Desire to Buy: Going, Going... Pretty Much Gone

Desire to Buy: Going, Going... Pretty Much Gone

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Desire to Buy: Going, Going... Pretty Much Gone PR Newswire MELBOURNE, Australia, May 31, 2012 MELBOURNE, Australia, May 31, 2012 /PRNewswire/ -- Millions of Aussies may be experiencing mortgage stress, but 'mortgage apathy' is the latest trend on the block, according to new research from leading national insurer AAMI.

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Desire to Buy: Going, Going... Pretty Much
Gone
PR Newswire
MELBOURNE, Australia, May 31, 2012
MELBOURNE, Australia
,
May 31, 2012
/PRNewswire/ --
Millions of Aussies may be experiencing mortgage stress, but 'mortgage apathy'
is the latest trend on the block, according to new research from leading
national insurer AAMI.
Young renters in capital city areas are increasingly dropping out of the race to
get a foot on the property ladder, with 8% fewer saying they feel the pressure
to buy a house than there were in 2010. Over one third of young city renters
that say they're happy renting with no plans to buy a property. A double‐
whammy of high housing prices and global uncertainty around property prices
could be to blame for the rise of 'mortgage apathy', with younger city renters
preferring to hold tight, rather than make what is likely to be the biggest
financial decision of their life.
Key findings:
31% of city renters aged 18 to 24 report feeling pressure to get a mortgage,
compared to 39% in 2010.
35% of city renters aged 18 to 24 say they are happy renting with no plans
to get a mortgage, compared to 29% in 2010.
While Australians are typically achieving life's milestones like getting married,
having children and buying a house later in life, this is not enough to account
for such a dramatic rise in "Mortgage Apathy", according to Reuben Aitchison,
Corporate Affairs Manager for AAMI.
"Twenty or thirty years ago average house prices in
Australia
were three to
four times the average salary, whereas today we are looking at a multiple of
seven times. Saving for a deposit is increasingly out of reach for young people
today, and if they are going to get a foot on the property ladder they want to
wait till they know they are investing at just the right time.
"We know that people who own their own home tend to take a greater sense of
responsibility for their dwelling. But this is a new trend and we will watch with
interest to see how longer‐term renting affects the way tenants treat their
dwellings and therefore the effect on risks faced in and around the home."
About AAMI
AAMI is a leading national car insurer, recognised as an industry innovator
providing award‐winning products and customer service. AAMI has become
synonymous with road safety and invests in both customer and academic
research around unsafe driving behaviours, as well as rewarding customers
through benefits like Safe Driver Rewards. Australian Associated Motor Insurers
Ltd (AAMI), ABN 92 004 791 744.
About the Indexes
Newspoll Market & Social Research conducted an independent internet survey
of 3,121 Australians, 18 years of age and older, across all states and territories
in 2012 including 184 renters aged 18‐24 years in ACT,
Sydney
,
Melbourne
,
Brisbane
,
Perth
and
Adelaide
. Collected data has been weighted in line with
current ABS population demographics to ensure any extrapolation of results is
representative of age sex and area.
Newspoll Market & Social Research conducted an independent internet survey
of 2,812 Australians, 18 years of age and older, across all states and territories
in 2010 including 284 renters aged 18‐24 years in ACT,
Sydney
,
Melbourne
,
Brisbane
,
Perth
and
Adelaide
. Collected data has been weighted in line with
current ABS population demographics to ensure any extrapolation of results is
representative of age sex and area.
For more information or to arrange an interview or grabs, please
contact:
David Skapinker Corporate Affairs +61(0)467-801-922
David.Skapinker@suncorp.com.au
Belinda Humphries Corporate Affairs +61(0)467-745-995
Belinda.Humphries@suncorp.com.au