Redlend Weekly 13
This Week…
Is buying a home finally becoming more affordable than renting?
The hidden costs of fixing your home loan
Property potential in Glenroy
Suburb Spotlight in Glenroy
Mortgage News
Is buying a home finally becoming more affordable than renting?
For many Australians, getting into the property market has felt increasingly out of reach. But with rents continuing to climb and property prices easing in some areas, the gap between renting and buying is starting to narrow.
A recent analysis by The Guardian, using Cotality data, found that mortgage repayments are now lower than typical rents in some Australian suburbs. In others, the difference between renting and owning is becoming much smaller.
Australia's median rent reached $713 per week in September, following a 5.5% increase over the previous year. Meanwhile, property values across houses and units were broadly flat over the same period.
Melbourne provides an interesting example. The typical rent for an apartment was $628 per week, while estimated mortgage repayments on a median-priced apartment were around $839 per week.
However, the picture changes depending on the suburb. In areas including Carlton, Melbourne CBD, Notting Hill, Travancore and Southbank, estimated repayments on a typical property were actually lower than the median rent.
These figures are based on a 30 year loan, a 6.2% interest rate and a 5% deposit. They are useful for comparison, but they don't account for the additional costs of owning a property.
There are two main factors at play.
First, rents have continued to rise as tenants compete for available properties. Second, property prices have softened in some locations, making the purchase price, and therefore the required loan, more manageable.
This is particularly noticeable in some apartment markets, where an increase in new housing supply has put downward pressure on purchase prices.
It's a reminder that property markets don't all move in the same direction. While some suburbs remain expensive to enter, others may offer opportunities that weren't as attractive a year ago.
Mortgage repayments are only one part of the cost of home ownership. Buyers also need to consider stamp duty where applicable, conveyancing, council rates, insurance, maintenance and other ongoing expenses.
The size of the deposit matters too. A larger deposit generally means a smaller loan and lower repayments, while a smaller deposit can mean higher repayments and potentially additional scheme or lender requirements.
And, of course, being able to afford the repayments is different from being approved for a home loan. Lenders assess income, living expenses, existing debts and other commitments before deciding how much someone can borrow.
What should first home buyers take away from this?
If you've been renting and waiting for the right time to buy, it may be worth revisiting the numbers.
You don't necessarily need to wait for property prices to fall dramatically. In some locations, the combination of softer prices and rising rents may already be changing the equation.
Government support, including eligible low deposit schemes, may also help some buyers enter the market sooner. The key is understanding what you can comfortably afford and whether buying suits your circumstances and longer-term plans.
Renting isn't automatically the cheaper option, just as buying isn't always the better one. It comes down to the property, the suburb, your deposit and what the numbers look like for you.
If you're considering buying your first home, a home loan review can help you understand your borrowing capacity, available options and what your repayments could look like before you start house hunting.
Mortgage Tip
The hidden costs of fixing your home loan
A fixed interest rate can provide peace of mind by keeping your repayments predictable for a set period. But before locking in a rate, it's worth understanding what flexibility you might be giving up.
Unlike many variable loans, fixed rate loans can restrict extra repayments, limit access to offset accounts and charge break costs if you need to refinance, sell or change your loan before the fixed term ends.
For example, some lenders allow only a set amount of additional repayments each year without extra charges. If your circumstances change and you need to exit the loan early, break costs can sometimes run into thousands of dollars.
Before fixing, ask yourself:
Will I want to make extra repayments?
Do I need an offset account?
Might I sell, refinance or upgrade during the fixed term?
What rate will apply when the fixed period ends?
Fixing isn't necessarily the wrong choice. It's about weighing the certainty of repayments against the flexibility you may need.
Don't compare fixed and variable loans on interest rates alone. Make sure you understand the features, restrictions and potential costs before deciding.
Property Spotlight
91 Augustine Terrace, Glenroy, VIC
Price guide: $785,000–$850,000
3 bedrooms | 1 bathroom | 585m² land
Sometimes the best property opportunities aren't the ones that are completely renovated and ready to impress. They're the ones that give you options for the future.
This week, we're looking at 91 Augustine Terrace in Glenroy, a single level brick home on approximately 585m² of land, offering an opportunity for buyers who can see beyond the current layout.
