Now could be the perfect time to seriously consider undertaking an investment home loan or a first buyer loan, as the prospects for property investment in Australian suburbs these days are becoming gradually more viable.

The latest RP Data Buy vs Rent report has indicated that it is now becoming increasingly cheaper to repay a mortgage than it is to rent in many parts of the country.

According to the report, the recovery of the housing industry has been heavily influenced by the Reserve Bank of Australia's decision to the cut the cash rate down to a historical 2.75 per cent earlier this year.

While many capital cities are still below their dwelling value peak, their values have been increasing – with Sydney being the only city to record an increase (1.2 per cent) over the previous value peak.

However, rental prices have increased over the past 12 months. The rents in all the capital cities combined has increased by 3.2 per cent for houses and 2.8 per cent for units.

Therefore, with both dwelling values and mortgage interests remaining relatively low, there is substantial potential for buyers to enter the real estate market – due to the substantially more affordable cost of debts.

The study focused on four different home loan scenarios where it was cheaper to purchase a property than make weekly rental payments.

For example, if you were interested in a principal and interest loan on a variable mortgage rate, there were 692 suburbs throughout Australia where it would be cheaper to purchase rather than rent. Furthermore, a principal and interest loan on a three year fixed interest rate opened up 864 suburbs for potential investment.

On the other hand, an interest only variable rate loan made 2,778 suburbs open to investment, while an interest only loan for a fixed mortgage rate of three years opened highlighted 3,230 suburbs where it would be cheaper to invest than rent.

Regardless of whether you're a first home buyer or a seasoned property investor, getting in contact with a mortgage broker and sorting out your home loan options should be your first step towards securing property.

You can contact a Smartline Mortgage Adviser on 13 14 97 for home loan advice. Or complete our call request form and we’ll call you!

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DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.