Admit that what kincella posted was incorrect and that it is in fact less expensive to rent than to pay the interest on a loan even at interest rates at 50 year lows."
I thought id go a step further and crunch the figures...
Inner Sydney house $525,000 (rent $585 week) Sydney house $428,000 ($500 week) Units inner $367,000 (rent 2br unit $430 week)
So lets do some figures
525k at 5% = $26,250 p.a (rent at 585 x 52 = $30,420 p.a) 428k at 5% = $21,400 p.a (rent at 500 x 52 = $26,000 p.a) 367k at 5% = $18,350 p.a (rent at 430 x 52 = $22,360 p.a)
Are u sure renting is cheaper?
*I have not allowed for the 20% deposit for most buyers therefore the repayments should really be based on 100k,80k and 70k less.....
but it would only enhance the fact buying is cheaper than renting in most areas of Syd at present.
*Also havent allowed for the tax and interest deductions but again that may show to enhance the fact owning is cheaper.
Most stats presented taken from APM ABS and RP DATA.
