45 Dingyarra Street, Toogoolawah – a three bedroom, one bathroom, three car space house on an 875sq m block of land – sold for $200,000 in January.
45 Dingyarra Street, Toogoolawah – a three bedroom, one bathroom, three car space house on an 875sq m block of land – sold for $200,000 in January.

Revealed: Suburbs where mortgages less than $250 a week

Queensland may be in the middle of a price boom but there's still great value to be had with a massive 97 suburbs where it's cheaper to buy than rent - with mortgage repayments lower than $250 a week.

New data produced by Aussie in conjunction with CoreLogic showed that there were still bargains to be had across the state, a dozen of which were in the capital Brisbane and 85 spread across regional Queensland which has seen renewed interest in the wake of COVID-19 fallout.

 

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68 Channel Street, Russell Island, sold for $160,000 in January. It’s a three bedroom, one bathroom, two car space house on a 546sq m block of land.
68 Channel Street, Russell Island, sold for $160,000 in January. It’s a three bedroom, one bathroom, two car space house on a 546sq m block of land.

 

The analysis looked at suburbs where the median price for houses and units saw mortgage repayments - both variable and fixed - sit under $250 per week. It was based on a 30-year loan with a principal and interest variable rate of 3.65 per cent and a 2.35 per cent three-year fixed rate loan.

 

 

Houses made up the bulk of the suburbs where it was cheaper to buy than rent - two of which were in Greater Brisbane, Russell Island and Toogoolawah, and a massive 58 across the rest of the state.

In two of the suburbs, you could get away with mortgage repayments under $100 a week, with the median home value just $84,602 at Charleville in the Murweh region - where buyers could expect to pay about $87 a week on the mortgage - and Collinsville in the Whitsunday region where the median house was $96,512, with $99 a week on the mortgage.

There were 37 suburbs in total where you could own a unit for under $250 a week on the mortgage, 27 in regional QLD and 10 in Greater Brisbane.

 

On the market right now priced at offers around $250,000 is this two bedroom, one bathroom, one car garage unit at 43/169 John Paul Driver, Springwood.
On the market right now priced at offers around $250,000 is this two bedroom, one bathroom, one car garage unit at 43/169 John Paul Driver, Springwood.

Aussie chief executive James Symond said especially outside the major capital cities, "it is cheaper to buy than rent with many suburbs under the $250 a week threshold".

"Why pay your landlord - when you could potentially pay the same amount or less monthly - on a house or apartment you can call your own," he said.

Mr Symond said considering the price of real estate across the country, it did surprise him that there were so many suburbs in Queensland that came under the $250 a week mortgage repayment threshold.

"It just goes to show how low rates make properties that were once unaffordable more affordable. Along with those low rates the strong government incentives, federal and state based, for first home buyers is really driving the marketplace."

 

Sold in January for $152,000 was 1/28 Defiance Road, Logan Central, a three bedroom, one bathroom one car park unit.
Sold in January for $152,000 was 1/28 Defiance Road, Logan Central, a three bedroom, one bathroom one car park unit.

 

Real estate agents in suburbs where it was now cheaper to buy then rent cannot get properties to market fast enough, including Denise Taylor of LJ Hooker Bay Islands whose results have been so astounding, she and daughter Alana won an international company sales award.

"The place is going crazy. On average this year, we're selling 40 properties a month. In March we sold 20 properties by the 10th, so that's two properties a day."

 

57 Duringan St, Russell Island, sold for $245,000 in January. It’s a three bedroom, one bathroom house on a 556sq m block of land.
57 Duringan St, Russell Island, sold for $245,000 in January. It’s a three bedroom, one bathroom house on a 556sq m block of land.

 

She said it was "a perfect storm" for Russell Island which was attracting not just retirees and families but young couples looking to get started in property.

