More mortgage holders falling into negative equity
Article by Mozo
It has never been more important to compare the best home loans before committing to a new property, as many Aussies are finding that they end up paying back far more than their house is actually worth.
New figures released by JP Morgan have suggested that more than one in three properties purchased since 2008 have slipped into negative equity.
The report indicated that Queensland is the worst-affected state, with 54 per cent of houses rapidly losing their value.
New South Wales was the best performing region, with 24.5 per cent of mortgage holders seeing their loan fall into negative territory.
RP Data showed that the average house price has risen from $375,000 to $412,000 in the past four years, but this has not been enough to stop negative equity cases soaring from six per cent to 35.6 per cent over the same period.
Despite the bleak situation, people are still keen to get a foot on to the property ladder, as the Australian Bureau of Statistics revealed that home loan approvals were up by 1.8 per cent in August compared to the previous month.
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