Bargain buys: Top suburbs for smaller budgets

Despite record price gains throughout the pandemic, it’s still possible to buy a house in the $400,000s and $500,000s in Greater Brisbane – dropping as low as the $200,000s in the Qld regions.

Despite its massive pandemic growth and new Olympic status, there are still suburbs across Greater Brisbane where it is possible to buy a house in the $400,000s and $500,000s.

Despite record price gains throughout the pandemic, it’s still possible to buy a house in the $400,000s and $500,000s in Greater Brisbane – dropping as low as the $200,000s in the Qld regions.

This as Canstar’s new Bright Stars report named 20 suburbs in Greater Brisbane and regional Queensland among the best in the nation for those on smaller budgets, with mortgage repayments coming in at less than 25 per cent of the earnings of a dual income family.

“Brisbane remains considerably cheaper than Sydney and Melbourne – and will continue to benefit from the ‘exodus to affordable lifestyle’ trend,” the Canstar report said.

“Brisbane can offer something the two biggest cities cannot: houses in the $400,000s and $500,000s in locations with good amenities and services, notably in the outer-ring LGAs of Ipswich, Logan and Moreton Bay.”

MORE: Major tax crackdown on landlords, side hustles and AirBnbs

Twist in ‘remarkable’ Brisbane property market as sales drop

The affordability kudos was even higher for the regions, with the report saying “for those seeking affordable properties in places with genuine growth credentials, regional Queensland is one of the best places to look – but they need to focus outside southeast Queensland to find them”.

“As 2023 unfolds, there is growing demand in regional centres like Townsville, Gladstone, Mackay, Bundaberg, Rockhampton, Hervey Bay and Toowoomba, plus many smaller towns. These locations offer the prospects of houses in the $300,000s and $400,000s, underpinned by growing local economies and the impact of the development of infrastructure.”

The initial outlay to buy a house in Queensland’s 20 “bright star” suburbs comes in as low as $30,893 in the regions and $56,127 in Greater Brisbane with first homebuyer concessions – based on a 10 per cent deposit, Lenders Mortgage Insurance, FHB stamp duty concession, and purchase costs such as mortgage registration and transfer fees.

Without stamp duty concessions, the 10 per cent deposits were $33,943 for a house in Berserker in the Queensland regions and $64,549 for either a unit in Annerley or a house in Goodna.

Buyers need to redefine what they’re looking for, says Canstar editor-at-large Effie Zahos. Picture: Tim Hunter.

Canstar editor-at-large Effie Zahos said Australia was still in love with property, but buyers may need to redefine what they’re looking for.

“There are plenty of affordable places out there, it’s just a case of finding what meets your needs,” she said.

Hotspotting managing director Terry Ryder said it is still possible to buy your first home, but in some areas you have to consider buying a unit or going out further to outer suburbs for a house.

“First homebuyers are not doomed to a life of renting,” he said.

“Buying a home is achievable with the right mindset and if you compromise on what you buy and where. The problem is that a lot of people expect their dream home right away.”

“The second home or the third home can be the dream home. In the meantime you have to accept something that’s not the dream to get a foot on the ladder,” Mr Ryder said.

The challenge is amply illustrated by Greater Brisbane’s affordability bright stars being led by a tie between a unit in Annerley closer to the CBD or a house in Goodna on the fringes of Greater Brisbane – both of which had the same median price of $465,000, with repayments coming in as low as $2,350 a month or about 19.6 per cent of a dual income.

Hotspotting managing director Terry Ryder.

MORE: See the latest PropTrack Home Price Index

The other suburbs – ranked by mortgage repayment amounts on a loan secured with 10 per cent deposit – were Raceview (house median $480,000) $2,426 in monthly repayments or 20.2 per cent of a dual income, Bethania (house $510,000) $2,577, Woolloongabba (unit $510,000) $2,577, Crestmead (house $515,000) $2,603, East Brisbane (unit $515,000) $2,603, Slacks Creek (house $535,000) $2,704, Bellmere (house $555,000) $2,805, and West End (unit $580,000) $2,931 or 24.4 per cent of a dual income.

The cost of houses was even cheaper in regional Queensland led by Berserker ($265,000 median) with $1,339 in monthly repayments or 12.5 per cent of a dual income, followed by Dalby ($295,000) $1,491, Kin Kora ($335,000) $1,693, Thabeban ($355,000) $1,794, Kirwan ($380,000) $1,920, Lowood ($380,000) $1,920, Wilsonton ($415,000) $2,097, North Toowoomba ($420,000) $2,123, Boyne Island ($425,000) $2,148, and Bucasia ($430,000) $2,173.

Surprisingly, units in Woolloongabba – home to The Gabba (above) which is set to become Olympic central come 2032 – are ranked among the most affordable properties to buy in Brisbane for those on dual incomes. Picture: Steve Pohlner

The Canstar data comes as 50,000 new places were opened up in the revamped Home Guarantee Scheme from July 1, which would bring costs down even further as it helps buyers land a home with a 5 per cent deposit.

Regional Queensland was ranked the fourth most affordable place to buy property in the Canstar report, with Brisbane coming in at 10th position – leaving Adelaide, Canberra, Melbourne and Sydney trailing behind it.

Mr Ryder said buyers had to take a long-term view on property, and not be put off by further interest rate hikes.

“It should be a long term play. Rates rise and fall over the 10 to 20 years most people hold property. It shouldn’t be a factor in the decision,” he said.

“There is a danger in sitting on the sidelines. People who wait and see how things turn out often never take action and miss the opportunities to buy well.”

FOLLOW SOPHIE FOSTER ON TWITTER