Data reveals worst Gold Coast suburbs to be under mortgage stress in 2018
MORTGAGE stress has increased to record levels in nearly every Gold Coast postcode - and analysts warn it will get much worse with already low interest rates about to rise. FIND OUT SUBURB-BY-SUBURB BREAKDOWNS.
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MORTGAGE stress on the Gold Coast is at highest-ever levels and threatens to get much worse, say analysts.
New data reveals the number of households across the Gold Coast facing mortgage stress has increased across all but one postcode, with more than 1400 owner-occupiers within a month of defaulting on payments.
But as one Gold Coast expert warns, interest rates have been at their lowest level so people struggling with mortgage stress right now are probably having debt stress in other areas.
THE DEATH OF HOUSING ON THE GOLD COAST
The shock figures, compiled by Digital Finance Analytics (DFA), show the number of people within weeks of missing payments has also grown across every postcode excluding Coolangatta and Bilinga in the past year.
Of the 84,434 owner-occupiers with mortgages, 12,779 are under financial pressure.
But these figures could be just the tip of an iceberg, with DFA principal Martin North warning a slight change in the nation’s fiscal situation could see more Gold Coasters facing distress.
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Mr North said a concern for the city’s market was the slow growth of income — something he described as a “significant worry”.
“We have issues particularly around the Gold Coast because incomes are flat in real terms but costs of living are continuing to rise really significantly,” he said.
“Rates, fuel, council fees and children costs are all going up as well as the standard food bills and other day-to-day expenses. If interest rates go up those who have housing stress will be under much greater pressure than those who have some leeway.
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“Household debt across Australia has never been higher. We have a big debt problem and that is because of bigger mortgages, free and easy lending and low interest rates which have led us to a level of debt which I think is unsustainable.
“Unless there is a spike in living costs, then more and more households are going to face difficulties.”
According to the data, the highest number of households with borrowings can be found in the 4211 postcode, taking in Pacific Pines, Nerang, Highland Park and Gaven, where there are more than 10,000 owner-occupiers.
However of those, just 199 face mortgage stress, with 150 at risk of non-payment.
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The figures reveal an astounding 74.8 per cent of owner-occupiers in Tallebudgera and Tallebudgera Valley are under pressure.
Tugun was the only suburb that did not report a jump in the number of households in distress, with numbers steady at 2017 levels, although the number of houses facing defaults jumped 5 per cent.
But mortgage experts say there are simple steps Gold Coasters can take to save themselves from financial ruin when securing a mortgage.
James Hasselle, owner of Mortgage Choice Miami-Burleigh-Palm Beach, urged people considering taking up the financial burden to understand their situation before committing.
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“Most people who come to see us with stress have unsecured debt alongside the mortgage,” he said.
“But realistically, if you are in mortgage stress right now, these are the lowest rates that have ever been and they are equivalent to a rental payment,” he said.
“If you are in stress at these interest rates there must be another factor in play.”
He said people needed to be realistic about living expenses.
“Set yourself a true budget from the beginning, what the rates are, what the insurance and everything else costs because many people do not have a proper budget or know what their real living expenses are,” he said.
“Some people borrow too much so it is important with rates going up to know whether you can afford it or not.’’
Mr Hasselle said people contemplating taking out a mortgage needed to have a plan for the next five years.
MORTAGE STRESS IN YOUR SUBURB
1: 4207 (Stapylton/Yatala/Steiglitz)
Number of borrowing households: 7699. Households in stress: 1607.
Number risking 30-day default: 113.
2: 4216 (Runaway Bay/Biggera Waters/Coombabah/Hollywell/Paradise Point)
Number of borrowing households: 4578.
Households in stress: 1577.
Number risking 30-day default: 79.
3: 4226 (Robina/Merrimac/Clear Island Waters)
Number of borrowing households: 4239.
Households in stress: 1385.
Number risking 30-day default: 72.
4: 4220 (Burleigh Heads/Burleigh Waters/Miami)
Borrowing households: 4602. Households in stress: 1071. Number risking 30-day default: 89.
5: 4227 (Varsity Lakes/Reedy Creek)
Borrowing households: 3347. Households in stress: 786. Number risking 30-day default: 57.
6: 4215 (Southport/Labrador/Chirn Park)
Borrowing households: 4745. Households in stress: 762. Number risking 30-day default: 75
7: 4209 (Coomera/Willowvale/Pimpama/Upper Coomera)
Borrowing households: 5890. Households in stress: 732. Number risking 30-day default: 91.
8: 4214 (Ashmore/Arundel/Parkwood/Molendinar)
Borrowing households: 5486. Households in stress: 705. Number risking 30-day default: 92.
9: 4213 (Worongary/Tallai/Springbrook/Mudgeeraba/Bonogin/Austinville)
Borrowing households: 5253. Households in stress: 668. Number risking 30-day default: 85.
10: 4228 (Tallebudgera/Tallebudgera Valley)
Borrowing households: 886. Households in stress: 663. Number risking 30-day default: 19.
11: 4210 (Oxenford/Maudsland/Wongawallan/Studio Village/Guanaba)
Borrowing households: 3820. Households in stress: 600. Number risking 30-day default: 61.
12: 4212 (Sanctuary Cove/Helensvale/Hope Island)
Borrowing households: 4405. In stress: 583. Risking 30-day default: 68.
13: 4225 (Coolangatta/Bilinga)
Borrowing households: 652. In stress: 570. Risking 30-day default: 10.
14: 4208 (Ormeau/Norwell/Jacobs Well/Kingsholme/Gilberton)
Borrowing households: 3235. In stress: 277. Risking 30-day default: 50.
15: 4211 (Nerang/Pacific Pines/Carrara/Beechmont/Gilston/Highland Park)
Borrowing households: 10,167. In stress: 199. Risking 30-day
default: 150.
16: 4217 (Surfers Paradise/Bundall/Benowa/Chevron Island/Main Beach)
Borrowing households: 4238. In stress: 186. Risking 30-day default: 84.
17: 4223 (Currumbin/Currumbin Valley/Currumbin Waters)
Borrowing households: 2136. In stress: 173. Risking 30-day default: 43.
18: 4218 (Broadbeach/Mermaid Beach/Mermaid Waters)
Borrowing households: 4038. In stress: 148. Risking 30-day default: 83.
19: 4221 (Palm Beach/Elanora)
Borrowing households: 4008. In stress: 87. Risking 30-Day Default: 72.
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