August 05, 2013
People debating whether to enter the property market or continue renting should look to 16 suburbs across Brisbane in which it’s cheaper to service a mortgage than pay rent.
A report compiled by data and analytics group RP Data in July identified suburbs throughout Australia where it’s cheaper to buy than rent based on market figures for the last 12 months.
With record low interest rates, competitive house prices, and rising rental payments, the improvements to housing affordability have been substantial and as such have reduced the priced entry point to the market.
There are 16 suburbs located in the Brisbane City Council local government area, including the three key inner city suburbs of Brisbane City, Fortitude Valley, and Spring Hill.
A home owner in Brisbane City, for example, would be $15 a week better off buying a home for the median price of $412,913, rather than paying an average rent of $485 a week.
The list also included the suburbs of Algester, Darra, Fitzgibbon, Hendra, Manly West, Mount Gravatt, Oxley, Runcorn, Taigum, Upper Mount Gravatt, Wakerley, Wynnum West, and Zillmere.
Additionally, when taking into account the wider Greater Brisbane region, mortgages are cheaper than paying rent in a massive 71 suburbs. And in the whole of Queensland, there are more than 240 suburbs.
The data was estimated based on a loan for 90 per cent of the cost of an average house in each suburb, taken out on a variable interest rate of 5.4 per cent.