The Australian Suburbs Offering Cheaper Mortgages Than Rent

2

⚠ The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

In nearly 20% of Australian suburbs, median mortgage repayments are within $100 of median rent costs, with 7.7% of suburbs noting cheaper mortgage payments than rent. This trend is evident in 495 house markets and 597 unit markets nationwide.

The changing landscape has spurred a rise in "rentvesting," a strategy where potential homeowners rent for lifestyle convenience while buying investment properties in more affordable areas. This approach has gained traction, particularly among younger buyers, as it allows them to live where they choose and offset ownership expenses by renting out their purchased property.

For those paying a median rent of $659 weekly, it equates to a mortgage on a property roughly valued at $590,000. In Sydney, this could translate to a $787 weekly rent paying for a $704,000 property, either a unit in Canterbury or a house in San Remo. Melbourne's median rent of $610 weekly aligns with a $546,000 property, a unit in Narre Warren or a house in Melton South. Meanwhile, Brisbane and Perth rentals equate to property purchases of $606,000 and $638,000 respectively, offering options like a unit in Zillmere or a house in Leichardt, and in Perth, a unit in Jolimont or a house in Maddington.

The rise in rent prices alongside potential interest rate cuts could make homeownership more attainable, as pointed out by Cotality's head researcher, Eliza Owen. This financial scenario fuels the rentvesting trend, enabling first-time buyers who want to reside in preferable areas while investing in more budget-friendly markets.

Published:Wednesday, 28th May 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Finance News

Clear

Urgent Call for Government Support in Australia's Marine Manufacturing Sector

30 Nov 2025: Paige Estritori

The Boating Industry Association Ltd (BIA) has recently issued a compelling appeal to all levels of Australian government, emphasizing the urgent need for strategic support to bolster the nation's esteemed marine manufacturing and recreational boating sector. This call to action arises amidst a significant skills shortage that poses a threat to the industry's economic vitality and growth potential. - read more

Australia's Marine Industry Set for Unprecedented Growth by 2030

30 Nov 2025: Paige Estritori

At the 2025 Sydney Boat Show, the Boating Industry Association (BIA) unveiled the National Recreational Boating Statement, providing a comprehensive overview of the sector's current status and future projections. This landmark report highlights the substantial economic and social contributions of Australia's marine industry and outlines ambitious growth forecasts leading up to 2030. - read more

Australia Partners with Japan for Advanced Naval Frigate Program

30 Nov 2025: Paige Estritori

In a significant development for Australia's naval defense strategy, the Australian Government has officially selected Japan's New FFM design for its new general-purpose frigate program. This decision marks a pivotal step in enhancing the Royal Australian Navy's capabilities and underscores the strengthening defense collaboration between Australia and Japan. - read more

Australia's Marine Industry Surges to $229 Billion in 2023

14 Nov 2025: Paige Estritori

Australia's marine industry has achieved a remarkable economic milestone, with its output soaring to $229 billion in 2023. This 19% increase from previous years underscores the sector's robust growth and its pivotal role in the national economy. - read more

South Australia's Coastal Waters Affected by Prolonged Algal Bloom

14 Nov 2025: Paige Estritori

Since March 2025, South Australia's coastal regions have been grappling with a harmful algal bloom (HAB) that has had profound effects on the marine environment and associated industries. This event has led to significant fish kills, adversely impacting the fishing and aquaculture sectors, as well as deterring beachgoers and affecting tourism operators along the affected coasts. - read more

Marinex Underwriting Launches to Address Australia's Marine Insurance Needs

14 Nov 2025: Paige Estritori

Rhodian Group, an incubator of underwriting agencies in Australia, has announced the launch of its third agency, Marinex Underwriting. Backed by global specialty insurance distributor Amwins, Marinex is a shared equity marine underwriting agency co-founded by national relationship manager Janelle Karnib, CEO Chris Kelly, and Ainsley Smith. - read more

Click for more Finance News