Places in Melbourne Where it’s Cheaper to Own than Rent

A new analysis of house price data demonstrates that paying a mortgage on an apartment in Melbourne’s central business district could save up to $79 a week when compared to renting in the same home.

For housing in Balwyn or Toorak, however, investors may be better off renting with mortgage repayments being $1278 and $1788 more expensive than paying rent every week.

When comparing the median weekly rents and mortgage repayments across Melbourne suburbs, including the newest interest rate cuts. The study assumed that people had a 20 percent deposit saved and did not incur the added costs including council rates or owners corporation fees. 

The study showed it was cheaper to pay a weekly mortgage than rent in other inner suburbs including Southbank, Windsor, Carlton and Collingwood. This means that investors could save between $19 and $41 each week, depending on the area.

This compared to Sydney where only in Lakemba was it cheaper to pay a mortgage than rent – paying a mortgage for an apartment there would cost $1 less per week than renting. There are units one could buy for thousands of dollars each week on a mortgage but these are the more high-end properties.

Most buyers were discovered to be owner-occupiers looking to live in close proximity to the city, proof of the fact that more and more people are open to compact living.

On the other hand, first-home buyers were looking for properties mostly priced under $600,000 to avoid incurring stamp duty costs. Downsizers, particularly those entering retirement, were also buying smaller apartments in the city. Some investors were couples who had previously rented in the city or inner suburbs like Southbank and were now returning as owner-occupiers.

Keep up to date

get updates on properties, news and more across Melbourne

More To Explore


Beef Rib Taco Recipe

Inspired by the Kansas City style of barbecuing and his love of flavors from the comfort foods of the southern United States, Lance closed his restaurant Rusk to embark on a new direction. One fueled by apple, oak and cherry wood. Many thought he had gone completely mad, even his wife. His love of BBQ

Insider Tips

Pros and Cons of investing in apartments

So you want to invest in real estate? Congratulations. It’s a big step and an exciting one. Real Estate has made many Australians wealthy and you could be the next real estate millionaire. With this post, we wanted to briefly touch upon the relative benefits of investing in apartments whilst also being realistic and looking

Insider Tips

Pets & Apartments: 6 Tips to Make It Work

Pets are an important part of the family. They can become an incredibly fulfilling part of your life. But having a pet when living in an apartment presents its own set of challenges. With this article, I want to share with you 6 tips that can help make apartment living with Pets work.  Speak with


Simple ways of making your apartment feel larger

Living in apartments for any amount of time can get you feeling cooped up, hemmed in, and craving the outdoors. Humans and nature are inseparable, no matter how much we’ve evolved. The earth, sky, sunshine, greenery, and air calm and refresh us. One of the most straightforward solutions if you can’t go out to nature

Looking for a property?

Search across Melbourne with Buy Melbourne Apartments

Sign in to see your favourite properties

Save your favourite properties and access them anytime. Your shortlisted properties will appear on this page.