As the result of record low interest rates, in Sydney, Melbourne, Brisbane and Adelaide buying is now on average about 55% cheaper than renting.
Now these stats were based on outer ring suburbs. The example used for Brisbane was North Lakes; working on the average rent price for a house, $530/week, and the average purchase price for a house, $400K, your interest only repayments would work out to be just $173.40/week, that’s with only a 5% deposit too.
We thought we’d run the numbers and check if the same was true for our home suburb Aspley. Here, the average price to rent a house is $470/week and the average purchase price for a house $620,000. This would make the interest only repayment $268.75/week.
So the numbers work out, but remember, you need to factor in Council Rates, Body Corporate for units and townhouses plus lenders mortgage insurance (if you have less than 20% deposit and can’t access the first home load deposit scheme).
As always we would recommend you talk to a broker to see what deals are available for you and find out your borrowing capacity before making any big decisions.
But all in all, now is looking like an awesome time to switch from renter to homeowner. Ready to make a move? Contact us for a chat or view our current listings for sale.
