Coastal areas 'are worst for mortgage arrears'

Aussies who live in coastal parts of the country seem to be in greater danger of seeing their mortgage fall into arrears.

New research conducted by ratings agency Standard & Poor's has suggested that half of the ten worst-performing regions in Australia are by the sea, the Australian reports.

People who live in Nelson Bay – to the north of Newcastle – are in the most trouble, with almost one in ten home loans in arrears, which is a staggering figure.

Seaside towns in Queensland and Tasmania are also in dire straits.

The house building industry across the country is generally in a sorry state.

New figures provided by the Australian Bureau of Statistics showed that overall dwelling approvals were up by 6.4 per cent in seasonally adjusted terms in August, but this followed a huge 21.2 per cent decline in July.

Nelson Bay Real Estate principal Heath Jones told the news provider that "weekender" or holiday homes bought in the area were the most likely to face enforced selling.

"We have had a lot of developments here which went broke and we have had a lot of mortgagee sales over the past two years," he remarked.

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