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