House and Land Packages Often Cost Less than Paying Rent in Perth
Announcement posted by Origin Projects - Land & New Homes in WA 24 Jan 2013
4Land Property Group reveals how interest rate cuts have made house and land packages cheaper than renting for many Perth residents.
A recent report from RP Data broke the news that it is cheaper to purchase than to rent in 494 Australian suburbs. The report computed costs by comparing the weekly cost of a combined interest and principal loan with a variable mortgage rate of 5.65% to the weekly costs of rent in cities across Australia.
From Sydney, where the payment on a median priced house costs $351 less than paying $4,008/month for rent, or Carlton, outside of Melbourne, where it costs $305 less a month to buy a house costing $249,866 than to pay $1603/month, home ownership is now the best value for living space in 494 markets.
It doesn’t matter whether the house is in a country town or a major city; with the current combination of low interest rates and high rents, buying a house and land package is the best value it has been in this century. Perth itself is one of the cities where it is cheaper to buy than rent, as are Brisbane, and locations such as Cairns, Townsville, and Ipswich.
When the last RP data came out, a mere two months before the 20th December report, only 388 suburbs fell in the “cheaper to buy than to rent” category. The current number of 494 represents an increase of over 27%.
Tim Lawless, the director for national research at RP Data, credits lower house prices combined with higher rents for part of the current balance, but the decrease in mortgage rates appears to have been a tipping point for the market. According to Lawless, housing is now 5.5% lower in capital cities and their suburbs, while discounted variable mortgage rates have fallen 150 basis points since 2011.
Lawless has no doubt that now is a great time to buy a house: “For many consumers, (a house) may not cost them that much more to own than rent. For many buyers, now may be a good time to either re-enter the market or buy their first home.”
Western Australia has 48 suburbs where it is cheaper to buy than rent. Across Australia, Queensland has the most with 185, followed by 122 in NSW, 58 in South Australia, 28 in Victoria, and 18 in the Northern Territory.
According to Dave Gillon, Sales Manager for 4Land Property Group, their company almost always has many house and land packages that cost less to buy than it does to rent: “This is a great development for the housing market, and it presents an unprecedented opportunity for renters to “step up” into home ownership, but we already had a lot of house and land packages where it is cheaper to buy a house and land package than it is to rent a home.”
Gillon continued, “We specialise in very affordable house and land packages that provide great value for the money. We have combined designs that don’t waste a millimetre of space, quality workmanship, intrinsic beauty, great locations and great prices to offer comfortable homes at very low prices. Most people who tour our Estates and display homes in Perth are stunned at the total package of comfort, quality, and a lot more space than they imagined, especially when they see what their repayments are going to be.”
Gillon concluded, “It is a great time to buy a home. When you rent, you don’t receive anything else for your money. When you buy, you build a future.”
4Land Property Group provides affordable and quality house and land packages to the Perth area.
Visit their website for more information: http://www.4land.com.au/ or call them at (08) 9301 4445 to talk to one of their representatives.
From Sydney, where the payment on a median priced house costs $351 less than paying $4,008/month for rent, or Carlton, outside of Melbourne, where it costs $305 less a month to buy a house costing $249,866 than to pay $1603/month, home ownership is now the best value for living space in 494 markets.
It doesn’t matter whether the house is in a country town or a major city; with the current combination of low interest rates and high rents, buying a house and land package is the best value it has been in this century. Perth itself is one of the cities where it is cheaper to buy than rent, as are Brisbane, and locations such as Cairns, Townsville, and Ipswich.
When the last RP data came out, a mere two months before the 20th December report, only 388 suburbs fell in the “cheaper to buy than to rent” category. The current number of 494 represents an increase of over 27%.
Tim Lawless, the director for national research at RP Data, credits lower house prices combined with higher rents for part of the current balance, but the decrease in mortgage rates appears to have been a tipping point for the market. According to Lawless, housing is now 5.5% lower in capital cities and their suburbs, while discounted variable mortgage rates have fallen 150 basis points since 2011.
Lawless has no doubt that now is a great time to buy a house: “For many consumers, (a house) may not cost them that much more to own than rent. For many buyers, now may be a good time to either re-enter the market or buy their first home.”
Western Australia has 48 suburbs where it is cheaper to buy than rent. Across Australia, Queensland has the most with 185, followed by 122 in NSW, 58 in South Australia, 28 in Victoria, and 18 in the Northern Territory.
According to Dave Gillon, Sales Manager for 4Land Property Group, their company almost always has many house and land packages that cost less to buy than it does to rent: “This is a great development for the housing market, and it presents an unprecedented opportunity for renters to “step up” into home ownership, but we already had a lot of house and land packages where it is cheaper to buy a house and land package than it is to rent a home.”
Gillon continued, “We specialise in very affordable house and land packages that provide great value for the money. We have combined designs that don’t waste a millimetre of space, quality workmanship, intrinsic beauty, great locations and great prices to offer comfortable homes at very low prices. Most people who tour our Estates and display homes in Perth are stunned at the total package of comfort, quality, and a lot more space than they imagined, especially when they see what their repayments are going to be.”
Gillon concluded, “It is a great time to buy a home. When you rent, you don’t receive anything else for your money. When you buy, you build a future.”
4Land Property Group provides affordable and quality house and land packages to the Perth area.
Visit their website for more information: http://www.4land.com.au/ or call them at (08) 9301 4445 to talk to one of their representatives.