Melbourne suburbs where it’s cheaper to buy than rent

Written by realestateview.com.au in Renting on September 8, 2016

Melbourne 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 $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%

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.”

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