06 May Australian Homes Are Equity Rich
There’s been much pessimism around the Australian housing market, as the property bubble bursts, investors are pulling out, and the revelation that many Australians are burdened with massive mortgages is on many of our minds. This has caused some reluctance to pursue Sunshine Coast loans, whether people are thinking of moving or simply refinancing their homes.
This attitude is not entirely realistic, according to data gathered using property data experts CoreLogic RP Data’s automated property value analytics. The reality depicts a vastly different scenario – that, in fact, many Australian homes are quite equity rich.
Based on the average property value, by region, it is possible to determine the actual equity rates of a home or property. The results were surprisingly optimistic. It turns out that the average Australian home is currently worth nearly double of the debt against it. The average Australian homeowner with a mortgage has an equity of $242,642, or 48%, invested in their home – which is great news for a country recently saddled with debt.
New South Wales is leading the pack, as far as mortgages vs. equity are concerned. The current average homeowner in NSW has $385,763, or 58%, of their home equity. Tasmania currently has the lowest ratio, with $95,427, or 32.7%.
Unsurprisingly, Sydney and Melbourne have the highest level of home equity, with $443,900 and $276,845, or 60.1% and 50.7% respectively. Brisbane is a close third, with $180,692/41.4%.
Breaking it down even further into Council Regions, Sydney’s Hunters Hill has the highest percentage of equity to debt, with 72.3%, while Ku-Ring-Gai Council has the largest equity amount, with an impressive $928,761.
These numbers reveal a much different reality than what a lot of the financial reports and advisers might indicate. Getting a home loan may not be so impossible after all.