The Darwin suburbs where it is cheaper to buy than rent: RP Data

Cassidy KnowltonDecember 8, 2020

The greater Darwin suburb of Ferrar, some 22 kilometres from Darwin CBD, leads the Darwin list compiled by RP Data of suburbs where it is cheaper to buy a unit than to rent one.

RP Data compared the cost of a mortgage vs the cost of renting in four different ways: 1, Principal and interest loan on a variable mortgage rate; 2. Interest-only loan on a variable mortgage rate; 3. Principal and interest loan on a three-year fixed mortgage rate; and 4. Interest-only loan on a three year fixed mortgage rate.

The data contains both units and houses, but in most suburbs on the list it is cheaper to buy a unit than buy one.

The comparison does not take into consideration stamp duty, associated buying costs and strata fees, where applicable.

The median unit asking rent in Ferrar is $505 a week, according to RP Data, which estimates it is $5 cheaper per month to buy a house with a principal and fixed-interest mortgage than rent one. However, it would cost $54 more to buy a unit with a variable-interest loan. 

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For the full list of all suburbs, visit RP Data's website.

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