Residz Team 3 min read
Hey big travel spenders, did you know you’re currently a world-beater?
Despite new ANZ data showing 49% of Australians believe their families are worse off financially than this time last year, it doesn’t appear to stop many of you jumping on a plane. When it comes to international travel over the next 12 months, Australia will be the world’s biggest spenders, according to a recent survey.
What we want to know is, does this mean many of you are spending your home deposit savings?
YouGov surveyed 26,000 consumers from 25 countries for World Travel & Tourism Council (WTTC) in the lead-up to its 22nd Global Summit in Saudi Arabia.
It found that, for international travel, Australians will outspend other travellers from around the globe in 2023. Other countries with comparatively big travel spends include Canada, Saudi Arabia, and the Philippines.
The survey shows 63% are planning a leisure trip in the next 12 months, with more than a quarter (27%) of consumers planning three or more trips over the same period.
At the start of 2022, CommBank revealed that Australians named ‘travel’ as their number one reason to save, with 70% planning international or domestic holidays in the coming months. Then in May, NAB announced its customers had spent $157 million on overseas travel in the previous five months, almost 600 per cent more than the same period the year before ($23 million).
The United States, United Arab Emirates and United Kingdom were the top three countries where Australians spent money in foreign currencies, according to NAB.
It’s a trend that looks like it’s going to continue. Changes to our priorities after pandemic lockdowns and remote work opportunities saw more of us choose to live regionally, and spend on travel.
It’s likely some have paused or given up saving for a home deposit, and are saving for travel instead.
Recent data from ANZ and CoreLogic showed that on a median weekly household income ($1665), a first-time home buyer would take more than 11 years to save a 20% deposit (to avoid paying Lenders Mortgage Insurance).
According to the Young People’s Financial Strategies: Insights from the Australian Youth Barometer report from Monash University (survey of 500 young Australians aged 18-24), those who live at home with their parents are much more likely to save money than those with other living arrangements. However, as we know, kids staying home longer puts pressure on parents.
For many workers, saving the median 20 per cent deposit to purchase a dwelling in Australia (around $150,000) leads to first home buyer stress, and may just be a bridge too far. With a property market falling in value amid uncertain economic conditions, it appears many would-be home buyers might be prioritising work-life balance instead.
For example, the ANZ-Roy Morgan Consumer Confidence survey found only 7% of Australians expect ‘good times’ for the Australian economy over the next twelve months compared to almost two-fifths (39%) who expect ‘bad times.’
Now 24% (up 2 ppts) of Australians, say now is a ‘good time to buy’ major household items while more than twice as many, 46% (down 4 ppts), say now is a ‘bad time to buy’. The ‘Black Friday’ sales were considered to be a factor in this lift in confidence.
Residz can help buyers and sellers reduce the stress:
Photo by Soheb Zaidi on Unsplash