PHOTO: Selene Bruynzeels is paying just $237 a week for her home loan, less than what it would cost her to rent a property in that suburb. Photo: Supplied
Property prices in Brisbane’s red-hot market might be soaring but it’s still cheaper to buy than rent in dozens of budget hotspots, with a new Domain report not only revealing where bargain hunters can nab a cheap home, but where a mortgage will set you back far less than a lease.
The rent vs buy data – which crunched the numbers on median rent and mortgage costs up to December last year – further revealed the city boasts far more feasible suburbs than its major southern counterparts, with buyers able to save up to $135 a week in some Brisbane fringe suburbs.
Using weekly mortgage repayments based on the median house or unit price for the suburb, the data is based on an assumed mortgage rate of 2.48 per cent and a deposit of 20 per cent, while excluding extra costs such as council rates and transfer duties.
Based on those calculations, suburbs in and around Logan came up trumps, with houses in Woodridge offering the widest gap between mortgage repayments and rent. In that patch, the average homeowner forks out a mere $165 per week in home loan repayments, compared to $300 for the average renter.
Next on the list was Waterford, where the weekly mortgage repayment for houses is $344, compared to a weekly rent of $410. Logan Reserve ranked third with house repayments averaging $342, compared to $400 for rent.
Domain senior research analyst Dr Nicola Powell said the data set revealed just how many suburbs within Greater Brisbane were cheaper to purchase in than rent, a fact she said was further fuelled by the historic low interest rates.
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