Last night, Opposition leader, Tony Abbott’s, claimed the average Australian family would be at least $600 a year better off under a Coalition government - a statement that directly addresses the apparent concerns of many home buyers. More than 580 participants in a recent Loan Market borrower survey say they won’t be able to keep their current savings levels after listening to this week's Budget announcement.
Roy Morgan's Consumer Confidence Rating shows figures jumping to 119.3 (up 5.7pts since last week), but while Roy Morgan says this week’s strong rise has been driven by increasing confidence about the next 12 months, Loan Market spokesperson, Paul Smith, says home owners expect their savings levels to decrease as a result of the Federal Budget.
The Loan Market survey, which asked home owners, ‘How do you expect the new Federal Budget to impact your household finances?’ found that 42% of 581 respondents said they would not be able to keep their current savings levels.
The survey results also indicated 75% of respondents expected to be negatively impacted by the latest budget, by either decreased spending or savings levels.
Smith says that with the government announcing so many significant cuts and tax increases, home owners are expected an immediate impact on their household finances.
“Lower interest rates over the past year have helped many home owners either pay off their home quicker or provided additional money to put into their savings account. It would be disappointing if these savings were lost because of this budget,” says Smith.
Seventeen per cent of the online respondents said that the budget would have no impact on their household finances and 8% per cent said they expected to be able to save and spend more.
“This budget is going to impact every household differently, but all home owners will be positively impacted by the lower interest rates on their mortgages and the downward outlook for the next several months,” adds Smith.
How do you expect the new Federal Budget to impact your household finances?
a) I’m going to have to cut my household spending 33%
b) I won’t be able to keep my current savings levels 42%
c) It will have no impact 17%
d) I will be able to save and spend more 8%