Authored by the expert who managed and guided the team behind the Australia Property Pack
Everything you need to know before buying real estate is included in our Australia Property Pack
As of September 2025, the Australian property market presents a complex decision point for potential buyers and renters.
With median house prices reaching over $1 million in Brisbane and mortgage rates sitting around 5-6%, the financial calculations between renting and buying have shifted significantly. Weekly rental costs for a typical 3-bedroom house now average $692 in Brisbane, while mortgage repayments on the same property type would be approximately $1,021 per week, creating a substantial gap that affects the rent-versus-buy equation for most Australians.
If you want to go deeper, you can check our pack of documents related to the real estate market in Australia, based on reliable facts and data, not opinions or rumors.
Renting currently costs about $692 per week for a 3-bedroom house in Brisbane, while buying the same property requires $204,000 upfront and $1,021 weekly mortgage payments.
The total cost difference makes renting approximately $17,000 cheaper annually before considering opportunity cost of the deposit and ongoing ownership expenses.
| Factor | Renting (3-bed house) | Buying (3-bed house) |
|---|---|---|
| Weekly Cost | $692 | $1,021 (mortgage only) |
| Monthly Cost | $2,997 | $4,432 + $1,100 (ownership costs) |
| Upfront Investment | $2,800 (bond) | $246,000+ (deposit + costs) |
| Annual Total Cost | $35,964 | $66,284 |
| Flexibility | High mobility | Limited (selling costs 3-5%) |
| Capital Growth | None directly | 6-8% annually |
| Investment Opportunity | $204,000 in other assets | Property equity building |
How much would I actually spend per week renting the type of home I want in the area I'd live in?
Weekly rental costs in Australia vary significantly by city and property type as of September 2025.
In Brisbane, a 3-bedroom house typically costs $692 per week to rent, while the overall median for houses sits at $775 weekly. For apartments, expect to pay around $614 per week for a 3-bedroom unit.
Sydney commands the highest rents with 3-bedroom houses averaging $950-$1,100 per week, while Melbourne sits at $750-$850 weekly. Perth offers more affordable options at $650-$750 per week for similar properties.
These figures represent median market rates, meaning actual costs depend heavily on specific suburbs, property condition, and proximity to transport and amenities.
How much would I need to save upfront for a home deposit, stamp duty, and other buying costs in my city?
The upfront costs for purchasing property in Australia are substantial and vary by state and purchase price.
For a typical $1,020,000 house in Brisbane, you'll need a 20% deposit of $204,000 to avoid Lenders Mortgage Insurance (LMI). First-home buyers can sometimes secure loans with 5-10% deposits through government schemes, though this adds LMI costs of $15,000-$25,000.
Stamp duty in Queensland for this property would be approximately $39,175, calculated on a sliding scale. However, first-home buyers purchasing new homes receive full stamp duty concessions as of May 2025. Other states have different rates: NSW charges around $40,000-$45,000, while Victoria levies approximately $55,000-$60,000 for similar properties.
Additional costs include conveyancing ($1,200-$2,500), building and pest inspections ($800-$1,200), loan establishment fees ($600), and government registration fees ($500). Total upfront costs typically range from $246,000 to $258,000 for established buyers, excluding first-home buyer concessions.
What's the average purchase price of the kind of property I want in Sydney, Melbourne, Brisbane, or Perth right now?
| City | 3-Bedroom House (Median) | 3-Bedroom Apartment (Median) |
|---|---|---|
| Sydney | $1,650,000 - $1,750,000 | $950,000 - $1,100,000 |
| Melbourne | $1,200,000 - $1,350,000 | $750,000 - $850,000 |
| Brisbane | $1,020,000 - $1,070,000 | $710,000 - $747,000 |
| Perth | $850,000 - $950,000 | $550,000 - $650,000 |
| Adelaide | $750,000 - $850,000 | $450,000 - $550,000 |
| Canberra | $1,100,000 - $1,200,000 | $650,000 - $750,000 |
| Darwin | $650,000 - $750,000 | $400,000 - $500,000 |
What would my monthly mortgage repayments be if I borrowed the amount I need at today's interest rates?
Mortgage repayments in September 2025 reflect current interest rates ranging from 4.99% to 6.33% for owner-occupier variable loans.
