How I got onto the property market as a middle-income earner – and you can too

I was a tenant for a decade, managing to transition to a buyer about 20 years ago.

That first house was a renovator’s delight. A 1950s original with mid-century orange, brown and green swirly carpet and an outside toilet.

For two years, my husband and I worked our fingers to the bone every weekend. When we finally put the last paintbrush down, we decided to sell, move interstate and buy our second home. We still miss that place though.

Now, as I stand behind the white picket fence looking out at the property market, I’m genuinely terrified.

I’m regularly analysing property data and looking for gaps in the market. I’ll be honest. There aren’t many.

It’s hopeless out there. While nation values have flat lined more recently, it’s still going to cost the commitment of a lifetime of fluctuating mortgage repayments to get into your first home.

But for the 1.6 million Australians forking out hundreds in rent every week, maybe they could save money by purchasing their first home instead. Hear me out.

As it stands, Aussie renters are spending a record share of their income on housing costs amid a chronic short of rental stock. National rents are up 5.7 per cent higher than a year ago, as households commit a record 33.1 per cent of gross median household income to rent.

What that means is that by the time the rent is paid, there’s not much left for other expenses, let alone the opportunity to save for a house deposit.

But there is an anomaly in the market worth pointing out. In some suburbs across the nation, estimated weekly home loan repayments are close – or even less – than the cost of renting a similar property.

Paying the same amount in mortgage repayments as it costs to rent sounds unlikely, but analysis shows it is possible in a handful of apartment markets.

In fact, a mortgage could be significantly cheaper when several factors line up: a lower purchase price, the right neighbourhood, a suitable deposit and government support for eligible buyers.

Analysis of rent-versus-buy data from Aussie Home Loans found that estimated repayments in 13 metropolitan suburbs are up to $270 lower than rent.

The data found that renting a unit in the Sydney suburb of Ultimo will set you back $1097 in rent per week, compared to mortgage repayments of $823 per week – giving you $274 in weekly savings.

In Carlton, a unit will cost you $645 per week, while a mortgage repayment would cost $461 per week, which is $184 less per week.

For reference, the data assumes an 80 per cent loan-to-value ratio and a 6 per cent interest rate on a 30-year mortgage term, excluding costs like strata, council rates, insurance and stamp duty.

Recent Cotality data also declared that several capital city unit markets now offer mortgage repayments that are similar, or even less, than the cost of renting.

Inner Melbourne is one of the few markets where mortgage repayments on median units are around $322 per month lower than the equivalent median rent. You can forget about capital gains, though.

If you need to get your ducks lined up to make the leap from renter to buyer, there’s still time. House price growth is expected to soften through the remainder of 2026.

Meanwhile, the national vacancy rate was sitting at 1.0 per cent in March, according to data from CBRE, making it virtually impossible to find a suitable rental anyway.

Renting might put a roof over your head, but the money you pay each week is paying of someone else’s mortgage, not yours. Nationally, rents are 5.7 per cent higher than a year ago, with households committing a record 33.1 per cent of gross median household income to rent. Five years of sustained rental grown has added an estimated $202 per week to the typical household rent commitment, Cotality data shows.

When weighing up your options, the numbers you need to crunch is the break-even point. Compare the cost of owning with the cost of renting, taking into account your deposit, loan size and ongoing ownership costs.

While buying a home means you’ll have to find council rates, body corporate fees, insurance and repairs, owning a place also allows you to build equity in the housing market over time.

Eligible first home buyers can also access the 5 per cent Deposit Scheme without having to fork out for Lenders Mortgage Insurance.

Renting made sense for me. I was moving between states for work and wasn’t sure where I’d end up living.

But in hindsight, if I had stayed in one city, bought my first home in my 20s and knuckled down. Hell, I could be a landlord charging the big bucks by now.

Nina Hendy is a business and finance journalist.

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