September 5, 2012
A new study into housing affordability by RPData has found that it’s cheaper to rent housing in the South Burnett than it is to buy it.
The national study identified 3000 towns and suburbs across Australia where it’s currently cheaper to take out a mortgage than to rent.
But the South Burnett isn’t among them.
Thanks to a flat property market, at present the average person can save between $899 and $3150 a year by choosing to rent in the region rather than buy a house or unit.
For the purposes of the study, RPData looked at median house prices and median advertised weekly rents for every suburb and town in Australia.
To compare the benefits of renting versus buying, they also assumed that buyers would outlay a 10 per cent deposit.
And then they computed what average monthly repayments would be if buyers repaid principal and interest or interest-only loans on the average current variable rates or fixed rates offered by lending institutions.
The table below shows the South Burnett outcomes (monthly repayments are based on a principal plus interest variable rate loan rather than an interest-only loan or fixed rate loan):
Town
|
Property Type
|
Median Value
|
Median Rent
|
Monthly Payments
|
Monthly Difference
|
Yearly Difference
|
---|---|---|---|---|---|---|
Blackbutt
|
House
|
$215,246
|
$220
|
$1180
|
$226.87
|
$2722
|
Nanango
|
House
|
$222,494
|
$230
|
$1220
|
$223.28
|
$2680
|
Kingaroy
|
House
|
$227,858
|
$260
|
$1249
|
$122.69
|
$1472
|
Kingaroy
|
Unit
|
$185,235
|
$215
|
$1016
|
$83.98
|
$1008
|
Wondai
|
House
|
$201,987
|
$195
|
$1108
|
$262.51
|
$3150
|
Murgon
|
House
|
$167,782
|
$195
|
$920
|
$74.95
|
$899
|
Goomeri
|
House
|
$177,761
|
$185
|
$975
|
$173.00
|
$2076
|
The full national report can be downloaded RPData’s website.