Sydney’s inner city and western suburbs face high risk of credit default

By |
If you’re looking to cash in on distressed properties, it may be worth your while keeping an eye on areas where residents are at high risk of credit default.
The Veda Australian Credit Scorecard identified the top 10 worst regions for potential credit default and found that half of these areas are located in Sydney.
Top 10 worst regions for credit default
  1. Logan Beaudesert
  2. Ipswich
  3. Sydney – Blacktown,
  4. Moreton Bay – North
  5. Sydney – City and Inner South
  6. Sydney – South West
  7. Sydney – Parramatta
  8. Melbourne – West
  9. Sydney – Outer South West
  10. Adelaide – North
Top 10 regions with the best credit score

  1. Sydney – Baulkham Hills & Hawkesbury
  2. Sydney – Sutherland
  3. Sydney – North Sydney and Hornsby
  4. Melbourne – Inner East
  5. Sydney – Northern Beaches
  6. Melbourne – Outer East
  7. Melbourne – Inner South
  8. Brisbane – West
  9. Adelaide – Central & Hills
  10. Hobart – South East
On a state by state basis, Queensland tops the highest proportion of residents likely to default at 16% followed by New South Wales, Victoria and Northern Territory tied at 13%.
Overall, this equates to 13% of Australians or 2.1 million people facing risk of credit default in the next 12 months.

Veda spokesperson Belinda Diprose explains that a default can come from something as simple as an unpaid bill, credit card or loan repayment.
“Historically, there have always been a number of individuals who have overextended themselves on credit and it can put them into debt stress later on,” she said.
This is especially the case with Sydney amid skyrocketing property prices and where people might have been tempted to take on a high mortgage.
“It is important that if you are struggling to meet your repayments you speak to your credit provider, there is likely something they can do,” said Diprose. “A default remains on your credit report for five years and can impact your ability to get credit or at the best rate.”

Do you have more than $200k in your super fund? You could use your super to buy property - Find out how

Top Suburbs : thebarton , alexandra hills , rockville , geelong west , canterbury

go back

Get help with your investment property

Do you need help finding the right loan for your investment?

When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus and appointment is free.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here