Business & Investment

Seven suburbs of Melbourne that are cheaper to buy than rent

No. 2/1 McDonald’s Road is on the market at Epping, and mortgage repayments for common units are cheaper than rent. There is a price guide from $ 395,000 to $ 430,000.

A new study shows that there are only seven places left in the suburbs of Melbourne where mortgage repayments are cheaper than rent.

The shelters for these first homebuyers are Travancore, Carlton, Bandura, Notting Hill, Epping, Sydenham and Truganina, but only for people in the unit market.

PRD Real Estate found that if tenants could save deposits, they would spend less to cover their mortgages with median units than to borrow with these zip codes.

A typical weekly repayment for the hidden gem Travancore property type costs $ 293 — 22 percent cheaper than the median weekly rent of $ 375.

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No. 4/48 Carlton’s Lester Street is on the market with a price guide of $ 600,000 to $ 660,000.

The difference is 16.4 percent ($ 62) for Carlton, 10.6 percent ($ 41) for Bandura, 7.5 percent ($ 26) for Knotting Hill, 5.3 percent ($ 19) for Epping, and 4 percent ($ 15) for Sidenum. is. ..

According to PRD, mortgage payments were 0.1%, slightly more affordable than renting a typical unit in Truganina.

PRD Chief Economist Diaswati Mardiasmo hopes buyers are fighting to enter the Melbourne market as the list expands from just three unit markets (Carlton, Travancore and Notting Hill) in 2020. He said he proved that he remained. Affordable prices were getting worse..

However, while some suburbs were added to the list due to the fall in median home prices (Sydenham, Epping, Bundoora), other suburbs were included as a result of higher rents.

“Affordability for rent is declining, so if you can buy it, that’s what you want to do,” said Dr. Mardiasmo.

“People will say,’We have to pay the deposit and the stamp duty.’ But from a long-term perspective, that can make up for it.”

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She has the advantage of owning a home, gaining capital growth in your real estate, improving your credit rating and stocks to support future real estate purchases and loans, and “independent of what the landlord wants to do”. Said there is.

Interest rates were also at record lows, and the Reserve Bank of Australia maintained its cash rate at 0.1% this week as well.

“If it’s possible to get into the market … it’s time to do that,” she said.

Kieran Moloney, an agent at Jellis Craig, said affordability was Travancore’s main draw card, along with an inventory of apartments and a healthy supply of suburban locations.

“Travancore is mainly made up of units, and if you are the second or third purchaser of a new apartment there, you can buy well,” he said.

“We were able to get a two-bedroom apartment for mid- $ 300,000 compared to the one that sold the plan for nearly $ 500,000. Therefore, mortgages, if not cheaper, It is equivalent to rent and does not take into account corporate fees. “

No. 8/45 Travancore’s Flemington Street offers affordable asking prices ranging from $ 450,000 to $ 490,000.

Moloney said capital gains are usually not as strong in new apartments as in the old blocks of boutiques, but they did a good job for those looking to buy their first home on a tight budget.

“Not many people know where Travancore is,” he said.

“But you are on the outskirts of the city. The tram goes past the (Parkville) hospital to the city. You can walk to three different train stations and the City Link entrance is just around the corner.

“And there are plenty of apartments. By comparison, if you go to the next suburbs of Flemington, you’ll be able to count the number of apartments available.”

PRD is ashamed that some other zip codes are cheaper to own than rent due to differences in mortgage and rent payments in units below the median in Millpark, BroadMedose and Flemington. I found that there is.

In the housing market, the gap is the smallest in Dallas (usually 13.8% higher mortgage repayments), Meadow Heights (17.9%) and Rocksbara Park (24.3%).

The analysis is based on the NAB Mortgage Calculator, assuming a median purchase price of 2.99% principal and interest rate comparison rate, 30 year loan term, 20% deposit, stamp duty and other fees. Is not included.

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Buy cheaper than rent

Suburbs / Mortgage and Rent Difference / Weekly Mortgage Repayment / Weekly Rent

Travancore (unit): -21.9% / $ 293 / $ 375

Carlton (unit): -16.4% / $ 318 / $ 380

Bandura (unit): -10.6% / $ 344 / $ 385

Notting Hill (unit): -7.5% / $ 352 / $ 380

Epping (unit): -5.3% / $ 341 / $ 360

Sydenham (unit): -4% / $ 355 / $ 370

True Ganina (Unit): -0.1% / $ 365 / $ 365

Gap between minimum purchase and rental

Suburbs / Mortgage and Rent Difference / Weekly Mortgage Repayment / Weekly Rent

Mill Park (Unit): 2.1% / $ 373 / $ 365

BroadMedose (Unit): 4.1% / $ 375 / $ 360

Flemington (unit): 10.2% / $ 386 / $ 350

Dallas (house): 13.8% / $ 421 / $ 370

Meadow Heights (Home): 17.9% / $ 442 / $ 375

Balwin (unit): 19.3% / $ 537 / $ 450

Ashwood (unit): 20.3% / $ 716 / $ 595

Roxburgh Park (house): 24.3% / $ 510 / $ 410

Derai (house): 28.7% / $ 502 / $ 390

Black lock (unit): 30% / $ 748 / $ 575

Source: PRD Real Estate, January 1st-March 31st

Seven suburbs of Melbourne that are cheaper to buy than rent Seven suburbs of Melbourne that are cheaper to buy than rent

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