If you’re currently renting a one-bedroom apartment in Carlton, then it’s actually cheaper to buy the property than rent it.
With rents up and interest rates down, mortgage repayments can be lower than rents in some Melbourne suburbs, according to the Real Estate Institute of Victoria.
New REIV data shows that 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.
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.
A one-bedroom apartment in Noble Park, where mortgage repayments on a $185,000 property are $195 a week, has rent of $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 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 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.
Source: REIV.
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