keeping one step ahead

Keeping onestep ahead

AUSTRALIA’S HOUSEHOLD SAVINGS RATES

Source: Commonwealth Bank, Bureau of Statistics

Income saved:

2003-04 0.8%

2004-05 0.8%

2005-06 0.3%

2006-07 4.3%

2007-08 4.3%

2008-09 9.6%

2009-10 9.3%

2010-11 10.8%

2011-12 10.8%

Making extra home loan payments is an increasingly key

focus for Australian savers, writes Anthony Keane

MORE than two-thirds ofhomeowners are ahead oftheir mortgage payments andAussies are saving the biggestslice of their income since the1980s, research by Australia’sbiggest bank has found.A new Commonwealth Bank

analysis paints a more positivepicture of Australians’ financesthan many people may feel.CBA’s study of its 1.8 million

home loan borrowers hasfound 68 per cent are ahead oftheir mortgage repayments, byan average of seven payments.It also examined household

savings rates and found thatAustralians are now saving10.8 per cent of their disposableincome, up from just 0.3 percent in 2005-06.A 6.2 per cent rise in con-

sumer spending in the pastyear, rising salaries and lowunemployment round out itsreview of a solid 2012.

‘‘There is an abundance ofpessimistic news about theeconomy, particularly becausethe picture in Europe is bleak,and this can create a perceptionthat doesn’t reflect some of thepositive things happening inAustralia,’’ CBA chief econom-ist Michael Blythe says.

‘‘It is tough for many con-sumers and businesses at themoment but the patchwork

nature of our economy meanssome positive indicators mightbe missed.’’Blythe says the trend of

saving more started in the mid-2000s but was given ‘‘a hugekick-along’’ by the global fi-nancial crisis.He says most households are

still pessimistic about the out-look, and this has been a keyreason for the Reserve Bank’sinterest rate cuts this year.

‘‘The Reserve Bank is mak-ing it clear that they want to seemore activity in the non-mining part of the economy,and housing is one of the areasthey are looking to get mov-ing.’’ It is estimated every $1 ofspending on new housing gen-erates another $1.31 of spendingelsewhere in the economy.

Assist Finance chief execu-tive Jason Di Iulio says theincreased focus on debt repay-ment and savings illustratesthat people are nervous aboutthe economy and their jobs.

‘‘They are reducing debt atthe expense of luxury spend-ing,’’ Di Iulio says.The trend of maintaining

mortgage payments at thesame level even when rates arecut is a smart move, he says.

‘‘It will reduce debt fasterand take real advantage of therate cuts,’’ he says. ‘‘If youhave non-income-producingdebt, you should be paying it offas fast as possible, which willbenefit you later in life.’’CBA’s Blythe says building

up a buffer in the mortgage isattractive for most people.

Keeping onestep ahead



Income saved:

2003-04 0.8%

2004-05 0.8%

2005-06 0.3%

2006-07 4.3%

2007-08 4.3%

2008-09 9.6%

2009-10 9.3%

2010-11 10.8%

2011-12 10.8%

Making extra home loan payments is an increasingly key

focus for Australian savers, writes Anthony KeaneMORE than two-thirds ofhomeowners are ahead oftheir mortgage payments andAussies are saving the biggestslice of their income since the1980s, research by Australia’sbiggest bank has found.A new Commonwealth Bank
















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Media Monitors Client ServiceCentre 1300 880 082

Copyright Agency Ltd (CAL)licensed copy

Adelaide Advertiser, Adelaide17 Dec 2012

Your Money, page 45 - 218.33 cm²Capital City Daily - circulation 169,889 (MTWTFS-)

ID 174578405 PAGE 1 of 1

Keeping onestep aheadMaking extra home loan payments is an increasingly key






‘‘There is an abundance ofpessimistic news about theeconomy, particularly becausethe picture in Europe is bleak,and this can create a perceptionthat doesn’t reflect some of the

that doesn’t reflect some of thepositive things happening inAustralia,’’ CBA chief econom-ist Michael Blythe says.

‘‘It is tough for many con-sumers and businesses at themoment but the patchworknature of our economy meanssome positive indicators mightbe missed.’’Blythe says the trend of



‘‘The Reserve Bank is mak-ing it clear that they want to seemore activity in the non-mining part of the economy,and housing is one of the areasthey are looking to get mov-ing.’’ It is estimated every $1 ofspending on new housing gen-erates another $1.31 of spendingelsewhere in the economy.Assist Finance chief execu-

tive Jason Di Iulio says theincreased focus on debt repay-ment and savings illustrates

ment and savings illustratesthat people are nervous aboutthe economy and their jobs.



‘‘It will reduce debt fasterand take real advantage of therate cuts,’’ he says. ‘‘If youhave non-income-producingdebt, you should be paying it offas fast as possible.’’CBA’s Blythe says building


If you have non-

income-producing

debt, you should

be paying it off as

fast as possible,

whichwill benefit

you later in life









saving more started in the mid-2000s but was given ‘‘a huge

kick-along’’ by the global fi-nancial crisis.He says most households are


‘‘The Reserve Bank is mak-ing it clear that they want to seemore activity in the non-

mining part of the economy,and housing is one of the areasthey are looking to get mov-ing.’’ It is estimated every $1 ofspending on new housing gen-erates another $1.31 of spendingelsewhere in the economy.Assist Finance chief execu-

tive Jason Di Iulio says theincreased focus on debt repay-ment and savings illustratesthat people are nervous aboutthe economy and their jobs.



