The top 14 Melbourne suburbs where it's cheaper to buy than rent: REIV
New REIV data shows that tenants can repay the mortgage on a $210,000 one-bedroom Carlton property for just $221 a week - $135 less than the suburb’s median weekly rent of $356.
With a median apartment price of $335,000, one-bedroom apartments in Melbourne are also more affordable to buy than rent with weekly mortgage repayments of $352 - $49 less than the weekly median rent of $401.
Other suburbs offering value for money include two-bedroom apartments in Carrum Downs where mortgage repayments on a $267,750 property are $282 a week while the median rent for the same property type is $310 – a $28 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 Enzo Raimondo 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 what they are currently paying in rent,” he said. “Savvy buyers should also consider two-bedroom properties in Sunshine, where the median apartment price is $275,000 and mortgage repayments are $21 cheaper per week than the median rent.”
TOP Melbourne SUBURBS TO BUY RATHER THAN RENT:
| Suburb | Dwelling Type | Weekly Mortgage (Fixed) | Weekly median rent (Sep 2015) | Median Price (Sep 2015) |
| Pakenham | 3-bedroom unit | $294 | $300 | $280,000 |
| CARLTON | 1-bedroom unit | $221 | $356 | $210,000 |
| Melbourne | 1-bedroom unit | $352 | $401 | $335,000 |
| Southbank | 1-bedroom unit | $447 | $465 | $425,000 |
| Noble Park | 1-bedroom unit | $201 | $210 | $191,000 |
| MITCHAM | 1-bedroom unit | $303 | $310 | $288,000 |
| Ascot Vale | 1-bedroom unit | $265 | $270 | $252,125 |
| Carrum Downs | 2-bedroom unit | $282 | $310 | $267,750 |
| SUNSHINE | 2-bedroom unit | $289 | $310 | $275,000 |
| Pakenham | 2-bedroom unit | $264 | $273 | $251,000 |
| Werribee | 2-bedroom unit | $246 | $250 | $234,000 |
| CRAIGIEBURN | 2-bedroom unit | $292 | $295 | $278,000 |
| MELTON SOUTH | 3-bedroom House | $257 | $265 | $244,000 |
| MELTON | 3-bedroom House | $258 | $260 | $245,000 |
Source: REIV