"On the mainland you take a block of land for $300,000, put a $200,000 house on and it's a $500,000 price. On Russell Island, it's a $30,000 block of land - cheaper than a new car - put a $200,000 house on it … It's a golden opportunity for all ages young and old. This is back to the 1970s, It's a walk back in time not only with prices, but lifestyle and even interest rates as well. It's a hat trick."

 

Now under offer for $179,000 is 41/279-283 Kingston Road, Logan Central, a three bedroom, one bathroom, one car park unit.
Now under offer for $179,000 is 41/279-283 Kingston Road, Logan Central, a three bedroom, one bathroom, one car park unit.

 

Agent Cheyenne Paris of Professionals Lifestyle Realty, whose listings have included units in Logan - which can be bought for less than $250 a week in mortgage repayments - said they couldn't get properties up fast enough to meet demand.

"We're getting absolutely smashed by buyers up here. Within a week we've got a signed contract," she said.

Ray White Rural Sean O'Connor whose listings run through Esk and Toogoolawah said blocks of land ranged from $150,000 to $850,000 for massive acreage with affordable houses selling around the $200,000 to $350,000 mark.

 

49 Canaipa Point Drive, Russell Island, sold for $225,000 in February – a two bedroom, one bathroom, two car space house on a 592sq m block of land.
49 Canaipa Point Drive, Russell Island, sold for $225,000 in February – a two bedroom, one bathroom, two car space house on a 592sq m block of land.

 

"It's very affordable," he said, though he did not expect it to remain that way long with demand rising. Among his recent sales are two in the $300,000 range.

"It's a little over a third of Brisbane prices. It's affordable. Not sure they still will be this time next year with prices that keep moving."

 

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The drop in interest rates was now making buying affordable for buyers that may not have considered jumping in right away, with CoreLogic head of research Tim Lawless saying mortgage repayment comfort levels were at their best seen since 2003.

 

For sale priced at $189,000 is 18 Amber St, Russell Island with two bedrooms, one bathroom and one car park on a 546sq m block of land.
For sale priced at $189,000 is 18 Amber St, Russell Island with two bedrooms, one bathroom and one car park on a 546sq m block of land.

 

"While housing values are now rising quite rapidly, record low mortgage rates have largely offset the rise in values from a mortgage serviceability perspective. On average, Brisbane households are dedicating around 28 per cent of their income to service a new mortgage, which is the lowest proportion of income required to service a mortgage since 2003."

 

For Sale priced at $189,000: 5 Tropic Street, Russell Island, a three bedroom, one bathroom one car park house.
For Sale priced at $189,000: 5 Tropic Street, Russell Island, a three bedroom, one bathroom one car park house.

 

"For buyers who are able to purchase a home, servicing their debt is generally very affordable. It's getting their foot in the door that might be more challenging."

Mr Symond did not expect such affordable conditions to continue for very long, even with the lowest rates in history, because of rising demand.

"Queensland and Brisbane are in prime position to see quality growth over the next months and years and ready for it. People aspire to live in Queensland, especially with the whole covid situation and what's wrong with sun, sand and surf."

 

For sale priced at $215,000 is 52 Fulham Street, Toogoolawah, a three bedroom, one bathroom, one car space house on a 713sq m block of land.
For sale priced at $215,000 is 52 Fulham Street, Toogoolawah, a three bedroom, one bathroom, one car space house on a 713sq m block of land.

 

Record low interest rates play a big part in that story, with the cost gap between buying and renting now tightened across the country.

"The Reserve Bank recently confirmed its expectation that interest rates would not rise in the foreseeable future, providing some certainty that interest rates will remain low for an extended period."

Lockdown and working from home during the COVID-19 period had changed the landscape for many buyers, he said.

"As many Australians continue to work from home, there is expected to be further shift from metropolitan areas to cheaper outer-lying areas as they decide they no longer need to live close to their workplace. This current environment is good news for renters looking to become owner-occupiers."

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Originally published as Revealed: Suburbs where mortgages less than $250 a week



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