A Melbourne first-home buyer has discovered his mortgage repayments are cheaper than the rent he was previously paying, challenging long-held assumptions about affordability. Picture: Tony Gough
Jake Vulo expected buying his first home in Melbourne to cost far more than renting.
Instead, he was surprised to find his mortgage repayments were cheaper than the rent he had been paying.
After years of renting, the Elwood first-home buyer decided to take the leap when the weekly numbers finally stacked up in his favour.
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“I realised that mortgage repayments were actually cheaper than renting,” Mr Vulo said.
Before buying, Mr Vulo had been paying about $300 a week in rent, roughly $1300 to $1400 a month, and had been renting for about three years, including time in share houses and later renting with his sister.
“I was definitely expecting the mortgage repayments to be a lot more expensive than renting,” he said.
“I was actually really surprised by how much cheaper it ended up being.”
The Elwood apartment purchase comes as new data shows there are pockets of Melbourne where owning can cost less than renting on weekly repayments. Picture: Tony Gough
Mr Vulo bought a two-bedroom apartment in Elwood and said the decision became far more manageable when his sister moved in and rents the spare room.
“If I were paying the mortgage entirely on my own, it would be more expensive,” he said.
“But I’ve got someone renting a room from me, which has made a big difference.”
He described the arrangement as a win-win, giving both siblings greater stability and a sense of ownership they didn’t have while renting.
“We both needed a place to live, and now it feels much more like our own home compared to renting,” Mr Vulo said.
“There are fewer restrictions on what we can do with the place.”
Like many first-home buyers, Mr Vulo said the emotional toll of renting also played a major role in his decision.
The Elwood apartment purchase comes as new data shows there are pockets of Melbourne where owning can cost less than renting on weekly repayments.
“Paying rent just felt like the money was going nowhere,” he said.
“It felt like I was losing that money every week without getting anything back from it.”
While saving a deposit and securing finance were not major hurdles for him, Mr Vulo said competition in the market — particularly under $600,000, was intense.
“Under the $600,000 price bracket, it was extremely competitive,” he said.
“I went to one open inspection and there was a queue down the stairs and around the block just to get inside.”
Since buying, he said the biggest change has been a greater sense of security.
“With renting, there was always pressure around timelines,” Mr Vulo said
“If the lease was ending, you had to rush to find something else. I remember getting down to one month left with no place lined up, which was stressful.”
“Now I feel like I’ve got more control,” he said.
“If I want to move in the future, I can take my time and make the right decision instead of rushing.”
The case study highlights how some first-home buyers are finding buying more affordable than renting, particularly in inner-city unit markets. Picture; Tony Gough
For renters weighing up whether to buy, Mr Vulo said purchasing could be worth it, but only if it didn’t create overwhelming financial pressure.
“If they’ve got the financial ability to do it, it’s definitely worth considering,” he said.
“But if buying is going to cause a lot more stress or financial pressure, then there’s nothing wrong with staying put and waiting until they feel more comfortable managing the costs.”
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