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Buying cheaper than renting, in more places than you think

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Your Investment Property | 30 Aug 2012, 01:00 AM Agree 0
Reports show that in many Australian property markets it is now cheaper to pay down a mortgage than pay rent, suggesting buyers might flood the market soon
  • dt | 29 Aug 2012, 03:05 PM Agree 0
    do these stats account for costs of holding a property etc. council & water rates, insurance, as well as upfront levies such as stamp duty, agent & solicitor fees?
  • kaylene | 29 Aug 2012, 08:11 PM Agree 0
    which suburbs of sydney are within the 22?
  • Rosiej | 30 Aug 2012, 12:32 PM Agree 0
    238 suburbs/locations only paying principal and interest. 1,082 suburbs/locations for interest only loans. And as DT asks does thsi cover acquisition and holding costs?
  • Madeline Lu | 30 Aug 2012, 04:56 PM Agree 0
    I'd say no. They say ..."where the mortgage repayment is lower than the median rent, based on a principal and interest loan on a variable mortgage rate...Using an interest only loan, the list expanded to 1,320 suburbs. If they factored in all rela costs there wouldn;t have been a report for RP data to push! ha ha ha

  • Chaika | 30 Aug 2012, 05:11 PM Agree 0
    It wouldn't have been too hard for RP Data to have estimated the holding/acquisition costs... and it's a shame they didn't do so. I'd be interested in knowing if there indeed are places where it really is cheaper to own than rent. As it stands, from this story it appears to me like there aren't...
  • jimbo | 05 Sep 2012, 05:23 PM Agree 0
    Always the same argument, its like saying you can buy a car and it will be cheaper than public transport, but what about the petrol, servicing, insurance, rego ect.
    Not that I dont think home ownership is not a good idea, but be truthfull, there are a lot more costs to owning a house than just the mortgage
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