Almost half Australian borrowers are worried about mortgage stress, study shows
Concerns about mortgage stress are on the rise as interest rates and cost of living bite
2 min
Almost half of all Australian mortgage holders are worried that they are headed for mortgage stress, new research reveals.
Research commissioned by buyer’s agents Aus Property Professionals found that 45 percent of home loan borrowers were concerned sharp interest rate rises would put household budgets under pressure.
Despite statements by RBA Governor Philip Lowe that interest rates were unlikely to rise until 2024, there have been six consecutive rate increases since May, with the current cash rate at 2.6 percent. The RBA has announced the cuts in an attempt to drive down inflation to somewhere between 2 and 3 percent. It currently sits at more than six percent. In a speech to the Anika Foundation last month, Mr Lowe said inflation was expected to average at 1.75 percent over 2022 and the sharp rise had taken the RBA by surprise.
Founder and director of Aus Property Professionals, Lloyd Edge, said interest rate increases would normally see between 25 and 30 percent of borrowers at risk of mortgage stress but a combination of pressures had exacerbated the situation.
“At the moment, people are also concerned about cost of living pressures and the price of petrol going up,” he said. “Some people are also holding off buying homes and instead investing (in property they won’t live in) to reflect their serviceability to repay a loan.”
Research also revealed that 28 percent of borrowers reported that they had borrowed too close to their capacity in order to buy a home while a quarter of respondents said they had lost their job or suffered a drop in income.
Mr Edge said it was always advisable to avoid borrowing the maximum amount, even if it meant buying an investment property before purchasing a home to live in. He suggested buying a more affordable property outside the capital cities in a high yield area as an option.
“With the interest rates really low, some people were getting in a bit over their heads but it has been hard in this market to buy something for less than your capacity to borrow,” he said. “People need to manage their expectations and perhaps buy something smaller. It’s important not to overstretch yourself because as interest rates continue to go up you need that cash buffer.”
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The latest trend in wellness travel is somewhere between a spa trip and a doctor’s appointment
4 min
For some vacationers, the ideal getaway involves $1,200 ozone therapy or an $1,800 early-detection cancer test.
Call it the longevity vacation. People who are fixated on optimising their personal health are pursuing travel activities that they hope will help them stay healthier for longer. It is part of a broader interest in longevity that often extends beyond traditional medicine . These costly trips and treatments are rising in popularity as money pours into the global wellness travel market.
At high-end resorts, guests can now find biological age testing, poolside vitamin IV drips, and stem-cell therapy. Prices can range from hundreds of dollars for shots and drips to tens of thousands for more invasive procedures, which go well beyond standard wellness offerings like yoga, massages or facials.
Some longevity-inspired trips focus on treatments, while others focus more on social and lifestyle changes. This includes programs that promise to teach travellers the secrets of centenarians .
Mark Blaskovich, 66 years old, spent $4,500 on a five-night trip last year centred on lessons from the world’s “Blue Zones,” places including Sardinia, Italy, and Okinawa, Japan, where a high number of people live for at least 100 years. Blaskovich says he wanted to get on a healthier path as he started to feel the effects of ageing.
He chose a retreat at Modern Elder Academy in Mexico, where he attended workshops detailing the power of supportive relationships, embracing a plant-based diet and incorporating natural movement into his daily life.
“I’ve been interested in longevity and trying to figure out how to live longer and live healthier,” says Blaskovich.
Vitamins and ozone
When Christy Menzies noticed nurses behind a curtained-off area at the Four Seasons Resort Maui in Hawaii on a family vacation in 2022, she assumed it might be Covid-19 testing. They were actually injecting guests with vitamin B12.
Menzies, 40, who runs a travel agency, escaped to the longevity clinic between trips to the beach, pool and kids’ club, where she reclined in a leather chair, and received a 30-minute vitamin IV infusion.
“You’re making investments in your wellness, your health, your body,” says Menzies, who adds that she felt more energised afterward.
The resort has been expanding its offerings since opening a longevity centre in 2021. A multi-day treatment package including ozone therapy, stem-cell therapy and a “fountain of youth” infusion, costs $44,000. Roughly half a dozen guests have shelled out for that package since it made its debut last year, according to Pat Makozak, the resort’s senior spa director. Guests can also opt for an early-detection cancer blood test for $1,800.
The ozone therapy, which involves withdrawing blood, dissolving ozone gas into it, and reintroducing it into the body through an IV, is particularly popular, says Makozak. The procedure is typically administered by a registered nurse, takes upward of an hour and costs $1,200.
Longevity vacationers are helping to fuel the global wellness tourism market, which is expected to surpass $1 trillion in 2024, up from $439 billion in 2012, according to the nonprofit Global Wellness Institute. About 13% of U.S. travellers took part in spa or wellness activities while traveling in the past 12 months, according to a 2023 survey from market-research group Phocuswright.
Canyon Ranch, which has multiple wellness resorts across the country, earlier this year introduced a five-night “Longevity Life” program, starting at $6,750, that includes health-span coaching, bone-density scans and longevity-focused sessions on spirituality and nutrition.
The idea is that people will return for an evaluation regularly to monitor progress, says Mark Kovacs, the vice president of health and performance.
What doctors say
Doctors preach caution, noting many of these treatments are unlikely to have been approved by the Food and Drug Administration, producing a placebo effect at best and carrying the potential for harm at worst. Procedures that involve puncturing the skin, such as ozone therapy or an IV drip, risk possible infection, contamination and drug interactions.
“Right now there isn’t a single proven treatment that would prolong the life of someone who’s already healthy,” says Dr. Mark Loafman, a family-medicine doctor in Chicago. “If it sounds too good to be true, it probably is.”
Some studies on certain noninvasive wellness treatments, like saunas or cold plunges , do suggest they may help people feel less stressed, or provide some temporary pain relief or sleep improvement.
Linda True, a policy analyst in San Francisco, spent a day at RAKxa, a wellness retreat on a visit to family in Thailand in February. True, 46, declined the more medical-sounding offerings, like an IV drip, and opted for a traditional style of Thai massage that involved fire and is touted as a “detoxification therapy.”
“People want to spend money on things that they feel might be doing good,” says Dr. Tamsin Lewis, medical adviser at RoseBar Longevity at Six Senses Ibiza, a longevity club that opened last year, whose menu includes offerings such as cryotherapy, infrared sauna and a “Longevity Boost” IV.
RoseBar says there is good evidence that reducing stress contributes to longevity, and Lewis says she doesn’t offer false promises about treatments’ efficacy . Kovacs says Canyon Ranch uses the latest science and personal data to help make evidence-based recommendations.
Jaclyn Sienna India owns a membership-based, ultra luxury travel company that serves people whose net worth exceeds $100 million, many of whom give priority to longevity, she says. She has planned trips for clients to Blue Zones, where there are a large number of centenarians. On one in February, her company arranged a $250,000 weeklong stay for a family of three to Okinawa that included daily meditation, therapeutic massages and cooking classes, she says.
India says keeping up with a longevity-focused lifestyle requires more than one treatment and is cost-prohibitive for most people.
Doctors say travellers may be more likely to glean health benefits from focusing on a common vacation goal : just relaxing.
Dr. Karen Studer, a physician and assistant professor of preventive medicine at Loma Linda University Health says lowering your stress levels is linked to myriad short- and long-term health benefits.
“It may be what you’re getting from these expensive treatments is just a natural effect of going on vacation, decreasing stress, eating better and exercising more.”
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