Revealed: The SA towns where it’s cheaper to rent than buy

1 month ago 8

Looking to get out of your regional rental and buy a place of your own?

New Mortgage Choice data of 59 SA regional hotspots shows in the majority of cases, you’re better off renting.

Of the 59 major regional locations Mortgage Choice have house or unit data for, it’s cheaper to rent than buy in 47.

The biggest saving can be made in Port Elliot on the Fleurieu Peninsula.

Here a median priced house will set you back $800,000, with monthly repayments on a 30-year owner-occupier loan at 6.69 per cent per annum rate, with an 80 per cent loan-to-value ratio $4,125.53 per month in monthly repayments.

Compare this with the $2080 you would pay in rent at $480 per week, and renters stand to live the same lifestyle for $2045.53 less per month.

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Supplied Real Estate 52 Cornhill Road, Victor Harbor

52 Cornhill Road, Victor Harbor is on the market with Harcourts South Coast and has a price guide of $500,000 to $550,000. The home is ideal for investment or renovation.

Middleton wasn’t far behind in terms of monthly savings, with tenants spending $2025.90 less to rent a median-priced house they would otherwise be paying $4192.57 a week to pay off.

Renters in a further 11 suburbs are currently saving between $1000 and $2000 a month by choosing to rent rather than buy.

Harcourts South Coast principal said while house prices had run away, rental prices had not kept up, largely because of regulations around rent increases.

“You know, it’s almost “name your price” on the waterfront now – it’s just jumped that much and the medium house price has absolutely skyrocketed,” he said.

“We do have a ceiling down here as what people will pay for a rental property.

“Up until the last three to six months we had been sitting at zero per cent vacancy, but we do now have some more properties coming on and they’re sitting for a bit longer and renters now have some choice.”

Supplied Real Estate 2 Hastings Street, Normanville

2 Hastings Street, Normanville is for sale through Ray White Normanville. While on the market without a price guide, the home is likely to eclipse monthly rent payments.

Not all markets favoured tenants though, with 15 SA locations cheaper to buy in than rent.

The difference was most significant in Peterborough, in the state’s mid north, where it’s $476.43 per month cheaper to pay off a mortgage than rent.

Units were cheaper to rent than buy in four locations – Murray Bridge, Victor Harbor, Port Lincoln and Mount Gambier – while houses are the way to go in every suburb where it was cheaper to buy than rent.

Mortgage Choice CEO Anthony Waldron said there were advantages to buying your own property.

“This data shows there are postcodes around Australia, particularly in regional areas, where the monthly home loan repayment is lower than the monthly cost to rent.

“With your own property, you’re building on your financial position and paying off your own asset, rather than your landlord’s mortgage.

“That said, it’s important to note that buying property may involve costs outside of the mortgage such as stamp duty, legal fees and strata.”