Where it’s cheaper to buy than rent

Queensland is the housing affordability capital, with 37 regions where it’s cheaper to buy than rent. SEE THE LIST

Springfield-Redbank, 33km southwest of Brisbane, has been named as one of the 37 regions where it is cheaper to buy a home than to rent one.

Queensland is leading the nation with 37 regions where it’s cheaper to buy a home than rent one, new affordability data released exclusively to The Courier-Mail found.

And despite an over 20 per cent surge in property prices in Great Brisbane this past year, ten of those regions were in the Qld capital, led by Springfield Redbank where home values were 4.7 times income levels, requiring just 6.2 years to save for a home loan deposit.

Inner Brisbane, Ipswich Inner and Hinterland, Browns Plains, Loganlea-Carbrook, Beenleigh, Beaudesert, Narangba-Burpengary, and Caboolture Hinterland made the list, according to the November 2021 ANZ CoreLogic Affordability report, released Friday, along with Southport, Robina, Surfers Paradise, Townsville, Cairns, Gladstone, Port Douglas and Whitsunday.

By far the cheapest place to pay off a home was in the Outback South region where it took just 10 per cent of a person’s income to meet repayment costs, and double that to pay rent.

CoreLogic head of research Eliza Owen said rising prices had taken a toll on the number of Qld regions where it was cheaper to buy a home than rent one, now around 38 when just eight months ago the figure was 43 regions with 44 regions in June 2020.

“This likely comes back to the strong uplift in property values which has outstripped rent gains across Queensland through 2021,” Ms Owen said.

Leanne and Leon Addison at their home in Redbank – one of the Brisbane hot spots where it is now cheaper to buy than rent a home. Picture: Jerad Williams

Ray White Springfield agent Shannen O’Connor said buyers were facing strong competition for houses with a rise in first time interstate buyers in the last three months, and prices ranging from $229,000 for a three bedroom villa to $850,000 for a large Springfield Lakes home.

”Not only are home prices here more affordable but buyers are still able to get a decent amount of house for their money,” she said. “So far this year about 30 per cent of our sales have been to first home buyers” – average price $440,000.

Senior ANZ economist Felicity Emmett said “since the beginning of the pandemic in the March quarter 2020, all measures of affordability have deteriorated”.

But she said Qld would continue to look “particularly attractive” to buyers out of NSW and Victoria.

“Brisbane is one of the most affordable capital city housing markets, behind Darwin and Perth. It takes on average 8.8 years to save a deposit for a median priced Brisbane home – much less than the 13.5 or 11.3 years in Sydney and Melbourne.”

Leanne and Leon Addison are among sellers who capitalised on strong demand in the Springfield Redbank region, selling their four bed house for $466,000.

“We were wanting to sell 18 months ago and were told a price $100,000 less than what we (just) sold it for,” Mrs Addison said. “It was really interesting seeing the market grow for sellers. I felt like it was well overdue in these areas. So happy with the outcome.”

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