Illawarra property prices may no longer be skyrocketing, but they’re still sitting on an upward trend.
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Towards the end of last year Domain Group economist Dr Andrew Wilson predicted house prices to increase by around six per cent for 2016-17 for the Wollongong Local Government Area (LGA).
Dr Wilson also predicted in the next decade renters would outweigh the number of homeowners in the Illawarra due to the increase of property prices.
So which is the better option: spending around $420 per week on a property that belongs to someone else (equating to around $21,840 in a year), or trying to save around $50,000 (or more) for a deposit.
Current Domain Group data shows the median price for a three-bedroom home in Wollongong would set you back around $620,000.
A 10 per cent deposit would be $62,000 with monthly repayments at $2,696 on a general fixed rate loan from Illawarra Credit Union for the remaining balance over a 30 year term.
Currently on the market around that price bracket is a three-bedroom 1950s cottage on 677 square metres at 84 Mount Keira Road, West Wollongong for $640-$680,000.
For a similar price in nearby Port Kembla, a four-bedroom brick house with two-bathrooms is listed at 54 Robertson Street.
If that’s still above budget, one of the cheapest Illawarra properties currently on the market to buy is a three bedroom house on 575 square metres at 16 Roberts Avenue, Barack Heights. It’s asking price is $480-$520,000.
“I like Mount Saint Thomas right now, relatively affordable on the city fringes without the price tag of some of the surrounding suburbs,” McGrath real estate agent Trever Molenaar said.
He also picked Russell Vale, Mount Pleasant and Mount Ousley for catchment areas with good schools.
According to Rent.com.au the median rental property is $420 per week for Wollongong, $450 for Shellharbour and $490 for Kiama.
Those prices would currently get you a three-bedroom house at 178 Corrimal Street, Wollongong; a three-bedroom brick villa in Shellharbour Village at 1/11 William Street; or a three-bedroom timber character home at 10 Bland Street, Kiama.
Meantime, Rent.com.au CEO Greg Bader predicts the rise of the “rentvestor” whereby people choose to buy where they can afford and rent where they want to live.
“About one in three Australians rent their homes,” Mr Bader said.
“Some don’t want to be locked into one place and others are in the middle of transitioning between jobs or cities or relationships.”
A recent survey by the company revealed six per cent owned an investment property while they were renting, another 18 per cent said they were saving for a house or an investment property while renting.
Do you have an interesting property or real estate story? Are you selling or buying a quirky house? Email: desiree.savage@fairfaxmedia.com.au
- Property prices and rental availabilities listed are as of January 19, 2017.