Breaking news and updates daily. Subscribe to our Newsletter!

Home of the REB Top 100 Agents
Breaking news and updates daily. Subscribe to our newsletter

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Costs to rent or buy near parity: ABS

By Staff Reporter
12 November 2009 | 1 minute read

The costs associated with renting or owning a home are on par, according to data from the Australian Bureau of Statistics (ABS).

Figures from ABS show the Australian mortgage holder currently pays 18 per cent of their gross income towards their housing, while renters are paying 17 per cent.

Over the past 13 years, housing costs for mortgage holders rose by $112 per week, which represents an average annual growth rate of 2.7 per cent.

Advertisement
Advertisement

Meanwhile the cost of renting over the 13 years has increased from $169 per week to $237 per week -an average annual growth rate of 2.6 per cent.

Over the same period median dwelling values have grown at 5.6 per cent per annum and household incomes have grown by 3.1 per cent annually.

RP Data’s research analyst Cameron Kusher said this meant those who had bought a property in 1994-95 where now better off financially than those who chose to rent.

“The average cost of housing has increased by $112 per week however, the household income has increased by $545 per week (net position +$433 per week), and the value of each property has increased by approximately $202,000 providing significant additional equity,” Mr Kusher said.

“If you were renting, you have also seen your household income grow by $545 per week, whilst housing costs have increased by $68 per week (net position +$477 per week).

In their pocket, renters enjoy much more money than those with a mortgage however, renters have missed out on the $202,000 increase in property values and the resulting equity position and potential to re-invest such growth in value affords.”

Costs to rent or buy near parity: ABS
default
lawyersweekly logo

Feeling burnt out? The newest event to hit the industry, REInnovate, is a must-attend for serious real estate professionals facing the pressures of a heavy workload. Get ready to walk away with the undeniable structure for success, efficiency and profitability, and get yourself back on track to focus on what’s really important for your business. Get your early bird ticket now.

Tags:

Listen to other installment of the Real Estate Business Podcast
Do you have an industry update?

top suburbs

12 month growth
Queenton
69.76%
Flying Fish Point
69.61%
Point Piper
69.17%
Glenelg South
69.02%
Pretty Beach
69.01%
Bar Beach
68.9%
Northampton
68.7%
Kembla Grange
66.91%
Boomerang Beach
66.67%
Gnarabup
66.67%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to Newsletter

Ensure you never miss an issue of the Real Estate Business Bulletin.
Enter your email to receive the latest real estate advice and tools to help you sell.