Hold onto your hats, things are about to get a little bumpy. Economists from Australia’s biggest bank are predicting the Reserve Bank will raise the official cash rate as early as June – and we’re already seeing fixed interest rates increase significantly.
Commonwealth Bank (CBA) economists have brought forward their forecasted Reserve Bank of Australia (RBA) cash rate hike from August to June, making it the earliest prediction amongst the big four banks.
We’ll go into more detail on why CBA has brought forward their prediction below, but first something a little more concrete: we’ve definitely noticed fixed rates trending up in recent months.
For example, back in November, for a $700,000 loan at 80% loan-to-value ratio, a two-year fixed rate with one particular lender was 1.84%.
That rate has since gone up to 3.04% – a staggering increase.
While not every lender has increased fixed rates so significantly, we are seeing them go up across the board.
So if you have been umming and ahhing about fixing your rate lately, you’ll want to get in touch with us sooner rather than later.
Because while most lenders have recently reduced their variable rates to compensate a little, with news now that the cash rate is being tipped to increase mid-year, you can expect variable rates to increase with the cash rate.
Ok, so back to CBA’s June cash-rate hike prediction and why they’ve brought it forward from August.
In a nutshell, CBA senior economist Gareth Aird is anticipating inflation to be a lot stronger than the RBA is forecasting.
As a result, Mr Aird believes this will lead to a rise in the cash rate to 0.25% at the June board meeting (currently it’s at a record-low 0.1%).
“We are very comfortable with our expectation that the quarter-one 2022 underlying inflation data will be a lot stronger than the RBA’s forecast,” explains Mr Aird.
And here’s the thing: it’s not the only cash rate hike CBA is predicting the RBA will make over the next 12 months.
Mr Aird is expecting a further three rate increases over 2022 to take the cash rate to 1%, with another move to 1.25% in early 2023.
That’s five cash rate hikes over 12 months!
Believe it or not, there are more than 1 million mortgage holders out there who have never experienced a rate rise (the last RBA cash rate hike was in November 2010).
And if the CBA’s prediction of five rate hikes over the next 12 months proves right, then some households will be in for a bumpy ride as they face hundreds of dollars in extra mortgage repayments each month.
So if you’re keen to act before the RBA increases the official cash rate, get in touch with us today. We’d love to sit down with you and help you work through your options in advance.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
Keen to tackle a renovation project in 2022? You might have noticed that tradies are hard to pin down at the moment. So if you live in one of the suburbs in this week’s article, you might want to get the ball rolling sooner rather than later…
If you’ve ever watched The Block, you’ll know that a good team of reliable tradies can be the difference between a home reno project running smoothly, and everything going to hell in a handbasket.
But where in the world are all the good tradies right now?
If you’ve tried to source one recently for your own reno project, you might’ve noticed that quotes are up, calls are going unanswered and unreturned, and wait times are through the (unfinished) roof.
Well, it turns out Australians have been spending record amounts on renovations, which in turn has led to a surge in tradie demand.
“Home renovations have boomed nationwide as more time spent at home combined with ultra-low loan rates, government grants and improved household savings became the perfect combination of factors to drive heightened demand for renovations,” explains PropTrack senior economist Eleanor Creagh.
Like most things in the world of property and finance, some areas are busier than others.
Below are the top ten most in-demand suburbs in each state, according to online tradie directory hipages, as well as the most in-demand suburbs across the country.
National: Point Cook (Vic), Berwick (Vic), Craigieburn (Vic), Frankston (Vic), Kellyville (NSW), Werribee (Vic), Tarneit (Vic), Blacktown (NSW), Baulkham Hills (NSW), Castle Hill (NSW).
NSW: Kellyville, Blacktown, Baulkham Hills, Castle Hill, Quakers Hill, Campbelltown, Sydney, Penrith, Schofields, Maroubra.
VIC: Point Cook, Berwick, Craigieburn, Frankston, Werribee, Tarneit, Melbourne, Truganina, Pakenham, Hoppers Crossing.
QLD: Buderim, Southport, Upper Coomera, Surfers Paradise, Robina, Coomera, Forest Lake, Brisbane, Helensvale, Springfield Lakes.
WA: Canning Vale, Baldivis, Mandurah, Dianella, Scarborough, Thornlie, Willetton, Perth, Morley, Armadale.
SA: Adelaide, Morphett Vale, Hallett Cove, Mount Barker, Paralowie, Golden Grove, Aberfoyle Park, Parafield Gardens, Prospect, Mawson Lakes.
