Melbourne Region Taxable Income Heat Map

We continue with our analysis of the recently released ATO data for the 2011-12 tax year. Today we we examine the distribution of individuals taxable across the Melbourne Region.

MelbourneTaxIncomeThe postcodes in VIC with the highest taxable income are 3142 (Toorac, Hawksburn), 3944 (Portsea) and 3186 (Brighton, Brighton North, Dendy). Lowest are 3778 (Fernshaw, Narbethong), 3833 (Ada, Baw Baw, Loch Valley, Vesper) and 3887 (Lake Tyers, Nowa Nowa, Wairewa).

Here is the full top 10 and bottom 10 post codes from the ATO data.


Mortgage Stress Mapping In Tasmania

Today, we conclude our mortgage stress mapping by focusing on Tasmania. Despite a small population, lower incomes and relative static property prices, we still see signs of mortgage stress according to our latest surveys, and as discussed in the Anatomy of Mortgage Stress. Some households on the west coast, and areas around Hobart show the highest stress levels.

TAS-StressThis concludes our current mortgage stress series. We will update that data again in a few months, to monitor the effects of unemployment, house prices, interest rates and mortgage affordability.

Our overall conclusion is that whilst the proportion of stressed households has fallen thanks to bargain basement interest rates, mortgage stress still hangs over many. This is as a result of a combination of high childcare costs, fuel and utility bills, low wage growth and larger mortgages (linked to higher house prices). Generally, the more affluent groups have lower levels of mortgage stress, whilst first time buyers, and less wealthy households are still feeling the pinch even at the current low interest rates. If rates were to rise, or unemployment levels lift, stress levels could rise quite quickly.

Adelaide Region Mortgage Stress Mapping

Continuing our mortgage stress series and using the latest data from our surveys, we reveal our findings for the Adelaide area. Although house prices are lower, incomes are also, and as a result we see evidence of stress in some suburbs. Recent rats cuts have helped, but that said, stress lurks in areas across the region. You can read about our mortgage stress methods in the Anatomy of Mortgage Stress. Our mapping shows the sum of mild and severe stressed households across suburbs. The most stressed areas are to the east of the city, in a band from north to south. This includes areas such as Ingle Farm, Walkley Heights, Wynn Vale, Belair and Owen. We also see stress registering in suburbs such as Christies Beach, Hackham and Kilburn.


Perth Region Mortgage Stress Mapping

As we continue our series on mortgage stress, today we feature results from our surveys in the Perth region. We show the sum of those households in mild stress and those in severe stress. You can read about how we complete the survey, and the definitions of stress we use in the Anatomy of Mortgage Stress.

Perth-Mortgage-Stress-MappingLooking at the region, we find the highest levels of stress mainly in the suburban areas to the south and north of the city, including Kensington, South Perth, Rockingham, Serpentine, and to the north, Yanchep. Many of these regions contain a mix of older properties, and highish density new developments. We found that a higher than average proportion of first time buyers in these higher stressed areas were represented in the results. Stress levels are lower in the areas closer to the City, many of which are more affluent, and despite higher monthly mortgage repayments, households are not under so much financial pressure. High childcare costs came through in the results as one of the main drivers of financial pain in the higher stressed areas.

Passwords In A Digital World

Given the rapid migration to the digital world as highlighted in our recent report, “The Quiet Revolution“, and in the light of the recent Heartbleed security problem, we publish today some research about how households in Australia manage their portfolio of passwords for online accounts.

To do this, we used our digital segmentation:

DigitalCh1We ask a number of specific questions in out household survey, about their online accounts and passwords. How many accounts and passwords do people have?

PW10Some Digital Natives have more than 50, whereas Digital Luddites tended to have fewer. In fact there is a clear trend in the data, the more connected you are, the more passwords you will have. Some Digital Natives had more than 140!

Next we looked at how frequently they changed passwords. Whilst a small proportion of Digital Natives changed them each week, many across all the segments only occasionally or never changed them. Again we see a trend, with more connected people tending to change their passwords more frequently.

PW2Turning to the number of different passwords people use, we found that some were methodically using different password variants for each account. None of the Digital Natives used the same password everywhere, but a proportion of Digital Migrants and Luddites did.

