Cheaper to buy as market recovers
THREE Ipswich suburbs are among the top 10 in south-east Queensland where buying a unit is cheaper than renting one.
A report released by RP Data yesterday listed Flinders View, Bundamba and Bellbird Park among suburbs where monthly mortgage repayments were less than a month of rent.
Ipswich real estate agents identified a pressed market and interest rate cuts as factors leading to the 'rare' situation.
Flinders View topped the list of suburbs, with a median unit price of $122,000.
The report showed home buyers would be $237 better off a month paying the principal and interest mortgage repayments rather than paying median rent of $210 a week.
Bundamba was fourth, with a median unit price of $169,000 and weekly rent of $245, leaving home buyers with $135 in their pockets.
Bellbird Park home buyers would keep $90 a week, with median rents $260 a week and prices at $189,000.
PRD Yamanto principal Roger Muller said the Flinders View figure was not a true reflection of the unit market for the suburb.
An over 55s complex on Judith St, selling one bedroom units for between $95,000 and $110,000 represented all but a handful of flats in the suburb.
Outside of the complex, Mr Muller said it was still cheaper to rent than buy in Flinders View.
"It's pretty rare. We can sometimes get close but it's fairly rare," he said.
PRD Ipswich principal Peter Mendoza said the current market condition reflected the past two years.
"That's the situation when the market is pressed," he said.
"The rental demand is still strong while houses are going down in value. They are dropping at a quicker percentage than before.
"Anywhere in Ipswich is a good place to buy at the moment. It's not going to cost any more than renting."
Mr Mendoza said most renters would not be aware buying could leave them financially better off.
"People were resigned to the fact that they couldn't buy a house but that's turning around," he said.
"The market has a long way to go to get back to 2009 and prior."
REIQ Ipswich zone chairman Darren Boettcher said the figures were indicative of a market in recovery.
