Buyers will have to settle for a unit over a house in Brisbane if they want a property that’s cheaper to own than rent.
Explosive rent rises paired with the latest interest rate cut have made it up to $804 a month cheaper to own a property than rent in some parts of southeast Queensland.
But buyers will have to settle for a unit over a house in Brisbane or prepare to move to regional Queensland for the savings.
Finder analysis of PropTrack data of the past 12 months, released today, revealed the Sunshine State had the highest number of suburbs in the country where it was cheaper to own than rent, with 73 suburbs for houses (9%) and 89 suburbs (20%) for units.
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Finder analysis of PropTrack data of the past 12 months, released today, revealed the Sunshine State had the highest number of suburbs in the country where it was cheaper to own than rent.
Nineteen suburbs were added to the list after Tuesday’s rate cut with one in five units now cheaper to own than rent in Queensland.
In southeast Queensland, units owners in the Ipswich suburb of Brassall had the biggest saving of $201 a week — the typical unit price was $155,608 with a weekly mortgage repayment of $169, while the weekly rent was $370.
In the capital, unit owners in South Brisbane were paying a weekly mortgage repayment of $704 if paying with a 20 per cent deposit. Rents were $770 a week.
Bowen Hills, Fortitude Valley and Spring Hill also provided units that were typically cheaper to pay off than rent.
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20401/33 Manning Street, South Brisbane is on the market at offers over $635,000.
Place Kangaroo Point agent Michael Hatzifotis, who markets properties in Brisbane’s CBD, said half of his potential buyers were now tenants trying to get into their own units.
“What we are seeing currently is tenants in the immediate areas of South Brisbane and West End move out of the rental market because of rising rents,” Mr Hatzifotis said.
“It has become a lot cheaper to own — in some instances they are in front up to $1000 a month and they are paying off their own property.”
The only suburb in southeast Queensland where it was slightly cheaper to own a house was Russell Island, where a homeowner could save $6 a week based on a median house price of $400,000, weekly rent of $440 and mortgage repayment of $434.
7 Trevanna Avenue, Russell Island is on the market at offers over $410,000.
The biggest savings were in Biloela in regional Queensland where the median house price was $350,000 with a $380 weekly mortgage repayment.
The average rent was $650 a week, offering homeowners a $270 difference in owning and renting.
Moranbah, west of Mackay, had a median unit price of$350,000 with a $380 weekly mortgage repayment and a weekly rental payment of $700.
It provided homeowners a $320 difference in owning and renting.
Other suburbs in north Queensland where it was cheaper to own a house than rent included Airlie Beach, Cairns North, and Townsville’s Belgian Gardens.
94 Grevillea Street, Biloela is for sale at offers over $355,000.
On the Gold Coast, only Coombabah and Helensvale units provided a cheaper alternative to renting.
Finder personal finance specialist Taylor Blackburn said there were many factors to weigh up when deciding whether to buy or rent.
“To own or not to own is an age-old question, but the answer is usually not that buying is cheaper than renting,” Mr Blackburn said.
“There are a handful of suburbs where your monthly mortgage might be less than the average rent, but keep in mind this isn’t including a 20 per cent deposit, stamp duty and all the other fees that go into buying the house in the first place.”
6/11 Bacon Street, Moranbah is on the market at $388,000.
Mr Blackburn said the research showed the importance of getting your home loan rate lowered.
“Very few renters are successfully arguing for rent decreases, but homeowners can do this with a rate cut, a phone call or a refinance,” he said.
“Most homeowners jump for joy at a 25-point cut, but the delta between the average market rate and the lowest is about 40 basis points.
“You might be able to give yourself nearly two rate cuts by taking the bull by the horns and switching.”
Antonia Mercorella from REIQ says the latest rate cut encourages more Queenslanders to enter the property market. Picture: NCA NewsWire / Glenn Campbell
Real Estate Institute of Queensland CEO Antonia Mercorella said the rate was a welcome reprieve for homeowners and buyers.
“It provides breathing space for mortgage holders and encourages more Queenslanders to enter the property market,” Ms Mercorella said.
Finer data was based on a 30 year mortgage with 20 per cent deposit at the home loan rate of 5.81 per cent.
Median home values and rents were supplied by PropTrack.
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