ACT: Kambah, Canberra, Ngunnawal, Belconnen, Amaroo, Gordon, Wanniassa, Gungahlin, Banks, Casey.
TAS: Hobart, Devonport, Launceston, Glenorchy, Sandy Bay, Kingston, Howrah, Lenah Valley, Claremont, Bellerive.
NT: Alawa, Darwin, Anula, Archer, Bakewell, Bagot, Alice Springs, Darwin City, Palmerston, Durack.
With wait times for reliable tradies blowing out, and supply chain issues when it comes to materials like timber also causing disruptions, the last thing you need is more delays to your reno project due to finance complications.
And that’s where we come in.
Not only can we help you secure funding at a great rate, but we can also help you select a loan that allows flexibility for any unforeseen contingencies along the way.
So if you’d like to explore your reno finance options, get in touch today – we’d love to help you turn your 2022 reno dreams into a reality.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
Construction costs just rose at the fastest annual pace since 2005. So why is it getting so expensive to build your own home? Today we’ll look at the materials that are becoming more expensive and why all homeowners should take note – not just renovators and builders.
“Your grandpa built this place with his own two hands”, or so your dad used to boast.
So if Pop could do it with his trusty hammer, some nails, and a bit of hard yakka, why is it so expensive to build a home of your own these days? (Your own handiwork inadequacies aside…)
Well, for starters, national construction costs increased 7.3% in the 2021 calendar year alone, which was the highest annual growth rate since March 2005.
And the not-so-great news is that property market data company CoreLogic is expecting growth in residential construction costs to remain above average over the coming quarter as supply chain disruptions persist.
“There is a significant amount of residential construction work in the pipeline that has been approved but not yet completed,” explains CoreLogic research director Tim Lawless.
Data shows that cost increases are being driven primarily by timber (mostly structural timber).
In fact, in the final quarter of 2021, the value of select wood imports reached their highest level on record, says Housing Industry Association (HIA) economist Thomas Devitt.
“Timber is predominantly produced domestically but excess demand, such as in a boom year like 2022, is largely sourced from overseas markets,” says Mr Devitt.
Other segments of the market also remain volatile, with increasing pressure currently on metal costs.
“With some materials such as timber and metal products reportedly remaining in short supply, there is the possibility some residential projects will be delayed or run over budget,” adds Mr Lawless.
And with building approvals for detached housing recording their strongest year on record in 2021 (with 150,000 approvals), demand isn’t expected to slow down anytime soon.
“This boom is set to keep builders busy this year and into 2023,” adds Mr Devitt.
Mr Lawless says: “With such a large rise in construction costs over the year, we could see this translating into more expensive new homes and bigger renovation costs, ultimately placing additional upwards pressure on inflation.”
Higher construction costs are likely to add to affordability challenges in the established housing market, making it harder for homeowners to upgrade.
And CoreLogic Head of Insurance Solutions Matthew Walker warns that higher building costs mean homeowners and property investors should also review their insurance cover.
“In these times of rapidly rising home and construction costs, under insurance can quickly become a real threat to what is a most valuable asset,” says Mr Walker.
“It’s important that homeowners keep track of their sum insured and annually check that it is sufficient should the worst occur by using their insurer’s rebuild calculator or giving them a call.”
Finding the right kind of finance for a construction project can be tricky at the best of times – let alone when building supplies are becoming more expensive and wait times are blowing out due to supply constraints.
That’s why it’s important to team up with a professional like us when looking for a construction loan.
Not only can we help you secure a great rate, but we can also help you select a loan that allows flexibility for any unforeseen contingencies.
So if you’d like to explore your options for your next building or reno project, then get in touch today – we’d love to help you map out a plan for your 2022 building and property goals.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
What’s most important to you when selecting a lender to provide finance for your small business right now? Well, Australian small business owners have put ‘flexibility’ when it comes to loan repayments right up there on their priority list.
And that should come as no surprise given the disruptive nature of the economy that most businesses have had to endure over the past two years.
In fact, research conducted by RFi Group, commissioned by small business lender Prospa, found one-third of SMEs (33%) would more likely choose a lender with more flexible repayment options when applying for funds over the next 12 months.
Well, when respondents were given the opportunity to define flexible repayments, one key theme was prevalent: flexible timeframes.
Many SMEs associated flexible loan repayments with the ability to repay loans earlier, extend repayment periods, or make no repayments for a given time (ie. up to 8 weeks).
“Small businesses were required to adapt, shift, or pivot over the past two years,” explains Prospa national sales manager Roberto Sanz.
“Therefore, it is understandable that business owners are looking for flexibility to work through changing market conditions and make necessary adjustments to keep their business moving.”
