It is well known that real estate in Sydney is amongst some of the most expensive in the country, with RP Data finding that median house prices have grown to reach $570,000 in July.
Many people dream of one day owning a slice of real estate in the city's more affluent and trendy suburbs - such as Mosman and Baulkham Hills - however there are savings to be found in other nearby areas.
New research from Westpac has found that there are 10 suburbs in Sydney, located within a few kilometres of the most popular areas, which offer significant savings for home buyers.
Looking at the highest searched suburbs on Realestate.com.au between January and July 2013, Westpac was able to find the most popular areas that buyers search for homes for sale in.
From here, the report analysed median house prices in these areas and surrounding suburbs.
Some of these areas offered home buyers savings of more than $200,000 while still providing access to the same amenities that more expensive suburbs possess.
For instance, instead of buying houses for sale in Baulkham Hills, buyers could look 8 kilometres away to Seven Hills where properties are 34 per cent cheaper.
This may give buyers an idea of where to look for a home if their desired suburbs are slightly out of their price range.
At the same time, Sydney is home to a number of suburbs that are cheaper to buy than rent.
The rental property market in the city has been facing high pressure from accommodation seekers, which has in turn caused median rents to trend upwards.
But with interest rates slowly dropping, the option of buying a home has become available to many first home buyers in the market who are currently renting accommodation.
The RP Data Buy vs Rent Report for July 2013 found that Sydney and the greater Sydney region hosts 193 suburbs where it is cheaper to pay off a mortgage than pay a landlord rent.
Results were found by analysing the median rents, median values, and different types of loans including principal and interest, interest only and tied to variable and fixed interest rates.
Winston Hills in Parramatta was on the top of the list, where renters pay a weekly median rent of $450. However, if they chose to buy a unit in the area with a variable interest loan while paying principal and interest, then they could make monthly savings of $960.
