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How To Manage Debt And Retirement

Debt and retirement aren’t terms that we like to think about together, but this period of your life requires a detailed game plan in order to fully enjoy it.

How-To-Manage-Debt-And-Retirement

In Australia, the average retirement age for people aged 45 years and over is 55.3 years – however, this is changing. When you narrow it down to people who’ve retired in the past five years, the average increases to 62.9 years of age.

It’s also worth noting that retirement isn’t necessarily a one-time event, with more than one in four Australians between the ages of 45 and 59 returning to employment each year. For some, it’s boredom, but for others – debt and retirement are simply not a good match, and working again is out of obligation. With that being said, many Aussies are enjoying a comfortable retirement that includes little to no financial restrictions surrounding healthcare, hobbies and even travel – so what’s the secret?

Planning Ahead For Debt And Retirement 

In August 2019, the Australian Housing and Urban Research Institute (AHURI) found that since the mid-1990’s, the proportion of Aussies carrying a mortgage into retirement had more than doubled to 45%. This is also compounded by high levels of personal debt, with the mortgage debt-to-income ratio tripled between 1987 and 2015 – from 71% to 211%.

While house prices tripled, wages certainly did not – meaning that those heading into the twilight years of their lives have to work even harder to ensure that they enter retirement with as little debt as possible. For some, this can feel like moving mountains, but the key to a smooth transition into the next phase of life is linked to smart financial planning well in advance.

Make A Plan – If you haven’t already enlisted the services of a financial adviser or planner, it’s worth doing so. Having a professional insight into your finances can help to provide an unobjective third party perspective and remove any sentimentality when it comes to getting you financially fit for retirement.

Home Loan Health Checks – Being straddled with a mortgage when you’re trying to “scale” back” is one of the biggest hurdles that many Australian retirees face, so it’s important to try to get on top of this decades in advance if you can. Don’t be complacent, and make sure that you’re matched with the right loan product with the most favourable interest rates and terms.

Consolidate Super – Superannuation is your designated retirement nest egg. Having it scattered across multiple funds will result in you paying unnecessary fees, so ensure that you do have these eggs in the one basket. Ensure that your fund of choice aligns with your appetite for risk, and offers insurance options that best fit your circumstances.

Extra Repayments – While you’re still working, try to make extra repayments on what stands out as the obvious link between debt and retirement. Whether it’s your mortgage, a personal loan, or even making voluntary contributions to your superannuation fund, it’s important to try to “get ahead” while you’re able to in order to have a stress free transition into retirement.

Invest In Your Future – Generally speaking, the closer you are to leaving the workforce, the less risk you should take when approaching investments. Many Aussies opt for an investment property or a holiday home in their younger years, while others prefer to dabble in the stock market or other stocks.

Downsize – Downsizing into a smaller and less expensive home could free up a decent amount of cash, which you can put towards paying off your mortgage or invest in your superannuation. Empty nesters have no real need for the large four bedroom home that they once did thirty years ago, so be practical about your needs and be proactive if they have changed.

Where To Seek Help With Debt And Retirement 

If you are ready to “level up” and get financially fit, then it’s never too early to seek professional financial advice. Whether your next goal is to retire early, take a gap year or purchase a home, George Samios and the team at Madd Life are ready and waiting.

With their entire business built on referrals, the team at Madd Loans have taken the mortgage broking industry by storm. Their overwhelmingly positive feedback has helped them to take out numerous industry awards, including the title of “Queensland’s Broker Of The Year” for four consecutive years. However, after working with a broad variety of clients in regards to their mortgage options, it made sense for the team at Madd to have the capacity to offer a full financial planning service.

If thinking about your financial future strikes a chord with you, then it might be time to speak to a professional. Whether you’re chasing mortgage solutions or a financial fairy godmother, the team at Madd work together as a collective to turn your goals into reality.

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Can Paypass Affect Owning A Home?

Can-Paypass-Affect-Owning-A-Home_

While the technology that gave us “Tap And Go” has no doubt changed our spending habits, can using paypass affect owning a home? The answer isn’t that simple.

