Now Sydney’s affluent hit

The first signs of mortgage stress caused by higher interest rates and the fall in the stock market are beginning to be seen in the more affluent suburbs of Sydney.

Homeowners in suburbs such as Bondi, Chatswood and on the northern beaches are feeling the pinch as their net worth contracts because of the need to meet margin loans that were taken out to borrow money to buy shares, the authors of the J.P. Morgan/Fujitsu Australian Mortgage Industry Report say.

» Now Sydney’s affluent hit – The Sydney Morning Herald, 13th March 2008.