The property features three bedrooms, a central bathroom, separate living and dining areas, a modernised kitchen and established gardens. It also has a single garage with a workshop and additional driveway parking.
The home is described as well maintained and could be lived in immediately, giving a buyer the flexibility to make improvements over time rather than taking on a major renovation from day one.
The real point of interest, however, is the land.
With approximately 585m², buyers may have options to renovate, extend or investigate a future rebuild or development, subject to council approval and planning requirements. The property is listed in a Neighbourhood Residential Zone, so any proposed development would need to be carefully investigated rather than assumed.
The listing suggests a potential rental return of around $560–$600 per week. At the advertised price guide, that equates to an indicative gross rental yield of approximately 3.4% to 4.0%, before expenses such as council rates, insurance, maintenance, management fees and interest.
For an investor, the appeal may be the combination of rental income today and the potential to improve the property over time.
Glenroy offers access to train services, local shopping, schools, parks and other everyday amenities. The property's proximity to Glenroy Station and Glenroy Central Shopping Centre adds to its appeal for owner occupiers and tenants alike.
For first home buyers, this could be worth investigating if you're comfortable buying an established home and improving it gradually.
For tradies, it presents an interesting question: could your skills help you create value through a renovation, rather than paying a premium for someone else's finished work?
The key is doing your homework. Get a building inspection, understand the cost of any proposed improvements, check comparable sales and confirm planning restrictions before relying on future development potential.
Buying well isn't always about finding the most polished property. Sometimes it's about finding one with the right fundamentals and a plan for what comes next.
Here is what the numbers could look like…
Approximate numbers for general information only, this is not financial advice and individual circumstances will vary.
Assuming we are a first home buyer eligible for the Australian Government 5% Deposit Scheme and the Victorian Government Stamp Duty Concessions.
Assume a Sale @ $855,000
A Deposit @ 5% = $42,750
Stamp Duty & Government Fees @ $48,604
Conveyancing & Building Pest Inspection @ $3000
Savings Required $121,287
Monthly Repayments @ $5133
Based on 6.5% Interest Rate, 30 years, Principal & Interest
Suburb Spotlight
Glenroy
Glenroy, 13km from the Melbourne GPO, continues to attract young families and investors. Here’s where the market sits.
Glenroy has about 23,800 residents, up 7.0% between the 2016 and 2021 Censuses. The typical household is a couple with children, most commonly aged 30 to 39, working in professional roles. Around 60% of homes are owner occupied, and owners stay put for an average of 12 years. The suburb covers roughly 8.9 square kilometres, with 25 parks taking up nearly 26% of the area. There are about 4,970 houses and 5,080 units.
Houses
The median house sale price over the past 12 months is $883,000. The middle half of sales fell between $770,125 and $994,500. Sales volumes have climbed since 2023 and sit near their highest level in the five years charted. Price growth has flattened, though, with annual change in median value hovering around zero. Houses typically take about a month to sell, with vendors giving up roughly 3% off their asking price.
Recent results show the range:
8 Granville Street sold for $1,010,000
81A Beatty Avenue sold for $940,000
6 Corio Street sold for $790,000
Of the 45 houses currently listed, 3-bedroom homes are being advertised from about $785k to $850k, and 4 bedders from $850k to $1M.
Units
The median unit price is $650,000, with the middle half of sales between $565,000 and $742,000. Annual growth in median value has eased to around 2% after a strong run earlier this year. Typical days on market are similar to houses, at around a month. There are 63 units on the market, including 2-bedroom listings from about $590k to $675k.
Rental market
Rents have risen sharply since 2022.
Houses: median asking rent is about $570 a week, with an indicative gross yield of around 3.6%. Current listings include 3 beds at $570-$580 and 4 beds at $630.
Units: median asking rent is about $550 a week, with a gross yield of around 4.7%. Current listings include 2 beds at $490-$525 and 3 beds at $540-$680.
Glenroy offers some of the more affordable house prices within 15km of the CBD. Price growth has cooled, but buyer activity is strong and rents are firm. Units offer a notably higher yield than houses, which investors may find attractive.
Property data supplied by Cotality. Figures current as at 19 October 2026 and provided for general information only, not personal financial or property advice. If you would like your own free property report, please email me below.
