Houses in Brimbank and Melton are among the most affordable for people buying their first home, according to the Real Estate Institute of Victoria.
First-home buyers are now entitled to a 50 per cent discount on stamp duty, which could save new home owners up to $15,535 on a $600,000 property.
But for those looking to spend a little less, new REIV research shows it is possible to find a property so affordable the mortgage repayments would be less than $200 a week.
The REIV earmarks Albion as the cheapest place for first-home buyers, with a one-bedroom flat costing $162,185 based on June median prices.
Including stamp duty and $2500 in fees, the weekly mortgage repayments would be $184 based on a 10 per cent deposit, a 30-year mortgage at 5 per cent and including lenders’ mortgage insurance.
People looking for a bigger property can cast their eyes to Melton South, where the total cost of a three-bedroom home came to $227,785, meaning weekly repayments of $259.
In Melton, the total cost was just under $250,000, leading to repayments of $282 a week.
“So for some young home buyers, paying a mortgage could be cheaper than renting,” REIV chief executive Enzo Raimondo said.
“Many first-time buyers read about rising property prices and think buying a home is out of reach. But the increased discount on stamp duty for Victorian first-home buyers helps make that dream of buying a home of your own come true.
“These calculations are based on median prices – the middle price in the list of sales for the quarter – so there are properties cheaper than this in the suburb.
“While some of these suburbs, in middle and outer Melbourne, may not be the buyers’ first choice, they can provide a great start.”
Meanwhile, first-home builders will also benefit with a $10,000 grant for newly constructed homes, which will apply along with the cut in stamp duty.