For an $820,000 loan (after a 20% deposit on a $1,020,000 Brisbane property) at 5.1% over 30 years, monthly principal and interest repayments would be approximately $4,432. This translates to $1,021 per week.
Investment loan rates typically sit 0.3-0.5% higher, increasing monthly repayments by $130-$220. Fixed rates are currently available at 5.8-6.2% for 1-3 year terms, offering payment certainty but generally higher costs than variable rates.
Banks stress-test borrowing capacity at rates 3% above the loan rate, meaning you must demonstrate ability to service repayments at around 8-9% interest rates before approval.
How do those repayments compare to the current median rent for a similar property in the same area?
The gap between mortgage repayments and rental costs has widened significantly across Australian cities in 2025.
In Brisbane, weekly mortgage repayments of $1,021 substantially exceed median rent of $692 for comparable 3-bedroom houses. This $329 weekly difference amounts to $17,108 annually before considering other ownership costs.
Sydney shows an even larger gap, with mortgage repayments on a $1.4 million median house reaching $1,400-$1,500 weekly versus rental costs of $950-$1,100 weekly. Melbourne and Perth follow similar patterns, though Perth offers the smallest gap due to lower purchase prices relative to other capitals.
This disparity means renters can achieve the same lifestyle accommodation for significantly less weekly outgoings, freeing up cash flow for other investments or expenses.
It's something we develop in our Australia property pack.
What are the likely extra ongoing costs of owning, like council rates, insurance, maintenance, and strata fees?
Property ownership involves substantial ongoing costs beyond mortgage repayments that renters don't face.
Council rates in Brisbane average $1,800 annually for houses, having increased 3.9% year-on-year. Building and contents insurance typically costs $1,200-$1,500 annually for houses, with premiums rising due to increased weather events and building costs.
Maintenance represents the largest variable cost, with financial planners recommending 1-2% of property value annually. For a $1 million home, budget at least $10,000-$20,000 yearly for repairs, renovations, and upkeep. Older properties often exceed this figure significantly.
Apartment owners face additional strata fees averaging $4,000-$6,000 annually, covering building maintenance, insurance, and common area upkeep. These fees can reach $8,000-$12,000 in premium complexes with extensive facilities.
Total annual ownership costs typically add $13,000-$25,000 to your housing expenses beyond mortgage repayments.
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If I rent instead, how much could I realistically save or invest each year with the money I don't tie up in a deposit?
The opportunity cost of using $204,000-$258,000 as a property deposit versus alternative investments is significant in current markets.
Investing this amount in diversified index funds historically returning 7-8% annually could generate $14,000-$20,000 in investment income. Conservative term deposits at 4.5-5% would yield $9,000-$13,000 annually with lower risk.
Additionally, the $17,000+ annual difference between mortgage repayments and rent provides further investment capacity. Combined with the deposit opportunity cost, renters could potentially accumulate $26,000-$37,000 annually in investment returns.
However, this assumes disciplined investment behavior and doesn't account for the psychological difficulty many people face in maintaining investment discipline versus forced savings through mortgage repayments.
What's the recent and projected growth rate of property prices in the area I'm considering buying in?
Australian property markets experienced varied growth patterns in 2024-2025, with forecasts showing continued but moderating increases.
Brisbane house prices grew 6.5-8.7% in the past 12 months, driven by interstate migration and infrastructure investment. Sydney and Melbourne showed more modest growth of 3-5% after previous peaks, while Perth experienced strong recovery with 8-12% annual growth.
Forward projections for 2025-2026 suggest Brisbane will continue growing at 3-7.4% annually, supported by population growth and the 2032 Olympics infrastructure boom. Sydney and Melbourne are forecast for 2-4% growth, constrained by affordability limits and higher interest rates.
These growth rates must be weighed against the carrying costs of ownership, which can consume 3-5% of property value annually through rates, insurance, maintenance, and mortgage interest.
How stable is my income and job security, and could I comfortably manage mortgage repayments if rates rise by 1–2%?
Income stability is crucial for mortgage sustainability, particularly given Australia's variable rate lending market where most borrowers face immediate rate changes.
A 1% interest rate increase would add approximately $550 monthly to repayments on an $820,000 loan, while a 2% increase adds $1,100 monthly. This stress-testing reveals whether your current income can absorb significant payment increases.
