IT is possible to spend less paying off a mortgage than paying monthly rent in Brisbane – you just have to pick the right suburb.
New data released by realestate.com.au has found the property types in the suburbs where in terms of monthly repayments buying is cheaper.
Surprisingly there are even options in the heart of the Brisbane CBD.
The majority of properties though are in the outer suburbs, about 20km away from the city centre.
The data found the median price of a three-bedroom unit in Woodridge, about 19km from the Brisbane CBD, was $217,750.
That would attract (based on a 30 year loan at 5.25%) a monthly mortgage repayment of $962 but a monthly rent of $1300.
A three-bedroom unit in Kuraby with a median unit price of $301,375 would have a monthly mortgage repayment of $1331 while the rent would be $1668.
In the Brisbane CBD a two-bedroom unit with a median unit price of $528,000 would attract a monthly mortgage repayment of $2333 while the rent would be $2600.
“When you are a renter you do not have the other expenses that you have when you buy but you are also not benefiting from capital growth,” she said.
“That is not to say you will all see amazing capital growth. But typically when people buy into a market in part they are being forced to save. You are putting your money in there and ideally you will get capital growth. Certainly over the long term it is highly likely you will.”
Ms Conisbee said while many renters could possibly handle the weekly mortgage repayments the biggest stumbling block was saving the deposit to get into the market.
“You need the deposit and that really is the biggest challenge to first home buyers, although many of them can pay off the loan. Getting that initial 20 per cent deposit can be a little bit tricky.”
Ms Conisbee said units featured prominently on the list of properties cheaper per week then renting.
She said this was because of the high levels of supply at the moment.
“Houses are pretty expensive, but with units you have quite a lot of options available for you so much so you can get right in the centre of the city.”
HOW MUCH CHEAPER A MONTH TO BUY THAN RENT
Woodridge (3 bed unit) $338
Kuraby (3 bed unit) $337
Meadowbrook (3 bed unit) $334
Browns Plains (3 bed unit) $305
Brendale (3 bed unit) $287
Slacks Creek (2 bed unit) $284
Woodridge (2 bed unit) $274
Brisbane city (2 bed unit) $267
Kingston (3 bed unit) $265
Originally Published: https://www.chinchillanews.com.au/