Welcome Guest [Log In] [Register]


Reply
QBE Barometer 2014: Annual study of mortgage market and associated insurance in Australia; 81% say future generations will find it harder to buy a home
Topic Started: 18 Aug 2014, 03:34 PM (348 Views)
Admin
Member Avatar
Administrator

Quote:
 
QBE Barometer 2014 (PDF)

Executive Summary

• Property appetite among respondents remains strong despite lower consumer confidence – A cash rate at half the
20–year average is supporting a strong property appetite, with house prices and loan growth increasing (RBA) and more
Australian adults looking to buy property in the next five years (39% of the sample in 2014 compared to 35% in 2013).

• The next 12 months now less likely to be seen as the right time to buy – Since our last report in 2013, there has been a
significant drop in respondent perceptions that the next 12 months is the best time to buy (36% in 2014 vs. 42% in 2013).
Views appear to be heavily influenced by uncertainty about current market conditions and perceptions of property prices
and interest rates in the next few years.

• The May Federal Budget is delaying market entry – More than half of respondents say they intend to hold off on
buying until they see the impact of the Budget on the economy.

• There is a general expectation interest rates will rise and house prices might stall – More than half (53%) of
respondents believe property prices will continue to rise in 2014, however 43% believe prices will fall (vs. only 28% in 2013).
This may reflect the 39% of respondents who believe interest rates will rise in the second half of 2014 and 7% thinking
they will fall.

• Affordability remains a top of mind concern – More than half (59%) of respondents think property is overvalued despite
improvements in housing affordability over the past three years:
–– 65% worry foreign investment will make property unaffordable.

• First Home Buyer participation is waning – FHB activity is at near record lows as a proportion of all buyers (RBA) and
63% worry they will never be able to afford their own home. This unaffordabliity sentiment also appears to extend to all
buyers, with the majority (81%) of survey respondents believing future generations will find it harder to purchase their
first home.

• Financial stability is still a big selling point for the Big 4 banks – Existing relationships are helping to retain customers
with the majority of Mortgagors still applying for mortgages directly with their financial institution rather than through
a broker.

• Protection against mortgage payments is a low priority for those who need it most – Among respondents, only a
quarter of Mortgagors claim to have mortgage repayment protection insurance, dropping to one in five for those who
have struggled with repayments in the last 12 months.

• Australians are well ahead on repayments – 46% of respondents claim to be ahead and the rate of arrears (1.2%) is at
the lowest rate since 2009 (Fitch).

• Non-insurance remains a substantial issue when it comes to Australian property – Only four in five Mortgagors
surveyed had building insurance, however this does not appear to be a factor of income level. Rather it may be linked to
consumers’ misconceptions about actual property risk, with respondents ranking theft and fire as the highest risk to their
property, although the most common claims are for water damage due to floods or storms.

• Property insurance is undersold at time of purchase – Less than half of Mortgagors recall being offered building
insurance by their financial institution at the point of sale.

• Property type preferences are changing – Last year’s increased interest in new developments from Intenders appears
to have reversed in 2014, with existing dwellings now the property type more strongly considered and that more likely
to be purchased. The conversion from interest to purchase of new developments is less than 50%. There is also a
continuation of the outer suburb creep, with 53% looking to buy in the outer suburbs (compared to 48% in 2013 and
42% in 2012).

Posted Image
Attached to this post:
Attachments: QBE1.jpg (55.34 KB)
Follow OzPropertyForum on Twitter | Like APF on Facebook | Circle APF on Google+
Profile "REPLY WITH QUOTE" Go to top
 
1 user reading this topic (1 Guest and 0 Anonymous)
ZetaBoards - Free Forum Hosting
Fully Featured & Customizable Free Forums
« Previous Topic · Australian Property Forum · Next Topic »
Reply



Australian Property Forum is an economics and finance forum dedicated to discussion of Australian and global real estate markets and macroeconomics, including house prices, housing affordability, and the likelihood of a property crash. Is there an Australian housing bubble? Will house prices crash, boom or stagnate? Is the Australian property market a pyramid scheme or Ponzi scheme? Can house prices really rise forever? These are the questions we address on Australian Property Forum, the premier real estate site for property bears, bulls, investors, and speculators. Members may also discuss matters related to finance, modern monetary theory (MMT), debt deflation, cryptocurrencies like Bitcoin Ethereum and Ripple, property investing, landlords, tenants, debt consolidation, reverse home equity loans, the housing shortage, negative gearing, capital gains tax, land tax and macro prudential regulation.

Forum Rules: The main forum may be used to discuss property, politics, economics and finance, precious metals, crypto currency, debt management, generational divides, climate change, sustainability, alternative energy, environmental topics, human rights or social justice issues, and other topics on a case by case basis. Topics unsuitable for the main forum may be discussed in the lounge. You agree you won't use this forum to post material that is illegal, private, defamatory, pornographic, excessively abusive or profane, threatening, or invasive of another forum member's privacy. Don't post NSFW content. Racist or ethnic slurs and homophobic comments aren't tolerated. Accusing forum members of serious crimes is not permitted. Accusations, attacks, abuse or threats, litigious or otherwise, directed against the forum or forum administrators aren't tolerated and will result in immediate suspension of your account for a number of days depending on the severity of the attack. No spamming or advertising in the main forum. Spamming includes repeating the same message over and over again within a short period of time. Don't post ALL CAPS thread titles. The Advertising and Promotion Subforum may be used to promote your Australian property related business or service. Active members of the forum who contribute regularly to main forum discussions may also include a link to their product or service in their signature block. Members are limited to one actively posting account each. A secondary account may be used solely for the purpose of maintaining a blog as long as that account no longer posts in threads. Any member who believes another member has violated these rules may report the offending post using the report button.

Australian Property Forum complies with ASIC Regulatory Guide 162 regarding Internet Discussion Sites. Australian Property Forum is not a provider of financial advice. Australian Property Forum does not in any way endorse the views and opinions of its members, nor does it vouch for for the accuracy or authenticity of their posts. It is not permitted for any Australian Property Forum member to post in the role of a licensed financial advisor or to post as the representative of a financial advisor. It is not permitted for Australian Property Forum members to ask for or offer specific buy, sell or hold recommendations on particular stocks, as a response to a request of this nature may be considered the provision of financial advice.

Views expressed on this forum are not representative of the forum owners. The forum owners are not liable or responsible for comments posted. Information posted does not constitute financial or legal advice. The forum owners accept no liability for information posted, nor for consequences of actions taken on the basis of that information. By visiting or using this forum, members and guests agree to be bound by the Zetaboards Terms of Use.

This site may contain copyright material (i.e. attributed snippets from online news reports), the use of which has not always been specifically authorized by the copyright owner. Such content is posted to advance understanding of environmental, political, human rights, economic, democratic, scientific, and social justice issues. This constitutes 'fair use' of such copyright material as provided for in section 107 of US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed for research and educational purposes only. If you wish to use this material for purposes that go beyond 'fair use', you must obtain permission from the copyright owner. Such material is credited to the true owner or licensee. We will remove from the forum any such material upon the request of the owners of the copyright of said material, as we claim no credit for such material.

For more information go to Limitations on Exclusive Rights: Fair Use

Privacy Policy: Australian Property Forum uses third party advertising companies to serve ads when you visit our site. These third party advertising companies may collect and use information about your visits to Australian Property Forum as well as other web sites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, click here: Google Advertising Privacy FAQ

Australian Property Forum is hosted by Zetaboards. Please refer also to the Zetaboards Privacy Policy