WA homeowners rich in property equity

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IT might not be WA’s richest council area when it comes to property prices, but City of Subiaco homeowners are trumping the state in home equity levels.

A report released last week by Aussie Home Loans and CoreLogic RP Data reveals Perth homeowners on average have 39 per cent equity in their properties, or $178,794 a house.

But homeowners in City of Subiaco were ahead of the pack, with the average property owner enjoying 55.7 per cent equity in their home, or $509,411 – the highest of any council region in WA.

Equity is difference between what your home is worth and how much you owe on it.

A homeowner with a property worth $500,000 who owes $200,000 would have $300,000 in equity. It is often used by lenders to assess what other loans a borrower can access.

Melville, Augusta-Margaret River, Cambridge and Victoria Park had the next highest equity levels.

Dardanup, in WA’s South-West, was the worst-performing region, with the average homeowner having just 25.3 per cent equity, or $93,941.

In the metropolitan area, Rockingham mortgage payers had the worst average of 30.3 per cent equity, or $116,205.

But WA has the sixth lowest equity levels in the country. NSW homeowners had the highest, with $242,642 on average, or 48.4 per cent.

Aussie Home Loans founder John Symond said Australian homeowners on average were 22 months ahead on monthly mortgage repayments.

  Equity Dollar value
1. Subiaco 55.7 per cent $509,411
2. Melville 54.4 per cent $370,100
3. Augusta-Margaret River 53.8 per cent $325,579
4. Cambridge 52 per cent $344,409
5. Victoria Park 47.8 per cent $239,672

Source: PerthNow - 16 Mar 2015