In some Melbourne suburbs, buying units is cheaper than renting: REIV
If you are renting a one-bedroom apartment in Carlton, an inner city suburb of Melbourne, it might actually be cheaper for you to buy the property than continue renting, says new REIV data.
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, according to the data.
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.
Even in Noble Park, mortgage on a $185,000 one-bedroom apartment is $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 low interest rates 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.”
Property Observer found a few examples of one-bedroom apartments up for sale on www.realestate.com.au such as the ones cited by REIV.
1. A one bed unit in 6219/570 Lygon Street Carlton Vic 3053 is up for sale for $229,000
2. A two-bedroom property at 5/28 Toolern Street Melton South Vic 3338, has an asking price range of $229,000 - $239,000.