The Brisbane suburbs where buying is cheaper than renting

It’s now cheaper to buy than rent in some Brisbane suburbs, putting home ownership within reach for first-time buyers.

The key factor is lower house prices in these areas, which in many cases make mortgage repayments more affordable than rent.

This means buyers are paying off their own property rather than paying rent to a landlord.

For Chalrotte Gill and her partner, the decision to buy rather than rent came with the latest rent increase for their one-bedroom apartment in Woolongabba.

“Our rent just went up to $780, and we’ve managed to find properties we can buy for much less, which has really surprised us.”

With strong demand for rental properties, Charlotte says the situation feels “scary.”

“The pressure of rising rents and the competition makes it really tough,” she said.

In Fortitude Valley, for example, it is cheaper to take out a loan than to rent a one-bedroom apartment, Michael Kafantaris of Estate Agent Place in News Farm told 7NEWS.

For a property valued at around $700,000 in this suburb close to the CBD, weekly mortgage repayments are estimated at $570, compared to an average weekly rent of $630.

In Kallangur, a suburb in Brisbane’s north, the weekly mortgage repayments for a brand new three-bedroom townhouse are only about $100 more than the average rent of $450 a week.

In addition, first-time buyers can take advantage of government schemes such as the First Home Guarantee, the Regional Home Guarantee and the Single Parent Guarantee.

Experts point out that first-time buyers can benefit from these government guarantees, some of which allow them to buy with as little as a 5 per cent deposit.

“It really allows you to contribute as little as possible upfront and get into the property market sooner”, said Andre Dixon, Senior Finance Broker at Inovayt.

Byers may be eligible for either the First Home Guarantee, the Regional Home Guarantee or the Single Parent Guarantee.

These schemes help buyers overcome the high barriers to enter the property market, Dixon added.

In some cases, buyers may even be able to access all three.

“Where you can use all three, which I have done with a client, you can secure up to $50,000,” says Dixon.

The top suburbs where it’s cheaper to buy than rent in Brisbane

There are several suburbs where buying a house or apartment is more affordable than renting, offering first-time buyers an opportunity to get on the property ladder.

For houses, Beenleigh leads the way with an average monthly advantage of $660 over renting.

Rocklea follows closely with a monthly saving of $380, while Zillmere offers a difference of $320.

Inala and Ellen Grove also stand out, with monthly costs for buyers $340 and $300 lower than renting respectively.

When it comes to units, Spring Hill tops the list with $350 in monthly savings, followed by Fortitude Valley where buying a unit is on average $280 cheaper per month, while Bundamba offers a $270 difference .

However, Andrew Bell, CEO of Ray White Surfers Paradise, points out that while the comparison of mortgage payments to rent may seem simple, it’s not always that straightforward.

“I think when you’re doing a comparison, and you’re just looking at the mortgage payments and rent, there’s something that’s not being considered—things like rates, insurance, and other costs of owning a property,” he explained.

“And it’s not suburbs as a whole, it’s often just property types, as opposed to the whole suburb.”

Despite the appeal of buying instead of renting, Andrew cautioned that for many, saving for a deposit remains a significant hurdle.

“As much as this sounds like an attractive proposition, the reality for so many people is they still have to save for the deposit.

“And there lies the problem.

“It’s a lovely idea that I can buy something and it’s cheaper than rent, but if you haven’t got yourself in the position to buy, you don’t have your deposit, and you haven’t got your finance approved, it’s just a dream.”