LOCAL property expert Douglas Driscoll explains that suburbs within Sydney's west can expect an influx of home buyers as new research highlights five major suburbs where property is cheaper to purchase than rent.
Campbelltown, Fairfield, Blacktown, Parramatta and Penrith feature within the top 20 Sydney* areas where rent is more expensive than mortgage loan rates with monthly payment differences reported to be up to $415 cheaper per month in some areas.
Starr Partners chief executive Douglas Driscoll explained: "Cheaper interest rates and demand for rental property has resulted in monthly repayments falling lower than rental rates in a variety of areas in Sydney's west.
"At Starr Partners we are seeing areas such as Ambarvale and Fairfield showing the biggest difference with cost differences (between owning and renting) ranging from anywhere between $380 and $415 per month."
In addition, Mr Driscoll said these areas are expected to see an increase in first-time buyers investing in properties due to their attractive rental yields.
"Combined with interest rates sitting at their lowest in recent years the property market is set to be a competitive game in Sydney's West."
Other western suburbs where it is cheaper to buy than rent include Tregear, Rosehill, Oxley Park and Emerton.
*Research published by RP Data and is based on a loan value ratio of 90 per cent, a variable mortgage of 5.65 per cent per annum, and a fixed rate mortgage rate of 5.55 per cent per annum. The loan period is 30 years. Rental costs are based on the media weekly advertised rental rates across the past 12 months.