‘‘It will reduce debt fasterand take real advantage of therate cuts,’’ he says. ‘‘If youhave non-income-producingdebt, you should be paying it offas fast as possible.’’CBA’s Blythe says building


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Herald Sun, Melbourne17 Dec 2012, by Anthony Keane


ID 174575219 PAGE 1 of 2



Income saved:

2003-04 0.8%

2004-05 0.8%

2005-06 0.3%

2006-07 4.3%

2007-08 4.3%

2008-09 9.6%

2009-10 9.3%

2010-11 10.8%

2011-12 10.8%

mining part of the economy,



Income saved:

2003-04 0.8%

2004-05 0.8%

2005-06 0.3%

2006-07 4.3%

2007-08 4.3%

2008-09 9.6%

2009-10 9.3%

2010-11 10.8%

2011-12 10.8%

mining part of the economy,

back



Herald Sun, Melbourne17 Dec 2012, by Anthony Keane


ID 174575219 PAGE 2 of 2

Keeping onestep aheadMaking extra home loan payments is an increasingly keyfocus for Australian savers, writes Anthony Keane

MORE than two-thirds ofhomeowners are ahead oftheir mortgage payments andAussies are saving the biggestslice of their income since the1980s, research by Australia'sbiggest bank has found.

A new Commonwealth Bankanalysis paints a more positivepicture of Australians' financesthan many people may feel.

CBA's study of its 1.8 millionhome loan borrowers hasfound 68 per cent are ahead oftheir mortgage repayments, byan average of seven payments.

It also examined householdsavings rates and found thatAustralians are now saving10.8 per cent of their disposableincome, up from just 0.3 percent in 2005-06.

A 6.2 per cent rise in con-sumer spending in the pastyear, rising salaries and lowunemployment round out itsreview of a solid 2012.

"There is an abundance ofpessimistic news about theeconomy, particularly becausethe picture in Europe is bleak,and this can create a perceptionthat doesn't reflect some of thepositive things happening inAustralia," CBA chief econom-ist Michael Blythe says.

"It is tough for many con-sumers and businesses at themoment but the patchworknature of our economy meanssome positive indicators mightbe missed."

Blythe says the trend ofsaving more started in the mid-

AUSTRALIA'SHOUSEHOLDSAVINGS RATES

2000s but was given "a hugekick-along" by the global fi-nancial crisis.

He says most households arestill pessimistic about the out-look, and this has been a keyreason for the Reserve Bank'sinterest rate cuts this year.

"The Reserve Bank is mak-ing it clear that they want to seemore activity in the non-mining part of the economy,and housing is one of the areasthey are looking to get mov-ing." It is estimated every $1 ofspending on new housing gen-erates another $1.31 of spendingelsewhere in the economy.

Assist Finance chief execu-tive Jason Di Julio says theincreased focus on debt repay-ment and savings illustrates

that people are nervous aboutthe economy and their jobs.

"They are reducing debt atthe expense of luxury spend-ing, Di Julio says.

The trend of maintainingmortgage payments at thesame level even when rates arecut is a smart move, he says.

"It will reduce debt fasterand take real advantage of therate cuts, he says. "If youhave non-income-producingdebt, you should be paying it offas fast as possible, which willbenefit you later in life."

CBA's Blythe says buildingup a buffer in the mortgage isattractive for most people.

I ncarne saved: 2007-08 4_3%

2oca-o4 O.5% Z008-09 9.6%

2004-105_04M 2009-10 9.9%

200S- 06 03% 2(110-1110.3%. .

Z006-07 43% 2011-12 10,8%Drake Urnrnaintiejlth Rank Ow eau of SlatistIrs.

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Courier Mail, Brisbane17 Dec 2012, by Anthony Keane


ID 174579878 PAGE 1 of 1







A 6.2 per cent rise in con-sumer spending in the pastyear, rising salaries and lowunemployment round out itsreview of a solid 2012.



saving more started in the mid-2000s but was given ‘‘a huge

2000s but was given ‘‘a hugekick-along’’ by the global fi-nancial crisis.He says most households are


‘‘The Reserve Bank is mak-ing it clear that they want to seemore activity in the non-mining part of the economy,and housing is one of the areasthey are looking to get mov-ing.’’ It is estimated every $1 ofspending on new housing gen-erates another $1.31 of spendingelsewhere in the economy.Assist Finance chief execu-

tive Jason Di Iulio says theincreased focus on debt repay-ment and savings illustratesthat people are nervous about

that people are nervous aboutthe economy and their jobs.







Income saved:

2003-04 0.8%

2004-05 0.8%

2005-06 0.3%

2006-07 4.3%

2007-08 4.3%

2008-09 9.6%

2009-10 9.3%

2010-11 10.8%

2011-12 10.8%



















back



Hobart Mercury, Hobart17 Dec 2012, by Anthony Keane


ID 174584790 PAGE 1 of 1





















Income saved:

2003-04 0.8%

2004-05 0.8%

2005-06 0.3%

2006-07 4.3%

2007-08 4.3%

2008-09 9.6%

2009-10 9.3%

2010-11 10.8%

2011-12 10.8%





















Income saved:

2003-04 0.8%

2004-05 0.8%

2005-06 0.3%

2006-07 4.3%

2007-08 4.3%

2008-09 9.6%

2009-10 9.3%

2010-11 10.8%

2011-12 10.8%

back



Daily Telegraph, Sydney17 Dec 2012


ID 174589113 PAGE 1 of 1

keeping one step ahead

Economy & Finance