Negative equity occurs when a property is worth less than the loan secured against it, Peter Koulizos explained for Canstar, listing buying at a market peak, overpaying, a high loan to value ratio and overcapitalising on renovations as common causes. New units and single industry towns carried higher risk, with median house prices in Dysart and Newman falling about 77 and 70 per cent over a decade.
Reported by
Peter Koulizos, Canstar, 8 December 2020
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