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The Suburbs Cheaper to Buy Property than Rent

The Suburbs Cheaper to Buy Property than Rent

Could the gap between renting and owning a piece of Australian real estate be narrowing?

Despite the nation’s cooling housing market over recent years, home affordability is an ongoing issue with five of Australia’s major housing markets ranking last year as “severely unaffordable”.

But thanks to some data crunching, property portal Domain has identified Australian suburbs in major capital cities where it’s cheaper to buy a home than rent one.

With the reserve bank cutting rates twice in the past six weeks to historic lows, falling interest rates is the main factor creating affordability for first home buyers, bringing the typical mortgage rate down to around 3.5 per cent, with forecasts it’s likely to go lower.

Too good to be true?

While some suburbs in the findings may not be worthwhile investments, Domain research analyst Eliza Owens says the data is a tool to provide would-be home buyers insight to the local property market.

“We thought it would be an interesting data set, particularly in giving hopeful home buyers perspective in what housing costs can be,” Owens told The Urban Developer.

The standout suburbs?

Owens says the biggest surprise from the findings was the buying options for units located in inner Melbourne and inner Brisbane.

“In these suburbs, it was actually cheaper to pay off a mortgage on that typical purchase point than it was to rent,” Owens said.

“So inner city suburbs of Brisbane like Bowen Hills, Fortitude Valley and Spring Hill have an average rental premium of $57 in rent over the median mortgage repayment.

“Melbourne’s inner city suburbs included Southbank, Melbourne, and North Melbourne with the data showing it worked out to be around $1000 to $2000 cheaper annually.”

Domain compared rent and mortgage repayments across 42 per cent of greater Sydney, but Lakemba was the sole suburb that showed up in Sydney’s findings, with a mortgage repayment on a comparable property cheaper by $1 per week than the median rental price.

But Owens said there are suburbs across greater Sydney where first home buyers could consider buying in if they were able to increase the weekly budget by up to $100.

“They were mainly the western suburbs of Sydney and the northern part of the central coast, areas like Blue haven for example,” Owens said.

“In Blue Haven there was about $35 in the difference between the mortgage repayments and median asking rents.”

While in Queensland, taking in greater Brisbane, Domain saw a spread of 45 suburbs across both housing and unit stock show up in the results.

The calculations

Domain looked at what it costs to buy for a typical first home buyer armed with a 20 per cent deposit, as a key assumption. No added costs are included, such as transfer duties, strata or council rates.

The analysis is based on sales and rent data over the 12-months to April, and the results only includes suburbs that had a minimum of 50 rental and sale observations over the year to April.

Weekly mortgage repayments are based on the median house or unit price for the suburb, on a mortgage rate of 3.5 per cent, taking in the recent cash rate cuts.

Sydney

SuburbProperty TypeWeekly Mortgage RepaymentWeekly RentDifference between buying and renting
LakembaUnit$ 369$ 370-$1

Melbourne

SuburbProperty TypeWeekly Mortgage RepaymentWeekly RentDifference between buying and renting
AbbotsfordUnit$ 452$ 455-$3
BundooraUnit$ 356$ 360-$4
CarltonUnit$ 431$ 450-$19
CollingwoodUnit$ 456$ 475-$19
DandenongUnit$ 272$ 295-$23
EppingUnit$ 321$ 330-$9
KensingtonUnit$ 413$ 420-$7
MelbourneUnit$ 461$ 540-$79
North MelbourneUnit$ 408$ 430-$22
SouthbankUnit$ 519$ 560-$41
WindsorUnit$ 389$ 410-$21

