Flat Chat: Why Units Could Soon Become Hot Property

Flat Chat: Why Units Could Soon Become Hot Property

Oct 27, 2023 | Book of the Week, Building Emotional Muscle, Building Financial Muscle, Debt, Financial Health, Financial Management 101, Home Loan, Mindset, Mortgage, Self Development

Could a smaller dwelling be a solution for you, with apartments, units and townhouses widening their appeal in the property market? If you’re considering your options, reach out to discuss your situation today, there could be a rewarding solution for you!

Apartments stand out as an affordable choice when it comes to cracking the property market, not to mention downsizing. But a looming shortage may soon push unit values higher.

Apartments stand out as an affordable choice when it comes to cracking the property market, not to mention downsizing. But a looming shortage may soon push unit values higher.

For many of us, buying a house on its own block of land is the ‘great Australian dream’. While plenty of people achieve this goal, our property journey is often book-ended by apartment living.

For first home buyers, units can be an affordable choice, costing around 30% less than houses according to CoreLogic.

Then, as we head into our senior years, an apartment offers secure, low-maintenance living, often with a wealth of amenities right on the doorstep.

Apartment demand is outstripping supply

Apartments may be affordable today, but a lack of new apartment construction, coupled with rising immigration levels, points to a looming apartment shortage according to CoreLogic.  And that could push values higher.

Over the next few years, new apartment construction is forecast to be 40% lower in the 2010s, leading to a shortfall of over 100,000 homes by 2027. Close to 60% of the new home shortfall is expected to be in the apartment market.

On the demand side, CoreLogic says a stronger-than-expected level of migration into Australia has seen overall housing demand “skyrocket”. Historically, new migrants head to the high-density areas of our big cities, putting extra pressure on the unit market.

As CoreLogic explains, with interest rates potentially easing in 2024, greater demand and tight supply could fuel a “price boom” in the unit market.

Why more of us are choosing apartment living

Modern apartments are packed with the latest design and sustainability features, meaning they are no longer the poor relation of freestanding houses.

Across our major cities, apartments now account for 30% of all homes, up from 23% in 2010. And the appeal doesn’t just lie in affordability.

Today’s apartments usually come with a wealth of benefits, including:

Government Schemes: because apartments are generally cheaper than houses, they’re more often under the price caps for a range of government schemes, including the Home Guarantee Scheme, stamp duty concessions, and first home owner grants (usually for new builds). These schemes can be combined to potentially save you tens of thousands of dollars and get you into the property market years sooner.

Sought-after Locations: apartment living can be the difference between living close to work, or facing a long daily commute from the outer suburbs.

Lifestyle Advantages: the days of apartments being cramped and lacklustre are over. A variety of on-site amenities, from barbecue areas to pools, gyms and car-wash bays, make unit living convenient and relaxing.

Low maintenance Living: not interested in spending precious spare time mowing the lawns or cleaning the gutters? It turns out plenty of others aren’t either. Unlike houses, units require minimal upkeep, letting residents enjoy more quality time.

Improved Security: if you’re after a lock-and-leave lifestyle, modern apartments fit the bill. Advanced security features add up to a safe and secure living environment.

Modern apartments are packed with the latest design and sustainability features, meaning they are no longer the poor relation of freestanding houses.

Is now the time to take the leap?

Right now, apartments still present an affordable option for first-home buyers, downsizers and investors.

The median apartment price across our state capitals is currently $637,593 – but if CoreLogic is correct, that figure could soon increase as demand outstrips supply.

So if you’d like help exploring your options to purchase your first property – for example, with just a 5% deposit via the Home Guarantee Scheme – then get in touch today to discover your borrowing power.

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.

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Which Comes First: Emergency Fund or Paying Off Debts?

Which Comes First: Emergency Fund or Paying Off Debts?

Sep 21, 2023 | Book of the Week, Building Emotional Muscle, Building Financial Muscle, Debt, Educational Series, Financial Management 101, Home Loan, Mindset, Mortgage, Saving Money, Self Development

When money is tight, it can be hard to pay down debt and build up an emergency savings fund at the same time. But it is still possible with careful budgeting and good money management. 

