There used to be a time when renting was a cheaper alternative to building a home. But now, new land developments are turning the tables. In many of Perth’s outer suburbs, it’s become more affordable to build a home than rent.
I know it might sound hard to believe, but it’s true. You could be living in your home, paying off your asset and saving money every week. That does sound like the Great Aussie Dream!
We looked at four Perth suburbs and compared the cost of weekly repayments on a new home versus the lowest weekly rent for the same style home.
Wait till you see the results!
How is building a home cheaper than renting?
There are a few crucial factors that have made it more affordable for Perth residents to achieve their homeownership dreams:
Low Interest Rates
Interest rates have been on the decline since 2019 and right now they are at an all-time low. First and second home buyers have jumped at the chance to enter the market and take advantage of the low repayments. While there may be plenty of speculation, there’s no knowing how low interest rates will go.
Affordable House and Land Packages
Home builders like Blueprint Homes can offer exclusive deals on house and land packages. These packages are often more affordable than buying both house and land separately. Not only are house and land packages more affordable – they are also much less hassle. Often the builder has done all the hard work for you and will suggest the perfect home to fit your block. As for where you live – that’s purely up to you.
Increased Demand for Rentals
A surge in demand for Perth rental properties has created a rental housing shortage. Any new rentals that hit the market are attracting hordes of people and often desperate residents are offering above the rental asking price to secure a roof over their head. We’re likely to see rental prices rise in 2021 as demand increases even further.
The Cost Comparison – Rent Vs Build
We chose four Perth suburbs and looked at the cost of building vs renting. In each case, we selected comparably sized homes and included all the repayment costs you can expect during and after construction. Here are the results:
Alkimos
Bronte Beach
Bronte Beach – House and Land Package from $376,977
4 Bedrooms / 2 Bathrooms / 2 Car Garage
Bonus Inclusions:
Gourmet Kitchen / Ducted Reverse Cycle Air Conditioning / High Ceilings / LED Lighting
Building Monthly Repayments:
From $157 per week during construction *
From $317 per week after construction **
Lowest Monthly Rental Available (as at 20/11/2020):
$4oo per week
If you stop renting and build your home in Alkimos you could save up to $83 a week after construction.
(See full terms and conditions below)
Brabham
The Hunter
Custom – House and Land Package from $364,120
3 Bedrooms / 2 Bathrooms / 2 Car Garage
Bonus Inclusions:
Gourmet Kitchen / Stone Bench Tops / LED Lighting / Built-in Wardrobes
Building Monthly Repayments:
From $152 per week during construction *
From $306 per week after construction **
Lowest Monthly Rental Available (as at 20/11/2020):
$380 per week
If you stop renting and build your home in Brabham you could save up to $74 a week after construction.
(See full terms and conditions below)
Piara Waters
The Phoenix
Custom – House and Land Package from $385,650
3 Bedrooms / 2 Bathrooms / 2 Car Garage
Bonus Inclusions:
Gourmet Kitchen / Stone Bench Tops / LED Lighting / Built-in Wardrobes
Building Monthly Repayments:
From $161 per week during construction *
From $324 per week after construction **
Lowest Monthly Rental Available (as at 20/11/2020):
$380 per week
If you stop renting and build your home in Piara Waters you could save up to $56 a week after construction.
(See full terms and conditions below)
Golden Bay
The Colesbrook
Bronte Beach – House and Land Package from $393,007
4 Bedrooms / 2 Bathrooms / 2 Car Garage
Bonus Inclusions:
Gourmet Kitchen / Ducted Reverse Cycle Air Conditioning / High Ceilings / LED Lighting
Building Monthly Repayments:
From $160 per week during construction *
From $322 per week after construction **
Lowest Monthly Rental Available (as at 20/11/2020):
$375 per week
If you stop renting and build your home in Golden Bay you could save up to $53 a week after construction.
(See full terms and conditions below)
Need more reasons to stop renting?
The old saying that rent money is dead money couldn’t be more accurate right now. Alongside the weekly financial benefits, owning your home means long-term security, no rental inspections and peace of mind for your family.
To find out if you can build a home in the suburb you love for less than renting, contact Blueprint Homes today. Blueprint Homes have affordable house and land packages in multiple Perth suburbs. Get out the rent trap and into your home today!
Terms and Conditions
Alkimos House and Land Package
Financial Services are provided by InReach Finance, InReach Finance is a subsidiary of Blueprint Homes and is an Authorised Credit Representative 470699 of DMEE Holdings Pty Ltd Australian Credit Licence 469248. *$157 per week is based on a 95% home loan with interest only repayments for a $376,977 house and land package during construction with a home loan rate of 2.29% pa over 30 years – rates and repayments are subject to bank acceptance and can be changed. **$317 per week is based on a 95% home loan with principal & interest repayments for a $358,057 home loan with a home loan rate of 2.29% pa over 30 years – rates and repayments are subject to bank acceptance and can be changed. Package does not include any government stamp duty or other costs which may apply. All applicants must meet the lending criteria of the financial institution. Strictly for a limited time only. Terms and conditions apply & Fees and charges apply. Interest only payments will only last during construction and payments will increase as payments revert to principal & interest. The loan balance may alter at the bank’s discretion.
