The report from A Game Property Advisory identifies 17 suburbs where beleaguered tenants could actually save money buying a property.

In the past year, average rental rates have risen by more than 10%, while vacancy rates throughout the country are at near historic lows.

It's a difficult time to be a tenant in Australia, and despite a 15% increase to Commonwealth rental assistance announced in last month's budget, there isn't much suggesting conditions will ease anytime soon.

PropTrack Senior Economist Eleanor Creagh believes this doesn't go far enough to protect the most vulnerable Australian renters.

"Although the increase to Commonwealth Rent Assistance is the largest in more than 30 years, rent assistance payments have long fallen behind soaring rental prices," she said.

"The share of affordable rentals is plummeting, meaning conditions remain challenging for low-income Australians."

Director of A Game Property Jim Malamatinas believes that there are many tenants for whom buying has become a cheaper alternative, particularly given the various government assistance schemes for first home buyers.

"I believe there’s a good opportunity over the next 6 months to purchase a property at a competitive price, with the help of various grants available, instead of continuing to rent and paying someone else’s mortgage," he said.

"Rental demand is at its all-time high, with the worst rental crisis in almost 20 years and tenants are relying on private landlords to help solve the problem as soon as possible but many can solve it for themselves by taking advantage of Government assistance and buying now."

The First Home Guarantee is a federal initiative where the government acts as a guarantor for up to 15% of a home loan.

This means that even if home buyers have a deposit as small as 5%, the Loan to Value ratio is lowered to 80%, which can mean the buyer will pay lower rates and avoid Lenders Mortgage Insurance (LMI).

The report found several suburbs surrounding Australia's largest capital cities where monthly mortgage repayments could be less than the equivalent rent.

Mortgage repayments were estimated based on a 20% deposit size (or buyers taking advantage of the first home guarantee), and compared to median rents.

Greater Sydney

Suburb Typical asking price % rental increase in last 12 months
Paxton $563,500 56.3%
Cliftleigh $675,000 17.2%
Wallerawang $515,000 7.8%

Greater Melbourne

Suburb Typical asking price % rental increase in last 12 months
Mitchell Park $486,250 6.9%
Jackass Flat $520,000 7.1%
Morwell $340,000 15.7%

Greater Brisbane

Suburb Typical asking price % rental increase in last 12 months
Springfield Lakes $650,000 20.0%
East Ipswich $439,000 21.2%
Tivoli $477,500 19.7%

Greater Adelaide

Suburb Typical asking price % rental increase in last 12 months
Blakeview $457,000 10.5%
Craigmore $426,450 16.7%
Gawler East $485,000 9.1%

Greater Perth

Suburb Typical asking price % rental increase in last 12 months
Eglinton $460,000 19.1%
Treeby $593,500 7.4%
Leda $386,000 13%

ACT

Suburb Typical asking price % rental increase in last 12 months
Belconnen $630,000 5.0%
Isabella Plains $777,500 8.1%

Advertisement

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Update resultsUpdate
Filters
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
6.04% p.a.
6.06% p.a.
$3,011
Principal & Interest
Variable
$0
$530
90%
4.6 Star Customer Ratings
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Quick and easy online application process.
Disclosure
5.99% p.a.
5.90% p.a.
$2,995
Principal & Interest
Variable
$0
$0
80%
Apply in minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
 Disclosure
6.09% p.a.
6.11% p.a.
$3,027
Principal & Interest
Variable
$0
$250
60%
  • No annual fees – None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
 Disclosure
5.69% p.a.
6.16% p.a.
$2,899
Principal & Interest
Fixed
$0
$530
90%
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Flexibility to split your loan with both fixed and variable rates
 Disclosure
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

Picture by Elle Hughes on Pexels



Ready, Set, Buy!


Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!

With bonus Q&A sheet and Crossword!

Download Free
By subscribing you agree to our privacy policy