In 2021, just about all new credit or debit cards will be issued with either Visa payWave or MasterCard PayPass. Also known as “Tap And Go”, it was designed as a simple way of purchasing items under $100 in person. Users can either tap or hover their credit card up to four centimetres away from the EFTPOS terminal, and the transaction is processed without a pin or a signature. Many retailers have embraced this payment method as a means to cut down on processing times and cash handling.

Visa payWave and MasterCard PayPass credit cards allow you to “tap and go” due to the embedded near-field communication (NFC) chip, which transmits your information to the POS terminal. There is also a radio antenna embedded into the credit card that sends radio frequencies, allowing contactless payments. However, many of us tend to get over excited about new technology and haven’t been paying attention to how much it’s actually costing us.

Why Paypass Costs More Than Other Transactions 

Contactless card payments (like payWave or payPass) cost businesses a lot of money. The Australian Retailers Association estimates banks charge businesses around $500 million every year to process card transactions.

Fees for tap-and-go are about four times higher than EFTPOS and add about 40¢ to a $100 transaction for a retailer or merchant, as the transaction fees treat “Tap And Go” purchases like a credit card, as opposed to a debit card. Businesses then pass on the extra costs to consumers either through by increasing the cost of goods across the store, or via surcharges.

Some major merchants like Coles and Woolworths simply absorbed the cost of processing into their business, but others like Aldi and Westfield Car Parks charged anywhere from 0.5% – 2.5% on credit transactions – including contactless “Tap And Go” payments. Many users simply don’t realise that this method incurs the surcharges that apply to credit cards, and as a result often pay more on their transactions simply because they don’t know any better.

Can Paypass Affect Owning A Home?

Many new and existing users of this modern form of payment have been left wondering – can paypass affect owning a home? Well, the answer is both yes and no. While Paypass itself isn’t the reason why home loans can get knocked back, it’s what you’re using Paypass for that can be linked to a declined mortgage application.

The spending habits of potential borrowers indicate to banks and lending providers what type of lifestyle you lead. Once upon a time, lenders previously assessed a borrower’s capacity to meet a mortgage based on a general household income equation. However, these days they are now looking at up to six months’ worth of bank, transaction and credit card statements – including every single “Tap And Go” purchase you make. It is a near forensic examination of your spending habits, particularly if you use this payment method for lots of regular, erratic purchases. Yes, that includes your weekly UberEats delivery.

So, can Paypass effect owning a home? No, so long as you use it wisely. The magic lies in your mindset. Start living as if you already have a mortgage, and a property to pay for – that means budgets, curbing frivolous spending, and being able to show that you’re a good candidate for a loan to lending providers.

Sourcing Help With Mortgage Solutions

If you are ready to “level up” and get financially fit, then it’s never too early to seek professional financial advice. Whether your next goal is to retire early, take a gap year or purchase a home, George Samios and the team at Madd Life are ready and waiting.

With their entire business built on referrals, the team at Madd Loans have taken the mortgage broking industry by storm. Their overwhelmingly positive feedback has helped them to take out numerous industry awards, including the title of “Queensland’s Broker Of The Year” for four consecutive years. However, after working with a broad variety of clients in regards to their mortgage options, it made sense for the team at Madd to have the capacity to offer a full financial planning service.

If thinking about your financial future strikes a chord with you, then it might be time to speak to a professional. Whether you’re chasing mortgage solutions or a financial fairy godmother, the team at Madd work together as a collective to turn your goals into reality.

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Commonwealth Bank Announces Lowest Fixed Rate In History

On Monday 22 March and effective immediately, the Commonwealth Bank of Australia announced its lowest fixed rate ever released for home loans. 

The key updates released by CBA include – 

  • 20 bps reduction to 1.94% p.a. on new two year fixed rate home loans for owner occupiers paying principal and interest in the Wealth Package. This is CBA’s lowest fixed rate for home loans to ever be advertised; 
  • 30 bps reduction to 2.39% p.a. on new three year Fixed Rate home loans for Investors paying Principal and Interest in the Wealth Package. This is CBA’s lowest fixed rate for investors to ever be advertised; 
  • New digital splitting tool in NetBank and the CommBank app.

