With interest rates at an all time low, it never has been a better time to get into the property market. With the First Home Owners Grant due to be phased out soon, buyers should take advantage of the perfect storm conditions and get themselves off the rental merry go round. Adelaide is still the most affordable city to purchase homes in and this article published in the Advertiser (July 30, 09) is a timely reminder that it can be cheaper to buy than rent.
House hunters can make repayments on a home less than the cost of renting in nine South Australian suburbs and towns – as much as $230 less a month in the most extreme case.
Angle Park tops the list where homebuyers can expect to spent $990 a month in mortgage loan repayments for a unit – or choose to spend $1220 a month in rent.
A Commonwealth Bank/RP Data report entitled “Where is it cheaper to buy than rent?”, also points to Gilles Plains – where monthly loan repayments are $1119 compared with a rent of $1300 – and Greenhill (loan repayments of $2166, rent $2200) as places to watch.
Home owner Kristy Wright moved from renting in Woodville to her new home in Angle Park – for only $174 a month extra. “I chose to build because I was living in a two-bedroom unit and wanted something bigger for me and my son” said Ms Wright “so for another $40 per week I could get a three-bedroom, two bathroom home and a backyard. I like the western suburbs and this is an up-and-coming area, it’s got the whole community-neighbourhood feel.”
Latest Valuer-General figures show the median price in Angle Park is $375,000 while that of units is $198,000.
During the six months to June 2009, home sales were up by 7.7 per cent in SA, 35.2 per cent in Victoria and 25.7 per cent in NSW.
Hannah Silvermann
Real Estate Reporter
Tags: Add new tag, First Home Owners Grant, Homeowners, Real Estate. South Australian suburbs, Renting, RP Data Report, Valuer-General