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Buying Smaller Can Achieve Big Savings

One way home-buyers can make big savings is to compromise on the size of home they want to buy.

Analysis in the Domain House Price Report for the September Quarter shows buyers can save up to $335,000 if they opt to buy a three-bedroom house instead of a four-bedroom house.

In Sydney the median price for four-bedroom houses is 335,000 more than the median for three-bedroom houses.

In Hobart the gap is smaller but still significant at $225,000, Adelaide $172,250, Melbourne $135,000, Perth $133,000 and Brisbane $108,700.

Real Estate economist Diaswati Mardiasmo says financially it is a worthwhile compromise for younger home-buyers.

“When we look at the cost of living, mortgages are getting more expensive,” she says.

When it comes to the unit market, home-buyers in almost all capital cities will pay more for a two-bedroom house than a two-bedroom unit.

Sydney had the biggest difference of $180,000, followed by Melbourne’s $145,000 and Perth’s $85,000.

It was only in Brisbane where a two-bedroom house was cheaper than a two-bedroom unit by $21,000.


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