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.

Sunrise over Darley and Bacchus Marsh

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.

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Gabrielle Hodson
Author: Gabrielle Hodson

Online, radio, TV and print journalist since 1993. BA (Hum) majoring in journalism Deakin University. Send us a news tip 🙂