The City of Wagga has been named as one of the state’s top-five most affordable locations to rent, according to a new report.
The information revealed a median rental house price of $300 per week in Wagga. In comparison, the weekly rental price in Sydney sat at $770 while the state median for August 2017 sat at $380.
Leading local property valuer Christopher Egan said there is more than affordability that attracts people to invest in the city.
“Rent is a function of value. In Wagga, you can invest in a property and get a six per cent growth return on residential accommodation,” he said.
“The rent is cheap because the properties across Wagga are very affordable.
“We’ve had quite a level market for an extended period of time and all the economic factors indicate we’re due for a substantial increase in value in the short term.”
Mr Egan’s prediction for an increase in value comes as the city’s population was forecast to reach more than 80,000 people by 2036.
He noted the city’s short-term population was key in providing economic growth in the real estate market.
“We do have a slightly higher transient population and that’s really good with investments,” he said,
“We’ve got one of the lowest vacancy rates for residential accommodation and you usually get a higher return with low vacancies.”
The revelation of Wagga being of of the most affordable cities to rent came as no surprise to Fitzpatricks Real Eestate property management director Lyn Kimball.
She said the property market in Wagga is “much more secure and reliable” than its metropolitan counterparts.
“Wagga tends to have steady price increases,” she said.
“They may level out over time but very rarely do they every go down.
“(The low rental costs) are a good thing for the city as well and it is going to give opportunity and flexibility to our local residents who are looking for a rental property.”