An affordable housing market means Wagga residents can buy a house for the same price it would cost to rent, according to a prominent real estate figure.
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Fitzpatrick Real Estate director Richard Fitzpatrick said that for residents planning to live in Wagga indefinitely, buying was a no brainer.
“It’s absolutely possible to purchase a house for the same the price you would pay for rent,” he said.
“That’s a much tougher debate in Sydney or Melbourne where deposits can be almost $200,000.
“But here you’re looking at more like between $30,000 and $50,000.”
Ashmont is among the city’s most affordable areas according to Pricefinder, with a median rent price of $258 per week and a median sale price of just $234,000 over the last 12 months.
Tolland’s median sale price sits at $255,000, with a rent at $280.
Meanwhile, the average home in central Wagga went for $378,000, while rent was set at $330.
According to Commonwealth Bank’s home loan repayments calculator, the average Wagga house would incur weekly repayments of $322 per week under a standard variable rate home loan with a comparison rate of 5.37%.
But Mr Fitzpatrick said there were better options out there, with rates as low as 3.5 per cent available, making buying a house a legitimate alternative to renting in Wagga’s cheaper areas.
“Not to mention, when you buy you then have the benefits of capital growth, which helps financially as people head towards retirement,” he said.
Leading Wagga valuer Christopher Egan said that while Tolland and Ashmont were affordable options, Kooringal - which had a median house price of $300,000 - provided the best value for prospective home buyers.
“Kooringal has become increasingly gentrified over time,” he said.
“But you can still get a very nice house for about $250,000.
“You also can put money into your property and make money out of it in return.
“Younger owners want to know they will see money out of their property if they decide to sell.”