Broadmeadows among the top mortgage delinquent locations: Standard & Poor's

The northern Melbourne suburb of Broadmeadows - indeed the entire 3047 postcode - ranks ninth on a list of Australia’s most mortgage delinquent postcodes for the June quarter.

Ratings agency Standard and Poor's found nine of the 10 worst performers were in NSW, with Port Stephens topping the list.

The data is collated from residential mortgage backed securities (RMBS) which allow lenders to raise funds by selling bundles of loans to investors. These mostly come from non-bank lenders and financial institutions and sub-prime and low-doc lenders.

Despite some high-profile former residents, ‘Broady’ – as it is affectionately known by locals – has struggled to overcome a ‘battlers’ reputation. This is, in part, generated by a lower household median income than the rest of Melbourne - $762 to $1,333.

The average selling price is $317,900 for houses and $272,400 for units, and the suburb’s median ranks 589 among 849 suburbs in Victoria.

The Broadmeadows Median rent for houses is $306 per week and units $286.

The suburb has a higher than average population of those born overseas than Melbourne - 58% born here compared to 65% for the rest of Melbourne.  A high proportion are from Iraq 6%, Turkey 6%, followed by Lebanon 4% and the UK 2%.

The proportion of residents aged 5 to 19 is high at 24%, as is the proportion of residents aged 0 to 4 at 8%.

A high proportion of houses are rented (26%) and there is a high proportion of separate houses (87%).

Crime is disproportionately high, too, with an average rate of 8,032 per annum compared to the rest of Melbourne at 6,733.

Weekly incomes are disproportionately low: residents earning $150 - $249 weekly comprise 8.74% of the population, $250 - $349 (8.81%), $350 - $499 (9.12%), $500 - $649 (13.77%), $650 - $799 (7.58%), $800 - $999 (7.89%) and $1000 - $1199 (8.74%).

In July Property Observer wrote on a mortgagee sale when Melbourne’s cheapest auction sale price was in the northern suburb of Dallas.

The four-bedroom, one-bathroom Barry Road house was listed by the mortgagees with a $220,000 to $240,000 price expectations.

It for $243,500 after Barry Plant Real Estate marketed the property to first homebuyers, investors and clinic operators.

The original 1960s brick veneer property (pictured below) was previously listed for sale in July 2011 with a guide price of $280,000 to $290,000, but did not sell.

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Its feature built in robes in two bedroom, a large living area with open fireplace, modern kitchen, central bathroom, separate laundry and toilet, gas ducted heating, single car garage and wide side driveway.

It last sold for $215,000 in mid-2008, reflecting 2.5% annual growth during the past five years.

The median sale price for houses in Dallas is $270,000, down 8.9% in the past year, according to RP Data.

Other recent sales include a five-bedroom property on Phillip Street selling for $365,000 in June and a three-bedroom house on Merino Avenue selling for $260,000 on 3 July this year.

Barry Plant Real Estate selling agent Halil Okur says while there was a lot of interest in the Barry Road property, it would need significant renovations to make it liveable.

“When we took over the marketing campaign, the house was vacant.

“It’s a run-down house. It needs a lot of renovation. When you walk into it, it literally stinks,” he said.

The buyer was an investor and Mr Okur expects it will return a rental income around $300 per week once its renovated. It would then reflect a 6.4% yield

The contract for the sale had a Victorian Legal Aid caveat on its title.

It was the home of Charbiel Fram who was sentenced to three and a half years jail for attacking his former brother in-law at a Thomastown pool hall in 2010 and is currently awaiting sentencing over an assault at Crown Casino’s Fusion nightclub.

There is a mortgagee sale scheduled for September 7 with a one bedroom unit at 4/18 King Street, Dallas.

It's marketed as "mortgagee in possession - an affordable start or excellent investment." 

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