Costs to rent or buy near parity: ABS
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|Thursday, 12 November 2009|
The costs associated with renting or owning a home are on par, according to data from the Australian Bureau of Statistics (ABS).
Figures from ABS show the Australian mortgage holder currently pays 18 per cent of their gross income towards their housing, while renters are paying 17 per cent.
Over the past 13 years, housing costs for mortgage holders rose by $112 per week, which represents an average annual growth rate of 2.7 per cent.
Meanwhile the cost of renting over the 13 years has increased from $169 per week to $237 per week -an average annual growth rate of 2.6 per cent.
Over the same period median dwelling values have grown at 5.6 per cent per annum and household incomes have grown by 3.1 per cent annually.
RP Data’s research analyst Cameron Kusher said this meant those who had bought a property in 1994-95 where now better off financially than those who chose to rent.
“The average cost of housing has increased by $112 per week however, the household income has increased by $545 per week (net position +$433 per week), and the value of each property has increased by approximately $202,000 providing significant additional equity,” Mr Kusher said.
“If you were renting, you have also seen your household income grow by $545 per week, whilst housing costs have increased by $68 per week (net position +$477 per week).
In their pocket, renters enjoy much more money than those with a mortgage however, renters have missed out on the $202,000 increase in property values and the resulting equity position and potential to re-invest such growth in value affords.”