Sydney vulnerable if rates rise

A study has warned that mortgagee sales and bankruptcies could surge in Sydney's western suburbs if interest rates increase. The report by University of Newcastle's Centre for Full Employment and Equity has found that high debt levels, falling house prices and job losses have made the western suburbs particularly vulnerable to even a small interest rate rise. Sydney has had a negative price growth for established houses since March 2004, while debt levels have continued to rise.

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