2016 Victorian hotspots announced
A peak real estate industry body has released its investment predictions for the year ahead.
The Real Estate Institute of Victoria has revealed the suburbs in Melbourne where it costs less to own property than to rent.
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According to the REIV, there are a "number of investment hotspots" across Melbourne where the cost of weekly mortgage repayments is less than rental return.
The inner-north suburb of Carlton and the actual Melbourne CBD are such examples, according to the REIV.
"One of the best value investment areas is Carlton, where investors can repay the mortgage on a $210,000 one-bedroom property for just $221 a week; while the median weekly rent in the suburb is $135 more, at $356 a week," a release from the institute said.
"And, 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."
Carrum Downs, 36 kilometres south east of the CBD, also received a mention.
"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," the release stated.
The figures used by the REIV 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.
The full table of hotspot suburbs can be found below.
|
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
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