Larry Schlesinger | 20 December 2012

Brisbane CBD among 494 suburbs where you could be better off buying then renting, but very few inner-city options: RP Data

Brisbane CBD among 494 suburbs where you could be better off buying then renting, but very few inner-city options: RP Data

Buying an apartment in the Brisbane CBD could be a cheaper option than renting one, according to the December RP Data Buy vs Rent report.

The latest edition of the theoretical report lists 494 suburbs across Australia where renters should think about doing the sums and perhaps looking at buying an equivalent property (if they can find one) rather than paying rent to a landlord.

This is up from the 388 suburbs in the previous October report and well up from just 238 locations listed in the first report released in August – RP Data updates the report whenever the RBA cuts the cash rate.

However, there are very few inner-city locations where genuine deposit savings are possible, with many of the suburbs on the list being  in remote locations, hundreds and sometimes thousands of kilometres from the nearest capital city – and requiring huge deposits.

The top 20 on the list is dominated by mining towns in WA with inflated rents, but with rental population heavily subsidised by mining companies and with little incentive to consider buying.

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With the average variable interest rate now at 5.65%, Brisbane is the capital city that potentially offers renters the best opportunity to come out financially better off by becoming property owners with 58 greater Brisbane suburbs out of a total of 185 in Queensland.

Brisbane CBD units ranks 52nd out of the 494 suburbs on the RP Data list with a potential saving of $344 a month for those buyers who can find a similar property to the one they are renting and raise a 10% deposit of $45,000.

The median unit price in the Brisbane CBD is $455,000 while median weekly rent is $625.

Recent Brisbane CBD apartment sales around the median include this two-bedroom unit on Albert Street (pictured below), which sold for $445,000 in October.

albertst3

A look at rental listings in the Brisbane CBD show there are around 90 or so two-bedroom apartments available for rent around the $600 per week mark, including this fully furnished, air-conditioned two bedroom apartment (pictured below) in the CBD advertised at $580 per week.

brisbcity

There are 48 suburbs in Sydney on the list, 40 in Adelaide, 16 in Hobart, eight in Perth, six in Melbourne and seven in Darwin.

 

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