It is cheaper to buy a unit in Bacchus Marsh or Melton than it is to rent, according to a new report commissioned by Aussie Home Loans.
When it comes to houses, it is also cheaper to pay a mortgage than rent in Melton.
The CoreLogic figures are based on homeowners paying a 10 per cent deposit and borrowing the remainder.
The report said the current median value of a unit in Bacchus Marsh was $336,608 and based on that, renters would typically pay $1356 a month.
But if you bought the unit and paid the loan back over 30 years, you would be paying $1174 a month on a 3-year fixed loan (2.35 per cent as of September 2020) – saving a whopping $183.
The difference in Melton was not quite as dramatic, but still represented good value, with a unit setting you back $323,119 (median).
Renting would cost you $1323 a month.
Buying on a 3-year fixed rate would mean paying just $1126 in mortgage payments.
Units in Ballarat were also cheaper to buy than rent.
With the median price at $295,783 and rent at $1281, variable repayments (3.65 por cent as of September) were just $1218 a month and 3-year fixed rates at $1031.
And when it comes to houses, it’s well worth becoming a homeowner in central Melton.
The median house price is $389,135, with rent setting you back $1463 a month.
Taking out a monthly repayment on a 3-year fixed loan will only cost you $1357.
That’s $106 a month in your pocket.
Melton South houses have a median price of $417,770 and typically cost $1490 a month to rent.
But signing up to a mortgage on a 3-year fixed rate of interest will cost just $1456 – putting a whopping $291 back in your wallet.
Hastings on the Mornington Peninsula was also a place where buying was cheaper than renting, according to the report.
They are among 28 per cent of Melbourne suburbs where it is cheaper to pay down a home loan than rent.
Aussie Chief executive James Symond said the findings should inspire many Australians to get off the rental treadmill.
“Right now 8 million Australians are renting the home they live in – and they’re renting for longer,” he said.
“Today’s low rates coupled with generous first home buyer incentives could be the key that allows aspiring home-owners to break out of the rent cycle.”
But in Cobblebank it might pay to keep renting.
The report said the median price of a house was $481,041 – with the average monthly rental costing $1629.
A 3-year-fixed loan will cost you $1677 and a variable loan will set you back $1981.
Kurunjang was another suburb where renters came out on top financially.
The median value of houses is $444,667 with rental costing $1540 a month.
The 3-year-loan would mean you pay $1550 – or just $10 a month more.
RELATED STORY: Megan Gale and Shaun Hampson buy Daylesford retreat
RELATED STORY: A good ‘shot’ of coffee – literally!
** Tips: firstname.lastname@example.org