It would appear that Australia’s largest bank has bowed to pressure from rival lending institutions Westpac and NAB, by finally bringing its two-year fixed rate to under 2%. According to Michael Baumann, CBA’s Executive General Manager of Home Buying, it’s all in place for the benefit of consumers. 

“We know that customers are looking to lock in the certainty of fixed rates, with around 40 per cent of new customers fixing their loans to take advantage of the current record low rate environment. These changes allow homeowners and investors to take advantage of our lowest ever fixed rates, adding to our already market leading home lending solutions, including the recently announced CommBank Green Loan.”

Along with record low interest rates, yesterday’s announcement also comes as CommBank launches a new digital splitting tool for customers. The concept has been designed for customers looking to split their variable home loan, in order to best take advantage of the certainty of a fixed rate and the flexibility of a variable home loan.

Eligible customers can now split their home loan in NetBank and the CommBank app in a few easy steps,  by simply selecting the portion of their loan and the term they would like to fix. In real time, consumers are able to see how this split changes their repayments. 

“We have made it easier than ever for eligible customers to take advantage of the new fixed rates announced today, with the launch of this easy to use feature in the CommBank app and NetBank. There is a limited understanding from customers that they can split their loan, and this new tool gives customers even more control of their finances and the flexibility of redraw and offset,” Mr Baumann said.

However, the most significant change was the hike to the Commonwealth Bank’s four-year fixed rate. For owner occupiers, the four year fixed interest rate rose from 1.99% to 2.19%, making them the first of the big four banks to hike the four year rate since October 2019. Lending experts believe that this is a sign of things to come, and providing the economic recovery of Australia stays on track, consumers who fix their home loan rates today could very well see variable rates increase during that same period of time. 

A lock-in or rate lock on a mortgage loan means that your interest rate won’t change between the offer and closing, as long as you close within the specified time frame and there are no changes to your application. With the Australian real estate market picking up and gaining momentum, there’s never been a better time for consumers to seriously consider the benefits that rate lock has to offer. 

If thinking about your financial future strikes a chord with you, then it might be time to speak to a professional. With their entire business built on referrals, the team at Madd Loans have taken the mortgage broking industry by storm. Their overwhelmingly positive feedback has helped them to take out numerous industry awards, including the title of “Queensland’s Broker Of The Year” for four consecutive years. Get in touch with the team at Madd today to discuss your rate lock options and stay ahead of the market. 

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Seven Debt Free Holiday Tips For Budget Friendly Vacays

At some point, we all need a vacation – but we shouldn’t be going into the red for one, so here’s seven debt free holiday tips to keep your bank account happy.

Seven-Debt-Free-Holiday-Tips-For-Budget-Friendly-Vacays

A break from the “real” world, cocktails, better weather, sleep-ins, exploring: it’s no wonder that the vast majority of us quite literally count down the days until our next holiday. However, there’s nothing worse than arriving back home with a financial hangover, and a swift reality check that you may have gotten into debt by jetting off on a vacation. After all, your day to day financial obligations didn’t take a holiday – you did. 

Seven Tips On Avoiding A Post-Holiday Financial Hangover 

The good news is that if you wish to avoid biting off more than you can chew in terms of paying your bills after a siesta, we have a broad variety of debt free holiday tips that you can deploy in order to keep your budget and bank account happy – and they often all boil down to simply planning ahead. 

Start Saving – While it seems like a no brainer, try not to spend money that you don’t have – this also goes for having an “emergency fund” should things go south on your trip. A popular saving method is by opening a dedicated bank account that you aren’t able to transfer easily from.  

Get Extra Income – Depending on your own personal circumstances, sometimes it’s actually easier to generate more income as opposed to saving it. If you know you’re heading abroad in six months, start that side hustle, pick up extra shifts or even try Airtasker to chase extra cash. 

Shop Around – Don’t book anything on a whim, especially when it comes to flights, hotels or tour packages. Even for domestic trips, tourism is a competitive market, so don’t be afraid to shop around and do your research in order to get the best possible deal. 

