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.