Brisbane-Greater Brisbane

SuburbProperty TypeWeekly Mortgage RepaymentWeekly RentDifference between buying and renting
AlbionUnit$ 378$ 380-$2
BeenleighHouse$ 328$ 340-$12
BellmereHouse$ 329$ 360-$31
BethaniaHouse$ 327$ 345-$18
Boronia HeightsHouse$ 329$ 350-$21
Bowen HillsUnit$ 339$ 418-$78
BrassallHouse$ 327$ 330-$3
Bray ParkHouse$ 408$ 410-$2
Brisbane CityUnit$ 484$ 490-$6
BundambaHouse$ 304$ 310-$6
Caboolture SouthHouse$ 312$ 320-$8
CalamvaleUnit$ 346$ 395-$49
CapalabaUnit$ 354$ 380-$26
ChermsideUnit$ 377$ 380-$3
ClevelandUnit$ 405$ 415-$10
Collingwood ParkHouse$ 329$ 330-$1
CrestmeadHouse$ 320$ 350-$30
Deception BayUnit$ 240$ 305-$65
EaglebyUnit$ 221$ 300-$79
East BrisbaneUnit$ 359$ 365-$6
Fortitude ValleyUnit$ 358$ 400-$42
GoodnaHouse$ 312$ 315-$3
HillcrestHouse$ 334$ 350-$16
HolmviewHouse$ 373$ 395-$22
KallangurUnit$ 272$ 310-$38
Kelvin GroveUnit$ 369$ 400-$31
KingstonHouse$ 309$ 320-$11
LoganholmeHouse$ 365$ 395-$30
MoorookaUnit$ 318$ 350-$32
MorayfieldHouse$ 336$ 350-$14
MorayfieldUnit$ 300$ 310-$10
Mount Gravatt EastUnit$ 389$ 400-$11
Mount Warren ParkHouse$ 371$ 385-$14
NundahUnit$ 359$ 370-$11
RaceviewHouse$ 318$ 340-$22
Redbank PlainsHouse$ 315$ 340-$25
Regents ParkHouse$ 378$ 380-$2
RichlandsUnit$ 341$ 360-$19
RothwellHouse$ 383$ 390-$7
RuncornUnit$ 341$ 400-$59
Spring HillUnit$ 367$ 419-$52
Springfield LakesHouse$ 392$ 400-$8
TaringaUnit$ 364$ 369-$5
Upper Mount GravattUnit$ 401$ 440-$39
WaterfordHouse$ 367$ 400-$33
YarrabilbaHouse$ 369$ 370-$1

 

Source: theurbandeveloper.com

Brisbane

Downsizer Development offers stylish living with lots of space

Downsizer Development offers stylish living with lots of space

They say that size matters – and for some, it certainly is when it comes to buying property.

The privacy, storage and contemporary design of the Velocity Property Group’s Parque on Oxford apartments and townhouses give downsizers good reasons to put Taringa on the coveted location list. The sales were already made in the recently launched development.

With the completion of the 3-room apartments, the emphasis on warehousing was well received by buyers.

A focus on large, open living and dining areas and an airy, bright ambience thanks to clever design that makes optimal use of the urban view were also a success.

The Parque on Oxford Apartments were designed in a modernist style to create sophisticated, large executive residences that could be anywhere in the world.

The building designed by HAL Architects in Brisbane appears solid, slim and solid and has a sculptural design piece that anchors the two sides.

The Parque on Oxford Apartments offer pergolas for natural light and shade as well as privacy, great views and a captivating breeze.

Five of the seven apartments are still available in the housing estate on Oxford Terrace. The focus is on privacy as well as the low-maintenance design and the beautiful surfaces. The apartments range in size from 183 to 254 m² and cost USD 995,000. Most have a media room or an office.

Next door, the Parque on Oxford townhouses are due to be completed early next year. They are 225 to 313 square meters in size and cost $ 1,099,000.

The 11 townhouses were designed with a subtropical, modern Queensland feel to capture the height and elevation of the place.

With three levels, excellent surfaces and plenty of storage space, thanks to forward-looking planning and architecture in some residential buildings, they also offer the option of including elevators for the future.

In addition to the Parque on Oxford, the Velocity Property Group also built condominiums in Ellerslie Crescent in Taringa to take advantage of the city view and elevated location. Only two of them are left.

Velocity Property Group’s national sales manager, Caroline Humbert, has been selling real estate projects for over 15 years and now sells luxury apartments, townhouses and condominiums to Velocity’s primary downsizer audience.

Ms. Humbert said there were four main ingredients that downsizers were looking for in townhouses or apartments, all of which would be delivered at the Parque on Oxford.

“The first ingredient is storage, storage and more storage. Downsizing is not about sacrificing everything you have collected over many years to move to a smaller residence. It’s about bringing what you really love to your new home and storing it comfortably, ”said Ms. Humbert

“The second thing that downsizers are looking for is the best possible results. Many downsizers consider this phase of their lives to be their final home forever. They therefore want to enjoy the best kitchens and bathrooms they have ever had.

“The third ingredient is to lock yourself up and lose your life. Downsizers have time to pursue their interests and travel, and ensuring that their home is safe and does not require maintenance while they are away is a priority.

“The last ingredient is the location. Downsizers want to be close to the services, stores, and lifestyle factors they enjoy. Taringa ensures proximity to the city and a wealth of dining, shopping and more options in the heart of Brisbane’s Inner West.

“The Velocity Property Group is reviewing a number of locations in Brisbane in 2020 to create more desirable residential homes for downsizers, just like those in Parque on Oxford, Taringa.”

 

 

Source: themediatimes.com

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Brisbane

USC Moreton Bay Campus attracts property buyers

USC Moreton Bay Campus attracts property buyers

The USC Moreton Bay campus, scheduled to open in Petrie this year, is helping to increase interest in the Pine Rivers property market and buyer activity will only increase, according to a local real estate expert.