Fly Mid Week – If you’re not a fan of using travel agents or are confident in your bargain hunting ability regarding booking your own flights, it’s an unspoken rule that flights are often cheaper if you opt for the midweek options, particularly in regards to very early or very late flights. 

Eat In – Depending on your destination, the cost of eating out is the enemy of any debt free holiday tips – it quite simply just all adds up. Try to have food at home first thing in the morning, or capitalise on that hotel buffet breakfast – it could save you hundreds of dollars. 

Watch Your Data – When it comes to post-holiday money blues, a surprise phone bill from an overseas trip is often one of the worst offenders. If you’re abroad, switch your phone’s data off to avoid roaming charges or instead buy a local sim card if you need access to the internet. 

Get Insurance – Considering the era that we currently live in, it’s never been more important to ensure that you’re covered in the event of any unforeseen events. Even if it’s to cover yourself for a simple flight cancellation, make sure you get insurance after you’ve read the fine print. 

Sourcing Further Financial Tips From The Professionals 

If you are ready to “level up” and get financially fit, then it’s never too early to seek professional financial advice. Whether your next goal is to retire early, take a gap year or purchase a home, George Samios and the team at Madd Life are ready and waiting – even if it’s just for further debt free holiday tips. 

With their entire business built on referrals, the team at Madd Loans have taken the mortgage broking industry by storm. Their overwhelmingly positive feedback has helped them to take out numerous industry awards, including the title of “Queensland’s Broker Of The Year” for four consecutive years. However, after working with a broad variety of clients in regards to their mortgage options, it made sense for the team at Madd to have the capacity to offer a full financial planning service.

If thinking about your financial future strikes a chord with you, then it might be time to speak to a professional. Whether you’re chasing mortgage solutions or a financial fairy godmother, the team at Madd work together as a collective to turn your goals into reality. 

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What Is Negative Gearing In Real Estate?

As an investor, making your mark on the Australian real estate market can be tough – so what is negative gearing, and how can you use it to your advantage? 

In order to understand what negative gearing is, first we have to wind it back to simpler terms. “Gearing” is a standalone term in the financial world that simply means to borrow money in order to purchase an asset. The reason we hear so much about it is that gearing can be positive, negative or neutral, with each offering distinct advantages and disadvantages when it comes to navigating the property market in the best possible position. 

What-Is-Negative-Gearing-In-Real-Estate?

Types Of Gearing In Australia

If you’re a property investor in Australia – or looking to become one – it’s important to understand what negative, positive and neutral gearing is, and the possible benefits and risks that come with each term. 

What Is Negative Gearing – The term is generally used when investors borrow money to invest into an asset (usually a property) but the income you make from that investment, i.e. the rent, is less than your expenses, meaning that you’re making a loss on paper. However, Australian law also allows investors to deduct any losses they make on an investment property from their taxable income, which makes it far easier for people to invest in the property market and pay less tax overall. Essentially, negative gearing works if the money an investor makes from a property’s capital growth is greater than the loss they make from the rental shortfall.

What Is Positive Gearing – Positive gearing is when an investor borrows money to invest into an asset, and the income that they make from that investment (such as the rent from tenants) is more than the expenses. While this means that the homeowner is earning a consistent income from their investment property, it also exposes them to paying capital gains tax should the house’s value increase during their ownership tenure and eventual sale (if applicable). As they’re earning an income from the property, the homeowner also won’t be able to make any deductions from their taxable income. 

What is Neutral Gearing – Slightly less common, neutral gearing is when an investor borrows money for an asset and the income that results from that investment is equal to the expenses, such as the rent. It means that the homeowner is “breaking even” on their investment, and isn’t able to deduct any losses from their taxable income. 

When weighing up the pros and cons associated with either negative gearing or positive gearing, in simpler terms it usually boils down to whether an investor wants to receive extra income in the short term via rent, or instead receive larger dividends via negative gearing on the sale of a home and pay less tax overall. Individual circumstances usually have a lot to do with this preference, so if you’re not sure what’s right for you, it’s certainly worth speaking to a finance professional. 