Prospa’s research is in line with that of SME non-bank lender ScotPac, which found that cash flow was a top-three concern for business owners right now, with 81.5% of SMEs admitting it had them worried.
The SME lending space is an evolving one, with a surge of new lenders and products recently hitting the market.
And one key emerging trend is, yep, you guessed it: flexibility.
So if you’re an SME owner who might be in need of flexible funding, get in touch today. We’d love to help your business explore its options.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
Ever dreamed about telling your boss to “shove it” and starting up your own business? Well, there’s been a big jump in Millennials and Gen Zs who are saving up to do just that (well, maybe except for the “shove it” part!).
There’s something romantic about the notion of starting your own business.
You know, opening up a hole-in-the-wall cafe or little alleyway bar, growing a loyal band of merry locals, and waxing lyrical with them into the wee hours of the morning.
Of course, as any small business owner will attest, the realities of running a business are very, very different.
Say one thing for the Millennials and Gen Zs of the country, and that is that they’re an entrepreneurial bunch who won’t let something like a once-in-century-pandemic get in the way of their business aspirations.
According to a ME Bank survey of young Australians with no children, 18% stated their current financial goal was “investing in their own business”.
That’s up from just 4% six months prior!
To put that into a bit of perspective – compared to some of the other 15 options they could choose from – the top response was “paying off a mortgage” at 34%, while 19% of respondents were aiming to “save enough to buy a property to live in”.
So, not far behind the top two responses at all!
What a lot of young Australians don’t realise is that you don’t have to bootstrap your way into starting up a business.
There are finance and funding options we can help you explore to accelerate your launch – and they’re not as scary as they might sound (5-in-6 businesses don’t find it difficult to pay back their business loans).
So whether your financial priority in 2022 is starting your own business, or trying to buy your first home, get in touch with us today. We’d be excited to help you take that first step.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
With all the talk of record-breaking property growth throughout 2021, do you know how exactly your suburb and property type performed? Today we’ll show you how to find out in just a few clicks.
You’ve probably heard all the talk of national housing values soaring in 2021 – by 22.1%, to be exact.
But that doesn’t really tell you much about how your particular neck of the woods fared, does it?
Well, you can find out a bunch of important property information about your suburb’s houses and apartments, and those in surrounding suburbs, using realestate.com.au’s recently released PropTrack 2021 Suburb Report Card (desktop version, mobile-friendly link).
Ok, so the two main functions of the PropTrack tool are the ability to select “suburb” and “property type”, which is broken up into houses or units.
This is important because PropTrack data shows house prices grew 26.8% nationally in 2021, much more than the 13.4% growth in unit prices.
Also worth noting is that you can see how much change in demand there was for your suburb and property type, and even how many “highly engaged buyers” there were throughout 2021.
Other important insights you can check out include “average estimated value”, “average weekly rental value”, “rental yield” and “median days on market”.
While using the tool, you can immediately see how your suburb compares to its immediate neighbouring suburbs.
But if you also want to see how your suburb stacked up against your state’s best, you can do so via the below direct links.
Just click the > button at the bottom (or top) of each linked page to scroll between the national and state tables.
– Suburbs with largest growth in average estimated house value.
– Suburbs with largest growth in average estimated unit value.
– Suburbs that were most in-demand in 2021.
– Suburbs with largest growth in demand in 2021.
– Suburbs with shortest median days on market in 2021.
With house prices having just experienced their fastest pace of growth since 2004, it’s as important as ever to find a finance option that’s right for you.
This is especially true as the finance market is starting to go through a shift, with more and more economists predicting the RBA will increase the official cash rate this year.
So if you’re a keen homebuyer who wants to explore what options are available to you – whether that be upgrading your home or buying an investment property – get in touch today to discuss your borrowing capacity. We’d love to run through it with you.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
How much do you need to borrow to buy a typical Australian home these days? Well, the average loan size has increased dramatically over the past year – up almost $100,000.
The national average loan size for owner-occupier dwellings rose to an all-time high of $596,000 in November 2021, according to the latest Australian Bureau of Statistics data.
And the national average has been going up (and up and up) in recent months.
In October it was $571,000, while in November 2020 it was $503,000.
And with wages not growing anywhere near as fast, it’s more important than ever to have a professional like us in your corner when it comes to securing finance for your next home purchase.
Average loan sizes reached new highs in all states and territories in November 2021, except Western Australia (which only dropped a smidgeon below its October record high).
Here’s a quick state-by-state breakdown as of November 2021, compared to November 2020.
