Dimboola leads the regional Victorian suburbs where it is cheaper to buy than rent: RP Data
The regional Victorian town of Dimboola, near the South Australian border, leads the regional Victorian list compiled by RP Data of suburbs where it is cheaper to buy a house than to rent one.
The median house asking rent in Dimboola is $160 a week.
RP Data estimates it is $83 cheaper per month to buy a house with a principal and interest variable mortgage than rent one in Dimboola.
Tenanted houses listed for sale in Dimboola include this three-bedroom house on Anderson Street (pictured below), being sold by Wes Davidson Real Estate with a listing price of $90,000.
The property is currently rented at $150 per week or $684 per month.
With 10% deposit, borrowing $81,000 on a 25-year mortgage at an interest rate of 6.25% would mean monthly mortgage repayments of around $635 per month.
Another savings opportunity is on offer for buyers of this three-bedroom bungalow on Ellerman Street (pictured below), which is up for sale at $79,900 by North West Real Estate.
With a 10% deposit, borrowing $72,000 on a 25-year mortgage at an interest rate of 6.25% would mean monthly mortgage repayments of around $575 per month.
RP Data compared the cost of a mortgage vs the cost of renting in four different ways: 1, Principal and interest loan on a variable mortgage rate; 2. Interest-only loan on a variable mortgage rate; 3. Principal and interest loan on a three-year fixed mortgage rate; and 4. Interest-only loan on a three year fixed mortgage rate.
The data contains both units and houses, but in most suburbs on the list it is cheaper to rent a unit than buy one.
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