Housing affordability up nearly 30%: Commonwealth Bank

by BN29 Jul 2009

Housing affordability continues to grow across a number of Australian suburbs, according to a report released today by the Commonwealth Bank.

The latest CBA 'Where is it cheaper to buy than rent?' report prepared with Rpdata.com uncovered an impressive 27% increase in suburbs where it is cheaper to buy these days, than rent.

The largest improvements were in Queensland and Victoria. Ten more suburbs were identified in both, compared with six months ago.

Other states recorded static results, or even slight declines in suburb numbers.

These results underlined the importance to home buyers of taking a long term home loan view, said Ross McEwan group executive of the CBA's retail bank.

"Changes occur in the market over a period of time. Interest rates are currently at a 49 year low, but over the life of a home loan, fluctuations are inevitable," he said

He added that home buyers would be best advised right now to consider the impact of the imminent economic recovery on interest rates.

"The most appropriate home loan for their long term needs may be a fixed rate loan, or variable, or combination of the two," McEwan said.

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