NSW: $769,000 – up from $644,000 (in November 2020)
Victoria: $619,000 – up from $499,000
Queensland: $514,000 – up from $440,000
South Australia: $422,000 – up from $384,000
Western Australia: $440,000 – up from $417,000
Tasmania: $446,000 – up from $373,000
Northern Territory: $433,000 – up from $380,000
ACT: $586,000 – up from $527,000
Here’s the good news – especially for first home buyers.
Most of the average loan values listed above still fall below the state and territory property price caps for a number of federal government schemes, such as the First Home Loan Deposit Scheme and New Home Guarantee initiatives.
These two schemes allow eligible first home buyers to build or purchase a home with only a 5% deposit, without forking out for lenders’ mortgage insurance (LMI), which on average helps people purchase their first home 4 to 4.5 years sooner.
That’s right – 4 years sooner!
Another factor working in your favour is that the RBA’s official cash rate is at a record low and interest rates are also very low as a result (which helps when it comes to your borrowing capacity).
Speaking of which, one very important step you can take is to get in touch with us so we can help you assess your borrowing capacity.
This way, you can work out whether that property you have your eye on is a goer, and if not, identify steps you can take to help bring it within reach.
To find out more, give us a call today – we’d love to help you explore your borrowing options.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
Some of us buy cars for work, others for play. So it’s no surprise that the top two cars in 2021 can do both. But which vehicle took the crown? Well, it was super close, so let’s have a look.
Ok, let’s cut straight to the chase.
Taking out pole position in 2021 was the Toyota HiLux with 52,801 new vehicles sold, very closely followed by the Ford Ranger (50,279 new vehicles sold).
And get this: with 1,049,831 new vehicles sold across Australia in 2021, those two particular models made up almost 10% of all new vehicles that hit the road over the past 12 months, according to Australia’s peak body for the automotive industry, the FCAI.
While the HiLux took out the top spot, it must be noted that the Ranger is closing the gap – in 2020 a total of 40,973 new Rangers were sold, compared to 45,176 Toyota HiLuxes.
So it’ll be interesting to see what happens in 2022!
While light commercial vehicles, including utes, have dominated the top two spots in recent years, far more SUVs are sold across the board.
In fact, a total of 531,700 SUVs were sold in 2021, compared to 253,254 light commercial vehicles.
The highest selling SUV in 2021 was the Toyota RAV4 (35,751), which came in at 3rd place overall.
Rounding out the top five was the fourth-placed Toyota Corolla (28,768) and the Toyota Landcruiser (26,633) in fifth.
And yep, as you might’ve noticed, Toyota impressively took out four of the top five spots.
Below is a full list of the top 20 models sold in Australia throughout 2021, including the number of vehicles sold (got your eye on anything below?).
1. Toyota HiLux – 52,801 (new vehicles sold)
2. Ford Ranger – 50,279
3. Toyota RAV4 – 35,751
4. Toyota Corolla – 28,768
5. Toyota Landcruiser – 26,633
6. Hyundai i30 – 25,575
7. Isuzu Ute D-Max – 25,117
8. Mazda CX-5 – 24,968
9. Toyota Prado – 21,299
10. Mitsubishi Triton – 19,232
11. MG ZS – 18,423
12. Kia Cerato – 18,114
13. Mazda BT-50 – 15,662
14. Nissan Navara – 15,113
15. Mitsubishi ASX – 14,764
16. Mitsubishi Outlander – 14,572
17. Hyundai Tucson – 14,194
18. Mazda3 – 14,126
19. Nissan XTrail – 13,860
20. MG MG3 – 13,774
If you’re thinking of purchasing a new vehicle and want to explore your finance options for it, then please get in touch.
Taking out a loan for a vehicle is much more common than you might think. In fact, recent research shows 52% of car buyers took out a loan for their vehicle purchase in the past decade, with an average loan size of $25,000.
And just like using a broker to finance a home purchase, using our services when purchasing a vehicle also comes with a number of advantages, which we’d be more than happy to run you through.
So to find out more, please get in touch with us today – we’d love to help you hit the road in a new set of wheels.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
Australian homeowners are loading up their offset accounts in record amounts, so much so that the average household is now almost four years ahead on their mortgage payments.
Quick question: do you have an offset account (or several) attached to your mortgage?
They’ve become quite popular in recent years, especially since the RBA’s official cash rate has hit record low levels and impacted the amount of interest you can earn in savings accounts (which we’ll explain in more detail further below).
