Top 10 Perth suburbs where it's cheaper to buy than rent

It is cheaper to buy than rent in 112 Perth suburbs, with Brentwood, Medina and Parmelia offering buyers the best value when comparing the costs of buying to renting.

REIWA President Damian Collins said Western Australia was one of the most affordable places in the country to buy property in.

It is more affordable to pay the costs associated with servicing a home loan than pay the weekly rent in 112 Perth suburbs, which should give tenants encouragement that home ownership is within reach, Mr Collins said.

First home buyer suburbs top the list

Of the top 10 suburbs where it is cheaper to buy than rent, nine have a median house sale price below the Perth median of $520,000, with eight of those below $300,000.

"The bulk of the suburbs on this list fall within the traditional first home buyer price range. Even though Perth house prices have grown over the last 12 months, there is still excellent opportunity for prospective buyers to exit the rental market and step onto the property ladder. And as the reiwa.com analysis shows, servicing a loan is cheaper than paying rent in a lot of Perth suburbs, Mr Collins said.

reiwa.com's analysis assumes an 80 per cent loan-to-value ratio on the suburbs median house price, with a 30-year loan repayment and two per cent interest rate. Plus, it also factors in one per cent of the median house sale price to account for maintenance and other ownership costs like Council rates.

"Record low interest rates combined with some of the most affordable housing in the country, has led to a surge of Perth suburbs becoming more affordable to buy in than rent. Once buyers have saved a deposit, the decision to buy a property is more financially advantageous than renting in these suburbs, Mr Collins said.

_{*Plus one per cent for other ownership costs.}