Buying a property in Wollongong: a complete guide

All sources have been thoroughly verified for credibility. Furthermore, a local real estate expert has reviewed and approved the final article.

Yes, the analysis of Wollongong's property market is included in our pack

Thinking of investing in real estate in Wollongong? You're not alone!

Many people are fascinated by Wollongong's coastal beauty and dream of owning a beachfront property or a modern apartment there.

Is it worth investing there, though? Are property prices increasing in Wollongong? What is the price per sqm? Should I buy property in the CBD or near the beach? What about the taxes? Can I get a very good rental yield? Where?

We've figured it out for you.

The BambooRoutes team has done their homework on this market. As a matter of fact, we've gathered all our findings in a pack. Get it now.

In the lines below, we'll provide you with helpful information.

How's the property market in Wollongong?

Is the property market going up or down? Let's look at fresh data and statistics.

Types of properties

In Wollongong, you can purchase different types of properties like single-family houses with multiple bedrooms and bathrooms, modern apartments with amenities like gyms and pools, and cozy townhouses with outdoor spaces.

These properties are available across various neighborhoods, offering options for different lifestyles and preferences.

Prices vary depending on factors such as proximity to the beach, city center, or other attractions, as well as the overall condition and size of the property.

Whether you're interested in a spacious family home or a convenient urban apartment, Wollongong's real estate market has a variety of choices to explore.

What's better: buy or rent?

(If you want to live there yourself and not rent it to others)

Whether you've already made Wollongong your home or are contemplating it for the future, you might be wondering about the advantages of buying a property versus renting in this Australian city.

Usually, buying is better than renting in Wollongong due to its steady property market and potential for capital gains.

In contrast, for those who seek flexibility, renting is the recommended option.

Property pricing in Wollongong

On average, according to the last data from CoreLogic, buying a property in Wollongong would cost you around $4,500 per square meter.

Of course, there are notable differences. A beachfront property in Wollongong might have a different price per square meter than a house in North Wollongong. We actually give you a more detailed breakdown in our pack for buying property in Wollongong and in Australia.

To put things in perspective, it is 4.2 times less than the prices in the center of New York.

Also, housing prices in Wollongong are 58% cheaper than in Sydney.

The most expensive neighbourhoods in Wollongong are probably North Wollongong, Fairy Meadow and Woonona, while the cheapest are likely to be Coniston, Cringila and Gwynneville.

Trends

First and foremost, we have to acknowledge that Australia is, today, one of the most stable countries in the world. The last Fragile State Index that has been reported for this place is 22.7.

Keep this in view when pondering the viability of buying a property in in Wollongong.

Also, according to the International Monetary Fund (IMF), Australia's economy is expected to soar by 8.8% in the coming 5 years, resulting in an average GDP growth rate of 1.8%.

If you want to invest in real estate in Wollongong it's a good thing because, in a growing economy, citizens experience rising incomes that allow them to invest in real estate, either for personal use or as a profitable asset, contributing to the increased demand for properties.

Also, in Australia, the average GDP per capita has changed by 4.0% over the last 5 years. The growth, although minimal, is still present.

These are cues signaling that property prices in Wollongong might go up in 2024 and during the coming years.

Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Australia right now.

Buying property in Wollongong

Buying real estate in Wollongong can be difficult due to the lack of reliable and up-to-date information available. That's why we have created the pack to buy property in Wollongong and in Australia.

Buying process

Inside our pack, we've outlined the complete buying process, including a detailed breakdown of prices and yields per area, tips for negotiating the price, and information about mortgage options.

Here, we're presenting you with a more straightforward version.

This is the step-by-step process to purchase a property in Wollongong:

1. Research the Wollongong property market and set a budget.
2. Obtain pre-approval for a mortgage from an Australian lender.
3. Engage a licensed real estate agent in Wollongong.
4. View properties in Wollongong and make offers through the agent.
5. Negotiate the price and terms with the seller or their agent.
6. Sign a contract of sale, provided by the agent, which includes the property details, price, and conditions.
7. Conduct property inspections and due diligence. Obtain a pest and building inspection report.
8. Engage a conveyancer or solicitor to handle the legal aspects of the purchase.
9. Pay the deposit, usually 10% of the purchase price, into a trust account held by the agent or solicitor.
10. Finalize mortgage arrangements with your lender and provide necessary documents.
11. Attend the settlement meeting where the property title is transferred to your name.
12. Receive the keys and take possession of the property in Wollongong. Register the property transfer with the New South Wales Land Registry Services.

Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Australia.

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Where to find a property

Explore these websites to find properties in Wollongong:

• Realestate.com.au - A comprehensive platform for real estate services, providing property listings, mortgage information, suburb research, and the latest property news.
• Domain - A property portal offering a wide range of real estate services, including property listings, home loans, new developments, and news updates.
• Flatmates - Australia's largest share accommodation website, connecting individuals looking for shared homes or flatmates.
• Allhomes - A real estate website providing various property services, including buying, renting, selling, and commercial properties.
• Realcommercial - The leading destination for commercial property, offering a wide range of listings, investment opportunities, news, and agency information.

Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Australia.

What you can get

As mentioned before, the average price per sqm in Wollongong is $4,500. A 1-bedroom property of 60 square meters would cost approximately $270,000, and a 2-bedroom property of 85 square meters would cost approximately $383,000.

Of course, the price of properties can be influenced by their qualities and the area they're in.

Top neighborhoods in Wollongong will be pricier. If you're looking at North Wollongong, a residence could be about $1,090,000, but an apartment in Keiraville might be priced at $480,000.

Certainly, certain areas are more affordable. You may find a residence in Coniston for $450,000, or you could locate one in Warrawong for only $280,000.

