A nationally representative survey conducted by Savvy has shown that 26% of more than 1000 respondents have cited mortgage repayments as a significant cost of living concern. Extrapolated to the general adult population, this means more than 5 million Australians may be worried about keeping up with mortgage repayments in the coming months.
38% of 25-to-34 year-olds and 3-to-44 year-olds said that mortgage repayment increases are a significant concern when it comes to their ability to keep up with the cost of living. Other age groups expressed a lower level of concern about mortgage repayments.
According to the survey, 43.86% of mortgage holders spend between $251 and $500 on repayments each week, while 23% spend between $501 and $750. A further 18% claimed to pay $751 and over per week to cover their mortgage.
The survey identified 42% of respondents as having a mortgage, which would be 8.1 million Australians when extrapolated.
Mortgage stress imminent
“If that twenty-three percent who said they have mortgage repayments $500 to $750 per week were single income households, they would be in real trouble,” says Bill Tsouvalas, CEO of Savvy. “The COVID mortgage holidays are over and for some families, there may not be much left in the tank when it comes to covering mortgage repayments.”
When asked to choose their top three responses to mortgage repayment increases resulting from an interest rate rise, 53% of respondents said they would try to cut down on other expenditure to prioritise their mortgage. 28% of mortgage holders said they will absorb the increase, while 26% said they will simply grit their teeth and experience mortgage stress.
20% said they’re prepared to change lenders or refinance; 13% will lock in a fixed rate with their current lender.
“If you can refinance on a lower rate – lock it in now,” Bill says. “0.85% is still a record low, so get around to refinancing or fixing your rate as a first priority.”
Designed by Art of Kitchens, photographed by Eliot Cohen
Homeowners in Australia are active home upgraders, according to the 2016 Houzz & Home report from Houzz, the world’s leading platform for home renovation and design. The study, of almost 14,000 respondents in Australia and over 229,000 respondents globally, revealed that more than half renovated their homes in 2015 (56%), with a similar portion reporting their plans to renovate in 2016 (49%).
Designed by Art of Kitchens, photographed by Eliot Cohen
Almost half of renovating Australian homeowners opt to take on a renovation instead of buying an already “perfect” home due to their desire to stay in their current home or lot (46%). A third choose the renovation route in order to remain in their current neighbourhood (33%), with 29% choosing renovation because it was a more affordable option. For Millennials, financial considerations are more top of mind – over a third cite affordability as the top reason for renovating versus buying (36%). When it comes to the triggers behind taking on a renovation project, finally having the time tops the list for Aussie renovators (35% of homeowners who renovated their primary homes in 2015), ahead of finally having the financial means (34%).
“As the largest survey of home renovation, decorating, and building activity published, Houzz & Home provides unprecedented insights into how homeowners are updating their homes,” said Nino Sitchinava, principal economist at Houzz. “Our 2016 findings uncover the factors behind what is driving so many Australian homeowners to renovate to create their ideal home rather than purchasing one that is ‘perfect’ as is, as well as how these factors differ by generation. Interestingly, while the generation of homeowners between the ages of 24 and 34 still comprise a small share of the homeownership population, we’re finding that they are quite active when it comes to home upgrades, and are eager to make their homes their own.”
Designed by Touch Interiors, photographed by Matt Craig
Popular projects
Homeowners are prioritising renovation and addition projects in their kitchens (26% and 6%, respectively), living/family room (25% and 7%, respectively), non-master bedrooms (20% and 4%, respectively) and master bathrooms (19% and 4%, respectively).
Updating an outdated or undesirable design/style is the top issue addressed in Aussie kitchens and bathrooms (44% and 49%, respectively). Old or outdated finishes is the top issue being addressed in other interior room renovations (38%).
Many homeowners are tackling home systems upgrades including plumbing (32%), electrical (31%) and cooling (19%).
For exterior upgrades, top projects include updates to paint (28%), gutters/drain pipes (22%) and decking (22%).
What budget?
One-third of renovating homeowners take on a renovation project without setting a budget (33%), and close to the same share exceed their established budget (27%). These figures are largely consistent across all age groups.
The top budget buster is the decision to opt for more upscale products and materials (44%), ahead of products/services being more costly than expected (42%) and the discovery of unexpected construction-related issues (33%).
Aussie homeowners on Houzz spent $68,300 on average in home improvements in 2015. Homeowners aged 35-54 drive home renovation spend ($80,300 on average), investing almost twice as much as Millennial homeowners in their home upgrades ($41,200 on average) and a fourth more than those aged 55+ ($57,500 on average).
When it comes to spending on kitchen renovations – the top home renovation project in 2015 – homeowners spent an average $31,000 on major renovations* of a large kitchen (more than 12 square metres), and $21,840 for major renovations of a small kitchen (less than 12 square metres).
In terms of bathrooms, homeowners spent an average of $16,440 on major renovations* of a large bathroom in 2015 (more than 5 square metres), and $14,770 for major renovations of a small bathroom (less than 5 square metres).
How did homeowners finance these projects? The majority of homeowners continue to use personal savings/finances to fund their renovations (78%), followed by cash from mortgage refinances(16%) and credit cards (14%).
A helping hand
Nine in ten homeowners renovate their homes with professional help (89%).
Professional hiring is popular across all generations of homeowners, although it is slightly higher among those age 55 and over (91%, vs. 89% for those 35-54 and 85% of those 25-34).
A third of homeowners who hire a professional for their renovations select a home builder (21%), while 14% hire a kitchen designer or renovator, and 13% hire a landscape contractor or gardener.
