November 20, 2013
The majority of Australians are comfortable with their current financial situation, according to the tenth annual National Consumer Sentiment Survey from Mortgage Choice.
The online survey of 1015 Australians found 56.9% of consumers are either “very comfortable” or “reasonably comfortable” with their individual finances.
With the cost of living on the rise, it is good to see the majority of Australians are still ‘comfortable’ with their financial situation. In fact, more than 33% said they only worry about their financial situation when they ‘have a big commitment.
When asked: ‘How often do you worry about your finances’, just 16.2% said they worry on a ‘daily’ basis, while 21.9% admitted to worrying on a monthly basis and 5.9% indicated they worry only once a year.
This optimistic attitude towards finances is unsurprising given Australians are currently saving at record levels. According to the survey, 33.3% of Australians have saved more than 15% of their after tax income this year.
Moreover, 41.6% of those with a mortgage admitted to having an after tax income buffer of three months or more.
Having a good financial buffer has become critically important for Australians as their comfort levels now seem to be directly proportionate to their level of savings. The more they have in savings, the more comfortable and confident they feel.
But it seems Australians aren’t just comfortable with their financial situation, with the survey also revealing that the majority of respondents are confident about the state of the economy.
More than 55% of Australians believe the economy will remain strong throughout 2014.
This is no doubt a result of the recent spate of positive economic data. The unemployment rate is sitting at just 5.7%, the Consumer Price Index continues to outperform expectations and the total value of dwelling finance commitments jumped 5.3% in the last month alone.
In addition, property prices continue to climb at a steady rate, with recent research from RP Data showing Australian capital city dwelling values grew by 1.3 per cent in October.
With the economy performing very well and interest rates currently sitting at historical lows, now may be a great time to jump onto the property ladder.
We can help you find a home loan that is right for your needs and keep you feeling comfortable with your financial situation.
For home loan tips, trends, facts, data and other information, call us on 9432 6070 or click on the 'contact us' tab at the top of this page.
About the survey
Market research company Nine Rewards was commissioned by Mortgage Choice to conduct the 2013 Consumer Sentiment Survey. The survey was completed by 1,015 Australians in late November 2013. Note, the figures have been rounded to the nearest whole percentage point.