Australian consumers are placing major purchases like property, cars and vacations on hold for the year according to results of a survey conducted by mortgage provider Homeloans Ltd.

The survey compiled the answers of 2,000 first home buyers, homeowners and investors. It shows that almost half or 45 percent of Australian home buyers will delay purchasing a property in 2011 due to rising interest rates and cost of living.

One in three of those will put all major household spending – such as a new car, holiday or consumer goods – on hold for 2011. According to the survey, of those who will delay buying a property, only six percent are planning to do so within the next six months and 74 percent have reconsidered how much they are able to spend.

Tim Holmes, Homeloans’ chairman and chief executive officer, says the research shows Australians are taking a cautious approach to purchasing property in 2011. “In my experience, such overarching caution is unprecedented outside of an economic downturn,” Holmes says. “But it’s a complex economic situation at present.“

There are now many variables which have a profound effect on the Australian economy and consumer confidence, such as the recent floods and the new flood levy tax.

He says, “Whilst it’s difficult to predict what the RBA will do with official interest rates in light of the recent disasters, it’s clear that concerns about finances are keeping Australians on their toes. The uncertainty facing consumers when making a major investment such as property always justifies the need to exercise caution. “

Of those surveyed for the Homeloans Home Buyer Barometer, 52 percent plan to save for a larger deposit, with more than a third admitting they will follow a strict budget to achieve this, followed closely by cutting back on luxuries, such as eating out