QUEENSLANDERS could save thousands of dollars by buying a home instead of renting one in more than half the state despite rising interest rates.
The latest PropTrack Market Insight Report, released today, revealed more than half (53.3 per cent) of homes in Queensland were cheaper to buy than rent compared to 36 per cent nationwide.
The report revealed inner Brisbane offered the most (80 per cent) followed by Beenleigh (78 per cent) and inner – north Brisbane (62 per cent).
10/27 Berwick Street, Fortitude Valley is going to auction on December 14.
PropTrack economist and report author Paul Ryan said the research showed there were still opportunities for buyers in the Sunshine State.
“We have seen really strong rents growth and if we look across Brisbane, advertising rents have gone up 13.4 per cent over 12 months,” Mr Ryan said.
“In a way this is not all good news.
“Part of a home being cheaper than renting is because it’s becoming less attractive to rent as it’s so expensive.
The city’s median weekly rent is $585 for houses and $500 for units, PropTrack data shows.
“A lot of those buyers can jump into home ownership to avoid rent increases and the huge uncertainty in the rental market,” Mr Ryan said.
Mr Ryan said Queensland was still “relatively affordable” despite home values soaring over the past 12 months.
“Housing costs have increased a lot over the past year but there are still pockets where first home buyers should look and where it makes more financial sense to buy rather than rent if they are looking at home ownership,” he said.
In Brisbane, Mr Ryan said buyers could consider a unit, with 55 per cent estimated to be cheaper to buy than rent compared to houses, where only 29 per cent are cheaper.
“Those regions where they have been lots of developments, Brisbane inner and the inner-north, that’s put downward pressure on prices and rents and made buying in a lot of those regions quite favourable,” he said.
“I think it’s good to see those locations close to the CBD.
“These aren’t cheap locations for first home buyers but potentially they could consider a unit rather than a house.
“It gives people a starting point at a townhouse rather than a house in a well-known location.”
71 Bougainville Street, Beenleigh is on the market at offers over $560,000.
Looking ahead, he said higher interest rates would challenge housing affordability for many.
“This may slow price growth and rebalance buying conditions across the market,” he said.
The PropTrack data was calculated using estimates to work out the costs of owning and renting over 10 years. Mortgage costs, stamp duty, rates, and maintenance were considered.