Despite having its reputation as one of the most expensive cities to live in, Sydney has more affordable properties compared to the other capital cities in the country.
A report by RP Data showed that 18 suburbs in the Sydney area are more affordable for buying a property than renting. This compares with just one suburb each for Darwin, Adelaide and Perth. Melbourne and Queensland have only two suburbs each that are cheaper to buy than rent while Canberra boasts four suburbs.
Homebuyers in Sydney's Rose Hill save $504 per month by owning their home. In Dysart, Qld, homebuyers are better off by $613 while renters converting to homeownership in Baynton, WA, would see their expenses drop by a massive $3,788 per month.
RP Data's research director Tim Lawless noted that during 2008 Australia experienced some fundamental shifts in its property market where property values fell, interest rates dropped to a 45-year low and weekly rents increased dramatically.
"Now many renters are doing their sums to work out whether paying off a mortgage is going to be cheaper than paying a landlord," said Lawless.
RP Data identified 74 suburbs in total across Australia where on average it is now more affordable to buy than to rent.
"The majority of suburbs are in regional locations, often where housing demand is driven by the resources sector, has pushed rent very high," says Lawless.
"However, there are 34 suburbs in the nation's capital city metro areas - including South East Queensland's Gold Coast and Sunshine Coast - that also fit the criteria of being more affordable to buy than rent."
Related: Home Loan Calculator