Lakeside Tacoma in NSW, the rolling hills of Waterford Park in Victoria and rural Kilcoy in Queensland are the best suburbs to buy a house instead of renting.
Despite massive increases in prices, Australians would be better off buying a house than renting in 59 per cent of suburbs in the nation. The figure jumps to 84 per cent for units, according to an REA Insight comparative report.
The top places to buy apartments are Kangy Angy on the NSW Central Coast, Frankston North in Victoria and Brisbane city, presenting opportunities for first home buyers and investors alike.
However, the impact of falling rents in Sydney and Melbourne means it is cheaper to rent 70 per cent of houses and 40 per cent of units in those cities.
The best suburbs for renting included some of the country’s most expensive suburbs—Vaucluse in Sydney, Toorak in Melbourne and Teneriffe in Brisbane.
Best suburbs to buy instead of rent
|2||Rocky Point||Stanhope Gardens|
|1||Waterford Park||Frankston North|
|4||Toogoolawah||Eight Mile Plains|
|5||Logan Reserve||Dutton Park|
^Source: REA Insights Buy or Rent Report
The report also revealed that more than half of the nation's homes will be cheaper to buy than rent during the next 10 years, at current prices.
REA group economist Paul Ryan said buyers were taking advantage of market conditions.
“Many regions have hit all-time price records so it’s understandable that many people would be surprised to hear that it’s still more affordable to buy in more places than to rent,” Ryan said.
“This research shows that much of the increase in demand we have seen in late 2020 and early 2021 has been driven by exceptionally low borrowing costs.”
The report's author said this was also an opportunity for investors to pick up more properties, particularly apartments where price growth was weaker.
“Investors are driven by the same comparison between prices and rents, so the finding that so many units in particular are cheaper to buy suggests there may be profitable investments currently available,” Ryan said.
“On this basis, we expect investor activity in the housing market to increase through 2021.”