Where it’s cheaper to buy than rent in our region
SAVVY buyers are swooping in on areas across the Northern Rivers where it’s cheaper to take out a mortgage than pay rent.
And the savings can be substantial.
According to recent data from realestate.com.au, the median house prices in the Lismore region is $330,000, while the median rent is around $400 a week.
However, depending on which lender you go with, taking out a mortgage of $270,000 will cost around $1210 a month in repayments – giving you almost $400 or one week’s rent in savings.
The amount of deposit you have is a factor and many lenders will want a 20 per cent deposit, although some will accept as low as 5 per cent.
Plus there are additional housing costs including stamp duty (if applicable) transfer duties, municipal rates and maintenance costs to factor in.
Agent Patrick Higgins said aspiring homeowners should think about purchasing a property, even if it’s not the perfect home for them right now.
“If people can get out of the renting cycle and into the property market as a younger age, it will be a lot easier than if they decide to do this later in life,” he said.
“Always research your borrowing capacity and the areas you want to live in before you go home shopping as this will put you in a better bargaining position.”
According to ME general manager, Home Lending, Andrew Bartolo, rural areas are being targeted.
“We’ve seen plenty of first-time buyers purchasing in rural and regional areas outside the big cities in recent months,” he said.
“(While) we don’t see big differences in financial literacy between rural and urban customers, we do see big property price differences.
“Buying outside a big city could lower your deposit hurdle and help you get onto the property ladder quicker.”
Mr Bartolo advised potential buyers “consider getting expert advice first.”
Where can save money buying not renting*
Area: Median House Price / Median Weekly Rent
Alstonville: $367,750 / $350
Bilambil Heights: $590,000 / $593
Casino: $298,000 / $330
Coraki: $342,000 / $350
East Lismore: $397,000 / $390
Goonellabah: $412,000 / $400
Kyogle: $282,000 / $320
Lismore: $330,000 / $400
South Lismore: $325,000 / $360
- Mortgage costs are impacted by deposit percentage of borrowings.