One in four Australians have found time during lockdown to manage their money, new research shows
Lockdown has given Aussies a chance to better manage their money, with many now ready to turn to the property market in search of an investment.
Australians have tended to spend more time thinking about their weekly footy tips than planning their finances or superannuation.
But since the pandemic set in, one in four Australians have apparently found the time during lockdown to better manage their money. And by sticking to a budget, the majority of us are feeling more positive about achieving short-term savings goals.
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ING research suggests the COVID disruption has encouraged Australians to better understand their finances. So one in four now feel more confident about their financial knowledge than they did pre-pandemic. They are also feeling quite positive about investing during the recession, with 44 per cent seeing property as the strongest investment option on their horizon. Around a quarter believe now is a good time to climb the property ladder, according to the ING commissioned research.
And with many households having saved more and spent less this year, the research suggests they might be ripe to do so through the remainder of 2020 and into 2021.
“COVID-19 has left many Aussies cautiously thinking about how they can invest to take greater control of their financial future, ” Julie-Anne Bosich, ING’s head of home loans said. “While, understandably, not everyone is in a position to use their finances to invest, our research has found that for those who are, the preferred investment choice is property, especially in the current climate where interest rates are low.”
The ING research found that property investment has been particularly front of mind for young Australians, with around one in four Millennials and Gen Zs saying they have been saving to cover costs associated with their planned property investment.
The research helps explain why there is stronger buyer support in the spring marketplace than most economists expected.
The improved landscape is emerging across Sydney which has been among the strongest of capital city auction markets, with preliminary clearance rates hitting 80 per cent last weekend. CoreLogic also advises that the required discounting on private treaty offerings has dipped to 2.1 per cent before vendors secure their sale. Only Canberra vendors are securing closer to their asking prices.
In the midst of the traditional winter hibernation, Sydney houses were taking 45 days and units 46 days to sell, reflecting a reasonable time frame. But now it is down to a snappier 37 days for houses, while apartments are taking 48 days.
One of the key reasons for whether property prices are going up, sideways or down is the issue of supply and demand. And it has emerged in the first two months of spring that pent up demand from buyers is facing reduced stock levels.
This contraction sees the number of fresh listings over the last four week down 7.4 per cent on the same time last year, with total listings of 20,800 being some four per cent down on the same time last October, according to CoreLogic.
I would not be surprised to see that Sydney house prices have actually inched up in October, although apartment prices will have likely fallen a tad further.
The apartment market is a weaker market – highlighted in its 73 per cent clearance rate against 83 per cent for houses – but there’s the prospect of investors returning attracted by the positive gearing opportunities.
Originally published as One in four Australians have found time during lockdown to manage their money, new research shows