The Perth suburbs where units could be your way onto property ladder
But the catch is, you need a 20 per cent deposit to buy the apartments.
The research highlights how high lease costs are keeping a third of the population stuck in the rent trap, paying off a landlord's mortgage — instead of their own — while they struggle to save the required deposit.
President of the Real Estate Institute of WA Suzanne Brown acknowledged the odds are stacked against renters.
'It should always be your goal to exit the rental market — whatever that looks like,' she said.
'Perhaps that is buying something you can afford and renting somewhere you want to live. But buying should always be the long run focus.'
Ms Brown said renters should not give up, as she regularly saw examples of people who saved a 20 per cent deposit, sometimes in challenging circumstances.
Furthermore, major help was coming for first-home buyers through the First Home Guarantee, which will help eligible buyers to purchase with as little as a five per cent deposit without paying costly lender's mortgage insurance.
Research by the Real Estate Institute of WA shows 28 suburbs have median unit rents that are higher than weekly mortgage repayments at 6.05 per cent interest over 30 years.
Bayswater, Burswood, Beckenham, Perth and Cannington have the highest rental income versus mortgage cost differential.
In Burswood, there is almost a $1000 monthly difference between median mortgage repayments ($2737 per month) and median rental income ($3683 per month).
While the REIWA research does not include water, council rates and strata fees, separate research by The West Australian shows it is often still cheaper to buy than rent once these costs are included.
A two-bedroom city apartment on Murray St, for example, sold for $518,000 in mid May.
With a 20 per cent deposit, the owner pays $575 a week to repay the $414,000 loan over 30 years. Water and council rates, and the strata levy, comes to an additional $103 a weekly, leaving the home owner $678 a week out of pocket. An apartment in this city complex sold for $518,000 in mid May and advertised as a rental two weeks later for $725 a week, making it cheaper to buy than rent. The catch is, you have a deposit. Credit: supplied
But the very same apartment has this week been advertised as an unfurnished rental property, on a six-month lease, for $725 a week, leaving the home-owner positively geared from day one, nearly $50 a week in the red.
In another example, a two-bedroom, two-bathroom apartment in Bayswater sold for $540,000 in October.
Buyers would need a hefty $108,000 deposit to buy it, and repay $600 a week for 30 years under 6.05 per cent interest.
A further $35 a week is required for the strata fees, and $59 is required each week for council and water rates.
With total weekly costs at $694, the owner is still ahead, given an almost identical apartment around the corner is renting for $740 a week. This two by two Bayswater apartment sold for $540,000 in October 2024. Credit: supplied
Another examples includes a modern complex in Burswood, which is currently advertising a one-bedroom apartment, with parking space, for $650 a week rent.
However, the neighbouring one-bedroom apartment sold in mid May for $465,000. With a 20 per cent deposit ($93,000) a mortgage- holder would repay about $520 a week for 30 years. An extra $94 is required each week to pay water rates, council rates, strata levies and a special deck levy. With total costs at $614 a week, the owner is still ahead.
'Units are a more affordable entry point to the market than houses, particularly in areas closer to the city and lifestyle attractions, and can be good options for people looking to exit the rental market,' said Ms Brown. This one bedroom unit in this Burswood complex sold recently for $465k. Credit: supplied
'Currently capital growth for the broader unit market is on par with the housing market, driven by the strong demand for property.
'In general though, the rate of growth for apartments — in particular — does tend to be lower than for houses. But that is not often a significant factor for people looking to buy their first home.
