A CONDELL Park family forced to sell their dream home at a loss of more than $150,000 has become the public face of a world mortgage crisis that has divided Sydney.
As the inner-city experiences a second real estate boom struggling homeowners, such as Hana and Ayman Itaoui (pictured), in the city's west and southwest have been left behind while Eastern Suburbs residents reap the rewards.
Sydney-wide auction clearance rates have reached their highest levels since 2002 but the Itaoui family haven't been able to sell their five-bedroom, three-bathroom home for the past six months.
They have spent $750,000 on the property since 2004 but after consecutive interest rate rises increased repayments to about $1600 a week they have no option but to sell.
"We really need to sell now because the repayments are too much and my husband will have to stop working for six months after a knee operation,'' Mrs Itaoui said.
"He needs a total reconstruction so we will have to sell the courier business and move in with family until we can get back on our feet.
"But before we can do any of that we have to sell our home.
"It's a real slap in the face to have to sell for less than what we've put into the place but I'd be happy just to break even. The problem is that no one is interested in buying.''
After dropping their asking price from $649,000 to $599,000 there has still been almost zero interest from the area.
The home, on a 650sqm block, was supposed to be where they would raise their family but with an interest rate now over 8 per cent they have been forced to leave before their first child, Markell, celebrates his first birthday.
"I'll never buy a house again. I'd rather rent and be happy paying a reasonable $300 or $400 a week rather than the $1600 we are paying now. That is massive. Something we just can't afford anymore,'' Mrs Itaoui said.
Over the past six months auction clearance rates in Sydney have reached 61.5 per cent, the highest since 2002 when clearance rates were at 67 per cent, according to figures from Australian Property Monitors.
This time the market is being carried by the city, lower North Shore and Eastern Suburbs where about 75 per cent properties are being sold at auction. In the west and southwest, however, it is only about 35 per cent.
A Housing Industry Association report said the past three rate rises have increased the number of households suffering mortgage stress by 77,000 - up 14 per cent to 624,000.
. I don't know what they were thinking but now that the repayments are $1600 a week they have to sell. Who decided to give them the credit in the first place? What have they done to reduce the payments? (such as renting out a couple of rooms.) Ultimately, they have to be responsible for the decsions they made. With people like this, it is no wonder the worldwide economy is unstable at the moment!