PW3We then asked whether people used a password manager to generate and store passwords. Digital Natives were most likely to use software to help manage their password portfolio.

PW8Finally, we asked about whether people wrote their passwords down. Many of the Digital Luddites did not, but we found that a fair proportion of Digital Natives and Migrants did record their passwords. We were surprised to find a number of households stored their online passwords on their smart phone, not to facilitate access on the phone, but as an aide memoir.

PW9So, we see that passwords have become a complex an important issue for the digital life. However, the truth is that many use the same passwords in multiple places, write them down somewhere, and do not change them frequently. If you ask providers of online services, they will tell you that you should not do this. There is therefore a gap between the expectation of service providers, and the realities of households. As the digital life gets more complex, access verification needs to evolve.

Value of Residential Construction Static – ABS

Today the ABS released their latest Construction Activity data to December 2013. Looking at the seasonally adjusted numbers, we see that residential construction by value is flat at around $12 billion a quarter across 2013, and was slightly higher in Q4 2012. Here is the trend chart, including both private sector and public sector residential construction. Note the blip in 2010 for public sector housing.

ConstructionDec2013At the moment just 23% of construction activity by value relates to residential development. This has fallen significantly since 2000 thanks to non-residential building activity, including in the resource sector. In the December quarter, private sector engineering construction was worth $24 billion.

ConstructionPercentDec2013This goes some way to explain the lack of supply of property – as we already discussed. That said, the lift in approvals recently may will lead to a lift later, we will see. Given the prospective fall in mining construction, will the residential sector take up the slack as the RBA hopes it will?



Brisbane Region Mortgage Stress Mapping

Continuing our series on mortgage stress, today we look at the Brisbane region. We are using the updated data from our surveys and stress models.  We show the sum of those households in mild stress and those in severe stress. You can read about how we complete the survey, and the definitions of stress we use in the Anatomy of Mortgage Stress.

So looking that the Brisbane region, we see an interesting pattern of higher stress levels. Close to Brisbane, areas like West End and Highgate Hill are high, going south, Springwood, Carbrook and Park Ridge also register high. To the south west, Forest Lake, and to the north, Morayfield, Narangba and Burpengary are high.



Melbourne Region Mortgage Stress Mapping

Having updated our mortgage stress modelling, today we feature the results for Melbourne. Mortgage stress is a measure DFA uses to assess how households are dealing with their mortgages. If they are making repayments, by hunkering down, and put more on credit cards, they are in mild stress If they are missing payments, having to refinance, looking to sell, etc, they are in severe stress. The total stress score on this map, is a sum of mild and severe stress.

Here is the Melbourne regional map. The highest stress areas are to the east and north of the City. These include Heatherton, Kingsbury, Plenty, Epping, Yarrambat, Diamond Creek and Seaford. We also see some hotspots around Bendigo and Ballarat in regional Victoria. Many younger households are the most stressed, thanks to rising costs including child care. Higher levels of unemployment are also correlated. Other causes are illness, relationship breakdown and financial hardship.


In contrast, to the south, stress levels are lower, and many households are paying ahead of their minimum, thanks to current low rates.

Sydney Region Mortgage Repayment Mapping

Using our household surveys, we are able to map the relative size of monthly mortgage repayments for households. This snapshot is of the Sydney region.

The largest monthly repayments are on average being made by households in the eastern suburbs, including Woollahra, Waverley, Mosman, North Sydney, Manly, and Palm Beach. There is a high correlation with house prices here.

The high mortgage stress suburbs, around Cambletown, Liverpool, Fairfield and Blacktown have quite high monthly mortgage repayments. This can truly be called the mortgage belt.

Further away from the urban centres, repayments are lower.



Sydney Region House Price Mapping

Using our survey data, we have created a house price heat map for the Sydney region. This data excludes units and other high density properties. We will post comparable high density data later.

The most expensive transfers took place in the eastern suburbs, including Darling Point, Edgecliff, Bellevue Hill, Vaucluse and Double Bay. Next on the lower North Shore was Mosman, then Palm Beach, Rose Bay and Kirribilli.

Lowest prices were in the western suburbs, including Orchard Hill, Mount Vernon, Horsley Park and Cambletown. There is an interesting correlation between lower prices and high levels of mortgage stress, which we mapped recently.