Shades of what happened after the GFC.. If the dollar drops all will be picked up
overseas property vulture buyers...I guess that’s the plan! This article has no
credibility as mortgage stress is across the board. Bankers are supplying the stats.
You can guess why they want you to think that.
Wealthiest suburbs among most vulnerable to mortgage stress
10 January 2017
Australia's wealthiest suburbs are among the most vulnerable postcodes in terms of mortgage stress.
Private data compiled by Digital Finance Analytics has captured 16,000 homes within 20 suburbs that are under significant financial strain.
For example, households in Melbourne's Toorak, where the median house price is $3.5 million, are five times more likely to default on mortgage payments than the national average.
Residents in the Sydney beachside suburb of Bondi are facing the same financial stress.
Mr North said these households - while currently enjoying the spoils of a once-in-a-generation house price boom - will be "disproportionately affected by even a small rate rise".
On Sydney's leafy north shore, in suburbs such as Hornsby and Gordon, home owners are already making late mortgage repayments.
"If you're a more affluent household, you'll tend to have higher costs," Mr North observed.
"You'll be going out and eating more, you've got bigger cash flow issues with regards to credit cards, say larger credit cards, and larger repayments on the credit cards, you have a more expensive car.
"So this is about lifestyle."
The data also showed the probability of households in the riskiest 20 suburbs defaulting on mortgage repayments over the next 12 months ranged from about 3 to 5 per cent. A probability of more than 2 per cent is "significant", Mr North said.
Velocity Trade financial expert, Brett LeMesurier, said it is wealthier Australians with multiple properties that will be hit hardest by any interest rate rises, including independent moves beyond Reserve Bank decisions.
20 postcodes feeling the most mortgage stress
