Melbourne suburb, Wollert the most mortgage stressed in the country
Half of the top 20 suburbs in Australia that are under mortgage stress are in Victoria, which is a "serious problem", according to a report by the Grattan Institute.
The report's data, which was based on the latest census, found Wollert, which is about 27 kilometres north of Melbourne's CBD, had the highest percentage of houses under mortgage stress in the nation, at 23 per cent. But sales appear to be humming along nicely.
Roxburgh Park is a close second at 20.9 per cent.
Wollert's median house price sits at $478,000, with listings and sales showing no signs of stress.
A three bedroom house at 39 Pine Park Drive, Wollert (below) was listed for July auction with hopes between $470,000 to $515,000.
It was sold earlier for a stronger $540,000.
Built in 2013 the block of land was sold in 2011 for $212,000.
A four bedroom house at 30 Vanin Street, Wollert (above) has been listed for $525,000.
It was last sold in 2012 for $192,000.
A five bedroom house at 13 Pine Park Drive, Wollert (below) was sold this month for $695,000. The agent's pre-auction estimate of its selling price was $680,000 to $740,000.
A four bedroom house at 7 Ludeman Drive, Wollert (below) was sold earlier this month for $601,000.
Built in 2012, it was last sold in 2014 for $365,000 and the block of land was sold in 2010 for $193,000.
Mortgage stress is defined as any household that spends 30 per cent or more of its income on loan repayments.
"Mortgage stress is particularly acute on the suburban fringes of our major cities, especially Victoria," Grattan Institute Fellow Brendan Coates said.
"Places like Roxburgh Park in the north, Cranbourne West, Burnside Heights and so on, have quite significant mortgage stress.
"I do think this is a serious problem," he told the ABC.
The top 10 most stressed suburbs are:
- Wollert, VIC (23%)
- Roxburgh Park – Somerton, VIC (20%)
- Upper Yarra Valley, VIC (20%)
- Chullora, NSW (20%)
- Mickleham – Yuroke, VIC (20%)
- Cranbourne West, VIC (19%)
- Burnside Heights, VIC (19%)
- Lawson, ACT (19%)
- Byford, WA (19%)
- Forrestdale – Harrisdale-Piara Waters, WA (19%)
The report goes on the say that across the nation, many households could find themselves in trouble if the economic environment changes even slightly.
Just a two percent rate rise "would create more stress than 17pc rate in 1989," the institute has suggested.