Daily Bulletin

Men's Weekly

.

Melbourne suburbs where it’s cheaper to buy than rent



This week, Paul Bird from the REIV issued a media release that put a spotlight on those Melbourne suburbs where people should consider the economics of buying as opposed to renting.


"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

 

Property Spectator sought an opinion from prominent Melbourne real estate identity, Jeff Grochowski from Accrue Real Estate, on the issue of "Renting Verses Buying"

Jeff is actively involved in marketing residential property in Melbourne.

Mr. Grochowski's opinion was that "Wise renters should save every Dollar and capitalise on the historically low interest rates to get even a modest property."

Jeff went on to say that Australia has never seen interest rates at the present low and they do not appear to be going up anytime soon.

Property Spectator agrees with REIV and Accrue Real Estate that it is possible to buy a property with 20% deposit and pay a mortgage for less money than weekly rental.

Jeff Grochowski counselled people to be flexible with the location that they consider when buying a property and be prepared to move a little further into the suburbs where there is more scope to get a property on its own land as opposed to an inner city apartment.

"Low interest rates mean that people buying their first property can lock in weekly payments for at least five years, whereas rents will increase in five years."


Business News

How to Extend the Lifespan of Your Conveyor System

It’s easy to forget your conveyor is even there, until it stops. And when it does, you’re in a world of delayed orders, unexpected downtime, and one very expensive headache. But the good news is tha...

Daily Bulletin - avatar Daily Bulletin

Virtual CFO Hiring Checklist: 10 Expert Tips in Australia

Hiring a Virtual CFO (VCFO) is no longer just reserved for large corporations. In today’s business environment, where agility, compliance, and strategic foresight are essential, Australian startups...

Daily Bulletin - avatar Daily Bulletin

Top Mistakes to Avoid When Hiring Office Removalists in Perth

Moving a workplace is more than shifting workstations and computers; it is a complex project that can affect staff morale, customer service and revenue if it goes off-track. Perth’s commercial prope...

Daily Bulletin - avatar Daily Bulletin

LayBy Deals