Gold Coast finance: Gold Coasters owe city hall $24.4m in unpaid rates as mortgage stress grows
SHOCK data reveals Gold Coast ratepayers owe city hall tens of millions of dollars in unpaid rates as the council moves to sell off properties in arrear.
Council
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THE Gold Coast City Council will auction off units in some of the Gold Coast’s most popular holiday spots for unpaid rates, as new figures reveal the level of financial stress hitting the city.
The units, in Surfers Paradise and Coolangatta, will be on the blocks later this month because their owners have been in arrears for more than three years.
COAST’S MOST AFFLUENT SUBURBS DROWNING IN DEBT
THE DEATH OF HOUSING ON THE GOLD COAST
New figures reveal 37,860 people currently owe city hall $24.4 million in charges, with the council already planning to auction off a further two houses to recoup the funds.
Acting Mayor Donna Gates said selling a property to recover rates arrears was always a last resort.
“We give property owners considerable time to deal with their rates arrears. Every other ratepayer knows it’s unfair on them if people aren’t paying,” she said.
COAST REAL ESTATE THE STATE’S BEST PERFORMER
PROPERTY OWNERS FACE LOSING THEIR PROPERTIES
“Through improved communication and by identifying properties facing difficulties early, we are keeping the outstanding debt down from historical highs.
“Council provides a discount for those who pay early, and can assist in structuring payment plans for those needing help.”
The property owners have until the day of the auction to pay off their debts to prevent their dwellings going under the hammer.
In most cases the debts are settled but a rare sale went ahead in 2016 when the council famously put the swimming pool of a Varsity Lakes unit complex under the hammer, selling it to a Brisbane investor.
The amount of unpaid rates is significantly lower than it was in early 2013 when 32,000 ratepayers owed the council $93 million.
A council spokeswoman said debts were not written off and the size of the money owed to council fluctuated depending on the time of year and point in the rates cycle.
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New data compiled for the Gold Coast Bulletin by respected firm Digital Finance Analytics showed more than 12,000 households across the Gold Coast were experiencing mortgage stress.
Of these, 225 were experiencing ‘severe’ stress, all of which were located in the 4217 postcode, which takes in Surfers Paradise, Main Beach, Bundall, Chevron Island and Benowa.
As of July, 1471 owner-occupiers were at risk of defaulting on their mortgages.
These figures were in line with those released six months ago.
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