RENTERS in Red Cliffs could be up to $668 better off per month if they decided to buy a property, according to a new report.
A report released this month by home lender Aussie claimed with mortgage repayments plummeting to a record low, it could now be cheaper to buy a home than rent in more than 50 per cent of suburbs nationally.
And Red Cliffs has been identified as being incredible bang for your buck.
According to Aussie, instead of paying for someone else to own the house, renters could buy their own — and still save more than $160 per week servicing a three-year fixed-rate mortgage compared to what they would pay in rent.
The report is based on median house and unit values and median asking rents across Australia.
Collie & Tierney director Ben Ridley backed the report, saying Red Cliffs’ popularity had skyrocketed among young families and couples in recent years, thanks to cheaper land prices attracting developers.
“People used to look at Red Cliffs as being closer to Melbourne than Mildura,” he said.
“But I think with the development of Mildura and the increase in prices so severely over the past two years, people are now looking at Red Cliffs as a really viable option.
“Once people get out there and see the infrastructure they have by way of schools and shopping, I don’t think they’re as afraid of moving out there as they once were.”
Mildura property owners are also better off buying than renting, according to the report.
Property hunters can buy a median-priced unit on the above rates to get a foothold on the property ladder and still bank $468 per month more than they would hand to a landlord.
While Mildura’s unit market is still heavily dominated by investors, Mr Ridley said units were still a good step for those wanting to leave the renting treadmill behind.
“I suppose the hardest thing for people getting out of the renting cycle is that a lot of the time rent is higher than what mortgage repayments are, so it becomes a bit of a vicious cycle as they can’t save a deposit,” he said.
“But for those who can, I think it’s still a very smart option for first home buyers to be looking at those cheaper unit options.”
WITH metropolitan buyers keen to escape to the country and investors out for their own slice of Sunraysia, Ben Ridley says the local property market is struggling to keep up with demand in the wake of COVID-19.
“I don’t think I’ve seen as many qualified buyers that are ready to buy than we have at the minute,” he said.
“There’s a real lack of stock in the marketplace that would satisfy a lot of buyers.”
Houses on half an acre on Mildura’s outskirts were top of the list for buyers, as well as four-bedroom, family-friendly homes.
“We’re just constantly seeing up to 15 buyers competing with offers on homes and consistently seeing three or four buyers fighting over every property,” he said.
With generous first-home buyer incentives on offer, Mr Ridley said aspiring property owners were going head-to-head with a new type of metropolitan investor he had “never really seen before”.
He said the investors were around retirement age and often had lost savings or superannuation in the global financial crisis and wanted to safeguard their money in regional property.
“So they’re looking to areas, like Mildura, that are still very affordable but giving really strong returns of five, six or seven per cent,” he said.
And with the market a strong place for sellers, Mr Ridley said he was unsure of when activity might cool off.
“Obviously we’re only one press conference away from that all changing, but I don’t see it changing in the short term,” he said.
