It costs $32,000 a month just to live in this Australian suburb – but just six years ago it was nearly half that amount.
Some Australian suburbs are facing a range of mortgage problems as they could be on the verge of paying more than double the amount for their house compared to just six years ago.
Homeowners are facing soaring interest rates after the Reserve Bank raised rates at its monthly meeting in May for the first time in 12 years.
Another meeting is scheduled for next week and economists predict that by the end of the year the spot rate will be 1.75%.
Data from PropTrack found that new homeowners across the country are shelling out up to double those of their predecessors as of 2016 to keep mortgage payments in check.
And it could be about to get worse if the interest rate continues to rise.
An exceptional suburb will have to pay $32,000 into the bank each month to stay on top of his mortgage.
As property values have skyrocketed in recent years, homeowners have had to pay hefty mortgage bills.
Unsurprisingly, the country’s nine worst suburbs in terms of overall mortgage repayments were in Sydney, with only one in Melbourne.
Sydney along with regional NSW and the Queensland region also top the charts when it comes to houses and units with the largest monthly debts to pay.
Nationally, Vaucluse, in the eastern suburbs of Sydney, came out a clear loser in terms of mortgage repayments for homes.
By the end of the year, the average person living in a house in the Vaucluse will pay nearly $33,000 a month to their bank for this privilege.
Currently, residents of Vaucluse pay an average of $26,500, far exceeding all other states in the country.
It’s not too hard to see why — the median sale price for this suburban is $8.2 million.
That compares to the average mansion value of $4.2 million in 2016, with mortgage payments of $19,000 per month.
Other homes in Sydney’s eastern suburbs, including Bellevue Hill, Dover Heights, Clovelly, Bronte and South Cooggee, made their way up the list.
Two northern suburbs of Sydney – Palm Beach and Northbridge – also received an honorable mention.
Sunshine Beach in the Queensland locality of Noosa was the only non-NSW suburb to feature in the top 10.
Byron Bay in northern New South Wales also made the top 10. Homeowners in the controversial seaside town will pay $12,000 a month in mortgages, on average, by the time rates hit 1.75 %.
Another affluent Sydney suburb in the Northern Beaches, Palm Beach, also didn’t do very well in the data.
It topped the charts for all the wrong reasons – for being the most indebted suburb of any house and unit in the country.
Currently, residents are paying nearly $20,000 a month for their mortgage, but that’s expected to rise to nearly $25,000 by the end of the year if rising rates follow industry forecasts.
New owners need to raise $6.2 million to enter the suburb, which exceeds its average price, up from just $2.28 million in 2016.
Portsea, along Melbourne’s Mornington Peninsula, came second on the list due to a huge increase in mortgage repayments in just six years.
As of mid-2016, the mortgage was running at $7,700 per month on units and houses in Portsea.
Currently, the mortgage is $12,000, but it is expected to climb to $15,000, nearly double its 2016 amount.
Sydney’s eastern locality of Dover Heights will also feel the sting of rising rates, with units and homes in the area hit by average monthly payments of almost $22,000 by the end of the year.
Elsewhere, other suburbs across the state are also in the firing line for hip pouch pain.
In New South Wales, Palm Beach had the highest number of mortgage payments for all dwellings, while Vaucluse led for houses. Suffolk Park in Byron Bay has the most expensive units in the state.
In Victoria, Portsea topped all dwellings and houses.
Melbourne’s Mont Albert North has units that cost $4,000 per month in mortgage.
In Queensland, Sunshine Beach owed banks the most for its homes and apartments – $11,400 and $4,900 respectively. These numbers will increase to $14,000 and $6,000 once interest rates hit 1.75%.
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