I am happy to see that a large percentage of Australian females — at least, the ones we questioned in our two most recent consumer surveys — plan to take decisive action with their financial positions in 2009.

Aspects such as revisiting financial commitments, forward planning, and making sacrifices are currently at the forefront of females’ minds, and each of these aspects of life will better prepare them for eventualities during a time when uncertainty overshadows the economy and job security especially.

Female respondents to our 2008 First Homebuyers Survey and 2008 Consumer Sentiment Survey — both potential and current mortgage-holders — also said they were taking decisive steps to address the housing affordability challenge in the shadow of the global financial crisis.

Whether they are looking to purchase or keep a grip on their piece of Australian turf, females are tightening their purse strings, playing closer attention to spending habits and making other financial changes to keep the ‘Great Australian Dream’ in sight.

For example, with the economic situation hitting home, female mortgage holders are planning important changes to their financial situation in 2009.

Thirty-five per cent will cut back on spending, 34 per cent will undertake a review of their mortgage, 34 per cent will review their budget, and 26 per cent will pay off their credit cards.

Only 11 per cent of those surveyed have no plans to make changes to their financial situation in 2009.

Credit crunch woes aside, females’ appetites for buying property soon are almost as healthy as males’, with 26 per cent of females surveyed planning to buy by November 2009 (versus 35 per cent of males).

Concerns and financial strategies

Concerns about the strength of Australia’s economy in 2009 weighed more heavily on females than males, with 46 per cent concerned about it. Only 35 per cent of men surveyed indicated this.

One anxiety that is unifying one-fifth of females and males is job security — 18 per cent of females and 21 per cent of males said this was their most pressing concern, followed closely by economic management at a Federal Government level (17 per cent of females and 18 per cent of males).

This uncertainty over the future could help explain why 74 per cent of female respondents with a mortgage ignored the first three rate cuts in late 2008, at least, and kept their repayments at the same level.

It is great to see female mortgage-holders taking a cautious approach to managing their mortgage repayments. If they can hold to this strategy, it will save them a significant amount of interest and time off their loan.

Females have greater concerns than males about the impact of the global financial turmoil on their 2009 savings, with 41 per cent of female respondents stating they plan to alter their savings plans due to the credit crunch compared to 29 per cent of males.

Housing prices and affordability

When ruminating about housing prices, both males and females concurred with the perception that house prices would fall in 2009 (51 per cent of females as opposed to 50 per cent of males). However, 24 per cent of females believe they will remain stable, 15 per cent believe they will increase, while 10 per cent aren’t sure.

Two key issues around housing affordability are:

• 75 per cent of females know someone who cannot buy a home because they cannot afford the mortgage repayments; and
• 88 per cent of females said that in the current environment, it is harder for people to save for a deposit than 12 months ago.

For over half (55 per cent), the biggest concern about buying is not being able to afford repayments if interest rates rise. For 12 per cent it was concern about sacrificing their lifestyle to pay it off, and for 11 per cent it was the length of time it takes to pay off the mortgage.

Every option — whether it is saving more, waiting longer, making more sacrifices, buying with others or something different — should be considered before putting property purchase plans on hold.

In addition to it being a positive long-term financial investment, for most people, owning your own home provides a fantastic feeling of achievement and sense of self-worth.

Property and investment intentions

The perception of property as a safe investment is on the increase, with 65 per cent of females saying the credit crunch made investing in property seem safer than shares (compared with 63 per cent of males).

Although females overall are less likely to buy property in the next year, if they do they are more likely to make an owner- occupied purchase (42 per cent of females as opposed to 29 per cent of males).

Females are more likely to pick up tools and don the overalls in 2009 than men, with a higher percentage of females prepared to renovate an existing property rather than purchase a new one (44 per cent of females compared to 38 per cent of males).

However, they are less likely to buy shares as an alternative to property (9 per cent of females as opposed to 14 per cent of males) and less likely to buy shares in addition to property (11 per cent of females compared to 18 per cent of males).

Some people might be surprised that such a high percentage are waiting until their 40s or beyond to purchase their first home. Depending on the size of the deposit, there is a possibility these people will be making repayments well into their retirement years.

Perhaps the reason why more and more females are buying later in life is that they are not doing enough research to establish what is possible earlier. Or it could be they are concentrating on other life goals first, such as career and travel.

I still believe it is possible to achieve a well-rounded and enjoyable lifestyle as well as a property portfolio, whether that consists of one or 100 properties. However, it takes discipline, planning and confidence, as well as significant self-education on the possibilities and opportunities.

Kristy Sheppard is the senior corporate affairs manager at Mortgage Choice.