According to data from Core Logic, more than half of the suburbs in the Pine River Press catchment area saw average growth in property prices in 2019, while everyone except Dakabin has seen an increase in average property prices in the past three years.

The outstanding performance of 2019 was achieved by Dayboro, where the average property price rose 16.9 percent to $ 591,000.

Clear Mountain ranked second, up 16.3 percent to $ 802,250, while cashmere rose 5.4 percent to $ 769,450.

Mark Rumsey, sales manager at David Deane Real Estate Strathpine, said the real estate market at Pine Rivers was solid in 2019.

“It was hit by the impact of the royal banking commission’s actions and the federal election earlier this year, but has grown steadily since then,” he said.

“There was a lot of investor activity due to the university and the first home buyers were solid with interest rates at such record lows.”

According to Rumsey, Strathpine, Lawnton, Bray Park and Petrie were the top-selling suburbs in 2019. The university and subsequent development that it supported met with keen interest.

“We are so close to the bay, rural areas, the north and south coasts, 25 minutes from the city, and have an average house price of only $ 425,000 for properties with large blocks and great value,” said he.

Mr. Rumsey predicted that 2020 would be an even better year for real estate in the region.

“The new first incentives for home buyers, possible rate cuts, the opening of Petrie University and Brisbane’s second runway will make our region and Brisbane have a very good year of growth overall,” he said.

“We are very excited about the development of our region and some of the exciting new projects that are being put into practice.”

 

 

Source: themediatimes.com

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Brisbane

Six-storey proposal for heritage seaside suburb sparks protest

Six-storey proposal for heritage seaside suburb sparks protest

A quiet seaside suburb in Brisbane’s north could see six-storey buildings rubbing shoulders with single-storey heritage-listed buildings under a neighbourhood plan being drafted by Brisbane City Council.

The Sandgate Neighbourhood Plan, which sets requirements for development and zoning in the suburbs of Sandgate, Shorncliffe and Deagon, proposes increasing height limits along the town centre shopping strip on Brighton Road to six storeys.

But the plan has become a point of contention, with about 500 residents forming a group to protest some of the draft changes which they say could damage Sandgate’s heritage facade and character.

Once Brisbane’s seaside retreats, the coastal suburbs are full of heritage-listed buildings in low-lying streets close to the picturesque foreshores, also heritage listed.

Much of Sandgate is zoned low-density residential, or low-medium with a two-storey height limit.

The council’s proposed neighbourhood plan would also allow the six-storey building height limit behind Brighton Road, between the state school and overlooking the heritage-listed Einbunpin Lagoon.

A similar proposal to allow three-storey buildings around Deagon train station was removed by the council after strong feedback from residents.

Sandgate property owner Theresa Dow has been at the forefront of many protests against the six-storey proposal, arguing allowing mixed-use commercial development would destroy Sandgate’s picturesque appeal and heritage aspects.

She also said residents only discovered the potential for six-storey buildings in a document uploaded to the council’s website.

Ms Dow said she and others in the group were working on their own suggestions for the area.

They submitted petitions to the council asking for extended time for community consultation from the prescribed 20 business days that ended in early November, arguing the council had not advertised the proposed changes widely enough.

“We’re going to do the people’s plan and then hand it to the council,” she said.

“We know we’ve got to change but we just think they need to be talking to us, all of us … not just property owners, but all the people that have lived here. [We] choose to live here because of its beauty, and the way it is.”

Ms Dow said she and others had no problem with change, agreeing the area needed new life and focus, but the council should have consulted more widely and listened more closely to resident concerns.

But, she said, some residents supported the proposal, calling for new shops and upgrades to the area’s commercial centre.

City planning committee chairman Matthew Bourke said hundreds of residents had attended community consultation sessions.

“From the feedback received, lord mayor Adrian Schrinner announced that the proposed changes to zoning around the Deagon train station would be excluded from the neighbourhood plan going forward,” Cr Bourke said.

“Feedback received on the revitalisation of the Sandgate Town Centre will be considered as the draft plan is prepared.

“This was only the first step in the consultation process and residents, businesses and community groups will again have the opportunity to have their say on a revised plan.”

Cr Bourke said the next stage of consultation would be on the draft plan to be released this year.

The local councillor Jared Cassidy, also Labor opposition leader, spoke at length during December’s final council meeting about the frustrations of residents who attended council’s consultation sessions.

“… Earlier on I stood up and said, yes, my community does need a renewed Sandgate neighbourhood plan, but I didn’t for one second think that we would have such a hollow process of consultation and such a poor outcome even in this very first stage of the neighbourhood plan,” Cr Cassidy told the chamber.

Cr Cassidy said the council’s consultation with the suburbs was “not good enough” and he was “not going to take this lying down”.

Source: www.brisbanetimes.com.au

 

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