The top 14 Melbourne suburbs where it's cheaper to buy than rent: REIV

The top 14 Melbourne suburbs where it's cheaper to buy than rent: REIV
The top 14 Melbourne suburbs where it's cheaper to buy than rent: REIV

New REIV data shows that tenants can repay the mortgage on a $210,000 one-bedroom Carlton 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:

 

Suburb Dwelling Type Weekly Mortgage (Fixed) Weekly median rent (Sep 2015) Median Price (Sep 2015)
         
PAKENHAM 3-bedroom unit $294 $300 $280,000
CARLTON 1-bedroom unit $221 $356 $210,000
MELBOURNE 1-bedroom unit $352 $401 $335,000
SOUTHBANK 1-bedroom unit $447 $465 $425,000
Noble Park 1-bedroom unit $201 $210 $191,000
MITCHAM 1-bedroom unit $303 $310 $288,000
ASCOT VALE 1-bedroom unit $265 $270 $252,125
CARRUM DOWNS 2-bedroom unit $282 $310 $267,750
SUNSHINE 2-bedroom unit $289 $310 $275,000
PAKENHAM 2-bedroom unit $264 $273 $251,000
WERRIBEE 2-bedroom unit $246 $250 $234,000
CRAIGIEBURN 2-bedroom unit $292 $295 $278,000
MELTON SOUTH 3-bedroom House $257 $265 $244,000
MELTON 3-bedroom House $258 $260 $245,000

 

Source: REIV

Tags: 
Melbourne Residential Market

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