RESIDENTS in Caroline Springs and Hillside are more financially stressed than other Melburnians and are downsizing to keep up, according to new research.
A reliance on cars to get around and homes built on hefty mortgages means residents of these suburbs are most likely to feel the pinch from rising petrol prices and interest rates.
The Griffith Univerity report says this combination is putting an added financial strain on the outer West.
The report’s researcher, Dr Jago Dodson, has called on the state government to bolster public transport to ease the problem.
“The real issue effectively is the local scale public transport services in the outer suburbs of Melbourne are pretty poor quality,” Dr Dodson said.
“If you live beyond walking distance from a rail line, it’s pretty hard to use public transport to connect to the rest of the city.
“The question that needs to be asked is what happens if petrol prices continue to increase and mortgage interest rates continue to go up as well.
“If you’re looking for households who are starting to experience disadvantage as a result of those increases, it’d be the outer suburbs you’d look to first.”
Despite the burdens of mortgages and fuel, the outer West continues to boom.
Caroline Springs is home to about 11,500 people, and is expecting an influx of 11,500 more by 2013.
Melinda, not her real name, has lived in Caroline Springs with her husband and two kids for about seven years.
While she enjoys the atmosphere, Melinda said living in Caroline Springs had meant making some changes.
“My hubby works in Tullamarine but he used to work in Carlton,” she said. “He hated the commute and is not very patient at all when it comes to traffic.
“We have downgraded our car because of petrol costs – it’s just cheaper to run.”
Melinda said some of her friends had made more drastic changes, including selling their homes and opting to rent.
“I know several people who are downgrading not only their cars but their homes – they can’t cope with their mortgages,” she said.
“A couple of friends of mine have moved into rentals.
“They have got the same bills but they don’t have to worry about interest rates.”
Melinda said the area could do with a more frequent bus service, but said cars were essential to get around.
“People are willing to stick with their cars as an option,” she said.
“The (bus) service is not very regular, it’s not feasible to use it to go about your day.”
