Rent vs Mortgage

The rent data (ABS, based on the 2021 census) is old and so this comparision is only vaguely indicative until we source more up to date data.

A comparison of the rents vs mortgage repayments for houses and units in Melbourne.

Sources and Assumptions

The following sources are used

The analysis only includes SA2s from the greater Melbourne region (although it would be easy to extend nationally given appropriate rent data).

Repayments are calculated on the assumption of a 20% deposit and a 30 year mortgage using the RBA rate of (the interest rate for , which seemed the most appropriate to use for the situation of a renter becoming a home owner at the present point in time).

Aggregate Ratios

Of SA2s considered, there SA2s where typical rents are higher than typical mortgage repayments for units or houses.

Units typically have a repayment to rent ratio than houses with the median ratio for units being vs for houses (a median of across all types) - and that's before taking into account the other costs of ownership (rates, insurance, maintenance, etc).

Distribution

Price distribution

Geographic distribution

Where are the mortgages relatively "affordable" (closest to rents)?

The FIXED colour range option ensures the same fixed range of colours for consistent display across both units and houses, while the DYNAMIC option adjusts the range based on the data to maximise the contrast.

SA2 Details

The specific details for all SA2s included can be checked below.