Ipswich's mortgage misery

MORE Ipswich home owners are behind on their repayments than in any other region in Australia, according to a new report from international ratings agency Fitch Ratings.

The annual report, which looks at how many mortgage holders are more than 30 days in arrears, ranked Ipswich City first on a list of the worst-performing regions by number of home loan delinquencies.

More than one in 50 mortgages in the Ipswich region are over a month in arrears, with a 25% increase being recorded in the six-month period from September 2011 to March 2012.

Overall, 2.14% of all mortgages in Ipswich City are now more than 30 days in arrears, up from just 1.28% in March 2010.

Report co-author James Zanesi said the result was surprising and no specific reasons could be identified for the spike.

"In the last six months, or even the last year, the Ipswich region has deteriorated while a lot of other regions have improved," Mr Zanesi said.

"We contacted a lot of lenders who operate in this area and they cite a lot of cases of hardship and unemployment as contributing factors.

"These factors affected all of Queensland, but Ipswich and Logan City were affected more because of the stronger concentration of borrowers with a lower average income."

Queenslanders Credit Union chief executive John Weier said he was surprised at the result.

Mr Weier said about one third of his company's customers were in the Ipswich region and internal data didn't support the Fitch findings.

"There is no outstanding problems. It's business as usual as far as we are aware," Mr Weier said. "There are a few more arrears because of some of the redundancies that have been going on recently, but not in the Ipswich area.

"We monitor all delinquencies from 30 days, but we don't have any real issue there at all."

Queensland as a whole was the worst-performing state in Australia, with the 30-plus delinquency rate at 1.86% as of March this year.

The results don't mean mortgage holders are defaulting on loans, but do point to economic hardship by region.

Ipswich Chamber of Commerce president Brett Kitching also had not anticipated the spike in numbers.

"It sounds surprising to me considering the city is growing and continuing to develop," Mr Kitching said.

"We understand that economic times are sluggish, but we believe we are near the bottom of the cycle. We have population growth and significant development, which augur well for the future, but this is a worry at the moment."

A possible cause of the jump in mortgage arrears may be fallout from the January 2011 floods.

While the report couldn't draw a causal relationship, director of financial services at Ipswich-based Harding Martin Accounting Services Rob Rush said it wouldn't be surprising if the flood pain was a contributing factor.

"My view is this flood worked in three stages," Mr Rush said.

"You had three days to survive, three months of agony and three years of recovery.

"So we're really only halfway through that recovery phase."



10 worst-performing regions in Australia by percentage of mortgage holders more than 30 days in arrears:

  • 10 Outer West Sydney - 1.60%
  • 9 Blacktown - 1.60%
  • 8 Gold Coast East - 1.69%
  • 7 Fairfield-Liverpool - 1.73%
  • 6 Caboolture Shire - 1.76%
  • 5 Logan (& Beaudesert) - 1.84%
  • 4 Central Coast Sydney - 1.85%
  • 3 Gold Coast West - 1.89%
  • 2 Outer SW Sydney - 1.89%
  • 1 Ipswich City - 2.14%

Source: Fitch, ABS

Topics:  fitch ratings home loan defaults property

Armed robber with heavy conscience turns himself in

court generic

Armed robber dobs himself in suffering guilty conscience......again

UPDATE: Qld Rail ups customer service after driver shortage

FRUSTRATED: Sunshine Coast commuters Kieron Wallace and Jeff Addison, pictured in 2015, are among those frustrated at the state of current rail services.

Queensland Rail bolsters customer service staff after service issues

The Ipswich stamp fair has it all licked

RARE METAL: Dave Roberts with his aluminium Tongan stamps from 1965.

Ipswich stamp fair will feature rare and unusual stamps

Local Partners

Shannen Doherty reveals fear of dying in post on chemo

Actor Shannen Doherty shared this image of her lying in a hospital bed after a chemotherapy session.

Actor has been fighting cancer since 2015

Eddie Redmayne's stage fright on latest Harry Potter film

Actor Eddie Redmayne stars in Fantastic Beasts and Where to Find Them.

Actor felt like kid again when he got to film with a wand

Salma Hayek: 'Trump planted story because I turned him down'

Actor Salma Hayek is the latest woman who says U.S presidential nominee Donald Trump acted inappropriately.

Salma Hayek latest woman to accuse Trump of misconduct

Brisbane snake catcher shows who's the Boss

Brisbane snake catcher Julia Baker returns in season two of Snake Boss.

Hit show Snake Boss is back for another season

The Summer that Melted Everything

See what happens when you invite the devil to town

Leonardo DiCaprio nearly drowned while filming

Actor Leonardo DiCaprio

Oscar winner almost drowned in Galapagos

Hit songwriter's Noosa mansion on market

SPECIAL PLACE: The Cintamani estate is going to tender, marketed by Tom Offermann Real Estate.

Is this Queensland's best property?

Kiwi siblings snap up Dotcom mansion for $32.5m

The new toy company owners of the Coatesville mansion want replace any controversy with positivity and fun. Photo / Barfoot and Thompson

The trio paid $32.5 million for the property in June

New $200 million development will create 580 jobs

Cassie And Josh with baby Alfie and daughter Andee. They have bought at new Lennox Head development Epiq.

Majority of new positions will be given to Northern Rivers locals

Cherrabah's mega resort plans axed

PLANS for a massive development at Cherrabah have been scrapped.

What our mayor thinks of the new draft SEQPlan

The plan to use the innovative technology as part of the new Maroochydore CBD was cemented on site today when Mayor Mark Jamieson and Envac Asia Region president Chun Yong Ha formally signed the contract for the $20 million underground waste collection system.

New plan accommodates Sunshine Coast Council's vision for growth.

Dusit Thani finance crisis 'just a small hiccup'

ON TRACK: Springfield Land Chairman, Maha Sinnathamby, Ipswich Mayor Paul Pisasale, Developer Richard Turner and Springfield Land Deputy Chairman, Bob Sharpless, at the recent resort sod turning ceremony.

Property developer says project remains firmly on track