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Buying Property Could Be Cheaper Than Renting

buying and renting

For many Australians, rate hikes and inflation have made the dream of property ownership feel ever more distant, but a recent analysis shows that meeting mortgage repayments could be cheaper than renting for more than a third of Australian properties. 

Often the biggest obstacle in the way of home ownership is saving up for a deposit, but once you have got that sorted, a recent CoreLogic analysis found servicing a mortgage was more affordable than average rent prices in 518 Australian suburbs.


In fact, in some areas there were savings of over $900 a month. Not to mention that with rental prices surging by about 10% across Australia over the past year and vacancy rates at a record low of 1.1%, home ownership has possibly never looked more appealing! 

Some Tips to Help You Switch from Renter to Homeowner in Timely

Take Advantage of the Buyer’s Market

Buying now or in the near future could mean less competition for properties, price drops and sellers willing to negotiate. And recent rate hikes mean that, even during the spring selling season, we are seeing fewer buyers.


In fact data shows the median number of days that properties sit on the market is now 35, compared to 20 days last year. And in response, property prices are falling, September data showed a 1.4% drop.

So, by shopping around in the right areas and putting your negotiator hat on, you may get a price that could make buying cheaper than renting. And most importantly, property investment and making mortgage repayments can create equity for you … instead of your landlord.

Get in on Government Schemes

There’s no denying that saving a big enough deposit to buy can be a bit of a slog. But what if there was a way to sidestep the standard 20% deposit? And possibly avoid stamp duty too?

There are a number of government schemes you may be eligible for that can fast-track house buying by an average of 4 to 4.5 years

The federal government offers low deposit, no LMI loans for eligible first home buyerssingle parents and regional first home buyers. Also, all state governments (except for South Australia) have first home buyer stamp duty concessions for those eligible.


And you can stack these schemes together for more bang for your buck. But you need to move quickly on the no LMI schemes as they are allocated on a first come, first-serves basis every financial year. 

Frequently Asked Questions

Is buying property more affordable than renting in Australia?

The article suggests that for more than a third of Australian properties, meeting mortgage repayments could be more affordable than paying rent. This is especially significant given the recent surge in rental prices by about 10% across Australia.

What is the main obstacle to homeownership?

One of the primary challenges for potential homeowners is saving up for a deposit. However, once this is achieved, the cost of servicing a mortgage might be more affordable than average rent prices in many Australian suburbs.

How have recent changes in the property market made buying more appealing?

With rental prices surging and vacancy rates at a record low of 1.1%, homeownership has become more attractive. Additionally, some areas offer savings of over $900 a month when comparing mortgage repayments to rent.

Are there any government schemes to assist potential homeowners?

Yes, there are several government schemes available that can fast-track the process of buying a house by an average of 4 to 4.5 years. These schemes offer benefits like low deposit, no LMI loans for eligible first home buyers, single parents, and regional first home buyers. Additionally, most state governments offer first home buyer stamp duty concessions.

How can shopping around benefit potential homeowners?

By shopping around in the right areas and negotiating, you may get a price that could make buying cheaper than renting. And most importantly, buying property and making mortgage repayments can create equity for you, instead of your landlord.

What is the significance of the recent rate hikes in the property market?

The recent rate hikes have led to fewer buyers in the market, resulting in properties staying on the market for longer periods. This has caused property prices to drop, making it a potential buyer’s market.

Give us a call

Are you keen to make the leap from renter to homeowner? If so, you will be busy researching the market and learning the art of the deal, so why not get a helping hand with your finances? 

We can help find the right loan for you and provide you with helpful guidance that could increase your chances of a successful mortgage application. And while we are at it, we can assist you in applying for any money-saving government incentives too.

Phone: 1300 855 022

Email: clientservices@zippyfinancial.com.au 

Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business. 

About the Author:   

Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.   

Connect with Louisa on Linkedin.   

Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).   

Disclaimer:This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial.  r-less normal distribution of letters. making it look like readable English.

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