Brookfield & Other Suburbs Under Mortgage Stress

Photo credit: Real Estate AU

Digital Finance Analytics has seen a spike in mortgage stress in September that involves suburbs in west Brisbane, Brookfield and Fig Tree Pocket.

Their new analysis shows that there are now more than 905,000 households in mortgage stress, with 18,000 in severe stress. Even affluent neighbourhoods are also feeling the pressure. Brookfield, like Fig Tree Pocket, is known to house higher income homes. The mortgage stress that they are experiencing is being driven by the rising mortgage rates and living costs, whilst real incomes continue to remain stagnant or worse, fall.

There are also plenty of households that are spending bigger money on mortgage repayments, higher power prices, childcare costs and other expenses. All of these are considered to be a deadly combination.

According to Martin North, the Principal of Digital Finance Analytics, “continued pressure from low wage and rising costs means those with bigger mortgages are especially under the gun. These stressed households are less likely to spend at the shops, which will act as a further drag anchor on future growth.”

“The number of households impacted are economically significant, especially as household debt continues to climb to new record levels,” he added.

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Escaping Debt

The good news is, there are still ways to escape this vicious cycle of debt:

  1. Have a clear budget – make a list of everything that you spend on, down to the tiniest detail. This may seem time-consuming but you will thank yourself in the end. Keeping a record of everything that you spend on will help you manage your finances.
  2. Prioritise what you spend on – once you have written down all the things that you spend on, you can now prioritise how and where you spend your money. You will be surprised at how effective this is to your budget.
  3. Consider going to the bank – the bank can provide you with loans to help you pay off your mortgage. Going to the bank to know what your options are will be a huge help.

With this growing trend, it is always best to remember that change begins in oneself. So, if you want to get out of your mortgage stress, start by knowing all the expenses you make on a monthly basis and don’t be afraid to ask for help in considering your options.