)

Rank Suburb Rank Suburb Monthly Price Monthly Price Differential Differential Diffe Differential Diffe Differential Hilbert WA 6112 Orelia WA 6167

1 $811 6 $684

Meadow Springs WA 6210 Wellard WA 6170

2 $730 7 $676

Lakelands WA 6180 Brabham WA 6055

3 $714 8 $674

Carramar WA 6031 Koongamia WA 6056

4 $693 9 $671

Stratton WA 6056 Port Kennedy WA 6172 5 $689 10 $658

Cheapest to rent suburbs in Greater Perth region

(relative to buying)

Cheaper to buy (-$) (+$) Cheaper to rent Rank Suburb Rank Suburb Monthly Price Monthly Price Differential Differential Diffe Differential Diffe Differential Peppermint Grove WA 6011 Applecross WA 6153

1 $6,491 6 $2,074

Dalkeith WA 6009 Rossmoyne WA 6148

2 $4,997 7 $1,851

City Beach WA 6015 Floreat WA 6014

3 $3,825 8 $1,831

Cottesloe WA 6011 Swanbourne WA 6010

4 $3,231 9 $1,718

Nedlands WA 6009 Mosman Park WA 6012 Families looking to live in a house in the inner city – particularly to the North, including Dalkeith or City 5 $2,330 10 $1,639 Beach – can save money by renting.

Upgraders or families looking to buy a house will find it cheaper to buy just out of the inner city to the North, the South and South East of the city.

Bedrooms *Suburbs with insufficient sale or rent valuation data displayed in white Price differential to buy or rent a unit in Perth 2 Cheapest to buy suburbs in Greater Perth region (relative to renting)

Rank Suburb Monthly Price Rank Suburb Monthly Price Diffe Differential Differential Diffe Differential Differential

1 Wanneroo WA 6065 $1,363 6 Yangebup WA 6164 $1,048

2 Merriwa WA 6030 $1,135 7 Padbury WA 6025 $1,021

3 Coodanup WA 6210 $1,110 8 Currambine WA 6028 $1,018

4 Wattleup WA 6166 $1,084 9 Munster WA 6166 $969

5 Swanbourne WA 6010 $1,060 10 Kallaroo WA 6025 $962

Cheapest to rent suburbs in Greater Perth region

(relative to buying)

Cheaper to buy (-$) (+$) Cheaper to rent Rank Suburb Monthly Price Diffe Differential Differential

1 Dalkeith WA 6009 $1,010

2 Murdoch WA 6150 $223

3 Cottesloe WA 6011 $168

First home buyers have very favourable buying conditions for units across Perth.

Bedrooms *Suburbs with insufficient sale or rent valuation data displayed in white Price differential to buy or rent a house in Hobart 3 Cheapest to buy suburbs in Greater Hobart region (relative to renting)

Rank Suburb Rank Suburb Monthly Price Monthly Price Diffe Differential Diffe Differential Cheaper to buy (-$) (+$) Cheaper to rent Differential Differential Clarendon Vale TAS 7019 Derwent Park TAS 7009

1 $993 6 $838

Gagebrook TAS 7030 Goodwood TAS 7010

2 $930 7 $771

Risdon Vale TAS 7016 New Norfolk TAS 7140

3 $874 8 $763

Herdsmans Cove TAS 7030 Warrane TAS 7018

4 $853 9 $743

Chigwell TAS 7011 Glenorchy TAS 7010 5 $842 10 $721

Cheapest to rent suburbs in Greater Hobart region

(relative to buying)

Rank Suburb Rank Suburb Monthly Price Monthly Price Differential Differential Diffe Differential Diffe Differential Battery Point TAS 7004 Dulcot TAS 7025

1 $2,834 6 $387

Bonnet Hill TAS 7053 Sandford TAS 7020

2 $984 7 $375

Sandy Bay TAS 7005 Mount Stuart TAS 7000

3 $760 8 $330

Acton Park TAS 7170 Otago TAS 7017

4 $655 9 $253

Tinderbox TAS 7054 Kingston Beach TAS 7050 Those looking to live on the cheap in houses in the prestige suburbs of Battery Point and Sandy Bay 5 $486 10 $235 can save money by renting, based on current prices.

Upgraders or families looking to buy a house will find it cheaper to buy across almost all of the rest of the city.

Bedrooms *Suburbs with insufficient sale or rent valuation data displayed in white Price differential to buy or rent a unit in Hobart 2 Cheapest to buy suburbs in Greater Hobart region (relative to renting)

Cheaper to buy (-$) (+$) Cheaper to rent

Rank Suburb Monthly Price Diffe Differential Differential

1 Glebe TAS 7000 $1,413

2 Herdsmans Cove TAS 7030 $1,000

3 Mornington TAS 7018 $947

4 Bridgewater TAS 7030 $906

5 Rokeby TAS 7019 $891

6 Chigwell TAS 7011 $822

7 Moonah TAS 7009 $815

8 Derwent Park TAS 7009 $773

9 New Norfolk TAS 7140 $769

10 Berriedale TAS 7011 $745

First home buyers have very favourable buying conditions for units across Hobart.

