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Thousands of Australian homeowners are struggling to make their repayments, with Tasmania, Sydney and Perth all feeling the heat
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Mortgage Business
Research reveals hotspots for mortgage stress By Sarah Simpkins 24 May 2021
Consumer group CHOICE has released regional data on borrowers under financial stress, with Western Sydney and West Melbourne ranking among the top spots.
The analysis by Martin North at Digital Finance Analytics and commissioned by CHOICE has marked more than 100,000 households in the top 10 suburbs in distress across NSW and Victoria.
In NSW, the number of households under distress in the top 10 suburbs totalled 63,502, while there were 70,526 in Victoria.
Nationally, the top 10 areas for mortgage stress were found to cover capital city and regional areas in NSW, Victoria, Queensland and Western Australia.
Investors to dump loss-making apartments
at 12:00 pm on May 24, 2021 | 4 comments
CoreLogic’s most recent Pain & Gain Report revealed that 16.8% of unit owners sold their properties for a loss in the December quarter of 2020, which was more than double the losses for houses (7.6%):
Loss making unit sales are more than double that for detached houses.
The latest rental data also showed that unit rents fell sharply across Melbourne and Sydney in the year to April 2021; albeit the pace of losses has moderated:
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Melbourne and Sydney have recorded falling rents.
Fed up with accumulating losses, unit owners are set to dump their holdings on the market, according to a new survey from Digital Finance Analytics:
Thousands of apartment owners in Sydney and Melbourne are expected to sell in the coming months, giving first-home buyers the chance to snap up a bargain.
Fresh figures released by Digital Finance Analytics showed that more than 4,000 property investors across both cities plan to flood the market with units due to the mortgage repayment holiday ending in March.
Financial regulators allowed lenders to give borrowers the option to pause mortgage repayments from March 2020 to ease the strain for those affected by the Covid-19 economic downturn.
Investors have battled to fill units while Australia s borders remain shut, with high vacancy rates forcing owners to accept rent at discounts of about 40 per cent - driving some unit prices down below $600,000.
Thousands of inner-city apartments are about to flood onto Sydney and Melbourne markets already struggling with oversupply
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