It’s Becoming Cheaper to Buy a Home Than to Rent
A new study of the Australian housing market has revealed that in 52.2 per cent of suburbs nationally it’s cheaper to buy a house than to rent. This is up from 39.9 per cent of suburbs in 2019 and 0.4 per cent of suburbs in 2010.
When it comes to units, that figure grows to 59.1 per cent. The cost gap between buying a home and renting one has tightened like this due to the low-interest rates on mortgage loans and government initiatives for first home buyers. With access to affordable finance, it’s not a surprise more renters are looking to transition to homeownership.
With Brisbane property prices predicted to rise further in 2021, here’re some of the most affordable suburbs in demand, just 10km from Brisbane CBD.
Corey Biles from our Coorparoo Hub said units in these suburbs, are often older and in need of work but with bigger footprints than more modern apartments, represented great buying. Greenslopes, the most affordable suburb in which to buy a unit within 10 kilometres of the CBD, has a median unit price of just $347,125.
“Greenslopes is an amazing suburb. It’s only five kilometres out and the PA Hospital and Greenslopes Private [Hospital] are close by, as well as the freeway access to the city,” he said.
“Why is it still so affordable? I think the newer developments that have gone up in recent years in neighbouring Coorparoo have meant buyers have preferred those, and Greenslopes has had some new developments too, that buyers have preferred to spend a bit more on.
“There is potential in the older units to add value though.” – as seen on Domain.com.au.
While there’s surging demand for property ownership, Australia is experiencing a split in property opinion with 57 per cent of respondents indicating they are in no rush to buy a home just yet, despite the growing positivity. With January and February being peak months for the rental property market, it is a great opportunity to speak to your property manager.
Alternatively, if you're looking for a new rental home, read this blog to find out how you can stand out this peak season.