Brisbane's sales market

Kicking out your ‘kidult’! Renting v buying a Brisbane apartment

If you’re one of the many Brisbanites unsure of stepping onto the property ladder, undecided on renting or buying and looking for a sign or divine intervention, you’re going to enjoy this read! According to the data-watchers, the cost of buying a Brisbane apartment has rarely been more affordable. Aussie and CoreLogic have just released the  Buy v Rent Report 2020  and found, “More than three quarters of Brisbane suburbs are now more affordable to service a mortgage on a unit than paying rent.”

The report says an inner-city Brisbane apartment is now $280/month cheaper to buy (using a 3 year fixed interest loan with 10% deposit). Throw in ANZ’s comment this week that Brisbane home prices might rise 9.5% next year and there’s some serious financial motivation!

None of us forget we’re still in a global pandemic and won’t take on debt without solid job security. And the report doesn’t add costs like rates and body corp fees. But for those who might be ready to take the step, it does make a strong case for buying: “Over the past decade, the median unit value for Brisbane has increased by only 3.4% while the median rental rate for units is up 14.3% over the same period”.

Rents have been down this year due to COVID-19 but it’s hard to see them remaining low in 2021. Vacancies are too low; demand still too strong.

first home buyers BrisbaneSo if you’re tempted to buy, what about the deposit? Your local mortgage broker or bank manager will have plenty of suggestions (and varying levels will be needed – 10% is just one example). We see lots of first home buyers getting assistance from the Bank of Mum and Dad, often putting their own home up as security with no cash needed. And this year of course we’ve also seen buyers withdraw from their super to put a deposit together.

There may still be time to grab the Federal government’s assistance with the First Home Loan Deposit Scheme (where they effectively help guarantee your loan) – there’s limited spots though and this is only on offer for Brisbane homes up to $475,000. And don’t forget you won’t pay any stamp duty if the home is less than $500,000. And Council even gives first home buyers a discount on their rates.

COVID has also seen more ‘kidults’ move back home with their parents so we’re not judging if you’re one of those parents, reading this and plotting the eviction of your adult child! ABS data shows 7% of 30–35 year olds still live at home. And a very large 17% of 25–29 year olds. That’s a lot of adults still freeloading off Mum and Dad! So if you’re interested in “helping your child get a financial leg-up” (let’s call it that, instead of “getting the place to ourselves”), there really are some compelling stats that say this is a great time to buy a Brisbane apartment.

In one extreme case, a New York couple had to get a court to evict their 30 year old son from their home. Hopefully leaving a copy of this article on the fridge is all you need!