Sourcing Further Advice On Negative Gearing 

If you are ready to “level up” and get financially fit, then it’s never too early to seek professional financial advice. Whether your next goal is to retire early, take a gap year, or purchase your first investment property, George Samios and the team at Madd Life are ready and waiting. 

With their entire business built on referrals, the team at Madd Loans have taken the mortgage broking industry by storm. Their overwhelmingly positive feedback has helped them to take out numerous industry awards, including the title of “Queensland’s Broker Of The Year” for four consecutive years. However, after working with a broad variety of clients in regards to their mortgage options, it made sense for the team at Madd to have the capacity to offer a full financial planning service.

If thinking about your financial future strikes a chord with you, then it might be time to speak to a professional. Whether you’re chasing mortgage solutions or a financial fairy godmother, the team at Madd work together as a collective to turn your goals into reality.

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Is Investing In Property A Good Idea To Build Wealth?

Investing in property is often about so much more than simply putting a roof over your head – but can this method help buyers to build wealth and get ahead?

Once you’ve managed to successfully purchase your first home,  there usually comes a point where Aussies start looking at other avenues to increase their income. Suddenly, property becomes less of an obligation and pressure point, and begins to become an appealing option in terms of increasing the bottom line of your bank account every week. 

However, investing in property isn’t for everyone, and often boils down to your own individual circumstances. As it generally involves large sums of money, it’s important to do your research if you’re considering this avenue as a way to build wealth. The good news is that the more educated you are about the property market, the higher your chances of success are when it comes to using this tactic to get ahead – but where do you start? 

The Pro’s And Con’s Of Investing In Property 

Some people enjoy dabbling in the stock market, and others in cryptocurrencies. However, many Australians view investing in property as a “safer” option, with less exposure to potential risks. While this may be true for some, knowledge is power if you wish to give your investment the best possible shot at success. 

Pro: Straightforward – Technically speaking, anyone can start investing in property without a degree or extensive experience. Providing that you’ve taken the time to speak to a financial adviser, mortgage broker or real estate agent, buying property is relatively simple. 

Pro: Less Risk – Property can be less volatile than shares or other investment opportunities. Pricing fluctuation is less likely to affect you, particularly if you have tenants committed for six or twelve months at a fixed price or rental amount. 

Pro: Capital Growth – At the same time, your property could be passively generating wealth for you in the form of capital growth. You can tap into this equity by using it to finance another investment property, or when you sell the property and release the capital gain.  


Pro: Tax Benefits –  Investing in property means that buyers can take advantage of strategies like negative gearing to minimise their tax bills, via offsetting property expenses against any rental income. It’s a long game, but can save buyers thousands over a number of years. 


Cost: Illiquid Asset – Liquid assets like stocks, bonds or shares can be quickly offloaded in the event that you’re short on cash. Investing in property? Not so much, as this can take months – or even years – to sell. While you can see and touch your asset, it’s often not easy to “move”. 

Cost: Reliance On Tenants – Relying on other people isn’t always the best strategy when it comes to profiting from your hard earned cash, but the reality of investing in property is that tenant occupation is crucial in order to cover your ongoing costs. 


Cost: Maintenance – As a landlord, it’s your responsibility to ensure that the property is in working order for any tenants that you may have living in the home. It’s also important not to forget about other ongoing costs such as rates, insurance and other maintenance obligations. 

Cost: Loan To Value Ratio –  If the property value goes down you could end up owing more than the property is worth. It’s for this reason that it’s considered to be hugely important to do your research before buying a property if you hope to eventually turn a profit. 

Sourcing Further Advice On Investing In Property

If you are ready to “level up” and get financially fit, then it’s never too early to seek professional financial advice. Whether your next goal is to retire early, take a gap year, or purchase your first investment property, George Samios and the team at Madd Life are ready and waiting. 