Here’s a step-by-step plan on how to do this:

1. ASSESS YOUR FINANCIAL SITUATION

Start by looking carefully at your money. Write down everything you earn and everything you owe, including the balances, interest rates, and minimum monthly payments.

2. MAKE A BARE-BONES BUDGET

Make a simple budget that covers only the most important costs, such as housing, utilities, groceries, transportation, and insurance. Cut back as much as you can on spending you do not have to.

3. PAY OFF HIGH-INTEREST DEBTS

Pay off your debts with the highest interest rates first, as this will save you money in the long run. All debts should have the minimum payment made, but any extra money should be put toward the debt with the highest interest rate.

4. SET REALISTIC GOALS

Find out how much you can afford to put toward debt repayment and savings each month. Be careful and make paying off debt your first priority.

5. BUILD A SMALL EMERGENCY FUND

Even though it is important to pay down debt, having a small emergency fund can help you avoid going deeper into debt if you have to pay for something unexpected. Start with a small goal, like $500 or $1,000, and slowly raise it as time goes on.

Having a small emergency fund can help you avoid going deeper into debt if you have to pay for something unexpected.

6. USE WINDFALLS/UNEXPECTED MONEY WISELY

If you get money you did not expect, like a tax refund or a bonus, put some of it toward paying off debt and some into an emergency fund. This helps you move forward in both areas.

7. SAVE AND PAY OFF DEBTS AUTOMATICALLY

Set up automatic transfers to your emergency fund and to your debt payments whenever you can. This makes sure that you always move closer to both goals.

8. LOOK FOR WAYS TO MAKE MORE MONEY

Look for ways to make more money, like part-time work, freelance gigs, or selling things you do not use. The extra money can be used to pay off debts and save money.

Talk with your creditors about your money situation. In some cases, you may be able to negotiate lower interest rates, lower minimum payments, or a delay in payments to make it easier to handle your debt.<br />

    9. TALK WITH YOUR CREDITORS

    Talk with your creditors about your money situation. In some cases, you may be able to negotiate lower interest rates, lower minimum payments, or a delay in payments to make it easier to handle your debt.

    10. REVIEW AND ADJUST REGULARLY

    Check in on your budget and financial goals every so often. Change how you pay off debt and save money when your income and expenses change.

    11. CELEBRATE MILESTONES

    Celebrate your successes, no matter how small they are. Every dollar you save in an emergency fund or pay off of a debt is a step toward financial stability.

    Remember that building an emergency fund and paying off debt are long-term goals. It’s okay to progress slowly if your income is limited.

     The important thing is to keep working toward both goals, even if progress is slow. Your money situation will get better over time, and you will have a stronger financial base.

    At Financial Management 101 – we are committed to providing YOU with excellent financial education, training and support so that you can live the life you truly desire.  Join our LEARNING HUB today!

    JOIN THE "LEARNING HUB" AT FINANCIAL MANAGEMENT 101
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    What are 5 ways to Deal with the Top 5 Money Stresses?

    What are 5 ways to Deal with the Top 5 Money Stresses?

    Sep 15, 2023 | Book of the Week, Building Emotional Muscle, Building Financial Muscle, Debt, Educational Series, Financial Management 101, Saving Money, Self Development

    To deal with the top five money worries, you need to learn about money, plan ahead, and use practical solutions.

    Here are five ways to help yourself or someone you know who is under a lot of financial stress:

    1. DEBT MANAGEMENT

       ◼️   Debt Consolidation: Look into your options for turning high-interest debts into loans or credit cards with lower rates.

       ◼️   Budgeting: If you know how to budget well, you can put money toward paying off debt in a planned way. If you do not know how to budget well, you can get help from experts who can teach you how to do it.

       ◼️   Financial Counseling: Talk to a financial counselor or advisor who can help you come up with a plan to deal with your debts.

    2. EMERGENCY FUND BUILDING

       ◼️  Automated Savings: Set up automatic transfers to a separate savings account where you can build up an emergency fund.

       ◼️  Changes to your Budget: Look for places in your budget where you can cut back on spending you do not have in order to save money.

       ◼️  Side Income: Look into part-time jobs, freelancing, and the “gig economy” as ways to earn extra money to add to your emergency fund.

