From long-term tenants to homeowners, families make the most of the record low interest rate
The Reserve Bank has kept the official cash rate on hold as its record low of 1.5 per cent for the 13th month in a row. Amid growing signs of a housing slowdown, Wagga construction industry continues to steam on.
With interest rates remaining low and offering an achievable entry into the market, more long-term renters are swapping dead money to mortgage repayments and setting them selves up for the future. Many of them, like local mum Therese Purcell, wish they had have done years ago but never had the circumstances that to support it.
“The best time to enter the market is now, this saying is always current and true. I have been renting for 11 years. I just made the choice, now or never as I was getting really sick of just dreaming about it.”
The average weekly rent in Wagga is around $340.00 per week, while repayments with the current interest rate for a new 4-bedroom home are only around $100.00 extra dependent on loan circumstances. For some, the decision to go from renting to homeowner is a no-brainer.
“I decided to build having been working in the building industry and it really opening my eyes to how easy and affordable it can be.”
Ms Purcell recently purchased in Brunslea Park’s newest land release, The Boulevard, comprising 28 lots. Due to the timing of the release, and the ability to buy land only, has provided an easier transition to finally give up paying someone else’s mortgage and have a home to call hers.
“The kids are so excited to be able to design their own rooms. I’m so excited about being able to choose our home plan and living in a brand new home. I can't wait to watch the sunset from my very own backyard.”
Ms Purcell looked at purchasing existing, but the different financial options that come with building, including the government grants for First Homebuyers, made it more appealing.
Land developers and builders have seen an increase in hard working families starting to look at how much money they have been paying in rent.
“I was speaking to one family who had been renting for over 20 years and they said their rental ledger, which showed the total amount of money they had out-laid over that time, made them seriously consider finally entering the market.” Madeleine Powley, from Brunslea Park said.
“It’s great to see hard working families making these financial decisions now. While interest rates are low, and NSW housing marketing continues to strengthen, it’s the best time to enter the market.”
Policymakers said the Australian economy is expected to grow at an annual rate of around 3 percent over the next couple of years and inflation is estimated to pick up gradually as the economy strengthens.