With their entire business built on referrals, the team at Madd Loans have taken the mortgage broking industry by storm. Their overwhelmingly positive feedback has helped them to take out numerous industry awards, including the title of “Queensland’s Broker Of The Year” for four consecutive years. However, after working with a broad variety of clients in regards to their mortgage options, it made sense for the team at Madd to have the capacity to offer a full financial planning service.

If thinking about your financial future strikes a chord with you, then it might be time to speak to a professional. Whether you’re chasing mortgage solutions or a financial fairy godmother, the team at Madd work together as a collective to turn your goals into reality.

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Seven Financial Goal Setting Tips To Kickstart 2021

In order to reach a destination, you need a map – which is why financial goal setting tips are essential if you want to bring your monetary dreams to life. 

Seven-Financial-Goal-Setting-Tips-To-Kickstart-2021

The old saying goes that if you’ve failed to plan, you’re unwittingly planning to fail. When it comes to managing your money, it’s also not an exaggeration to state that if you aren’t working toward anything specific – you’re likely to be spending more than you should. Financial planning and setting targets for short, medium and long term goals can also help to ensure that you’re prepared for all of life’s ups and downs, but where do you start?

How To Determine Your Financial Goals 

Depending on your individual circumstances, desires, income and even general aspirations, defined financial goals will vary from one person to another. However, there are three primary pillars to consider that can apply to just about anyone when it comes to setting financial goals. 

Short Term Goals: Setting (and sticking) to a day to day budget, building an emergency fund, paying down smaller debts like credit cards. 

Medium Term Goals: Buying your first home, taking out the correct insurance policies, setting up a university fund for your children if applicable. 

Long Term Goals: Have a solid retirement plan surrounding your superannuation, collecting investment properties, high interest savings accounts, aiming to be debt free. 

The hardest part is often determining what these goals will look like to you, so write them down – think about all the many things that you would like to do, achieve or experience in your life. Include all areas such as relationships, career, leisure, personal growth and even health, as one way or another these usually link back to your financial situation anyway. 

Once you have a clear vision in mind, it’s time to both prioritize these goals – and to add time frames and task lists to them. Exactly what do you need to do in order to bring these goals to life, and how long are you going to need to do so? Some will require decades, and others just weeks. By breaking them down into tangible, realistic targets, suddenly your financial goals become less overwhelming, and are a lot easier to achieve than you may have initially thought. This also translates to motivation, which is often the hardest part when it comes to sticking to goals of any nature. While this all sounds great on paper, are there any shortcuts or goal setting tips that can help to keep you on track?

Seven Financial Goal Setting Tips To Keep You Motivated 

Most of us start any new year slightly more hopeful than we were in November, but the magic lies in keeping the momentum up, especially when it comes to managing your money – so are there any industry hacks when it comes to financial goal setting tips?

Be Accountable – Now that you’ve outlined some tangible financial goals to hit, how are you going to keep track of them? Check in with yourself regularly to keep track of timelines and targets – after all, you’re the one accountable for them. 

Know Your Income – Financial professionals talk a lot about monitoring your expenses, but what about your income? Knowing exactly how much is coming in is just as important as knowing what’s going out, as it can help you to identify ways to potentially lift your income. 

Use Technology – Since we now live in the digital age, there’s no need to spend hours mulling over an Excel spreadsheet to track your budget and outgoings. Use apps like Pocketbook or Money Brilliant to sort your daily spending, and others like Raiz to explore the stock market. 

Know Your Credit Score – Unfortunately many Aussies only tackle their credit file once it’s too late – meaning that they’ve been declined for a loan, and they’re trying to understand why. Check your credit file regularly to spot any potential red flags and avoid future pain. 

Needs vs Wants – Get into the habit of curbing excessive spending. Much like eating healthy, start addressing your “needs vs wants” with a regular spending routine instead of overdoing it with short term discipline. If you’re realistic, it’s more likely to stick. 

Direct Debits – Don’t let your bills pile up, as this is a surefire way to put a spanner in the works when it comes to hitting your financial goals. Instead, break them down into smaller weekly direct debits into a separate bank account to avoid the larger annual bills. 

