Outer suburbs filled with first-home buyers and areas that need big mortgages will bear much of the financial pain that will come as the RBA continues to lift rates | swrighteconomy
Outer suburbs filled with first-home buyers and some of the nation’s most established suburbs are likely to bear the brunt of the Reserve Bank’s war on inflation as new data shows higher interest rates have driven consumer confidence down to the depths of pandemic’s national lockdown.
More than 360,000 first-time buyers entered the property market between March 2020 and June this year. Almost 110,000 of them were in Victoria while 87,000 were in NSW, taking advantage of generous government assistance and record-low interest rates. Data compiled by ratings’ agency S&P Global of residential mortgage-backed securities showed that as of the end of March, the highest arrears rates were in the outer Perth suburbs of Maddington and Byford , the Sydney suburbs of Dolls Point and Castlereagh and the Melbourne suburb of Broadmeadows .
First-time buyers using various government support measures clustered into particular parts of the country over the past three years. In Melbourne’s outer suburbs they included Cranbourne, Mickleham, Craigieburn and Mickleham while in Sydney they included Narellan, Camden and Riverstone. In Melbourne’s Toorak, values climbed by 11.1 per cent through the pandemic but have fallen 10 per cent over recent months. It’s a similar story in nearby Armadale and Hawthorn .
“Considering the dual impact of higher interest rates alongside high rates of inflation for non-discretionary items such as fuel, food, renting and energy costs, the impact on households is likely to be broad-based,” he said.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Big lenders cut fixed rates despite RBA cash rate hikesSeveral big lenders have cut their fixed interest rates despite the Reserve Bank of Australia continuously hiking Australia's cash rate. 9News
Read more »
RBA takes ‘big step’ towards digital currency pilotThe RBA invited proposals to work with it and the new Digital Finance Cooperative Research Centre on potential use cases for a CBDC in Australia.
Read more »
Future of money: The RBA to trial a digital currencyThe Reserve Bank of Australia will trial a digital currency as part of a collaborative research project into how it could be used by consumers and businesses.
Read more »
Future of money: The RBA to trial a digital currencyThe Reserve Bank of Australia will trial a digital currency as part of a collaborative research project into how it could be used by consumers and businesses.
Read more »
Investors ‘just don’t trust the RBA’Bond fund manager Charlie Jamieson says investors got badly wrong-footed by the Reserve Bank of Australia.
Read more »
NZ’s rate rise disconnect has lessons for RBARBNZ has a head start in raising rates. But Antonia Watson, the CEO of the largest bank in NZ, says there has been no impact on spending – a challenge to central bankers.
Read more »