Chances are if you live in Brunswick East, you love where you live. It’s close to the city, your neighbors are more likely to care about the environment and really into building a sense of community.
More than half (around 54.9% according to the ABS) of the people living in this suburb are renters – but with interest rates as low as they’ve ever been, it begs the question, why aren’t more people buying?
For First Home Buyers in particular, it probably wouldn’t be that hard to imagine someone saying “I can’t afford to buy there!”, but when you sit down to look at the numbers, you might be surprised at what you find.
We’re living in a world where rent is rising and mortgage rates are falling, meaning more often than not what you’re paying in rent is covering your landlord’s mortgage repayments in full (and then some). Don’t believe us? Check out the below.
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Let’s take a brand new 1 bedroom apartment (plus study) in Brunswick East, selling at $434,000. It’s close to everything you’d need, has amenity galore and a tram stop right outside your door. You can expect to pay a minimum of $425 per week to rent a place like this.
For around $387 per week in repayments, you could be BUYING the same place you’re renting for $425 per week.
Yup. For around $387 per week in repayments, you could be BUYING the same place you’re renting for $425 per week. Crazy, right?
Of course, we’ve made a few assumptions in these calculations – like we don’t take into account any possible up-front fees in this (only ongoing fees are used not upfront or end of loan fees i.e. discharge costs), the interest rate does not change over the loan term, interest is compounded on a weekly basis (not necessarily the same as the repayment frequency you’ll be paying), and no rounding is done throughout the calculation whereas repayments are rounded to at least the nearest cent in practice – but it does make it clear that owning your own home in Brunswick East can be as affordable as renting.
If you’d like to learn more about buying in Brunswick East, or how you can get started on your first home buying journey more broadly, request a call back via the button below or get in touch here.
Note, this blog is general in nature and has been prepared without taking into account your objectives, financial situation or individual needs. You should, therefore, consider the appropriateness of the information through independent means before acting on it. LMI figures given are an example only as LMI premiums vary between lenders and mortgage insurers.