Revealed: 534 QLD suburbs where it’s cheaper to buy than rent

It is now cheaper to buy than rent in hundreds of Queensland suburbs. Find out how much you could save.

There are hundreds of suburbs across Queensland where it is now cheaper to buy a home than rent one. Image: Darren England.

QUEENSLANDERS could save hundreds of dollars a month by buying a home instead of leasing one in more than half of the state as the cost of renting continues to skyrocket.

Analysis from comparison site, Finder, reveals paying off a mortgage — even with only a 10 per cent deposit — is cheaper than signing a lease in more than 530 locations, including some of the state’s most desirable places to own a home.

That number jumps to more than 700 locations if buyers were to pay a 20 per cent deposit, excluding the cost of lenders’ mortgage insurance (LMI).

In Brisbane, renting a unit is at least 30 per cent more expensive than buying one with a 20 per cent deposit in a number of inner-city suburbs including Dutton Park, Spring Hill and Seven Hills.

This two-bedroom unit at 3/189 Leichhardt St, Spring Hill, is for sale.

Russell Island tops the list of locations where renting a house is more expensive than buying in Brisbane, with monthly mortgage repayments on average $330 cheaper than rent.

The latest figures from SQM Research show the average Brisbane house rent has increased more than 21 per cent in the past 12 months to $594 a week.

This three-bedroom house at 123 High St, Russell Island, is on the market for $445,000.

On the Gold Coast, it is $700 a month cheaper to own rather than rent a house with a 20 per cent deposit in the suburb of Springbrook, while for units, monthly mortgage repayments are nearly 40 per cent cheaper than rent in Parkwood, Helensvale and Bundall.

Even in the affluent suburb of Minyama on the Sunshine Coast, paying off a mortgage on a unit is $560 a month cheaper than renting one.

This three-bedroom house at 106 Repeater Station Rd, Springbrook, is for sale for $1.85m.

But the suburbs with the largest difference between rent and mortgage repayments are outside southeast Queensland.

The data shows buyers with a 20 per cent deposit could save $795 a month by owning rather than renting a unit in the Rockhampton suburb of Koongal.

In Dysart and Collinsville in the Isaac/Whitsunday region, renting a house is $800 a month more expensive than owning one.

This three-bedroom house at 73 Winterer Cres, Dysart, is on the market for $239,000.

Paying off a home loan on a house with a 20 per cent deposit in the Townsville suburb of Home Hill is $595 a month cheaper than paying rent.

The research found houses are cheaper to buy than rent in 244 Queensland suburbs when paying a 10 or 20 per cent deposit, compared to 290 locations for units.

The analysis assumes the average variable discounted owner-occupier home loan interest rate of 3.6 per cent, and 30-year loan term.

This three-bedroom house at 1 Eighth St, Dysart, is on the market for just $170,000.

Finder home loans editor Richard Whitten said the challenge for most buyers was being able to save for a deposit.

“Rather than giving up on your daily coffee, the most effective way to save is to start a budget, pay off any debts, and regularly deposit 20 to 30 per cent of your income into a high-interest savings account,” Mr Whitten said.

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Looking for an apartment or townhouse rather than a house could be a smart idea for budget-conscious buyers, he said.

“Also think about how many bedrooms and bathrooms you really need,” he said. “If you work from home, perhaps you could set up your desk in the living area instead of having a separate room?”

First home buyers Kelsey Pienaar and Liam McCann-Fowler have just bought a unit in Robina, one of the Queensland markets where it is cheaper to buy than rent. Picture: Jerad Williams.

Gold Coast Property Sales and Rentals director Tina Nenadic said young people who cracked the market early by purchasing an entry-level property in an affordable area set themselves up for long-term wealth creation through capital gains.

Ms Nenadic said that even with rising interest rates, rents would continue to rise in the current tight market — although house price growth could slow.

“It can be a scary prospect for first-home buyers when there’s predictions of five or six interest rate rises to come, but if you do your research you’ll still usually find it’s less to own a unit or a duplex and pay off a mortgage than paying rent,” Ms Nenadic said.

The view from an apartment at 40/35 Astor Tce, Spring Hill, which is on the market.

LJ Hooker Property Hub property manager Jessica Melling said saving a deposit while still paying rent was a significant barrier for many tenants who would otherwise be able to service home loan repayments.

“I know many people who are renting and they would love to buy, but the struggle for them is saving the deposit to get a loan while having to keep paying rent at the same time,” Ms Melling said.

“While these areas may be more affordable, if they are buying with a deposit of 10 per cent or less than you also have to factor in lender’s mortgage insurance, plus stamp duty if the home costs more than $500,000.”