In Richlands, You Could Save More by Paying off a Mortgage Rather Than Renting, Latest Research Says

Richlands

Many Greater Brisbane suburbs, including Richlands, offer more savings if you choose to buy a unit with mortgage rather than paying a monthly rent, the latest research revealed.

The latest research from mortgage broker, Aussie, looked into that gap between median rental cost and monthly mortgage repayments by using discounted variable rate and a three year fixed rate. It also assumed a loan-to-value ratio of 90 per cent with a 10 per cent deposit and the life of the loan set at 30 years.

What the Aussie Core Logic Rent Versus Buy report revealed is that in approximately 70 per cent of the regional Queensland suburbs, it is cheaper to buy than to rent. 

In Greater Brisbane, for example, Browns Plains and Oxley offer the greatest savings for unit buyers. In particular, mortgage repayments in these locations are cheaper than renting by more than $500. Other suburbs offering the most savings are Waterford West, Springwood, Richlands, Beenleigh, Murrumba Downs, Eagleby, Logan Central, and Woodridge.



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According to realestate.com.au, the median unit rent in Richlands is $370 per week, based on 246 unit listings from 1 Nov 2019 to 06 Nov 2020. The median unit price, on the other hand, is $267,000 based on 27 unit sales from 1 Nov 2019 to 02 Nov 2020.

Meanwhile, Kilcoy is where house buyers could realize the biggest savings, almost $470 cheaper than monthly rent costs. Kilcoy is followed by Woodridge, Kingston, Logan Central, Goodna, Macleay Island, Slacks Creek, Laidley, Russell Island, and Leichhardt.

The report also said that 29.3 per cent of Brisbane suburbs offer families more savings by having a mortgage on a house rather than renting a house.  However, if you apply a three-year-fixed rate mortgage, that number could still rise to 63.3 per cent. As for units, families could save more on unit mortgages in 76 per cent of Brisbane suburbs and 97 percent when a three-year-fixed rate mortgage is applied.

Aussie CEO John Symond said the market right now is offering opportunities to save more on buying thanks to record low interest rates and government incentives. He added that regional Queensland house rents have risen by 23.5 per cent since the upturn began in late 2016 through mid-2019 while house values grew only one per cent. The growth was further strengthened when mortgage rates started falling in mid-2019.