The one place in SA where it’s cheaper to buy than rent

It’s cheaper to buy than rent, right?

That might have used to have been the case, but new data shows there is just one suburb in all of metropolitan Adelaide where you are better off buying than being a tenant.

Compare the Market data shows Adelaide city units or apartments are the only properties out of the 227 the comparison company has data for where you’re better off buying than renting.

Here monthly rental payments, on average, are $2750, whereas monthly repayments on a median-priced $526,058 unit are $2520 – some $229 less.

Regional buyers hoping to save by buying have more choice, but their options are still limited, with properties in 11 out of the 32 towns the company has data for cheaper to own than rent.

These are Berri, Port Augusta, Port Augusta West, Port Pirie South, Port Pirie West, Risdon Park, Whyalla, Whyalla Jenkins, Whyalla Norrie, Whyalla Playford and Whyalla Stuart.

The biggest saving here can be found in Port Pirie West, where househunters can save $582 per month by forgoing $1602 a month in rent in favour of $1020 in mortgage repayments.

As far as rentals go, those looking to rent in St Peters, in Adelaide’s leafy inner eastern suburbs, stand to save the most.

While it used to be cheaper to buy than rent, now the script has flipped. Pic: iStock.

Here a month’s rent will set you back $3637 – some $6615 less than the $10,252 you would be paying on a median priced property of more than $2.139m.

Compare the Market property expert Andrew Winter said while it was cheaper to rent than buy in most instances, there could still be a benefit to doing it.

“If owning a home is part of your long-term plan, and you have a deposit saved, you might find it’s worth paying a bit more to have a little slice of Australia to call your own,” he said.

Andrew Winter, host of Foxtel’s Selling Houses Australia. Picture: Supplied

“If you don’t currently need a lot of space, a unit somewhere central and convenient may be a great stepping stone to kick start your property journey.

“And, if you’re able to hold onto that property for at least a few years, you’ll generally bank some equity when values go up.

In most suburbs of SA, you’ll want to head to the left. iStock

“While you may be able to borrow a bit more it’s important to speak to an expert and stress test your mortgage to make sure you can afford your repayments comfortably.

“Securing a good interest rate, and refinancing every few years, is crucial to avoid paying more interest than you need to.”

– with Elizabeth Tilley

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