We give a more detailed breakdown in our full pack for buying property in Australia.

Risks and pitfalls

Here are the main pitfalls specific to buying a property in Wollongong, Australia:

• Overlooking bushfire risks: Australian bushfires can pose significant dangers, so assess the property's proximity to bushfire-prone areas.
• Neglecting coastal erosion concerns: Coastal properties may be vulnerable to erosion and rising sea levels.
• Underestimating flood hazards: Certain areas in Wollongong are prone to flooding, requiring careful assessment.
• Not considering wildlife impact: Some properties may be located near habitats of protected wildlife species, affecting construction and land use.
• Ignoring mining subsidence: Past mining activities can lead to ground movement, impacting the stability of properties.
• Neglecting potential water scarcity: Australia faces water scarcity issues, making it crucial to assess access to water sources.
• Disregarding heritage restrictions: Some properties may have heritage overlays, limiting renovation and development options.
• Overlooking strata rules: In multi-unit developments, strata rules may impose limitations and affect lifestyle choices.

We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.

Everything you need to know is included in our Australia Property Pack

Living in Wollongong

Living in Wollongong is a great experience, with a mix of urban and coastal lifestyle, offering plenty of activities, beautiful beaches and a relaxed atmosphere.

Cost of living

The cost of living in Wollongong is quite reasonable, with a moderate cost of housing and competitive prices for goods and services. The city has a wide range of employment opportunities and a relatively low cost of living compared to other major cities in Australia.

Here are some examples to better understand the cost of living in Wollongong, Australia:

• Rent for a one-bedroom apartment in the beachside neighborhood of North Wollongong: $2,000 per month.
• A meal at a local restaurant with "Kangaroo Burger," a traditional Australian dish: $35.
• Monthly "Opal" card for public transportation: $90.
• Utilities (electricity, water, heating) for a small apartment in Keiraville: $130 per month.
• A cup of "Flat White," a popular Australian coffee style: $4.
• Ticket to the "Wollongong Art Gallery," a local cultural attraction: $10.
• Monthly membership at a popular fitness chain like "Plus Fitness": $60.
• A bottle of "Hahn Super Dry," a well-known Australian beer: $5.

Neighbourhoods and spots

Since we strive to present information clearly and in a reader-friendly manner, we've created a summary table outlining the different neighborhoods in Wollongong. For yields, prices and rents, check our property pack.

Life in Wollongong

The economic landscape in Wollongong is largely driven by the city's port and steelworks. The region also has a strong manufacturing and services sector, with tourism playing an increasingly important role in the local economy.

What expats usually like the most in Wollongong is its laid-back atmosphere, as well as its stunning beaches and coastal walks. They also appreciate the vibrant arts and culture scene, with plenty of galleries, museums and festivals to explore.

Access to healthcare in Wollongong is generally good, with a range of medical services available.

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Renting out in Wollongong

If you're considering purchasing property solely for renting and earning income, you'll find valuable information in this section.

Long-term

Tenant Profiles in Wollongong

According to the data reported by Wikipedia, the home ownership rate in Australia is 66%, which is average.

It means that, if you decide to buy and rent out in Wollongong, there will be a good number of people who can become your potential tenants.

If you decide to buy and rent out to long-term tenants, you should target young professionals, students, and retirees looking for a convenient and affordable place to live in Wollongong. Other potential tenants include those who are looking for a short-term rental, such as people on business trips or holiday makers.

Here is a little summary table we've made for you.

Rental yields

Nowadays, rental yields in Wollongong are usually below 5%. It's not much. A good rental yield is usually around 7% or higher. Maybe, you knew it already.

The best rental yields in Wollongong are typically found in properties located close to transport, shopping, and other amenities. This is because these locations are highly sought after by tenants, allowing landlords to charge higher rent and increase their rental yields.

For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.

Short-term

You could also decide to rent short-term to students attending the University of Wollongong, or to professionals working in the city's many businesses. Tourists and visitors to the region are also likely to be interested in short-term rentals in Wollongong.

If you decide to go with that option, look for properties in the Wollongong CBD, North Wollongong and the suburbs of Figtree and Fairy Meadow. These areas have a high demand for short-term rental accommodation and are close to all the amenities and attractions of Wollongong.

There are approximately 845 active Airbnb listings in Wollongong, reflecting a dynamic short-term rental market. The average daily rate stands around $217, which is quite high.

You have the opportunity to generate a nice additional income stream then. According to online testimonials and analytics platform like AirDNA, Guesty and Inside Airbnb, people who offer short-term rentals in Wollongong can make around $2600 per month. Also, the average occupancy rate is estimated at 61%.

Is it worth buying real estate in Wollongong then?

Absolutely, buying property in Wollongong is a smart move if you're looking for a stable and attractive place to call home for the long haul. The city's blend of urban and coastal living, coupled with a reasonable cost of living, makes it a haven for families, young professionals, and retirees.

Plus, the steady property market here means you're likely to see your investment grow over time. It's a wise choice for those seeking a secure future and the comforts of a laid-back, beachside lifestyle.

On the flip side, if you're just passing through or on a tight budget, buying property in Wollongong might not be your best bet. Transaction costs can add up, and some neighborhoods can still be relatively pricey.

If you're solely chasing high rental yields, you may want to explore other regions with better returns. And if you're a foreign buyer, be sure to navigate the legalities and restrictions of Australian property ownership.

Bottom line: Wollongong has a lot to offer, but it's essential to align your decision with your long-term goals and circumstances.

Make sure you understand the real estate market in Wollongong

Don't rush into buying the wrong property in Australia. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.

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The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.