Geelong suburbs where buying is better than renting revealed
Research from Finder reveals it's already better to buy a unit than lease one in Geelong West and Whittington.
The Reserve Bank's decision to cut rates by another 25 basis points further opens the door to other suburbs by shrinking the gap between more expensive weekly mortgage repayments and rents to less than $50 a week for units in Norlane, Bell Post Hill, Lara, Herne Hill and Manifold Heights.
There's a further glimmer of hope in the house market, with renters needing to find less than $100 extra a week to buy in Norlane and Breakwater.
The research assumes homeowners purchase at the current suburb median price, with a 20 per cent deposit, a 5.81 per cent interest rate and a 30-year loan term.
When the rate cut is passed on, paying off the mortgage on a unit would be $30 a week cheaper than renting in Geelong West and $17 cheaper in Whittington.
This would increase to a saving of $41 and $28 a week respectively, if the RBA cut rates again.
Geelong Real Estate Co director Ricky Forte said Geelong West units remained one of the few affordable footholds into the market.
'With median prices around $500,000, it's a way to break free of rising rents without sacrificing location,' Mr Forte said.
'You can buy a neat two-bed unit here for the same weekly cost as renting and you're walking distance to everything.'
He said crunching the numbers around paying off a mortgage versus rent had become a serious part of decision-making for homebuyers.
But Doolan Finance mortgage broker Sarah Daly said it wasn't the only consideration, as renters had to factor in security and future returns.
'Even though rent is expensive with the way rates are, it is still more affordable, in most cases, to rent. But what does that look like long term?,' Ms Daly said.
'Just because it's more affordable to rent you're not taking into account your future growth of assets so I think it's got to be looked at as to whether you can versus whether you should.'
She said confidence was returning to the Geelong market, with inquiries increasing on the back of the first rate cut.
Hayeswinckle, East Geelong agent Tiffany Simpson said it was prime time for first-home buyers, who felt more confident to use their full borrowing capacity than they did 12 months ago.
'It is an opportune time because I don't think there's going to be any incremental increases, if anything there will be slow cuts,' she said.
'It is trending in the right way, and it may not be significant right now, however if you're able to secure something now going forward it should become more affordable.
'If you wait too long then you will miss out because the competition will only increase.'
RENTING VERSUS BUYING IN GEELONG
Suburb Property type Median asking rent (weekly) Repayments (weekly) after this week's cut Difference between repayment and rent Difference between repayment and rent after 3rd rate cut
Anglesea H $600 $1464 -$864 -$825
Armstrong Creek H $530 $705 -$175 -$156
Bannockburn H $590 $851 -$261 -$238
Barwon Heads U $640 $1117 -$477 -$447
Barwon Heads H $660 $1540 -$880 -$838
Bell Park U $465 $550 -$85 -$70
Bell Park H $490 $663 -$173 -$155
Bell Post Hill U $450 $472 -$22 -$10
Bell Post Hill H $520 $716 -$196 -$176
Belmont U $440 $583 -$143 -$128
Belmont H $490 $759 -$269 -$249
Breakwater H $463 $556 -$93 -$78
Charlemont H $520 $667 -$147 -$129
Clifton Springs H $495 $708 -$213 -$194
Corio U $350 $412 -$62 -$51
Corio H $420 $531 -$111 -$97
Curlewis H $515 $692 -$177 -$158
Drysdale U $450 $594 -$144 -$128
Drysdale H $500 $770 -$270 -$249
East Geelong H $520 $830 -$310 -$287
Fyansford H $650 $1065 -$415 -$387
Geelong U $520 $667 -$147 -$129
Geelong H $550 $954 -$404 -$379
Geelong West U $450 $420 $30 $41
Geelong West H $530 $922 -$392 -$367
Grovedale U $435 $538 -$103 -$89
Grovedale H $510 $719 -$209 -$190
Hamlyn Heights U $425 $576 -$151 -$135
Hamlyn Heights H $490 $781 -$291 -$270
Herne Hill U $370 $399 -$29 -$18
Herne Hill H $470 $759 -$289 -$269
Highton U $440 $542 -$102 -$88
Highton H $550 $934 -$384 -$359
Indented Head H $460 $759 -$299 -$279
Jan Juc H $680 $1377 -$697 -$660
Lara U $460 $485 -$25 -$12
Lara H $560 $737 -$177 -$158
Leopold U $440 $524 -$84 -$70
Leopold H $500 $705 -$205 -$186
Lorne U $600 $954 -$354 -$329
Lorne H $680 $1689 -$1009 -$963
Lovely Banks H $580 $911 -$331 -$306
Manifold Heights U $350 $395 -$45 -$34
Manifold Heights H $510 $1366 -$856 -$820
Marshall H $495 $683 -$188 -$170
Mount Duneed H $550 $759 -$209 -$189
Newcomb U $390 $518 -$128 -$114
Newcomb H $450 $596 -$146 -$130
Newtown U $450 $624 -$174 -$157
Newtown H $578 $1247 -$669 -$635
Norlane U $400 $412 -$12 -$1
Norlane H $400 $489 -$89 -$76
North Geelong H $465 $661 -$196 -$179
Ocean Grove U $500 $804 -$304 -$282
Ocean Grove H $580 $1036 -$456 -$428
Point Lonsdale H $620 $1309 -$689 -$654
Portarlington U $450 $765 -$315 -$294
Portarlington H $490 $936 -$446 -$421
Queenscliff H $530 $1735 -$1205 -$1158
Rippleside H $605 $1334 -$729 -$693
St Albans Park H $475 $634 -$159 -$142
St Leonards U $430 $619 -$189 -$173
St Leonards H $480 $781 -$301 -$280
Thomson H $440 $556 -$116 -$101
Torquay U $620 $954 -$334 -$309
Torquay H $690 $1274 -$584 -$550
Wandana Heights H $653 $1003 -$350 -$323
Waurn Ponds H $520 $830 -$310 -$288
Whittington U $413 $396 $17 $28
Whittington H $450 $574 -$124 -$108
Source: Finder. Assumes homeowners purchase at the current suburb median price, with a 20 per cent deposit, a 5.81 per cent interest rate and a 30-year loan term.
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