Melbourne suburbs where it's cheaper to buy than rent
Date: 8 Sep 16
If you’re currently renting a one-bedroom apartment in Carlton, then it’s actually cheaper for you to buy the property than continue renting.
New REIV data shows that tenants can repay the mortgage on a $215,000 one-bedroom property for just $226 a week - $149 less than the suburb’s median weekly rent of $375.
With a median apartment price of $328,000, one-bedroom apartments in Melbourne are also more affordable to buy than rent with weekly mortgage repayments of $345 - $50 less than the weekly median rent of $395.
Other suburbs offering value for money include one-bedroom apartments in Noble Park where mortgage repayments on a $185,000 property are $195 a week while the median rent for the same property type is $215 – a $20 weekly difference.
These figures are based on median house prices by bedroom, a 10 per cent deposit and a three-year, fixed interest rate of 4.5 per cent.
REIV CEO Geoff White said first home buyers are taking advantage of the low interest rate environment to enter the market at a price they can afford.
“One and two-bedroom apartments allow first home buyers to get a foothold on the property ladder for about the same amount they are currently paying in rent,” he said.
“Savvy buyers should also consider four-bedroom properties in Melton South, where the median house price is $290,000 and mortgage repayments are $15 cheaper per week than the median rent.”
TOP MELBOURNE SUBURBS TO BUY RATHER THAN RENT:
Suburb |
Dwelling Type |
Weekly Mortgage (Fixed) |
Weekly Median Rent (Jun 2016) |
Median Price (Jun 2016) |
CARLTON |
1-bedroom unit |
$226 |
$375 |
$215,000 |
MELBOURNE |
1-bedroom unit |
$345 |
$395 |
$328,000 |
NOBLE PARK |
1-bedroom unit |
$195 |
$215 |
$185,000 |
MELTON SOUTH |
4-bedroom house |
$305 |
$320 |
$290,000 |
DANDENONG |
1-bedroom unit |
$211 |
$220 |
$200,500 |
DOCKLANDS |
1-bedroom unit |
$442 |
$450 |
$420,000 |
MELTON |
3-bedroom house |
$268 |
$275 |
$255,000 |
MITCHAM |
1-bedroom unit |
$305 |
$310 |
$290,000 |