Surprise QLD suburbs where buying is cheaper than renting

There are only two suburbs in Greater Brisbane where it is now cheaper to own a home than lease one, thanks to higher interest rates and continued property price rises.

Even explosive rent increases over the past year have not been enough to catch up with the unprecedented cost of home ownership in the Queensland capital, according to the exclusive research from Compare The Market.

The only southeast Queensland suburbs where homeowners are better off than tenants are Spring Hill and Goodna in Brisbane, and Ashmore on the Gold Coast, but across the rest of the state, owning a property is more affordable in 68 suburbs and towns.

This two-bedroom, two-bathroom unit at 342/51 Hope St, Spring Hill, is on the market.

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These include Bundaberg, Maryborough, Gladstone, Townsville, Mackay, and Cairns, where it is hundreds of dollars a month cheaper to pay off a home loan each month than be a tenant.

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The data shows it could be wise to buy a unit than rent one in the inner-city suburb Spring Hill — literally 1km from Brisbane’s CBD, with the data showing the average monthly home loan repayment is $2724 compared to the average monthly rent of $2912.

In Ashmore, the average monthly rent for a unit is $3,086 compared to $2,728 a month for mortgage repayments — that’s a saving of about $350 a month.

A two-bedroom unit in this complex at 1 Hart St, Ashmore, is on the market for offers over $690,000.

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The biggest difference in the cost of renting and owning a home was in the mining town of Moranbah, where average mortgage repayments on a house are $1400 cheaper a month than rent.

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The research assumed a home purchase at the current median price in the area using CoreLogic data, a 20 per cent deposit, the average variable rate of 5.99 per cent, and a 30-year loan term with no fees.

Compare The Market property expert Andrew Winter said there were “only a handful of places where it’s cheaper to pay off a property than rent one in the capitals” and the more affordable options were units.

This four-bedroom house at 8 Boyle Dr, Moranbah, is on the market for $465,000.

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This four-bedroom house at 16 Mackenzie Dr, Moranbah, is available for lease for $660 a week.

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“But if owning a home is part of your long-term plan, and you have a deposit saved, you might find it’s worth paying a bit more to have a little slice of Australia to call your own,” Mr Winter said.

“If you don’t currently need a lot of space, a unit somewhere central and convenient may be a great stepping stone.”

Ray White New Farm agent Sam Angus, who sells units in Spring Hill, said he was surprised units in the suburb were not more expensive given comparable suburbs close to the CBD in southern states.

Real estate guru Andrew Winter is Compare The Market’s property expert. Image: Luke Marsden.

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“I think Spring Hill has always been seen as a bit of a thoroughfare suburb…so for that reason, some people don’t look at it as a nice family centric place to live,” Mr Angus said.

“But, migration from the south and people who haven’t been in Brisbane before are seeing value there because of where they’re coming from.”

Mr Angus has just listed a two-bedroom, two-bathroom unit at 342/51 Hope St, which attracted 15 groups to its first open despite only launching online the night before.

“Everyone who lives in Spring Hill will shout its praises — the walkability, access to amenities, the city, and access to public transport,” he said.

A two-bedroom unit in this complex at 169 Leichhardt St, Spring Hill, is for rent for $690 a week.

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This two-bedroom unit at 217/51 Hope St, Spring Hill, is for sale for offers over $705,000.

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Landlords are charging about $500 a week for a one-bedroom unit in Spring Hill, and around $700 a week for a two-bedroom unit.

CoreLogic head of research Eliza Owen said it had “been a tough few years for renters”, with rent values increasing almost 40 per cent nationally in the past five years.

“Despite this, rising purchase values and a high interest rate environment still mean mortgages are generally more expensive,” Ms Owen said.

“This research highlights the rare pockets where individuals might have an easier time serving a mortgage and reaping the benefits of owning, provided they have the 20 per cent deposit.”

Ms Owen said many of the markets where mortgages were lower than rental costs were lower-priced areas with high rental demand.

“These are markets where temporary accommodation might be more in demand, like mining towns with a fly-in-fly out workforce, or tourists destinations with a more seasonal workforce.” she said.

“Interest costs are expected to decline in 2025, with the RBA weighing up potential cash rate cuts as inflation trends lower. As rents stabilise, this might tip more markets in favour of buying over renting, and understanding the market trends and being prepared to act when the time is right can make all the difference.”

Mr Winter said confidence was returning to the market and more potential buyers were showing up at open homes in light of last month’s cash rate decision.

“While you may be able to borrow a bit more it’s important to speak to an expert and stress test your mortgage to make sure you can afford your repayments comfortably. Securing a good interest rate, and refinancing every few years, is crucial to avoid paying more interest than you need to.”