PERTH UNITS FAVOURABLE

 Buying a unit is more affordable in 22.% of suburbs nationwide.

Domains comparison used the median unit price for each suburb, based on a mortgage rate of 5.68% with a 20% deposit.

For the combined capitals, the research showed that it was cheaper to service a mortgage on a unit than to rent in a lower proportion of suburbs, at 20.7%.

The combined capitals experience a more noticeable jump in the number of suburbs where buying is cheaper than renting, outpacing regional Australia.

Most capital cities show a double-digit increase in the share of suburbs where units are more affordable to buy than rent.”

Domain said buying a unit was over 12 times more likely to be cheaper than renting, with just 1.7 per cent of capital city suburbs showing that for houses.

“This difference is not surprising given the significant price gap between property types,” Domain said.

Out of the capital cities, Perth showed the most favourable outlook, with 82.9% of suburbs being cheaper to buy a unit than to rent.

However, for the rest of the capitals, the majority of suburbs were cheaper to rent a unit than to service a mortgage.

In Sydney, the data showed that only 9.5% of suburbs were deemed cheaper to buy a unit than to rent, while Melbourne recorded 19.7% of suburbs.

For Brisbane, 7.9% of suburbs were cheaper to service a mortgage on a unit than to rent.

Finally, in Adelaide, data showed that it was cheaper to buy a unit than to rent in 13.3% of suburbs.

Domain noted that mortgage repayments tend to be lower than rents in more affordable areas of capital cities, including Notting Hill in Melbourne and Burswood in Perth’s south-east.

“In these areas, property prices may not be as high, but rental demand is greater because of the financial hurdles associated with purchasing a home (interest rates, saving for a deposit and stamp duty), making it difficult for those looking to enter the property market,” Domain said.

When it comes to interest rates, data showed that units were especially likely to benefit from further cuts, with pressure expected to ease on mortgage rates later this year.

The average mortgage rate, currently at 5.68%, has been forecast to fall to about 4.98% by the end of 2025.

“This shift highlights how falling interest rates will have the greatest impact on affordability for units, providing an entry point for first home buyers and those seeking more attainable housing.”

However, Domain said that prospective unit buyers should still be aware of several expected obstacles as interest rates fall.

“This improvement may come with new challenges, including increased buyer competition and renewed upward pressure on prices,” Domain concluded.

(Thanks to Domain for this article) 

Time catches up with all the prices and although people in Perth struggle with the new norm on house prices, the apartments or units are still good buying. I have been trying encourage first home buyers and investors to invest in the Mosman Park area because of it's location and the prices are still relatively low. You can still buy an apartment under $400,000 could need a little love and attention but it's still affordable.

The struggle can sometimes come from others who have no real estate or perhaps just the family home which they bought 20 years ago, the prices they paid is less than the apartment prices of today. You cannot look back you need to go forward, dont let that put you into a state of I will wait unti the prices come down - but will they?  No one can ever pick the exact time that prices will stop, drop or increase you just need to go with the flow at the time.

I remember buying my first unit for $50k and then when I wanted to buy by third it was $230,000 I did struggle with it until I kept seeing the prices go forward, just jump into and get your start on that property ladder.  Keep them for at least 10 years.

MAKE YOUR OWN DECISIONS AND GIVE IT A REAL GO!!

SELLING MOSMAN PARK AND THE WESTERN SUBURBS!!

KEEPING IT REAL IS OUR MOTTO!!