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Purchasing property 'may lesse...

Purchasing property 'may lessen housing costs'

It can be more expensive to rent property rather than buy it, according to research published by RP Data

Owners of Australian homes are paying a smaller income portion for their housing than some families or individuals who are renting homes, claims new research from property analyst RP Data.



The statistics show the average housing costs for 2009-10 were lowest for house owners without a mortgage, at an average of $35 a week (£22), while renters paid an average of $275 a week (£172).



"Occupancy costs for renters are likely to be lower than those for mortgagees or those who fully own their home, as rates and utilities are generally paid by the property owners," said researcher Cameron Kusher.



However, he also explained that people engaged in the rental market were spending 20 per cent of their income on housing costs, a greater percentage than homeowners or those with mortgages.



Nearly ten per cent of renters spend over 50 per cent of their income on rent and other residential costs.



Housing advisory firm SQM Research revealed yesterday (November 23rd) that the rental market in Australia remained undersupplied with property.



Posted by Steve Douglas

All information provided is of a general nature only and does not take into account your personal financial circumstances or objectives. Before making a decision on the basis of this material, you need to consider, with or without the assistance of a financial adviser, whether the material is appropriate in light of your individual needs and circumstances. This information does not constitute a recommendation to invest in or take out any of the products or services provided by SMATS Services (Australia) Pty Ltd or Australasian Taxation Services Pty Ltd.

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