Queensland the top destination for those prepared to “pull up stumps”: ING Direct

Nearly a third (31%) of Australian households would consider re-locating to another state for financial benefit with Queensland the preferred destination, according to the latest ING Direct Financial Wellbeing Index.

Across households that would consider relocating interstate, Queensland (46%) is the most popular destination ahead of both NSW and Victoria (40%) followed by WA (31%) and South Australia (31%).

These responses tie with interstate migration forecasts from BIS Shrapnel, which anticipate a big rise in Queensland from 31,300 interstate migrants in 2011 rising to 41,900 in 2012, 49,700 in 2013, 54,300 in 2014 and 58,200 in 2015.

BIS Shrapnel also forecasts interstate migration to rise in NSW from 50,200 in 2011 to reach 71,500 by 2015 while WA numbers will rise from 30,800 to 53,600 over the same time period. More modest gains are expected in Victoria rising from 45,700 interstate migrants to 57,200 by 2015.

Interstate, along with overseas migration, is a key driver of demand for housing.

According to BIS Shrapnel, relative housing affordability and economic conditions are the main reasons people move states.

Among the smaller states and territories, the ING Direct report found that more people would consider relocating to Tasmania (22%) and the ACT (20%) than the Northern Territory (16%) – perhaps put off by surging house prices in Darwin and a lack of rental accommodation, as much by its remoteness.

The results are based on the online responses of 1,024 households between September 26 and October 3 carried out by Galaxy Research for ING Direct – households could pick multiple interstate migration options.

Digging down into the responses, they reveal that more than half of Victorians and those from NSW considering relocating would choose to move to Queensland.

Nearly two-thirds (62%) of Queenslanders pick NSW as their preferred relocation destination.

However, nearly one in two (47%) households from WA would move to Victoria for financial benefit.

The overall results of the survey were that household finances are in good shape with the Financial Wellbeing Index rising to 109.0 in the third quarter of 2012, up from 105.6 in the previous quarter and on par with the highest ever index score recorded in the second quarter of 2010, when ING Direct kicked off the index.

It also found that households are more comfortable with their mortgage than any other aspect of personal finances, with almost one in two (47%) of those households with a mortgage ahead with their loan repayments.

Median household savings across the country is $9,735.

Only 6% of households say income is insufficient to pay immediate bills.

“Australian households are continuing to adopt cautious money management with a focus on reducing household debt,” says ING Direct.

“As a result almost nine out of ten (88%) are comfortable with credit card debt, and 93% are comfortable with their home loan."

“Households are saving more and reducing debt which is leading to greater confidence,” says Vaughn Richtor, CEO of ING Direct.

“It is a good sign that confidence is on the way up with financial wellbeing reaching a 2-year high.”