Buying cheaper than renting 20 minutes from the Beach
A MOVE west of the M1 could be enough for many Gold Coasters to break out of the renting game and finally enter the property market.
An RP Data report has revealed buying is cheaper than renting in many Gold Coast suburbs, mostly those west of the M1.
Coomera is the best value for money based on a principal and interest loan, with homeowners $164.85 better off a month than renters.
Buyers in Reedy Creek, Mudgeeraba, Highland Park, Pacific Pines and Nerang are also better off, with savings per month ranging from $72 to $4.20.
"Rental demand is high and this keeps the prices up and makes buying quite comparative," he said.
"You can rent a modern four-bedroom home for about $400 a week in the Coomera area, but for prices starting in the low $300,000s you can buy the same.
"We are seeing a lot of couples and families who have rented for a long time buying for the first time. It's very exciting for them."
RP Data research analyst Cameron Kusher said western suburbs were cheaper for buyers because of a focus on long-term accommodation.
"Western suburbs are much more focused on long-term accommodation rather than the short-term rentals that are so prevalent in areas like Surfers Paradise and Main Beach.
"The reason western suburbs are cheaper to buy than rent is by virtue of fairly affordable values, highlighted by the fact that in most suburbs, the product is dominated by long-established stock.
"There is also relatively high asking rents in these areas, which indicates there is some rental demand."
Meanwhile, RP Data research director Tim Lawless said the Australian housing market had experienced one of its toughest years in 2011, but hinted improvement was on the horizon.
"With recent cuts to mortgage rates and evidence of a modest increase in house prices over the June to July period, we may see consumers returning to the property market," he said.
"Many will start to realise it may not cost them much more to own than rent.
"In fact in some suburbs, across the country, it may actually be cheaper than renting."
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