Want to feel better? Sign a mortgage
Tuesday, January 02, 2007
Author: Jessica Irvine
Date: December 20, 2006
Publication: Sydney Morning Herald
Despite being up to their eyeballs in debt, people who have mortgages have a greater sense of wellbeing than footloose renters, research shows.
A survey of personal wellbeing by Professor Bob Cummins, from Deakin University's school of psychology, reveals lower levels of wellbeing among renters compared with mortgage holders at all points on the income chain.
Renters were more likely to be single, lead a more mobile lifestyle and miss out on the bond that was formed between partners when they committed to a mortgage together, Professor Cummins said.
He also found Australians reported higher levels of wellbeing after the September 11, 2001, and Bali terrorist attacks, because these forced them to think about the importance of families. "All of this created an amazing sense of external threat that Australia had not really had since World War II," he said. "This kind of threat caused people to bond much better."
Signing a mortgage was a good way to increase wellbeing because it acted as a "long-term bonding mechanism", like marriage, giving couples greater certainty in their relationship, the professor said. "They have a clear investment in their combined future. People who rent have not made that kind of mutual commitment."
Renters reported lower levels of wellbeing than mortgage holders and home owners at every point on the income scale. While higher incomes did bolster wellbeing, a renter with an annual income of $90,000 was only slightly more satisfied than a home owner on less than $15,000 a year.
Professor Cummins said men in particular had a lower sense of wellbeing if they lived or rented alone. When a man and a woman lived together, the survey found men were more satisfied than women when assuming the role of sole breadwinner. "It is still not a normal thing for a couple to be in a household where the female is the sole income earner," Professor Cummins said. Men and women were happiest when they shared responsibilities equally, he said.
The survey also identified insecurity about income as a powerful influence on wellbeing, despite low unemployment. "People tend to commit their income each week to maximise their lifestyle with very little view to having some buffer if things go wrong," Professor Cummins said.
The survey of 2000 people was commissioned by the health insurance and financial services company Australian Unity.
posted by Daniel Serratore @ 12:31 pm,
1 Comments:
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At 8:12 pm,
bruce said...
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Who should I get in contact with about a states own laws about mortgage broker bonds and as such, how would I get a mortgage bonds form? I life in England and am considering moving to America, don’t know where yet however I was doing some general reading about housing and came across the term mortgage broker bonds and am a little confused, is it a mortgage or a loan to acquire a mortgage?
Also if I want to set up life insurance do I need insurance bonds? Or can I simply open a policy with a company? I’m a little confused by some of the jargon. I am not moving anytime soon but thought I should be aware of things I will need to understand.
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Daniel Serratore
Daniel is heading up the new generation of Finance Brokers in Sydney. With his fresh approach and "can do" attitude, Daniel has developed relationships with key people within the Sydney lending market which enables him to source great deals for his clients. Daniel is big on customer service and has built his business purely by referrals from clients and other businesses. You can catch him via the email link on the top of this page
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