What Does a Risky Suburb Look Like?

National Australia Bank has released a list of suburbs where it identifies higher risk of loan default on dwellings. As a result, the lender has announced limits to the amount of money it will loan to home buyers as a percentage of what the dwelling is worth. This is known as putting a cap on the loan to value ratio (LVR).

The highest risk suburbs identified, classified by NAB as ‘Group A’, will have a LVR cap of 70%. Of the 91 suburbs identified in this group, 58 suburbs were in Western Australia while 20 were in Queensland. The rest were spread across Tasmania (9), South Australia (3) and the Northern Territory (1).

What has many people spooked is that a high majority of the 90 suburbs identified in ‘Group B’ are in New South Wales. Unlike the mining towns in Group A, Group B saw more diverse employment areas such as most of the major capital city CBD’s and metropolitan suburbs including Glebe, Chatswood and Darlington.

Property News – onthehouse.com.au
http://static.console.com.au.s3.ama...en_Commentary/Risky_Subrubs/Risky_Suburbs.pdf

 

Sydney CBD 2000 NSW B $2,145,000
Arncliffe, Turrella, Wolli Creek 2205 NSW B $1,069,000
East Ryde, Macquarie Park, North Ryde 2113 NSW B $1,484,000
The Ponds 2769 NSW B $920,500
Beverly Hills, Narwee 2209 NSW B $1,150,000
Banksmeadow, Botany 2019 NSW B $1,242,500
Yagoona 2199 NSW B $815,500
Waterloo, Zetland 2017 NSW B $1,188,000
Chatswood, Chatswood West 2067 NSW B $1,968,000
Padstow, Padstow Heights 2211 NSW B $924,000
Chippendale, Darlington 2008 NSW B $1,213,500
Berala, Lidcombe, Rockwood 2141 NSW B $1,064,000
Baulkham Hills, Bella Vista, Winston Hills 2153 NSW B $1,062,500
Lugarno, Peakhurst, Peakhurst Heights, Riverwood 2210 NSW B $1,041,500
Carlingford 2118 NSW B $1,276,500
Penshurst 2222 NSW B $1,231,500
Cabramatta,Cabramatta West, Canley Vale/Heights, Lansvale 2166 NSW B $761,500
Bungarribee, Doonside, Woodcroft 2767 NSW B $651,500
Newington, Sydney Olympic Park, Wentworth Point 2127 NSW B $1,206,500
Auburn 2144 NSW B $957,500
Varroville, Bow Bowing, Minto,Raby, St Andrews 2566 NSW B $546,000
Homebush, Homebush West 2140 NSW B $1,610,500
Campsie 2194 NSW B $1,215,500
Forest Lodge, Glebe 2037 NSW B $1,405,500
Glenwood, Parklea, Stanhope Gardens 2768 NSW B $882,500
Camellia, Clyde, Granville, Holroyd, Rosehill, South Granville 2142 NSW B $869,500
Harris Park, Parramatta 2150 NSW B $1,080,500
Hurstville, Hurstville Grove 2220 NSW B $1,448,000
Ashcroft, Busby, Cartwright, Green Valley 2168 NSW B $605,500
North Rocks, North Parramatta 2151 NSW B $1,148,000
Toongabbie, Old Toongabbie 2146 NSW B $807,500
Lakemba, Wiley Park 2195 NSW B $883,000
Denistone East, Putney, Ryde 2112 NSW B $1,523,500
Kingsgrove 2208 NSW B $1,210,000

 

Putney...because it has a lot of new builds going in..high risk of not valuing

Berala because of potential mortgage stress..prices have climbed from mid 3s in 2007-2008...friend had one which bought in Regents Park for $310k did not take $920 before auction now still not sold.

 

What about those inner city suburbs? Is this because the recent large price increases in these suburbs means that people are borrowing large amounts that they can't service?

 

The majority of those suburbs listed would have significantly high developments going on

 

Inner city suburbs has always faired well during booms....but also take a beating during down turns.

I would also like to nominate Greenacre 2190. My old hood.

We bought in early 2000 because I knew property prices were abnormally low. Particularly after 9/11, it developed a worse rap than usual.......but not enough to justify its low prices in comparison to its neighbouring suburbs.

Comparatively to most of Sydney, it's median age is fairly younger than it counterparts in the inner burbs of Sydney.....but that also makes it more vulnerable and prone to hurt in economic downturns.

We sold our beautiful 4 bedder with in-ground pool just prior to relocating to the US. We sold well - but not nearly as much as today's prices.

 

I've got a townhouse in Greenacre.... the good thing about Greenacre is that Muslims want to live there with the school and community. So they don't want to move, and I see the Muslim community growing and willing to pay more to live or own there. So I think it's pretty safe and a population not looking to move elsewhere - higher demand than supply. There's also quite a few new builds that have gone in not long ago, but its not particularly high density.

 

'Green acres is the place to be ...'

 

Ok so in this case of risky suburbs,
How to know if there are more investor than owner occupier ?

Does PriceFinder or RPdata can show this information ?

 

@Tekoz Domain or RE.com have some of the demographics stats.

 

davoren park sa - Google Search

 

@Scott No Mates the pie chart on the free website above only shows percentage of renter, does that means it is owned by investor ?

 

@Tekoz - they've got to rent from someone

 

Mt duri will fit in well if anybody buys there now.

 

My locksmith had some interesting stories to tell. Mainly does work for public and community housing - callouts to change / repair / replace locks in outer Western Sydney. 99% of his work. A reliable income-stream for a locksmith.

 

Sssshhh....you will awaken the Zombies again....

 

Skater is better than that.

 

Went to an open for a unit in West Ryde.... 8 or more parties there for an older (1960's/1970's) 2 bedroom unit.

FWIW.... It wasnt an attractive unit to me... vermiculite ceilings, older bathroom, so-so layout... asking 635k. Anyway i'll be interested to know if it sells, and for how much...

 

Hey just a quick question. Looking at the housing make up of a suburb, what percentage of renters would you be concerned of when looking to invest? 50% of renters? 40%? 30%? I thought it would also be risky if a suburb as too many renters. Enlighten me please.