@Domain’s recent analysis has highlighted some surprising statistics around our nations mortgage Vs rental market, begging the question – is it in fact cheaper to buy than rent? If so, in which areas?
Nationally, the study found that it is cheaper to pay off a mortgage than rent in 13.8% of suburbs for houses and 21% of suburbs for units, however – our Melbourne market runs a bit differently!
“Sydney and Melbourne continue to prove to be the outliers, where renters are certainly obtaining the benefit of a lower upfront spend than mortgage holders. While units in Darwin are cheaper to
BUY then rent in 82.1% of suburbs, Sydney and Melbourne are both cheaper to rent.”
In Melbourne specifically, it is only cheaper to buy a UNIT in 1.5% of suburbs, with 100% of suburbs in Melbourne found to be cheaper to rent a HOUSE.
For our Victorian investors looking at their next purchase – let’s break down exactly WHERE is it cheaper to buy, than it is to rent.
The Melbourne suburbs that are cheaper to buy a UNIT:
- Travancore
- Albion
- Essendon North
- Carlton
The regional Victorian suburbs that are cheaper to buy a HOUSE:
- Stratford
- Kerang
- Maffra
- Red Cliffs
- Mooroopna
“Opting to rent appears to be more cost-effective on a weekly basis in locations with more expensive median purchase prices.”
Does this information surprise you?
Fantastic insights from @Domain as always, click the link below to read the full report.
https://www.domain.com.au/research/is-it-cheaper-to-rent-or-buy-1181416