'For investors, the unit market usually outperforms the housing market for yield. '
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Perth Now
6 hours ago
- Perth Now
Indigenous communities plug in to power their future
Indigenous people risk being left behind in the clean energy transition without investment in community-led projects, particularly in regional and remote areas. More than 400 Traditional Owners, industry professionals, academics and government representatives have gathered for the First Nations Clean Energy Symposium on the Sunshine Coast. They discussed challenges in the sector as well as examples of community-led projects which are leading the clean energy transition. One of the newest, with ground breaking on the project just a week ago, is a battery project in the central-west NSW town of Wellington. The local Wiradjuri community, through the newly formed Wambal Bila corporation, have struck a deal with renewable energy company AMPYR Australia, giving them a right to take long-term equity ownership in the $340 million project. Wambal Bila director Gavin Brown said the deal, which gives the community the option of a five per cent equity stake, came about after AMPYR approached Traditional Owners to get involved. Rather than short-term outcomes such as jobs or training, the project could benefit the community for decades, Mr Brown said. "This is something that's more closely aligned with cultural values," he told AAP. "You're not digging up the land. It's renewable, it's a great alignment." AMPYR Australia chief executive Alex Wonhaus said the company wanted to go the "extra mile" to ensure it was working with the community. "One of the biggest risks to the energy transition is actually we're failing to bring the local communities along including, but frankly not limited to, First Nations communities," he said. "We as an organisation really wanted to do something which is much better than the bare minimum." First Nations Clean Energy Network co-chair Karrina Nolan said without investment, Indigenous people risk being left out of Australia's move toward renewables. "We've got people living in social and rental housing that can't keep the lights on, we've got 15,000 people across the country on prepaid meters that are disconnected every couple of weeks," she told the symposium. The woes of unreliable power are a reality known all too well in the community of Wujal Wujal in Queensland's far north. Following heavy rain and flooding from Tropical Cyclone Jasper in late 2023, the entire 300-strong population of Wujal Wujal had to be evacuated, the community was without power for months and residents could only return a year later. Despite the devastation, the community used the event to realise a 30-year dream - starting work on a solar and battery microgrid. In many remote Indigenous communities, power is paid for using rechargeable cards, which Wujal Wujal resident Trinity Clarke said could mean periods without electricity for households. "It's to not have to rely on shoddy power cards, to have reliable power, which impacts our white goods, impacts the food a family can store in their freezers," Ms Clarke said. The system is set to be completed in 2027, she said. Prime Minister Anthony Albanese recently announced $70 million for Indigenous clean energy projects. Ms Nolan said Indigenous communities wanted to help lead energy projects. "It's clear that now is the time to invest in First Nations communities and support access to capital and the resources needed," she said.
West Australian
2 days ago
- West Australian
SGH has another record year with $924m profit while enhancing focus on Australia to achieve further growth
SGH is heading towards $1 billion of annual net profit — to reach this remarkable milestone the conglomerate has bet big on Australia's growing economy and its need for more infrastructure and housing. SGH on Tuesday reported a 9 per cent rise in net profit after tax to $924 million for the 2025 financial year as operational cash flow surged 49 per cent to $1.95b, both of which are fresh records. 'The circa $1.9b (of operating cash) just reinforces the quality of our businesses,' SGH chief executive Ryan Stokes told The West Australian. 'Overall we feel very confident about the earnings result and how we are set up for FY26.' SGH chief financial officer Richard Richards said the conglomerate enhanced its focus on the Australian market to deliver growth in the current financial year and beyond. 'Ryan has made a choice (for SGH) not to be offshore, he sold the Caterpillar dealership in China for half a billion dollars and he sold $5.2b worth of Boral's international assets, which ultimately repaid most of the acquisition debt,' Mr Richards said. 