CHEAPER TO RENT, BUY

Kalamunda Reporter - - RESIDENTIAL -

BUY­ING and rent­ing a home in WA be­came more af­ford­able in the March quar­ter 2018 ac­cord­ing to re­search by the Real Es­tate In­sti­tute of Aus­tralia and Ade­laide Bank.

The lat­est Hous­ing Affordability Re­port found the pro­por­tion of me­dian fam­ily in­come re­quired to meet av­er­age loan re­pay­ments was 23.6 per cent, 0.3 per­cent­age points lower than the pre­vi­ous quar­ter. How­ever it was 0.2 per­cent­age points higher than the same time last year.

WA was one of the most af­ford­able states in which to buy a home dur­ing the re­port­ing pe­riod, with only the ACT (19.7 per cent) and the NT (19.8 per cent) re­quir­ing smaller pro­por­tions of me­dian in­come to meet loan re­pay­ments.

Homes were least af­ford­able in NSW where 36.5 per cent of the me­dian in­come was needed to meet loan re­pay­ments.

Po­ten­tial home­own­ers in WA bor­rowed less in the March quar­ter, with the av­er­age loan size de­creas­ing to $350,545, down 0.6 per cent from the De­cem­ber quar­ter.

How­ever, bor­row­ings in­creased 3.7 per cent com­pared to the same time last year.

The num­ber of first-home buy­ers fell 10.5 per cent over the quar­ter to 3578, but in­creased 0.5 per­cent­age points from the pre­vi­ous 12 months.

They made up 35.1 per cent of WA’s owner-oc­cu­pier mar­ket.

They too bor­rowed less over the quar­ter, with the av­er­age loan to first-home buy­ers fall­ing 2.5 per cent to $308,033, but re­main­ing sta­ble when com­pared to the same time last year.

WA was the most af­ford­able place to rent in Aus­tralia. The pro­por­tion of fam­ily in­come needed to meet me­dian weekly rent pay­ments fell 0.1 per­cent­age points to 16.3 per cent and was 1.3 per­cent­age points lower than the March quar­ter 2017. The next most af­ford­able state was the ACT at 18.5 per cent.

By com­par­i­son ten­ants re­quired 30.1 per cent of their in­come to meet rent pay­ments in NSW, fol­lowed by Tas­ma­nia at 28.1 per cent.

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