A DIVE in interest rates and spiralling rents mean it is now cheaper to buy than rent a unit in some southeast Queensland suburbs.
Research by the Commonwealth Bank and RP Data reveals a buyer in Beachmere, north of Brisbane, could save $370.78 a month buying a unit.
Even in Brisbane, a person paying off a median priced unit in Sunnybank Hills would save $80.31 a week on the average rental for the suburb.
RP Data national research director Tim Lawless said falling rates had led to more renters reassessing if it was cheaper to pay off a mortgage than pay a landlord.
Other suburbs where buying was more cost-effective were Highland Park and Pacific Pines on the Gold Coast and Sippy Downs on the Sunshine Coast.
Mr Lawless said many other suburbs were on a borderline between rental and mortgage costs. "If interest rates fall another 50 basis points the number of suburbs where it is cheaper to buy than rent will almost double," he said.
Many analysts are expecting further pressure on rents over the next year because of the dramatic fall in new unit stock coming to the market.
Mortgage Choice spokesman Kristy Sheppard said while many renters would be able to afford to buy soon, they need to factor in ongoing expenses such as mortgage insurance, council rates, strata fees and repairs.
A recent survey of 200 Queenslanders intending to buy their first home before the end of next year found almost one in five couples would delay having children to buy a home.
The Mortgage Choice survey also found while 17 per cent planned to borrow the full purchase amount, 12 per cent would have a deposit of more than 20 per cent. And 70 per cent intend to buy an existing home, despite the $7000 new homebuyers grant.
