It will cost you about $1 million to live in Melbourne for the next 30 years. Source: News Limited
WANT to live in Melbourne for the next 30 years?
Chances are it’s going to cost you about $1 million just to keep a roof over your head.
Renting at Melbourne’s median $387.12 per week for the next 30 years will cost you approximately $912,500, according to research from mortgage and interest rate comparison website finder.com.au.
Meanwhile those buying a $610,000, median valued, house in the city will shell out more than $1.34 million by the end of paying out a thirty year loan, if bought with a 10 per cent deposit, and $1.17 million with a 20 per cent deposit.
A record new median value for units means even buyers chasing the more affordable properties can’t dodge a seven-figure mortgage, with a $480,000 median valued unit in Melbourne costing $1.05 million over the life of a thirty year loan when purchased with a 10 per cent deposit, according to the finder.com.au and RP Data figures.
Nationally Melbourne is one of the cheaper cities to rent in, with a $424 median weekly rent across the countries capital cities growing to a whopping $998,830 over thirty years — both the national and Melbourne rental figures are adjusted to accomodate rises in rent for inflation.
But Michelle Hutchison, finder.com.au spokesperson, said while renting offered more flexibility a rise in population could drive the median rent cost up, while buying would save you paying for someone elses investment.
“In 30 years time your property should increase in value to cover that cost,” Ms Hutchison said.
RP Data analyst Cameron Kusher said the majority of buyers bought at or above the median price and in Melbourne would predominately be buyers who need to upsize their home.
He said the ultimate cost of paying off a home would be a disincentive for many buyers, but that “astute mortgagees are using the low mortgage rate environment to pay extra off their loan”.
Buyers advocate Catherine Cashmore said the rising mortgage cost was raising the prospect that home buyers may finish their working lives still owing money on the mortgage.
“When you are borrowing that amount of money you risk getting to the end of your working life and you still need to pay the mortgage,” Ms Cashmore said.
nathan.mawby@news.com.au
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