A recent report by Fitch Ratings has named Budgewoi as one of the most consistent suburbs to fall under the worst performing list for value of mortgage delinquencies in Australia – but figures seem to be improving lately.
The reason for the New South Wales central coast suburb’s high rates of mortgage delinquency, however, remains unclear. Despite being in the list, a notable reduction from 3.7% to 2.7% of mortgage delinquencies was seen in the six months between March and September 2014.
Based on figures from the Australian Bureau of Statistics, experiencing “mortgage stress” means the household is spending over 30% of its pre-tax income on loan repayments. Average wage earners of Budgewoi shell-out a whopping 47% of their income on their home loan.
Moreover, unemployment in the area was recorded at 7.7% in 2011. ABS’s 2013 data shows the unemployment rate for the Wyong LGA (where Budgewoi is) in 2013 was 7.6%, considerably higher compared with the nearby Gosford LGA (4.9%) and state (5.6%).