Advertisement

This is the most stress-free Aussie city to have a mortgage

The majority of Australian homeowners consider their mortgage a burden, unless you live in this Aussie city.

Surprisingly, homeowners in Sydney are the least stressed, followed closely behind by those in Melbourne, according to Gateway Bank.

Also read: Another blow for the Aussie property market

Darwin and Brisbane homeowners are next on the list, followed by Perth.

Adelaide homeowners could probably use a soft blanket and cup of chamomile tea; with a whopping 63 per cent of homeowners feeling stressed about their mortgages.

And why?

Because in pursuit of getting their foot onto the property ladder, Aussies have exposed themselves to too much debt, according to Gateway Bank chief executive Paul Thomas.

Also read: Australian housing downturn could be the longest in decades

“Add to this the steep decline in household savings, which is currently at one per cent, and you have yourself a recipe for mortgage stress.”

It’s the second year in a row that 56 per cent of homeowners have described their home loan as a burden, but homeowners who consider their mortgage a “significant benefit” has fallen from 23 per cent last year to just 11 per cent.

Despite this, Aussies are eager to enter the market, with nearly one in ten looking at rent-vesting as another way into the market.

Thomas said rent-vesting, where property owners rent where they want to live while also holding an investment property, is growing in popularity.

While the appeal is obvious, rent-vestors are also the most stressed category of homeowner.

Also read: Westpac is ditching risky property investors, giving them a month to find a new lender

“It seems that for almost 10 per cent of Aussies, rent-vesting has presented an opportunity to enter the property market. However, prospective rent-vestors should be wary before going down this path, as it does require a lot of consideration,” Thomas said.

“When we look at data from our study this year, rent-vestors are under a greater deal of stress (65 per cent) than the general mortgage holder population, which is just a small indication of the challenges presented by rent-vesting.”

This is because renters are generally offered leases which are short-term in nature and means renters have less control over their residence, and may suffer unexpected removals costs.

Additionally, rental supply and demand fluctuates. “This may put strain on you and your family, when you’re having to move from one property to another at the end of a lease,” a spokesperson told Yahoo Finance.

Similarly, larger families may struggle with a rent-vesting lifestyle due to the costs of renting larger homes.