Weekly To Do Lists – Long term financial goal setting can be daunting. While that five year plan looks good on paper, what do you need to do every week in order to get you there? It could be as simple as saving $50 in a term deposit, or even cutting down on takeout coffee. 

Further Financial Goal Setting Tips From The Professionals 

If you are ready to “level up” and get financially fit, then it’s never too early to seek professional financial advice. Whether your next goal is to retire early, take a gap year or purchase a home, George Samios and the team at Madd Life are ready and waiting. 

With their entire business built on referrals, the team at Madd Loans have taken the mortgage broking industry by storm. Their overwhelmingly positive feedback has helped them to take out numerous industry awards, including the title of “Queensland’s Broker Of The Year” for four consecutive years. However, after working with a broad variety of clients in regards to their mortgage options, it made sense for the team at Madd to have the capacity to offer a full financial planning service.

If thinking about your financial future strikes a chord with you, then it might be time to speak to a professional. Whether you’re chasing mortgage solutions or a financial fairy godmother, the team at Madd work together as a collective to turn your goals into reality.

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Australian House Prices Set To Rise

According to those in the know, Australian house prices are unsurprisingly set to rise in the not so distant future – but how do you capitalise on it in time? 

While we can now refer to 2020 as many things, “surprising” is a term that springs to mind if referring to the Australian property market. With rising unemployment (or underemployment), a reduction in consumer spending and a shaky economy, it’s understandable as to why buyers may not have the same confidence as they once had. 

However, the arrival of COVID-19 has appeared to be more of a temporary pause as opposed to the cataclysmic hit that was initially predicted. Although it’s changing how and where we live, 2020 saw Australians pocket an unprecedented $110 billion in personal savings. Thanks to cashed up Aussies with pre-approvals and sizable deposits, Australian house prices have remained steady as the market stood strong while the rest of the economy took a battering – but how long will it last?

A Boom Is On The Way 

Mr Gareth Aird is the Commonwealth Bank’s Head Of Australian Economics, and he believes that we are sitting on the edge of a housing boom – so much so, that he’s anticipating Australian house prices to surge past 16% within the next two years. 

“The negative impact that COVID-19 had on Australian property prices turned out to be much more muted than almost any forecaster expected, us included. However, we were earlier than most  to recognise this and revised our call in September 2020, in order to look for a smaller peak-to-trough fall and a decent lift in prices over 2021.”

Within the next two years, the median house price in Australia is expected to hit $1.2 million. While that doesn’t mean that this level of growth is expected at the same increments all around Australia, projected forecasts for each capital city can be split up into the following:

Melbourne – Increase of $110, 000 on average, 12% growth within two years. 

Sydney – Increase of $160, 000 on average, 12% growth within two years. 

Brisbane – Increase of $102, 000 on average, 16.6% growth within two years. 

Perth – Increase of $99, 000 on average, 17.7% growth within two years. 

Adelaide – Increase of $86, 000 on average, 14.5% growth within two years. 

Darwin – Increase of $99, 000 on average, 18% growth within two years. 

Hobart – Increase of $87, 000 on average, 15% growth within two years. 

With the median growth percentage reaching 14.4% when combining the projections for Australia’s capital cities, Mr Aird predicts that the only thing that could potentially slow the market down is a significant Covid-19 outbreak on Australian shores. 

“The Australian housing market is on the cusp of a boom. The boom is being driven by record low mortgage rates coupled with a v-shaped recovery in the labour market,” Aird said.

Staying On Top Of Australian House Prices

Ignoring all of the variables, there is one crucial factor to consider if you’re thinking about buying any form of property in any form – it’s a long game. 

Since their inception in 2012, the team at Madd have worked tirelessly in providing over 1700 Queenslanders with finance options to help turn their dreams into reality. With the entire brand being built on referrals, George takes great pride in making the loan process both fun, educational and stress free – and he has a swag of awards to prove it. 

An independent operator can be your greatest asset when it comes to navigating loan options, as brokers are there to make you happy – not the banks. To speak to a Brisbane based home loan professional that also provides financial planning services, please get in touch with the team at Madd Loans today to help turn your financial dreams into reality.