Suburbs where it's cheaper to buy than rent

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 $210,000 one-bedroom property for just $221 a week - $135 less than the suburb’s median weekly rent of $356. 

With a median apartment price of $335,000, one-bedroom apartments in Melbourne are also more affordable to buy than rent with weekly mortgage repayments of $352 - $49 less than the weekly median rent of $401.

Other suburbs offering value for money include two-bedroom apartments in Carrum Downs where mortgage repayments on a $267,750 property are $282 a week while the median rent for the same property type is $310 – a $28 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 Enzo Raimondo 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 what they are currently paying in rent,” he said. “Savvy buyers should also consider two-bedroom properties in Sunshine, where the median apartment price is $275,000 and mortgage repayments are $21 cheaper per week than the median rent.”

TOP MELBOURNE SUBURBS TO BUY RATHER THAN RENT: