Paying Rent? Here Are Suburbs Where A Mortgage Is Cheaper!

Source: REIV  3aw audio of discussion please click here.

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: