Five New Year’s Resolutions for a New Financial Year

Author – Graeme Salt

Next week is the start of a new tax year and marks a great opportunity to get your finances in order.  With the property market taking a breather, now is the chance to get the foundations right to achieve your future goals.

Here are my Top Five tips on what you can do this financial year.

Review your current loans

Now that the market is calmer, the banks have to work harder for your business and will offer you some very sweet deals to refinance with them.  Some lenders are offering $1,250 cash to bring you over and lots of frequent flyers points.

But the banks are also offering super-sharp rates – who would have thought that an investment bank would be offering Australians rates as low as 3.69 per cent?

Start monitoring prices in the suburbs where you want to live

Most markets except Tasmania are either going sideways or gently receding.  BIS Oxford Economics are predicting Sydney to fall four per cent this financial year and Melbourne will tread water.  But none of the experts are predicting a property collapse and, with sound fundamentals, there is every chance that the market can pick up at any moment.

While the markets are pausing for breath this is a great time to be doing your research on where you want to live and the average prices in these suburbs – so that you know what something is worth.

Set up a savings plan

The days of borrowing 100 per cent of a property’s value are long gone.  Lenders are now more cautious and like to see someone who is responsible with their money.

If you are a young first-time buyer the banks understand that you may only have modest savings, but they like to see you are making progress. Sometimes the person who gets the bus rather than a taxi, or who brings their own lunch to work is the one who gets the loan.

And with their now being a Fear of Over-Paying in the property market, you now have time to start squirreling-away your savings.

Ask your boss for a pay rise

Nationally, wage growth is at a modest 2.1 per cent.  The Reserve Bank has argued that, it would be good for the economy if wage growth picks up.  So, if you get a pay rise you will be helping your hip -pocket, improving your borrowing bower and boosting the economy!

Develop a wealth creation strategy

You don’t have to be a millionaire to own investment properties; while Sydney and Melbourne properties may well be expensive, some regional towns are now predicted to grow – especially with $9.3bn committed by the Australian Government to the 1,700km Inland Rail project.

If you sit down with a property expert they may be able to recommend modest properties with great growth potential.

New Years always bring hope and this new financial year can do to – if you embrace the opportunity.  If you want to talk to me more about your property needs, please contact me on 1300 30 67 67.