More than half of homes in Australia will be cheaper to purchase than rent in the next ten years, according to the latest report from REA.
Conversely, almost 75 per cent of apartments will be cheaper to buy, according to the REA Insights Buy or Rent Report 2021, which is based on the forecast on housing and rental price growth of three per cent per year over the next decade, together with buyers having a 20 per cent deposit.
The report’s findings also suggest price growth will remain strong as buyers take advantage of low mortgages, which are set to remain until 2024. Rent growth is likely to remain slow, particularly outside of Sydney and Melbourne.
REA Group economist and REA Insights Buy or Rent Report author Paul Ryan said the report findings point to continued strong housing price growth, particularly outside of Sydney and Melbourne.
For retirement villages this means demand will remain high for the family home, and therefore quick sales at strong prices.
For land lease communities this news is better. Customers can sell their family home and move into a new LLC home with a 2-3 per cent mortgage and money in the bank – or to be the bank of Mum and Dad.
