property
Templestowe Three-Bedroom Mortgages Now Beat Weekly Rents
Mortgage repayments on three-bedroom homes in parts of Templestowe now sit below weekly rents for the same properties.
How we reported this
Three neighbourhoods inside Templestowe now show lower monthly ownership costs than rental payments for matching houses.
Interest rates settled at 4.15 per cent in June after three successive cuts, while listed rents climbed on limited stock. The shift flips the usual pattern that has held since 2022, when borrowing costs exceeded rents across most Templestowe streets.
Properties along Serpells Road and near the Templestowe Recreation Centre recorded the clearest crossover. At 47 Serpells Road a three-bedroom house sold last month for $812,000. The resulting loan at current rates produces a $3,650 monthly repayment. The same house rents for $3,950 a month under a new lease signed on 2 July.
Market movement in specific pockets
Templestowe Village traders report first-home buyers now outnumber investors at open inspections for the first time since 2021. Manningham Property Watch, the local data service run from the Templestowe Community Bank branch, logged 14 contracts in the past fortnight where buyer repayments came in under advertised rents. One four-bedroom house on Porter Street settled at $925,000 with repayments of $4,180 a month against a $4,550 asking rent.
Stock levels remain tight. Only 28 properties appeared on the market in Templestowe during June, down from 41 in the same month last year. That shortage lifted median rents to $2,950 a week for three-bedroom homes, according to the same bank report.
Numbers that changed the equation
CoreLogic data released 8 July placed the Templestowe median house price at $841,000. At a 20 per cent deposit and the prevailing 4.15 per cent rate, the monthly payment equals $3,710. Median rent for the same cohort reached $3,880. The gap opened on 15 June when the Reserve Bank cut the cash rate for the third time this year.
Buyers who secure finance before the next rate decision on 6 August stand to lock in the current advantage. Local agents advise checking fixed-rate options at the Templestowe branch of Manningham Credit Union to protect against any reversal in policy.
This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.