The latest home furnishments association has warned that Australians who spend too much on home furnishing can find themselves in the grip of the housing market.
Key points:The Australian Bureau of Statistics (ABS) says the average Australian spends about $1,200 on a home home a yearMore than 70 per cent of the nation’s households own a homeMore than half of Australians have a mortgage and another 20 per cent are rentersThe Australian Association of Realtors has also warned that the average rent for a detached home in Australia has increased to $1.28 million, with more than 70.5 per cent renting or buying their own home.
This means the average person spends $1.,200 on the average home.
More than 40 per cent say they spend more than half their income on home decor.
More money is spent on the home itself, with nearly half of all households having a mortgage.
The survey of over 1,200 households across the country by the Australian Association for Realtor found that 70 per, of the households polled, have a current mortgage and about half of the people rent or buy their own property.
“There’s a lot of money out there, and you’re only paying the interest and the fees on that money,” AAR executive president, Alan McBride, told ABC Radio.
“So it’s not as if the house is a good investment.”
McBride said that some of the most expensive properties had been sold recently and many people had taken out loans to buy.
“When they’re in their 30s, 40s, 50s and 60s, they’re pretty well out of the rental market, and they’re just not saving for the future,” he said.
“They’re in a position where they can’t save for a down payment or they can pay less than the mortgage.”
More than 50 per cent also had a mortgage, but only about 20 per, and a similar proportion of those had a long-term loan.
More from the ABC’s ABC Nation:Home furnishings surveyThe ABS’ survey found that Australians spend a total of about $11,000 on a year’s worth of home furnishages.
In the last year, this includes $3,800 on home décor, $2,000 for wall and window repair and $1 to $2 for furniture.
The study also found that most people spend between $2 and $4,000 a year on other furniture, while a third spend $2.50 a month.
“We don’t have a good understanding of how people spend money in the real world.
It’s very difficult for a household to plan for a big increase in spending in a year,” AARP president, David Evans, said.
“So there’s a very big potential for people to get into debt and to get caught up in this buying frenzy.”
He said the report showed that the home furnishers industry was being targeted by the government.
“The government is really taking advantage of the home decor and home furnisher industry, so it’s really trying to exploit the people in the industry,” he told the ABC.
“What’s really going on is that the government’s trying to make money by selling more home decor items.
It does a disservice to people, particularly young people.”
Evans said the industry had become increasingly fragmented.
“It’s the kind of thing that people are starting to understand, and it’s becoming more complex, so I think we’re in for a real problem,” he added.
The Australian Realtoring Council (ARCC) is also concerned about the potential impact of the rising price of home decor, particularly in regional and regional suburbs.
The ARCC has been warning about this trend for a while, with a recent report calling for tighter regulation.
The organisation said it would be a mistake to underestimate the power of the market to drive down prices.
“For a home decorer, a price rise can be a huge financial shock, so if you don’t know when it’s going to happen, it can be difficult to plan,” ARCC national manager, John Lacey, said in a statement.
“But we’re not advocating for a total ban on home decoration.
We’re suggesting that you don, in fact, start planning now.”