Melbourne rental prices have rocketed to record highs in recent years, but for those looking to scale the housing ladder, there's a reason to be (slightly more) cheerful. According to recent figures and analysis from Mortgage Choice, there are several areas in regional Victoria where the cost of a mortgage is less than that of renting.
Take Rochester, for example. The regional Victorian town, located 180 kilometres north of Melbourne, was hit hard by the 2022 floods, but it is now making a noise in the housing market. Homes stripped of floors and walls are being sold at bargain prices, attracting fixer-uppers who want to renovate these flood-damaged properties with hopes that demand will skyrocket by Christmas.
Rochester is just one of the seven rural towns where buying is cheaper than renting. With median houses in nearby Echuca soaring past $600,000, Rochester offers Victorians a much cheaper alternative. A typical home here now costs around $350,000, and according to Mortgage Choice, owning one could save you around $350 compared to renting.
But Rochester is far from the only town where buying beats renting. Ouyen, Warracknabeal, Dimboola, Mooroopna, St Arnaud and Benalla have also made the list. In Ouyen, the median house price is $184,350, which means you could save a nifty $500 a month by buying instead of renting.
Anthony Waldron, CEO of Mortgage Choice, weighed in on the illuminating findings and said prospective buyers should exit the tough rental market, especially with interest rates steady and rents expected to hike even further. So if you were thinking about a tree change, now could be the perfect time.
Here are the seven regional Victorian locations to bookmark:
- Rochester
- Ouyen
- Warracknabeal
- Dimboola
- Mooroopna
- St Arnaud
- Benalla (specifically for units)
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