Buying cheaper than renting in some Adelaide suburbs
A new report has shown the suburbs in South Australia where it is actually cheaper to buy a home than to rent one.
Topping the list is Gilles Plains, 10km north-east of the CBD, where mortgage holders have it on easy street compared to renters.
Paying off the principal and interest of a variable loan, buyers are better off by $227 a month.
Even on a fixed rate, buyers have an extra $241 in their pocket each month.
Simon Cross bought in the suburb just two years ago.
“It’s an area that has lots of old houses that are getting knocked down and moved out, a lot of empty blocks around,” Mr Cross said.
“Empty blocks mean more new houses, which is always going to be good for the current house price.”
Along with Gilles Plains, homeowners in Davoren Park in the northern suburbs win out, followed by Reynella, Elizabeth Downs and Elizabeth Vale.
Greg Moulton from the Real Estate Institute of South Australia told 7News: “There’s some fantastic opportunities to buy into some of those areas because the pricing of the property, it often costs more to rent in those areas because you can buy it at a fairly low figure compared to our median house prices.”
Experts are hoping housing grants in SA will stimulate the real estate market after a sluggish year.
