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ISCOVER
Staff Reporrter
Australians aren’t expected to spend big on property any time soon, as new data show potential borrowers continue to worry about rising utility bills, employment and the global economy.
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According to the ninth annual National Consumer Sentiment Survey from Mortgage Choice, a majority of potential borrowers are worried about rising utility costs, with 22 per cent of the 1,025 respondents saying this was their biggest financial concern.
Job security and the state of the global economy tied for second place, with 11 per cent of respondents arguing that these issues are the major concerns.
“Our annual Consumer Sentiment Survey has found that Australian residents are not feeling overly confident about 2013, mostly due to external factors beyond their control. As a result, people are taking a more frugal approach to their finances and are working towards proactive steps to change their situation for the better,” Mortgage Choice spokesperson Belinda Williamson said.
According to Ms Williamson, to cope with the rising cost of living, more than half of those surveyed claim they have dipped into their savings to help make ends meet.
"The much-publicised increase in the cost of utilities seems to be hitting every one hard and this survey suggests that Australians overall are not feeling any more optimistic about their ability to meet these costs in 2013. With job security and the economic outlook also weighing on the minds of Australians, it is understandable that people are tightening their belts," said Ms Williamson.
"We encourage those who are feeling the pinch to look at practical ways to positively impact their financial outlook for the year ahead, such as health checking your home loan to see if you can get a better deal or by making changes to your daily spending habits."
Fifty-two per cent of those surveyed plan to make changes to their financial situation in 2013, by reviewing their budget, cutting back on spending and/or reviewing their home loan.
“While confidence levels are fairly low, it is good news that people are seeking to take greater control of their finances and to change aspects that are within their control such as reducing unnecessary outgoings and ensuring they are getting a competitive home loan deal,” Ms Williamson said.
“Confidence in the Australian economy for the year ahead has dipped slightly year-on-year but it is pleasing to see more than half of all those surveyed still see a positive economic outlook for 2013.”