Financial advisors recommend ensuring mortgage repayments don't exceed 28-30% of gross household income, even after potential rate rises. Borrowers should also maintain 3-6 months of repayments in emergency funds.
Job security considerations include industry volatility, contract versus permanent employment, and dual-income household dependency. The current economic environment shows increased redundancies in technology and retail sectors, while healthcare, education, and essential services remain more stable.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Australia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
If I plan to move in the next five years, how much would buying and then selling actually cost me once I include agent fees and taxes?
Short-term property ownership in Australia involves substantial transaction costs that can erode any capital gains.
Selling costs typically include real estate agent commissions (2-3% of sale price), legal fees ($1,500-$3,000), marketing expenses ($2,000-$5,000), and potential capital gains tax for investment properties. On a $1.02 million property, total selling costs range from $25,000-$40,000.
Combined with initial purchase costs of $42,000-$50,000 (stamp duty, legal, inspections), total transaction costs reach $67,000-$90,000. Property must appreciate by at least 7-9% just to break even on transaction costs alone.
Given current growth forecasts of 3-7% annually, properties held less than three years may struggle to cover transaction costs, making renting more financially sensible for shorter timeframes.
It's something we develop in our Australia property pack.
Are there government schemes or first-home buyer incentives available in my state that would reduce my costs right now?
Several government schemes can significantly reduce first-home buyer costs across Australian states as of September 2025.
- Home Guarantee Scheme: Enables purchases with 5-15% deposits, avoiding LMI for qualifying buyers
- Queensland: Full stamp duty waiver for new homes, partial concessions for established homes under $550,000
- NSW: First Home Buyers Assistance Scheme provides stamp duty concessions up to $25,000
- Victoria: First Home Owner Grant of $10,000 for new homes, plus stamp duty concessions
- Western Australia: Keystart low-deposit loans and stamp duty rebates up to $19,000
Eligibility typically requires Australian citizenship or permanent residency, income limits ($125,000-$200,000 depending on state), and property price caps. These schemes can save $20,000-$60,000 in upfront costs.
Additionally, the shared equity schemes in some states allow government co-investment, reducing individual deposit requirements further.
What's my long-term lifestyle goal—do I want flexibility to move, or the security of owning and building equity in Australia?
Your lifestyle priorities fundamentally determine whether renting or buying aligns with your personal and financial goals.
Renting provides maximum flexibility for career changes, travel opportunities, and lifestyle experimentation. Young professionals, temporary residents, and those uncertain about long-term location preferences often benefit from rental flexibility, particularly in Australia's mobile job market.
Property ownership offers psychological security, protection against rent increases, and forced savings through mortgage repayments. Families seeking stability, those planning long-term residence (7+ years), and individuals prioritizing wealth building through real estate often prefer ownership despite higher costs.
Consider also the emotional and practical aspects: maintenance responsibility, renovation freedom, pet ownership policies, and the stress of mortgage obligations versus rental uncertainty.
Current market conditions favor renting for financial optimization, but ownership may provide better outcomes for those prioritizing security and long-term wealth accumulation through property.
It's something we develop in our Australia property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
The rent versus buy decision in Australia in September 2025 clearly favors renting for most financial scenarios, particularly for those planning to move within five years or seeking to maximize investment flexibility.
However, buyers with stable long-term income, access to first-home buyer incentives, and strong preference for security may still find property ownership worthwhile despite the higher immediate costs and opportunity costs of capital.
Sources
- SQM Research - Brisbane Weekly Rents
- BambooRoutes - Average Rent Australia
- Mozo - Average Rent in Australia
- OpenAgent - Brisbane Property Market
- Domain - House Price Report March 2025
- BambooRoutes - Average Property Price Brisbane
- Canstar - Home Loans
- Money.com.au - QLD Stamp Duty Calculator
- Property Council - Brisbane Council Budget 2025-26
- Finder - Low Deposit Home Loans
-Australia: Fixed or Variable Mortgage - Which is Better?
-Are Australia Property Prices Still Affordable?
-Australia House and Land Packages: Are They Worth It?
-Australia Strata Fees: How Much and What's Included?
-How to Buy at Auction Confidently in Australia
-Australia: Best Time of Year to Buy Property
-Australia Negative Gearing: Who Really Benefits?
-Australia Land Tax: What Investors Should Know