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10 Nov, 2020

Is Buying A Home Now Cheaper Than Renting In Melbourne?

Buying a home in a cosmopolitan city like Melbourne has always been a milestone and a vital part of investment strategy. Finding a suitable residential property in the hotspot of a capital city requires a lot of financial resources and research work. However, historic low-interest rates and new Government strategies made it easier for people to buy homes.

Believe it or not, purchasing a home has become cheaper than renting in Melbourne – thanks to the low mortgage repayments and government grants. It is a golden opportunity for tenants to move into their own homes. You can research the residential property market or take assistance from a real estate agent and move into home-ownership.

If you have small kids or moving for the first time, consider hiring professional removalists in Melbourne. They will pay special attention to your valuable possessions and help you transit the belongings without causing any damage.

However, if you want to know the reasons behind this drastic change in Melbourne’s real estate market, then keep on reading the article.

Why Buying a Home Now is Cheaper?

According to real estate experts and property investors, purchasing a property right now has become much cheaper than to rent in big cities like Melbourne and Sydney.  It was around 55 per cent cheaper than renting because there is a drop in monthly mortgage repayments and low-interest rates.

The reason behind lower interest rates is due to COVID-19 pandemic. The current lending interest rate of 2.19 per cent is encouraging tenants to buy homes in the top locations in Melbourne.

Apart from this, attractive Government grants, such as Home-Builder Scheme and First Home Owners contribution have been pushing people to invest their money in the residential property market.

If renters/tenants can get hold of around 5 per cent for a security deposit, then this is the best time to buy a residential property in and around the city.

Where to Buy a Home in Melbourne?

Deciding the location is one of the difficult tasks when it comes to buying a residential property in the capital city of Victoria. However, the new government grants and lower interest rates put potential homebuyers in a stable financial position than ever.

If you are looking to buy a home in and around Melbourne, then have a look at the following suburbs. Here buying is much cheaper than renting and you will get high-class amenities and local facilities.

1. Rockbank

Rockbank is an outer suburb, located 29 km west of city’s CBD. The suburb offers everything- from nearby private and public schools to hospitals, parks to shopping centres, etc. It is one of the ideal places to live and study if you are moving from a rental property.

The average rent for a three-bedroom house is around $360/wk while the purchasing price is around $400,000. The deposit is 5 per cent- which means you can now think of buying your own home because the interest rate is extremely low after decades. The lower interest rate will allow you to pay monthly mortgage repayments without any financial burden.

2. Craigieburn

It is a beautiful, vibrant and well-grown area situated in the north of Melbourne. Craigieburn boasts of new-age shopping centres, new developments, sports centres, parks, public schools, hospitals, etc.

The median house price in this suburb is around $550,000, and the unit price is $385,000. If you are moving from a rental property to a new house, make sure you hire the experienced removals company in Melbourne who can transit your belongings with extreme care.

3. Melton

Melton is a well-developed suburb located 37 km west of city’s Central Business District. Instead of renting, you can buy a home at the most affordable rate. The suburb is best known for its nearby schools, medical facilities, parks, sports centres, residential properties, local markets, restaurants, etc.

The median house price in Melton is $410,000 while the unit sells for $310,000, which is also very cheap.

Despite economic deterioration, the real estate market continues to go up in value over time. The COVID-19 pandemic will pass, the economy will bounce back, and before the property prices will get out of reach, it is good to make the home buying decision on time. Do thorough market research, look for the best options and fulfil the dream of buying your own home at the best price.

Conclusion

Buying a home right now is cheaper than renting in Melbourne due to new government grants and lower interest rates. This all happened because of COVID-19 pandemic. If you are living in a rental property and planning to buy a new home, this is the right time for you.

Discover the attractive interest rates, and compare security deposits and monthly mortgage repayments before making the final decision. If you are moving to a new place, hire professionally-trained removalists in Melbourne for a safe and sound experience.