Forget shares: buying a new home is set to be the biggest spend for all states except South Australia during this financial year, the latest Homeloans Homebuyer Barometer has revealed. And in all states, shares came last.
According to research by Homeloans of more than 2000 respondents from across Australia, buying a new home will be the largest outlay for nearly a quarter of all states surveyed. And the largest financial concern? Interest rates, followed closely by the rising cost of living.
A new home was top of the spending list for 29 per cent of NSW respondents, 26 per cent of Victorian respondents, 23 per cent of Queensland respondents and 26 per cent of Western Australian respondents. Only South Australians showed different spending priorities, where having a holiday held the top spot (22 per cent).
“Findings from the Homeloans Homebuyer Barometer confirm that Australians’ passion for property continues to outstrip other major purchases,” says Will Keall, Homeloans’ national marketing manager.
“Bricks and mortar investment is obviously a permanent fixture on the must-have list of Australians. Shares, on the other hand, were pretty lacklustre, with between three and seven percent of respondents nationally saying they would be their biggest spend this financial year.”
Financial concerns: Australians irked by increasing interest rates
Rising interest rates led the list of the greatest financial concerns for the 2010/2011 financial year across all surveyed states. In NSW, 32 per cent of respondents ranked rising rates as their biggest concern, on par with WA (also at 32 per cent). South Australian respondents held the biggest fears overall about interest rate increases (35 per cent). In Victoria and Queensland, interest rates were ranked as the highest concerns for 31 per cent of respondents in both states.
Financial concerns: widespread unease about the cost of living, but worse in WA
Increased living expenses was the second biggest financial concern for all surveyed states. Western Australians were the most concerned by living expenses (31 per cent), followed by New South Welshmen (29 per cent), South Australians (28 per cent), Queenslanders (26 per cent) and Victorians (25 per cent).
Of the different age groups, those aged over 60 (43 per cent) and 50-60 (33 per cent) were most concerned about the cost of living. For those 25 and younger, rising interest rates far outstripped the cost of living as the greatest worry (31 per cent versus 18 per cent).
Job security fears highest in Queensland
Queenslanders had the highest level of concern about job security (12 per cent), followed by NSW (10 per cent), VIC (9 per cent), WA (8 per cent) and SA (6 per cent).
“With outlays on mortgage repayments and day-to-day living expenses on the rise and both major concerns from our research, it’s important to ensure mortgage stress doesn’t also become an issue,” says Keall. “There are many options available to existing and new borrowers to help reduce the likelihood of experiencing mortgage stress.”
Surveyed states snapshot
NSW:
After a new home (29 per cent), on the wish list for NSW residents were:
• A holiday (20 per cent)
• Renovations/extensions (17 per cent)
• Other property (14 per cent)
• A new car (13 per cent)
• Shares (5 per cent)
VICTORIA:
After a new home (26 per cent), on the wish list for VIC residents is:
• Holiday (18 per cent)
• Renovations/extensions (18 per cent)
• A new car (16 per cent)
• Other property (14 per cent)
• Shares (5 per cent)
QLD
After a new home (23 per cent), on the wish list for QLD residents are:
• Renovations/extensions (20 per cent)
• A holiday (15 per cent)
• A new car (15 per cent)
• Other property (14 per cent)
• Shares (4 per cent)
SA
After a holiday (22 per cent), on the wish list for SA residents is:
• Home renovations/extensions (20 per cent)
• Buying a new home (18 per cent)
• Other property (11 per cent)
• A new car (10 per cent)
• Shares (7 per cent)
WA
After a new home, on the wish list for WA residents is:
• A holiday (23 per cent)
• Renovations/extensions (20 per cent)
• Other property (16 per cent)
• A new car (14 per cent)
• Shares (3 per cent)