Heads up house-hunters: now's the time to buy
It’s now cheaper to buy a property than it is to rent in Cairns.
For house hunters – particularly first home buyers – the financial planets have aligned.
A combination of factors and market forces is fuelling strong sales activity in the Far North, including low interest rates, upward pressure on rents due to record low vacancy rates and a treasure chest of potential government grants on offer.
According to the latest Cairns Watch report by Herron Todd White, sale volumes for houses and units in Cairns have "regained the levels that were in existence prior to COVID-19," leading to faster sales periods and a small rise in prices.
Check out Tropic Now’s special report below comparing the cost of renting vs buying in five suburbs across Cairns, or dig into our story on Cairns’ record low 1.5% rental vacancy rate.
Five properties that are cheaper to buy than rent
Tropic Now has crunched the numbers on five properties in a range of suburbs across Cairns.
And it's clear that the time is right to buy a home or apartment – particularly for first time buyers with access to a range of government grants.
The figures below are based on realestate.com.au median house and apartment prices in each suburb. Mortgage repayments are calculated using Cairns Bank's fixed rate of 2.99% and based on principal plus interest repayments over both a 30-year and 25-year loan term.
We've also incorporated some government fees and charges and a 10% deposit into the figures below.
Unless you're a first home buyer who's eligible for the Federal Government's First Home Loan Deposit Scheme, you'll also need to factor in the cost of mortgage insurance if your deposit is under 20% of the purchase price.
3-bedroom house in Edmonton
Listed for sale at $319,000
$285/week over 30-year loan term
$321/week over 25-year loan term
3-bedroom house in Smithfield
Listed for sale at $370,000
$333/week over 30-year loan term
$375/week over 25-year loan term
2-bedroom unit in Manoora
Listed for sale at $155,000
$139/week over 30-year loan term
$156/week over 25-year loan term
1-bedroom unit in Cairns North
Listed for sale at $142,500
$127/week over 30-year loan term
$143/week over 25-year loan term
4-bedroom house in Trinity Beach
Listed for sale at $510,000
$461/week over 30-year loan term
$519/week over 25-year loan term
Cairns Bank CEO Peter Phillips told Tropic Now “a number of planets have aligned” to create an ideal market for buyers, particularly first home buyers.