    3. SAVING FOR FUTURE GOALS

       ◼️  Goal Setting: Set specific financial goals, like saving for retirement, buying a home, or paying for your child’s education.

       ◼️  Financial Literacy: Learning about the various investment vehicles available and the advantages of investing over the long term to build wealth.

       ◼️  Automated Savings: Consider setting up recurring payments to your retirement account or other investment fund to ensure regular savings.

    Saving Money for Future Goals<br /> Set specific financial goals, like saving for retirement, buying a home, or paying for your child's education.

    4. JOB SECURITY AND INCOME STABILITY

       ◼️  Skills Development: Look for ways to improve your skills and keep learning to make yourself more employable.

       ◼️  Networking: Build and keep up a professional network, which can be helpful for getting job referrals and opportunities.

       ◼️  Backup Plan: Have a backup way to make additional income, like freelance work or a side business, as a way to supplement your current income, or, just in case you lose your job.

    5. MANAGING LIVING EXPENSES

       ◼️  Expense Tracking: There are budgeting apps and tools that can assist with tracking your daily expenses and help identify areas where you may need to look at cutting costs.

        ◼️  Shop Around: Look around for the best deals on things you need, like groceries, insurance, and utilities.

       ◼️  Housing Options: Consider downsizing, renting a room, or getting a lower interest rate on your home loan, are all viable options for lowering monthly housing costs.

    There are budgeting apps and tools that can assist with tracking your daily expenses and help identify areas where you may need to look at cutting costs.

    Remember that financial stress relief often requires time and persistence.

    Seek professional financial advice as needed, and look for ongoing support and accountability to assist you in effectively implementing these strategies.

    Also, learning about money can give you the power to make smart financial decisions and reduce money-related stress over time, that’s where the LEARNING HUB helps you gain more financial knowledge, while providing you with the support and help you need.

    JOIN THE "LEARNING HUB" AT FINANCIAL MANAGEMENT 101
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    The 5 Second Rule

    The 5 Second Rule

    Jan 22, 2018 | Book of the Week, Mindset, Self Development

    The 5 Second Rule

    I can’t remember exactly when I first heard about Mel Robbins and The 5 Second Rule on my youtube feed, however, I know that I was intrigued about some of the stuff Mel was saying and it was making SO much sense at the time.

    Well, I’ve finally finished the book and what an awesome read it was.

    I think it’s going to be a book that I’ll pick up again and again, as there are so many reminders we need to stay true to ourselves and live the life we desire without procrastination or fear of failure. 

    I have to say I’m a bit of shocker when it comes to reading books, as I generally have about 4 books on the go at one time.

    I so love reading and how the words in some books just pop out and you go “hell yeah”, which is what Mel’s book did for me.

    There are so many things we already know on a daily basis we “should be doing” but reading this book gives you a gentle reminder to continue to put certain things back into practice.

    I had so so many “take-outs” from this book that I’ve written down and will keep for myself to look over to remind me to stay true, be brave & stop procrastinating.

    I’ll do my best to highlight the main ones that I got out of the book, without giving too much away in case you decide to read it for yourself.

    So here goes my “take-outs”…

    1.  I do the count down with our daughter and didn’t realise it until I read this book and yes the 5, 4, 3, 2, 1 count down definitely works!
    2.  How to beat fear & procrastination by using the principals and practises Mel describes.
    3.  We are the problem no one else – for whatever is going on in our life.
    4.  Trust your gut & yourself more – research confirms the “gut theory”.
    5.  Letting go. There are always people who are going to jealous, envious or just plain don’t like you. That’s ok. Stay true to yourself, move on and forgive!
    6.  Improve your life by moving and stop making excuses – JUST DO IT!….and
    7.  How to stop overthinking things.

    We all struggle with the same self-defeating problems.

    We all doubt ourselves.

    Don’t buy into these feelings….

    There you go just a few of my “take-outs” from Mel Robbins book The 5 Second Rule!

    An awesome read for anyone who wants to improve some part in their life.

    Reading books can inspire us to become more of who we want to be.

    Be inspired, read more, love more, live more and just be you – you are perfect exactly the way you are.  So embrace you and be HAPPY!

    If there’s a book you love then please let me know as I’d love to hear what  📚 inspires you 💝

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