Gold Coast’s most affluent suburbs have the worst debt to income according to new economic data
SHOCKING new data reveals some of the Gold Coast’s most famous suburbs are drowning in debt with some leveraged at nearly three times the national average FULL LIST OF SUBURBS.
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THE Gold Coast’s most affluent suburbs are swimming in a sea of debt, with warnings the slightest change in interest rates will see them drown.
Surfers Paradise and its surrounding suburbs including Chevron Island, Paradise Waters, Bundall, Benowa and Main Beach, are the worst off, with the average of total debt to income ratio sitting at nearly 600 per cent, more than three times the national average and the worst in Queensland.
COAST SUBURBS WITH THE MOST MORTGAGE STRESS
Also heavily leveraged are Tugun, Broadbeach, Paradise Point and Burleigh, all of which sit at higher than 480 per cent.
The figures, compiled by reputable Melbourne firm Digital Finance Analytics (DFA), reveal the economic state of play in the 4217 postcode, which takes in Surfers Paradise, Sorrento, Isle of Capri, Main Beach and Benowa and is home to some of the city’s most powerful figures.
Economists and demographers have described the figures as “startling”, with DFA boss Martin North warning that Gold Coast owner-occupiers faced a rough road ahead.
“The figure of 596 per cent is especially large and it’s pretty amazing because there is not a postcode higher than that in Queensland,” he said.
THE DEATH OF HOUSING ON THE GOLD COAST
“It is a sign of the risk ahead and shows there is not much in the way of wiggle room so if interest rates rise and household prices slide at all then these households will be under significant pressure.
“There are many households which are leveraged up to their eyeballs and taking on more debt to manage their way through this horrible situation where income is flat, the cost of living is rising and the costs of energy are going up with no prospect of a pay rise.”
COAST REAL ESTATE THE STATE’S BEST PERFORMER
GOLDEN OLDIES’ $3.5 BILLION BOOM
According to the data, the average net worth of residents in the 4217 postcode is $1.1 million while the average total outstanding on mortgages is $821,077. The average of mortgage loans to income is sitting at 5.4.
The average annual debt payments are $45,838, the city’s highest, with those in 4216, which takes in the Sovereign Islands and Paradise Point, just behind.
Respected Sydney demographer Mark McCrindle said the figures were startling and presented a warning for the future.
“Nationally the average is about 190 per cent so the figures (for 4217) are more than twice the national average,” he said.
COAST’S NEXT $1B DEVELOPMENT WAVE
“At the moment much of this debt is easy to carry with record low interest rates. All the pundits say the RBA will move to change this later this year or early in 2019 so this makes Surfers Paradise a serious watch area.
“The slightest pressure on the economy will put pressure on them.”
AVERAGE TOTAL DEBT TO INCOME BY POSTCODE
4207 (Stapylton/Yatala/Steiglitz) — 228 per cent
4216 (Runaway Bay/Biggera Waters/Coombabah/Hollywell/Paradise Point) — 485 per cent
4226 (Robina/Merrimac/Clear Island Waters) — 381 per cent
4220 (Burleigh Heads/Burleigh Waters/Miami) — 490 per cent
4227 (Varsity Lakes/Reedy Creek) — 377 per cent
4215 (Southport/Labrador/Chirn Park) — 305 per cent
4209 (Coomera/Willowvale/Pimpama/Upper Coomera) — 308 per cent
4214 (Ashmore/Arundel/Parkwood/Molendinar) — 350 per cent
4213 (Worongary/Tallai/Springbrook/ Mudgeeraba/Bonogin/ Austinville) — 287 per cent
4228 (Tallebudgera/Tallebudgera Valley) — 570 per cent
4210 (Oxenford/Maudsland/Wongawallan/Studio Village/Guanaba) — 292 per cent
4212 (Sanctuary Cove/Helensvale/Hope Island) — 410 per cent
4225 (Coolangatta/Bilinga) -281 per cent
4208 (Ormeau/Norwell/Jacobs Well/Kingsholme/Gilberton) — 293 per cent
4211 (Nerang/Pacific Pines/Carrara/Beechmont/Gilston/Highland Park) — 321 per cent
4217 (Surfers Paradise/Bundall/Benowa/Chevron Island/Main Beach) — 596 per cent
4223 (Currumbin/Currumbin Valley/Currumbin Waters) — 415 per cent
4218 (Broadbeach/Mermaid Beach/Mermaid Waters) — 487 per cent
4221 (Palm Beach/Elanora) — 452 per cent
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