The Melbourne suburbs where buying is cheaper than renting: RP Data

Cassidy KnowltonAugust 28, 2012

The inner-Melbourne suburb of Carlton is the top Melbourne suburb on a list compiled by RP Data of suburbs where it is cheaper to buy a unit than to rent one.

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 buy a unit than buy one.

The comparison does not take into consideration stamp duty, associated buying costs and strata fees, where applicable.

The median unit asking rent for Carlton is $400 a week, according to RP Data, which estimates it  is $307 a month cheaper to buy a unit with a principal and interest variable mortgage than rent one.

Click to enlarge

For the full list of all suburbs, visit RP Data's website.

Editor's Picks

DeMartini Fletcher launches Corner House apartments in Stones Corner
First look: BPG Developments returns to Palm Beach new apartment market
Why the value proposition of Marrickville's Wick Place apartments will be hard to repeat
Three new parks to bring more nature to Melrose Park
Golden Sedayu establishes Golden Sedayu Construction to deliver landmark Burswood Point masterplan