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One change could slash $335k off cost of buying a home

Apartment blocks with 'for sale' signs in front of them and a person removing $100 notes from a wallet to indicate the cost of buying a home.
Downsizing your expectations could save thousands off the cost of buying a home. (Source: Getty)

With Aussies feeling the pressure from the rising cost of living, those looking to enter the property market and buy a home are feeling the squeeze.

But the latest Domain House Price Report showed how much buyers could save when opting for one less bedroom.

The report found Sydneysiders could save a massive $335,000 by choosing a three-bedroom house over a four-bedroom.

Brisbane buyers could save a whopping $175,000 for choosing a two-bedroom house over a three-bedder.

Here’s how much you could save in each capital by buying a two-bedroom home over a three-bedroom property:

  • Brisbane: $174,800

  • Hobart: $139,000

  • Sydney: $92,500

  • Adelaide: $62,750

  • Melbourne: $60,000

  • Perth: $40,000

Here’s how much buyers could save by buying a three-bedroom home over a four-bedder:

  • Sydney: $335,000

  • Hobart: $225,000

  • Adelaide: $172,250

  • Melbourne: $135,000

  • Perth: $133,000

  • Brisbane: $108,700

When comparing houses and units, there were plenty more savings to be made.

All capital cities saw buyers paying more to purchase a two-bed house with the same amount of bedrooms as a unit, which was no surprise. But in Brisbane, it is $21,000 cheaper to get a two-bed house over a unit.

Sydney had the biggest difference, coming in at a cost of $180,000 more to get a two-bed house compared to a two-bed unit.

However, for those looking at three bedrooms, you’ll find it is actually cheaper to get a three-bedroom house compared to a unit in Melbourne and Sydney.

Here’s the price difference between a two-bed house and two-bed unit around the capitals:

  • Sydney: $180,000

  • Melbourne: $145,000

  • Adelaide: $141,750

  • Perth: $85,000

  • Brisbane: -$21,000

Here’s the price difference between a three-bed house and three-bed unit around the capitals:

  • Brisbane: $159,300

  • Canberra: $68,250

  • Adelaide: $42,750

  • Perth: $10,000

  • Melbourne: -$40,000

  • Sydney: -$165,000

Domain property editor Alice Stolz said revising your property wish list could literally save you thousands.

“Compromising on size opens up a lot more possibilities, especially for Australians battling affordability restraints,” Stolz said.

“It can also allow those who are drawn to sought-after suburbs to live where they dream, albeit on a smaller footprint.

“Properties with multiple bedrooms and large floor plans were highly sought after during the pandemic, but now that many people are back in the office or working in a hybrid way, compromising on the number of rooms you want might allow cash-strapped buyers a chance to get onto the property ladder sooner and make the most of the cooling market."

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