'So we've positioned ourselves to be exposed to the domestic economy, we think infrastructure will be strong, ultimately housing will need to increase, mining production is a cycle that is very long-dated, and on transitional energy the result of Beach Energy highlights the opportunity in that sector as well.' Building materials provider Boral was a star performer with its earnings before interest and tax surging 26 per cent to $468m. Boral became a wholly-owned SGH entity in July last year. SGH's total EBIT rose 8 per cent to $1.54b as revenue increased one per cent to $10.7b. The company pinned the margin growth on 'strong operational performance and cost discipline'. Beyond Boral, SGH owns mining and industrial machinery company WesTrac, industrial equipment hire firm Coates and mobile lighting business Allight. SGH also has a 30 per cent stake in natural gas producer Beach Energy and a 40 per cent interest in Seven West Media. SWM owns WA Newspapers, publisher of The West Australian, The Nightly and Mr Stokes said the success of the national digital-focused publication — The Nightly — illustrates how SWM 'can better utilise the strength of our publishing capability'. 'I think (another example) is the 7Plus digital growth, which has been phenomenal through the year in audience, engagement and revenue.' Business leaders across Australia, including SGH's chief, are set to keep a close eye on Jim Chalmers' productivity round-table next week. Mr Stokes would like to see infrastructure emerge as a key theme from the industry sit-down. 'We certainly think the value of infrastructure is often overlooked as the power that has been driving productivity, a critical aspect to support economic growth long term, and the right infrastructure is a very prudent return on investment from a government perspective if you factor in productivity,' he said. More road and rail will be needed to support the efficient movement of Australia's growing population, according to Mr Stokes. The SGH chief said he was 'pleasantly surprised' how resilient the domestic economy had been in the face of Donald Trump's tariffs, while noting China remains the key overseas economic influence. 'I think we're pretty confident in how the Australian economy plays staring into global activities . . . and we still have areas we think we can continue to grow within the Australian economy.' SGH has forecast 'low to mid single-digit EBIT growth' for the current financial year. The board declared a fully franked dividend of 32¢ per share, taking the total dividend for the 2025 financial year to 62¢ — a 17 per cent increase year-on-year. This dividend increase contributed to a total shareholder return of 46 per cent for the 2025 financial year, significantly outperforming the ASX100 annual return of 15 per cent.
Sky News AU
6 days ago
- Sky News AU
Unveiling Australia's most notable iconic estates owned by heirs and heiresses
Australia's most notable iconic estates owned by heirs and heiresses have been unveiled by From the Packer family to cricketing royalty to a prominent hospitality tycoon, some of the country's most lavish properties are in their hands. Ryan Stokes Ryan Stokes is the son of billionaire Kerry Stokes, 84, he is heavily involved in the family's business empire, being the CEO of Seven Group Holdings. He and his wife Claire Campbell own multiple high-end properties, including a $16 million home called Rilworth at Darling Point in Sydney's east and waterfront multi-million properties in Palm Beach and the Gold Coast. His father Kerry made his fortune in Perth real estate, then built his portfolio at the Seven Network and The West Australian, and WesTrac Caterpillar machinery. Jackson Warne The 26-year-old son of cricket legend Shane Warne has ventured into real estate, partnering with property tycoon Tim Gurner. Jackson Warne inherited a share of his father's $21m estate, including a $6.5m Melbourne home and personal belongings, including a jet ski. Warnie's ex-wife and the kid's mother Simone Callahan and ex-fiancé model Elizabeth Hurley were left with nothing. Jackson business ventures continue with him announcing a new podcast on Wednesday 'Warnes Way', inspired by his late father. Jess Ingham Jess Ingham, 36, is the granddaughter of late Jack Ingham, the co-founder of the Ingham chicken empire. She married building tycoon Roger Zraika in 2021. Living in a luxury three-bedroom apartment in Woolloomooloo, above John Laws, Ms Ingham briefly listed it for $15m before deciding to stay, after purchasing the property in 2016. Her family's wealth is bolstered by a multi-million-dollar property portfolio. Justin Hemmes A hospitality tycoon, Justin Hemmes, CEO of Merivale Hospitality Group, resides in the historic $200m 'The Hermitage' waterfront mansion in Vaucluse, in Sydney's Eastern Suburbs. His parents, the late John Hemmes and mother Merivale, had used mostly cash in 1975 for what was Australia's first house sale of $1m. In 2011, Justin moved in and transformed the 1831 Gothic home, updated the kitchen door knobs and installed five-metre steel-and-glass doors to open up the ground floor to indulge in the views of Sydney Harbour. Merivale has over 90 brands and venues which include Totti's, Lorne Hotel, Coogee Pavilion Precinct, Mr Wong, and The Vic on The Park. Fransesca Packer-Barham Fransesca Packer-Barham, the granddaughter of billionaire Kerry Packer, and niece of James Packer made weaves in the property market from a young age. She purchased a Potts Point apartment for $2.1m at 21, before selling it for $2.6m four years later. Her later property included a $16m Darlinghurst whole-floor 360-degree harbour view apartment which sold for a jaw-dropping $27.5m last year.
