Melbourne is often ranked among the most liveable cities in the world. There’s something very appealing about Melbourne’s cultural hotspots, laneways, quiet suburbs, and good schools.
If you’re thinking of making Melbourne your new home or you’re a Melbournian looking to move suburbs, you’re in luck. The People’s Choice of Housing is a comprehensive report which compares the affordability and liveability of different suburbs in Melbourne.
You can find lots of helpful information in this report. We’ve included all the important stuff, like median property values, Melbourne house trends, and grants and schemes for first home buyers. We’ve also included some other important information to help you with mortgage calculations and details about low deposit home loans for first home buyers. The report can help give you a better idea of the suburbs you could afford to buy a home in, depending on your borrowing power. It may also help you work out where you might enjoy living most.
If you’ve got a particular Melbourne property in mind, reach out to us for personalised information on the cost of a People’s Choice home loan. If you need a clearer idea of what your budget looks like first, you can use the People’s Choice Budget Planner to see what’s possible for your situation.
Finding the most affordable suburbs in Melbourne
The People's Choice of Housing report ranks each suburb’s affordability based on how much money is leftover after weekly mortgage repayments. The more left over at the end of the week, the more affordable the suburb. We kept it simple to make comparing options easier.
We also made some assumptions about our buyer (in this case, you) to keep things consistent. We predicted that they are: first home buyers, a couple without kids, earn $3,403 per week (after tax), and they have $906 of expenses per week. If you want to use our estimates, you might have to adjust the numbers up or down depending on how your own situation compares.
We also assumed our pseudo buyers would put down a 5% deposit, and we included other costs like stamp duty and Lender’s Mortgage Insurance. Weekly mortgage repayments were calculated under the assumption the principal and interest would both be paid off over a 25-year loan term, with interest rates at 3.1% per annum.
If you’re looking to put down a larger deposit, have a different loan term, or if interest rates change dramatically, you’ll want to adjust your figures to make up for the differences. You can also estimate loan repayments with the People’s Choice Home Loan Calculator to get a more accurate idea of what’s possible for you.
Finding the most liveable suburbs in Melbourne
When deciding which suburbs are the best to live in, there are things to consider that go beyond average property prices or costs of living. These things fall under the banner of ‘liveability’. Liveability is completely subjective: only you can decide what matters most to you and which suburb suits your lifestyle best.
Everyone’s criteria for the perfect suburb is different. We took our time deciding what the most important factors are when ranking the best suburbs in Melbourne. In the end, we decided to look at: crime rates; ease of getting around on public transport; restaurants, cafes and pubs; council investment in the area; quality of roads; and how long people live in the area before moving elsewhere.
What we didn’t look at were the things that are likely to be very different from house-to-house or street-to-street, such as: common job industries or education levels; the cost of council rates and insurance; and other ongoing costs like electricity and gas prices. We also only looked at existing houses and units, not what future dwelling types might look like.
What to do once you’ve chosen a suburb
So you’ve had a look through the People’s Choice of Housing report, compared affordability and liveability, and found the best suburbs in Melbourne for you? That's great!
A good next step is to compare home loans to work out which one best suits your unique situation. We have lots of great articles on home loans and tools you can use to help you get your head around the ins and outs of borrowing to buy property. Once you understand home loans a bit better, you can use compare our home loan options to see if one is right for you.