Inflation stands at 5.1% and is expected to rise as food and petrol costs continue to rise.
Don’t forget that both Labor and the coalition said they intended to eliminate on September 28 the temporary reduction in the 22 ¢ per liter excise tax. Gasoline prices, well above $ 2 a liter, are likely to return to normal.
Tightening the belt is something we can usually do … but it is far from attractive.
Start by looking for ways to increase your income. This could include completing a withholding variation to get less taxes out of your pay package, claiming all the government gifts and payments you can, and “working” your healthcare system.
Stick to a pay raise
Labor intends to make a formal submission to the Fair Labor Commission to raise the basic wage at least at the 5.1 percent inflation rate.
And as part of its commitment to reduce the gender pay gap by 14 percent, it wants to raise wage rates in the female-dominated care sector for the elderly.
A whopping 10 out of 10 workers changed jobs last year due to a combination of vital dissatisfaction and massive mobility driven by the COVID-19 pandemic. The best way to earn more money is to jump on the bandwagon. Joining the big remodel could put more cash in your pocket.
But remember that changes in the workforce demographic have left skills shortages in some industries. If yours is one of these, why not ask for a pay raise?
Repeat your home purchase plan
Housing prices soared faster than in 30 years as the pandemic struck and many workers became decentralized to the mass regions.
Cue First Home Buyer Assistance Packages We now have a mix of old and new.
Staying is the Coalition’s home equity guarantee program for borrowers to avoid paying mortgage insurance (LMI) from lenders.
The first home buyers (35,000 of them) can buy with only a 5% deposit, while single parents can do so with only 2% (5000). You must earn less than $ 125,000 as an individual or $ 200,000 as a couple. Leave a loan for the rest, and the government backs you up with the amount that will take you to the 20 percent deposit, which means you get rid of LMI.
However, Labor intends to now give the opportunity to buy with the government, too, in a situation of shared capital under its Help To Buy scheme.
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It will increase by up to 30 percent of the value of an existing home and 40 percent of a new property (10,000 places). This means that the government will own a part of your home, which you will pay for the sale (or repurchase earlier).
Income cuts will be slightly lower, $ 90,000 for singles and $ 120,000 for couples.
The planned extension of the IMT Housing Guarantee Exemption Scheme to the regions (10,000 places with the same income limits as the others) will also look different.
As was the Coalition’s plan, only a 5 percent deposit is needed. But contrary to what the old government intended, it will not be available to several home buyers, only the first home buyers. And now you can buy an existing home, instead of just a new one.
Given the average 50 percent increase in the time it takes to build new homes (up to 12 months) and the bursts of costs and the shortage of builders in the regions, an existing home could be more attractive.
Remember that the time to buy is when you are ready, not when you are in a hurry. And with rising interest rates, real estate markets are likely to fall. Time is on your side.
What’s interesting is that investors seem impertinent; the value of new investment loans doubled to $ 11 billion in the year ended March 31.
This is likely to be due to Labor’s stated intention to leave only the negative gears, as well as the exceptionally tight rental markets that are increasing the performance of rented properties.
Nicole Pedersen-McKinnon is the author of How to Get Mortgage-Free Like Like. Follow Nicole on Facebook, Twitter or Instagram.