NOW IS THE TIME TO INVEST
IN WAGGA WAGGA
An affordable region becomes even more affordable.
The case for a move to regional New South Wales and in particular Wagga Wagga, from metropolitan areas has been boosted by a recent trend towards a more affordable housing market in Australia. A recent study completed by the Housing Industry Association concluded that "September 2011 marked the third consecutive quarter of improvement meaning it is now just a little easier for those trying to enter the new home market."
The report went on to say that "Outside of the capital cities, affordability improved in all non-metropolitan regions" with regional New South Wales improving by 1.3 per- cent"
In addition, the number of full time adult wages required to affordably service a mortgage on a median priced dwelling was 1.6 in regional New South Wales compared to 2.0 in Sydney with the required loan repayments in Sydney in the September quarter of 2011 being $3,790 compared to $2,361 in regional New South Wales a full $1,429 less a month.
In Wagga Wagga the affordability index (a ratio of housing costs to household incomes) has always been significantly less than in New South Wales with the September quarter of 2011 NSW average being 6.4 compared to 4.7 in the Wagga Wagga LGA. The average mortgage repayment equates to 25% of the average household income in Wagga Wagga, compared to an average of 44% across New South Wales while average incomes were not significantly less in Wagga Wagga. The New South Wales average median income in 2006 was $1,034 a week compared with Wagga Wagga's at $966 per week. The median housing price in Sydney was $644,658 while in Wagga Wagga the median price was $305,000. While Wagga Wagga remains an affordable housing market it is still a solid investment with the average price of a home increasing by 4.5 percent in the past financial year while the average price dropped in New South Wales by 5.59 percent during the same period.
In addition, Federal initiatives designed to encourage homeownership have been well utilised in Wagga Wagga. For example, Wagga Wagga is in the top 20 postcodes nationally, with the highest take up rate of the Commonwealth Government's First Home Buyers Grant.
(source: Wagga Wagga Economic Profile 2011 AEC Group)