Home Loan is based on 2.29%. Comparison Rate 2.72%. (Westpac – Flexi First Option 2 Year Intro Home Loan Variable **Special** (P&I) – Owner Occupied). Home loan advised relies on an approximate client contribution of $28,660 plus a First Home Buyers Grant of $10,000 the max lending limit is 95%. First Home Buyers Grant may be used as part of the contribution and not permitted as a discount on the package price, please seek clarification by contacting an InReach Finance Representative.
Brabham House and Land Package
Financial Services are provided by InReach Finance, InReach Finance is a subsidiary of Blueprint Homes and is an Authorised Credit Representative 470699 of DMEE Holdings Pty Ltd Australian Credit Licence 469248. *$152 per week is based on a 95% home loan with interest only repayments for a $364,120 house and land package during construction with a home loan rate of 2.29% pa over 30 years – rates and repayments are subject to bank acceptance and can be changed. **$306 per week is based on a 95% home loan with principal & interest repayments for a $345,794 home loan with a home loan rate of 2.29% pa over 30 years – rates and repayments are subject to bank acceptance and can be changed. Package does not include any government stamp duty or other costs which may apply. All applicants must meet the lending criteria of the financial institution. Strictly for a limited time only. Terms and conditions apply & Fees and charges apply. Interest only payments will only last during construction and payments will increase as payments revert to principal & interest. The loan balance may alter at the bank’s discretion.
Home Loan is based on 2.29%. Comparison Rate 2.72%. (Westpac – Flexi First Option 2 Year Intro Home Loan Variable **Special** (P&I) – Owner Occupied). Home loan advised relies on an approximate client contribution of $28,080 plus a First Home Buyers Grant of $10,000 the max lending limit is 95%. First Home Buyers Grant may be used as part of the contribution and not permitted as a discount on the package price, please seek clarification by contacting an InReach Finance Representative.
Piara Waters House and Land Package
Financial Services are provided by InReach Finance, InReach Finance is a subsidiary of Blueprint Homes and is an Authorised Credit Representative 470699 of DMEE Holdings Pty Ltd Australian Credit Licence 469248. *$161 per week is based on a 95% home loan with interest only repayments for a $385,650 house and land package during construction with a home loan rate of 2.29% pa over 30 years – rates and repayments are subject to bank acceptance and can be changed. **$324 per week is based on a 95% home loan with principal & interest repayments for a $366,364 home loan with a home loan rate of 2.29% pa over 30 years – rates and repayments are subject to bank acceptance and can be changed. Package does not include any government stamp duty or other costs which may apply. All applicants must meet the lending criteria of the financial institution. Strictly for a limited time only. Terms and conditions apply & Fees and charges apply. Interest only payments will only last during construction and payments will increase as payments revert to principal & interest. The loan balance may alter at the bank’s discretion.
Home Loan is based on 2.29%. Comparison Rate 2.72%. (Westpac – Flexi First Option 2 Year Intro Home Loan Variable **Special** (P&I) – Owner Occupied). Home loan advised relies on an approximate client contribution of $29,832 plus a First Home Buyers Grant of $10,000 the max lending limit is 95%. First Home Buyers Grant may be used as part of the contribution and not permitted as a discount on the package price, please seek clarification by contacting an InReach Finance Representative.
Golden Bay House and Land Package
Financial Services are provided by InReach Finance, InReach Finance is a subsidiary of Blueprint Homes and is an Authorised Credit Representative 470699 of DMEE Holdings Pty Ltd Australian Credit Licence 469248. *$160 per week is based on a 95% home loan with interest only repayments for a $393,007 house and land package during construction with a home loan rate of 2.29% pa over 30 years – rates and repayments are subject to bank acceptance and can be changed. **$322 per week is based on a 95% home loan with principal & interest repayments for a $363,937 home loan with a home loan rate of 2.29% pa over 30 years – rates and repayments are subject to bank acceptance and can be changed. Package does not include any government stamp duty or other costs which may apply. All applicants must meet the lending criteria of the financial institution. Strictly for a limited time only. Terms and conditions apply & Fees and charges apply. Interest only payments will only last during construction and payments will increase as payments revert to principal & interest. The loan balance may alter at the bank’s discretion.
Home Loan is based on 2.29%. Comparison Rate 2.72%. (Westpac – Flexi First Option 2 Year Intro Home Loan Variable **Special** (P&I) – Owner Occupied). Home loan advised relies on an approximate client contribution of $31,027 plus a First Home Buyers Grant of $10,000 the max lending limit is 95%. First Home Buyers Grant may be used as part of the contribution and not permitted as a discount on the package price, please seek clarification by contacting an InReach Finance Representative.
