WHERE IT’S CHEAPER TO BUY THAN RENT IN FNQ
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 skyrockets.
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.
In the Cairns region, it is cheaper to buy than rent a house in 43 suburbs with a 20 per cent deposit, with that number falling to 33 suburbs with a 10 per cent deposit.
Every suburb is cheaper to buy than rent a unit, the data shows.
Top of the list is Manunda, where the rent-to-mortgage ratio for a unit is 123 per cent, with buyers set to save $713 a month compared to rent.
It is a similar story in Edge Hill, where unit buyers could save almost $800 a month with a 20 per cent deposit.
House buyers in Tully also stand to save, with the average rent at $1386 a month compared to the monthly mortgage repayment of $727.
In East Innsifail, buying a house rather than renting one could result in a saving of over $700, the data shows.
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.
Looking for an apartment or townhouse rather than a house could be smart 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?”
The analysis assumes the average variable discounted owner-occupier home loan interest rate of 3.6 per cent, and 30-year loan term.