Bedrooms *Suburbs with insufficient sale or rent valuation data displayed in white Price differential to buy or rent a house in Canberra 3 Cheapest to buy suburbs in Canberra (relative to renting)

Rank Suburb Monthly Price Rank Suburb Monthly Price Diffe Differential Differential Diffe Differential Differential

1 Coombs ACT 2611 $1,001 6 Bonner ACT 2914 $688

2 Denman Prospect ACT 2611 $984 7 Crace ACT 2911 $679

3 Moncrieff ACT 2914 $833 8 Forde ACT 2914 $629

4 Casey ACT 2913 $738 9 Dunlop ACT 2615 $615

5 Throsby ACT 2914 $696 10 Phillip ACT 2606 $615

Cheapest to rent suburbs in Canberra

(relative to buying) Cheaper to buy (-$) (+$) Cheaper to rent

Rank Suburb Rank Suburb Monthly Price Monthly Price Differential Differential Diffe Differential Diffe Differential Griffith ACT 2603 Red Hill ACT 2603

1 $3,252 6 $1,640

Yarralumla ACT 2600 O'Connor ACT 2602

2 $2,367 7 $1,545

Deakin ACT 2600 Ainslie ACT 2602

3 $2,014 8 $1,475

Reid ACT 2612 Turner ACT 2612

4 $1,832 9 $1,474

Kingston ACT 2604 Campbell ACT 2612 5 $1,780 10 $1,318 Those looking for a house close to Capital Hill will be better off renting.

Buying conditions for houses are favourable outside the inner-city, particularly to the North.

Bedrooms *Suburbs with insufficient sale or rent valuation data displayed in white Price differential to buy or rent a unit in Canberra 2 Cheapest to buy suburbs in Canberra (relative to renting)

Rank Greater Canberra Monthly Price Diffe Differential Differential

1 City ACT 2601 $1,634

2 Reid ACT 2612 $1,437

3 Turner ACT 2612 $1,346

4 Dickson ACT 2602 $1,323

5 Crace ACT 2911 $1,291

6 Denman Prospect ACT 2611 $1,284

7 Wright ACT 2611 $1,280

8 Braddon ACT 2612 $1,267

Cheaper to buy (-$) (+$) Cheaper to rent 9 Lawson ACT 2617 $1,232

10 Oaks Estate ACT 2620 $1,213

Buying conditions are very favourable across the capital, particularly for units.

Bedrooms *Suburbs with insufficient sale or rent valuation data displayed in white Disclaime: This report uses realestate.com.au internal data that is current as at the time of publication. This report provides general information only and is not intended to constitute any advice or appraisal and should not be relied upon as doing so. If you wish to cite or refer to this report (or any findings or data contained in it) in any publication, please refer to the report as the ‘REA Insights Home Price Index Report – February 2021'.

REA Insights Buy vs Rent Methodology Buying This is a comparison of the total costs of buying and Buyers pay a proportion of the home price upfront (the Assumptions Rate When renting. It starts with an estimate of the cost to buy and deposit) and borrow the remaining amount. They incur Tenure period 10 Years Mortgage rate 3.25% Per year rent the same dwelling, in a given suburb, and of a upfront stamp duty cost (which is calculated using State Inflation 2.5% Per year particular property type (house or unit), with a specific Government schedules). Investment return 7% Per year number of bedrooms. Median value estimates from Rent increases 3% Per year realestate.com.au for the given strata are used for these Buyers pay mortgage payments each month, which are Housing price increases 3% Per year

comparisons and are indicative only. partly interest expenses and partly principal payments that Selling costs 2% At sale, proportion of sale price

reduce the loan balance. Buyers also incur ongoing costs Maintenance & strata or council rates 1.5% Value of property each year

Assumptions about how future prices will evolve (such as not paid by renters: maintenance on the property and Rent deposit 4 Weeks of rent, upfront

rent and housing price increases) are made to compare strata or council rates. Loan term 30 Years expected costs (in present value terms) of buying and Loan deposit 20% At purchase renting over 10 years (the approximate average tenure At the end of the tenure, buyers incur a selling cost and Stamp duty Calculated from State schedules At purchase; Includes 25% discount for Victorians until 1 July 2021 for buyers). receive the updated value of the property, less the remaining loan balance. These total costs are converted Renting to present value terms per month. Renting incurs the rent costs each month, assumed to increase over time. Renters also lodge a bond at the start For all media enquiries please contact: of their rental. This is returned at the end of the tenure, [email protected] but has an opportunity cost (the foregone investment earnings on this money). Total costs over the tenure are added and converted to present value terms per month.