Three Macarthur region suburbs in top 10 suffering mortgage stress
CAMPBELLTOWN, Camden and Narellan are among the top 10 suburbs across Sydney experiencing high levels of mortgage stress, according to data from research group Digital Finance Analytics (DFA).
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CAMPBELLTOWN, Camden and Narellan are among the top 10 suburbs across Sydney experiencing high levels of mortgage stress, according to data from research group Digital Finance Analytics (DFA).
Mortgage stress is defined as when net income fails to cover ongoing costs.
DFA’s figures showed Campbelltown was ranked the second highest in Sydney for the percentage of households struggling under mortgage stress, with 66.3 per cent of the area’s 10,913 mortgages under stress.
The figure means Campbelltown has the highest number of households (7234) under stress.
In Camden, 62.8 per cent of mortgages were stressed from 7403 homes.
Of 7729 mortgages in Narellan, 56.5 per cent of homes were experiencing mortgage stress.
DFA principal Martin North said: “Recent events, such as the lift in some mortgage rates, the latest council rate demands, rising fuel costs and flat incomes continue to hit home.
“Continued rises in living costs, notably childcare, school fees and fuel, while real incomes continue to fall and underemployment is causing significant pain.
“Many are dipping into savings to support their finances.”
Mr North told The Daily Telegraph wage growth was the best way to reverse the trend of mortgage stress.
“Frankly, the only get-out-of-jail card is income growth — and I just can’t see where income growth is going to come from,” he said.
Camden state Liberal MP Chris Patterson said he was concerned by the figures and promised the community the State Government would work with their federal counterparts to ease cost of living pressures, especially energy, housing and child care costs.
Mr Patterson said a housing affordability package announced last year aimed to reduce costs on buying a home.
“The package was aimed at helping first home buyers enter the housing market by removing stamp duty on properties up to $650,000 and reduced stamp duty for homes between $650,000 and $800,000,” he said.
“In just one year, some 2500 families and households in the Macarthur region have benefited from this initiative.
“The NSW Government is committed to increasing the supply of new homes which will put downward pressure on property prices in Macarthur and across Sydney.”
Mr Patterson said rebates on sport and creative activities for children, universal education access for three-year-olds, the energy affordability package and reducing the cost of CTP Green Slips were among the government’s strategies to bring down cost of living pressures.
Campbelltown state Labor MP Greg Warren said it was extremely disappointing to see the Campbelltown figures, given the high number of young families in the area.
Mr Warren said Labor had a raft of policies it planned to announce before the next state election, planned for March 23.
“We’ll be having a look at negative gearing in the tax system … We’ve already given an undertaking to look at wage growth with the Federal Government,” he said.
“We have to find out how to get money into people’s pockets.
“The big banks have begun to increase mortgage rates and electricity prices show no signs of decreasing while the Liberal State Government remain in power.
“This is the same government who have allowed property prices to spiral out of control in Sydney, making the dream of owning your own home unattainable for many younger residents.”