Here’s the thing – I 💗my life. It hasn’t been a smooth or even a particularly easy one, but it has and continues to be one hell of a ride! 🤸♀️
There are a few things I know FOR SURE. If I’d listened to everyone when…
🎧 I left school I’d probably be married to a farmer in West Wales with dung under my fingernails.
🎧 I moved to Asia – oh, hang on, I’d never have got on that plane.
🎧 I moved to Australia, I would have had a nice “comfortable” job in Advertising.
🎧 I got divorced, with a toddler and no family support, I would not have the fabulous life I have today.
When I got divorced, some 15-years ago, I couldn’t imagine that I’d own a detached house in Sydney’s inner city, have the best group of friends and have my own business, but I do.
So sometimes, you shouldn’t even follow yourself. What you should do is believing in yourself and know that things will constantly improve. Hard work? You bet! Worth it? You double bet!
Forget the masses – the reality is, you’re just not one of them.
You’re unique so you may as well be yourself, because everyone else is taken 🎉
And you know what that means? Taking control of your financial future!
Yes, it means getting into the property market – as many times as you can. I know that property prices have soared – people like to tell me all the time. But did you know that with the super low cash rate that managing our mortgages are easier now than they were in 1990? “WHAT?”, I hear you say? It’s true!
According Sally Tindall, RateCity spokesperson “the highest interest rate on record was in February 1990 at 17 per cent – a reality many Australians would rather forget.” 😫
“Now we’re living in a period of record-long, record-low interest rates. The key difference between 1990 and today is that average mortgages have risen nearly two times faster than wages.”
In 1990 when the Reserve Bank’s official interest rate was 17 percent, a person on the median annual wage of $27,284 would have spent more than 40 percent of their earnings paying off the median loan of $67,700.
Fast forward to today – where Aussies enjoy a healthy average annual wage of $90,800 – and are slugged with paying off a monster average loan of $388,100 BUT at some 29 percent of their yearly earnings. Great news!
“So, when it comes to paying down the mortgage each month, when you factor in the record low interest rates, we’re actually better off,” said Tindall.
But, according to Tindall, “ask any first home buyer or homeowner who needs to dip into their precious equity, to stump up a 20 percent deposit today, and you’ve got them snookered before they’ve even started”.
This is today’s dilemma.
Not the property prices per se but the 20% deposit of that property.
So, what’s the answer? Actually, there are a few such as:
· Smaller deposits
· Buying with a partner (as I did with a friend when I was well into my 40’s)
Maybe none of them are ideal, but my point is there are answers and solutions, we just need to smash that box and think way outside it. We need to stop following the masses and think of solutions.
What do you think? Am I being Pollyanna or should we now stop winging, pool our resources and make the most of the cheap money that is around and, according to the RBA, will be around for a at least 3-years?