Record low interest rates mean it is cheaper to buy than rent more than half the properties in Australia, new realestate.com.au analysis shows.
The inaugural REA Insights Buy or Rent Report shows conditions are currently very favourable for buyers despite surging property prices. Based on current prices and a 10-year analysis of all the costs associated with buying and renting, the report concludes it is cheaper to buy than rent 56.8% of dwellings in Australia.
Realestate.com.au economist Paul Ryan said low mortgage interest rates mean many Australians can actually save money by buying – rather than renting – a property.
“Interest rates can currently be fixed below 2% per year and the Reserve Bank of Australia has committed to maintaining low interest rates until at least 2024,” he said.
“This certainty that mortgage costs are not going to increase rapidly provides comfort to buyers borrowing larger amounts.”
A new tool developed by realestate.com.au factors in all of the costs associated with buying and renting, allowing people to compare the results for different suburbs, property types and sizes.
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