Bronte and James Madden found some relief in their first home search thanks to Jacinta Kelly from John Mooney Real Estate. Photo: John Mooney Real Estate.
Severe rental shortages in Wagga might make buying seem the fiscally smart option. But Sydney investors are snapping up properties suitable for first home buyers and it’s making a challenging task seem impossible, according to one local expert.
Armed with the right knowledge, however, John Mooney Real Estate’s Jacinta Kelly says it’s far from over for first home buyers.
“It’s tough, no doubt about it, but there are lots of ways for first home buyers to get an edge,” she says.
Jacinta says most first home buyer budgets in the Wagga region fall between $450,000 to $600,000, with the lower end unsurprisingly attracting the most competition.
She advises making a ‘must-have and nice-to-have’ list to reveal potential areas of compromise.
“I’ve had first home buyers with $450,000 budgets describing $650,000 properties to me as what they’re after,” she says.
“There are no $650,000 homes going for $450,000, so you may need to manage your expectations. Remember, it’s your first home – the idea is to build value over time and gradually climb the property ladder.
“Think of areas where you can compromise and still be happy. A home that has a double carport instead of a double lock-up garage, or a second toilet instead of an ensuite, can be the difference of $30,000.”
Jacinta says before dismissing a listing based on suburb, check out exactly where it’s located. Photo: John Mooney Real Estate.
One of the biggest areas for more careful consideration for first home buyers is location.
Jacinta says many of the areas you might have ruled out can warrant a double take.
“I hear it all the time. ‘I can’t buy in Tolland, it’s dodgy’. Tolland is huge, and while there are pockets of the suburb considered undesirable, there are million-dollar homes in Tolland Heights,” she says.
“Same goes for Ashmont. You have ex-housing commission homes and then in the northern part of the suburb, some lovely modern homes. In Kooringal, one street can be vastly different to the next.
“Don’t dismiss a listing out of hand without driving around to see where in the suburb it’s located. Sometimes those suburbs are misunderstood or their reputations are outdated.”
When suburb shopping, Jacinta advises first home buyers to play the long game. With more than a quarter of a century in the industry, she has seen the way suburbs evolve.
With a growing population that’s pushing out, yesterday’s suburbs of poor repute are earmarked for gentrification tomorrow – the trick is to spot the next in line.
“I have been saying for years that Mount Austin will be one of Wagga’s most popular suburbs one day. You can’t get closer to town and all the new subdivisions with new homes are further out,” she says.
Wagga central like all CBDs is on the expensive side, with median prices at $691,000 for a house and $422,500 for a unit. At Mount Austin, the median house price is $460,000.
When James and Bronte Madden recently bought their first home, location was one of the compromises they made.
There are a couple of things they wish they knew going into the process.
“Go through a broker, 100 per cent. They have experience and the right connections to the best real estate agents, conveyancers, building and pest inspectors and so on,” James says.
“That’s how we found Jacinta. Before that, it was hard to find real estate agents who were interested in people with first home buyers’ budgets. Nobody really wanted to give us a chance because demand is so high and they knew the houses were going to sell regardless.
“Jacinta was very different – she was the first to show us around the house and take a personal approach, which is what you want when you’re about to make the single greatest investment of your life.”
A new subdivision in Wagga – a region with a seemingly impossible market for first home buyers. Photo: John Mooney Real Estate.
When a first home buyer finds a property they want to buy, Jacinta says they must be ready to act quickly.
That means securing pre-approval and ensuring it remains in step with any rate changes, which can impact your budget in the hundreds of thousands.
Familiarise yourself with the Wagga market as well, which is not a massive auction market.
“But that doesn’t impact first home buyers much … If you can’t sign an unconditional contract on the day, auctions are out,” she says.
“Private treaty is the way to go for first home buyers.”
Jacinta’s final piece of advice for first home buyers is the same advice she gives all buyers: avoid the lowball.
“Make your offer genuine from the start. Things can go very differently with even a $20,000 difference, and it can stale negotiations. I have seen owners get quite offended and refuse to sell to buyers even after they increase their offer, out of principle,” she says.
“If you think the house is worth a certain amount, and you can afford to offer it, make sure you do.”
For more information, contact Jacinta Kelly of John Mooney Real Estate on 0413 451 965.
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