According to data from the Australia Bureau of Statistics (ABS),the costs associated with renting or owning a home are now on a par. Interesting statistics include:
- Current mortgage holders pay 18% of the gross income towards their mortgage while renters pay 17%
- Over past 13 years housing costs for mortgage holders has increased by $112 per week (annual growth rate of 2.7%)
- For the same period rents have increased from $169 - $237 - annual growth rate of 2.6%
- Medium house prices have increased 5.6%
- Household incomes have increased 3.1% annually
- Renters enjoy much more money in their pocket than a home owner. Flip side is that renters have missed out on $202,000 increase in property values (if you bought a property in 1994-1995) and the resulting increase in equity of those with a home loan.
Source: Mortgage Business 12 Nov 2009
