Australian house prices have been rising at their fastest rate in 17 years, making houses more and more unaffordable for first home buyers. Prices increased by 18.4% over the last 12 months, and the Reserve Bank of Australia has estimated a further 17% rise to December 2021. While prices in Sydney and Melbourne were expected to rise, it’s surprising that Darwin has had the highest annual growth rate, at 23.4%, over the last year. Finding a nice area with affordable homes has always been the big issue for first home buyers. Most are afraid of the prices, and aren’t sure whether to rent or buy. To help them make their decision, NAB has released a report this week revealing the 59 suburbs where buying a house is cheaper than renting – and many more where the same is true for units. Here’s the breakdown for each state:

New South Wales

Housing prices in Sydney have increased 19.7% over the last year; however, NAB states that buying a unit in these suburbs is now cheaper than renting:

• Campbelltown
• Liverpool
• Blacktown
• Bankstown
• Penrith
Here are some regional NSW areas where buying a house is cheaper than renting:
• Dubbo
• Goulburn
• Armidale
• Port Macquarie
• Bathurst
• Coffs Harbour
• Grafton
• Tweed Heads
Here’s how you can find the best mortgage brokers in Sydney if you’ve made the decision to buy.

Victoria

Melbourne has been in lockdown for over half of the last 12 months, yet has seen an increase in house prices of 11.8% for the year to date. You have to move to Melbourne’s outskirts and regional areas of Victoria to find areas where buying a house is cheaper than renting, such as:
• Melton
• Melton South
• Portland
• Sale
• Horsham
• Shepparton
• Echuca
• Bairnsdale
• Wangaratta
• Yarrawonga
However, buying a unit can be cheaper in inner-city locations, such as:
• Carlton
• Melbourne CBD
• Southbank
• Docklands
• Abbotsford
Finding the best home loan is as important as finding the perfect home for you. A mortgage broker can help you in your search. Here’s how to find a good mortgage broker in Melbourne.

Queensland

Some outer suburbs in Brisbane where it’s cheaper to buy a house than rent are:
• Logan
• Bald Hills
• Redbank Plains
• Redcliffe
• Caboolture
In Brisbane, similar to Melbourne, you can find units that are cheaper to buy than rent as close as 3km from the CBD, including in areas like:
• Brisbane City
• Fortitude Valley
• Spring Hill
• South Brisbane
Outside of Brisbane, there are various suburbs in Gold Coast and the Sunshine Coast where you can buy cheaper than renting. It’s the same for regional areas of:
• Cairns
• Bundaberg
• Mackay
• Roma
• Toowoomba
If you’ve chosen to buy a property in or around Brisbane, you need to know the best mortgage brokers in the area. Or is it better to go directly to a bank instead? Click on the link to find out more about mortgage brokers in Brisbane.

South Australia

In Adelaide, the units are more affordable than in the larger capital cities, even in the CBD, Glenelg and Mawson Lakes. For areas in Adelaide where it’s cheaper to buy a house than rent, look towards the outer northern suburbs, such as Elizabeth and Salisbury. Outside Adelaide, the regional areas in South Australia where it’s cheaper to buy a house than rent include:
• Naracoorte
• Port Augusta
• Mount Gambier
• Murray Bridge
• Port Lincoln
• Victor Harbor

Western Australia

Perth is one of the more affordable capital cities in Australia, and here are the surrounding suburbs where buying is cheaper than renting a house:
• Armadale
• Greenfields
• Port Kennedy
• Clarkson
• Baldivis
Perth, like Brisbane and Adelaide, offers more opportunities for affordable units in its CBD, as well as in:
• East Perth
• South Perth
• Rivervale
• Maylands
• Fremantle
Outside of Perth, here are some suburbs in regional Western Australia where buying a house is cheaper than renting:
• Port Hedland
• Newman
• Broome
• South Hedland

Tasmania

In Hobart, affordable housing options are available in the following towns:
• Sorrel
• Howrah
• Moonah
• Kingston
Other areas in Tasmania where it’s cheaper to buy than rent include:
• Queenstown
• Ulverstone
• Launceston
• Devonport
• Wynyard

Australian Capital Territory

There are over 40 suburbs within the ACT where buying a house is cheaper than renting. Among them, the top three affordable spots are:
• Kambah
• Ngunnawal
• Bonner
In the unit market, it’s cheaper to buy than rent in:
• Braddon
• Belconnen
• Franklin
• Kingston

Northern Territory

Darwin had the highest jump in house prices over the last year but in the following areas you can still buy a house cheaper than renting it:
• Zuccoli
• Gunn
• Durack
• Leanyer
Apartments, on the other hand, are cheaper to buy than rent in:
• City of Darwin
• Stuart Park
• Larrakeyah

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Cheaper Does Not Mean Better

This is a list of suburbs where buying a house is cheaper than renting. However, just because it is cheaper does not mean it is better. Now more than ever, choosing the right property is critical. Like most opportunities in life, buying a house needs to align with your objectives. You may find your dream house in a suburb that is not as affordable as these. You can use our rent or buy calculator to help determine if you should go for that dream house or keep renting for now. And to further help you with your home buying journey, we have just launched our Free Home Buyers Course. In under two hours, you can learn how to buy a house and avoid costly mistakes. To discuss your situation with one of our Expert mortgage brokers directly, call us on 1300 889 743 or fill in our free assessment form.

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