Top specialty trades include electricians (71%), plumbers (57%), and carpenters (40%).
The Houzz & Home survey
The annual Houzz & Home survey is the largest survey of residential renovation, building and decorating activity published. The survey covers a wide range of renovation projects in 2015, from interior renovations and additions to home systems, exterior upgrades and outdoor projects. Data gathered includes historical and planned spends, professional involvement, motivations and challenges behind building, renovation and decorating projects, as well as planned activities for 2016. The 2016 study includes more than 12,092 respondents in Australia and 229,541 respondents worldwide, providing insights into the home improvement activity of the more than 40 million monthly unique users of the Houzz site and mobile apps.
The Houzz & Home Survey was sent to registered users of Houzz and fielded in May-June 2016. The Farnsworth Group, an independent market research firm, conducted the survey.
*A major renovation at minimum replaces all cabinetry and appliances. Additions are not included in these numbers. Numbers include both DIY projects and those which used design or construction professionals.
The full Australian report is available online or to visit the Houzz website click here.
The results are in! Samsung have done some hefty research into the lifestyles of Aussie households to discover what trends really affect our lives and how we use technology to improve them.
Out of the thousand that participated in the study, more than half (62%) identified saving money on bills as the most important benefit of a digitally connected home, followed by energy savings (45%) and convenience (43%).
Samsung also found that the average household throws away more than $1,000 worth of food each year, with NSW wasting about $1,475, almost double that of QLD! I know my household is a definite culprit. Also, as we’re coming up to the festive season, we spend two and a half times our average monthly food bill on Christmas entertaining (that’s a lot of honey glazed ham and prawns).
When it comes to entertainment, 55% prefer entertaining at home because it’s a good money saver, and 45% say it’s more sociable, not to mention flexible.
In terms of cleaning, 12 hours per week is spent on housework, and 33% believe technology will make their household chores easier in the future.
Utilising these results, Samsung have released their Australians@HOME range to help households with everyday chores through Wi-Fi enabled home devices that can be personalised to specific needs. Products include the POWERbot VR9200 with vision mapping ($1,799), Ultra Large Capacity Washing Machine with auto detergent dispenser ($3,999), Chef Collection fridge with built-in tray for marinating meat ($7,999), and Chef Collection Vapour Oven with a full touch LCD screen ($2,999).
According to the fourth annual Houzz & Home survey from Houzz, elective projects, rather than essential upgrades, drove home renovation projects in 2014. The key motivation for Aussies renovators was to enhance the design and functionality of their homes, as reported by nearly nine in 10 renovating homeowners (89% and 85%, respectively).
With over 13,000 Australian respondents and more than 260,000 respondents globally, the survey found that Australia is a nation of renovators. With 77% renovating in 2014 and/or planning a project in 2015, and 76% of homeowners decorating in 2014 and/or planning a project in 2015.
Homeowners are keen on discretionary projects, with a quarter of decorating homeowners updating all of their interior spaces. Furthermore, similar to other countries, kitchen remodels were more common than roofing updates in Australia (24% versus 15%, respectively).
Financing: The vast majority of homeowners leverage savings or personal finances to pay for their home upgrades (87%). Australian homeowners are similar to those in Canada and the U.S. when it comes to credit card usage to pay for home upgrades (19%, 26%, and 26%, respectively). Loans to finance home renovations are used by only one in ten Australian homeowners (12%).
Challenges: Finding the right professionals is the top renovation challenge homeowners face (36%), followed by finding products (32%), staying on budget and defining their style (28% each).
Smart Technology: One in five Australian homeowners rate smart home tech as a very-to-extremely important consideration for recent renovations, in line with German and UK homeowners (21% and 19%, respectively).
Green Homes: Homeowners are divided on the importance of integrating green and sustainable materials into their homes. While 36% rate this consideration as very-to-extremely important in recent renovations, 12% rate it as entirely unimportant.
Great Outdoors: Australian homeowners are among the most active outdoor renovators globally, with 65% of renovating homeowners landscaping or updating their grounds and outdoor systems in 2014 (versus 58% of U.S. and 48% of UK renovating homeowners).
We need to do a little audience research and that means asking you lovely readers a few questions. To thank you for your time (and I promise it will take way less than a minute), one of you has the chance to win a set of three large Maison Blanche candles worth $114.
The lucky winner will get their three essential summer scents: Sweet Pea + Vanilla, Nectarine + Mint and Sweet Orange + Chilli. All you have to do is complete the online survey and give us your email address to be in the running. And no, we won’t give that email address to anyone else or even add it to our own mailing list. Promise. What have you got to lose?!
This survey is now closed.
Closes midnight on Wednesday 22 October 2014.
Maison Blanche are a great local brand, based in Sydney. I love their fragrances and the candle snob in me has road tested and given the tick of approval to these beauties in terms of scent throw, cleanness of burn and packaging. Each candle is hand-poured in Sydney Australia and made from the highest quality 100% pure soy wax, with no nasty additives. They use lead and toxin-free cotton wicks to ensure a safe burn and select the best fragrance oils.
Maison Blanche are finalists in the Etsy Design Awards. Vote for them by Thursday 23 October!
Apologies for the radio silence over the past month. We were busy getting married and all. But now that distraction is out of the way, here are some weird facts about vacuuming from Electrolux that you probably didn’t know and might not want to know, depending on what kind of person you are. But if you have always been interested in naked vacuuming, or when you can put your kids to work in the salt mines… umm… lounge room, then hit the jump and take a peek at some of these weird and wonderful vacuuming stats.