Research from the Australian Prudential Regulation Authority (APRA), provided to The Australian, shows the average balance sitting in offset accounts is now nearly $100,000 – up almost $20,000 since the pandemic kicked off in March 2020.
In total, $222 billion was in offset accounts across the country as of September 2021 – up almost $50 billion from $174 billion in March 2020.
In fact, in the September 2021 quarter alone, offset account balances increased by 10%.
All of this has helped contribute to mortgage holders now being, on average, 45 months ahead on their repayments – up from 32 months prior to the pandemic.
In terms of the various ways Australians have gotten ahead, 57% of prepayments came from offset accounts, 40% via available redraw balances, and 3% through other excess repayments.
Basically, an offset account is a regular transaction account that is linked to your home loan.
The advantage is that you only pay interest on the difference between the money in the account and the mortgage.
Some banks allow you to have 10 offset accounts attached to your mortgage, too, with cards linked to them that you can use for everyday spending.
Say you owe $350,000 on your mortgage, and have $50,000 in a savings account.
If you move that $50,000 into a full offset account, you’ll only pay interest on $300,000 (which is the loan value minus the amount in your offset account).
The offset account can then continue to be used for all your daily needs, like receiving your salary or withdrawing cash.
With the RBA’s cash rate at record low levels, the interest rate you’ll receive on the balance in your bank’s savings account is also at record low levels too.
Say for example that you had a savings account with a 1% interest rate and a mortgage with a 2.2% interest rate.
By allocating money into your full offset account, you’d save more money on interest than you would earn in your savings account.
Additionally, interest on your savings accounts is subject to tax, whereas the interest-saving on your mortgage isn’t.
Of course, there are additional factors you’ll want to consider, such as account keeping fees and the minimum amount needed in the account to make it useful.
And obviously, savings accounts and offset accounts are not the only two places you can park your hard-earned money. Depending on your risk appetite, there are other options you could consider that might yield a higher return.
The long and the short of it is everyone’s situation is different, but if you think an offset account might be for you, get in touch and we can help you explore your options.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
Cut calories, increase your steps, abstain from alcohol: each year we set ourselves some pretty lofty New Year’s resolutions, most of which are doomed to fail. So why not add a nice straightforward financial goal to the list this year? Here are three to get you started.
Ambition is an admirable quality, but somewhere between the Christmas pudding and the “three, two, one, Happy New Year!” we tend to overcommit.
So this year, we’re encouraging you to add a financial goal to your list of New Year’s resolutions.
Here are three to get you started.
Perhaps you’ve reached a point in your life where you can start making additional payments on your mortgage each month.
Or, you might have saved up enough money to buy your first investment property, or upgrade from an apartment to a house.
Or maybe the thought of owning your first home still feels a long way off, but you haven’t yet heard about the federal government’s First Home Loan Deposit scheme, which helps first home buyers crack the market four years sooner, on average.
Whatever your position, consider taking stock of what you want to achieve in 2022 so that you can work out a plan to achieve it.
And when you narrow in on what it is you to achieve, get in touch with us to explore some funding options that can help turn your goal from pipe dream to reality.
Do you know the interest rate on your home loan?
Don’t fret if you don’t, about half of mortgage holders can’t recall it.
But not knowing the rate is usually a good sign that it’s time for a home loan health check.
That’s because an RBA study found that for loans written four years ago, borrowers are charged an average of 40 basis points higher interest than new loans.
For a loan balance of $250,000, that equates to an extra $1,000 in interest payments per year.
Other good reasons for a home loan health check could include seeing whether locking in a fixed rate might suit you better over the next few years, or switching to a home loan that has extra features, such as an offset account.
Rest assured we’ll make it all very quick and painless. Simply get the ball rolling by giving us a call today.
When was the last time you had a thorough look through your spending account?
Subscription services have taken off in recent years in Australia, so much so that the average Australian household pays $42 per month for their streaming service.
If you can halve that, you can save between $200-$300 per year.
Other micro-transactions that most families can cut back on include food delivery services such as Uber Eats, as well as alcohol, and takeaway coffees.
In fact, buying a $4 takeaway coffee each day costs you a whopping $1460 per year, whereas making it yourself using a french press or Aeropress costs just $260.
That’s another $1200 in savings each year. And for two family members, you can save $2400.
Resolution inertia can be a real thing – it sets in when once you’ve set your goals, and when you realise now you’ve actually got to start taking steps to achieve them.
That’s where we come in – get in touch today for resolutions one and two: setting yourself a property/finance goal and getting a home loan health check.
And by getting the ball rolling on these resolutions you can be well on your way to resolution three: saving money!
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
