Reopening, Housing & Crypto Risks

THE ADVISER MONTHLY | OCTOBER 2021

VOLUME III. ISSUE 10

ON THE ROAD TO REOPENING

Lockdown has ended for the majority of Australia, and I’m sure that a lot of you are looking forward to reconnecting with your family and friends. And what a great way to reconnect. This time of the year marks the start of the silly season with the Melbourne Cup kicking off the festivities.

Appealing further to our festive mood is the holidays. Many of you may already be planning your celebrations, complete with a list for Christmas shopping. Not to spoil the excitement, but while you enjoy buying those presents, it is also good to remember that this is a critical time in your cash flow strategy, where you can either make or break your budget for the year. For this reason, I have included an article with some tips on how you can curb spending over Christmas.

The post-Christmas period is a great time to envision the life you want to live in the new year and to start noting down your plans so that you’ll be ready to act on them come 2022.

To help you get started, I have curated articles that are ‘in season’ for you, starting with the recent policy changes in mortgage lending and the New Home Guarantee. This is helpful if you have plans to buy your first home in the coming year, or if you are thinking about whether or not to keep renting.

You may also have heard about the growing popularity of bitcoin – the cryptocurrency that everyone is talking about. There are verifiable success stories around bitcoin investment, but before you jump into the bandwagon, you should first educate yourself on the risks, threats, and vulnerabilities. Much is still to happen in this space, especially now that the ATO has taken an interest.

Finally, we have selected a special article about the role financial advisers play in the transition to retirement. Smart planning as early as possible for the future is crucial to ensuring you enjoy your golden years. The foundations you set now will set you up to live the life you want to live in your retirement.

I hope that you enjoy spending time with your family, friends and colleagues over the silly season.

Stay safe!

THE EFFECT OF THE 3% MORTGAGE STRESS TEST ON HOMEBUYERS

In our last issue, we shared with you the new policy governing mortgages. The new policy has since taken effect and many are seeing its impacts. Before you apply for a mortgage, you need to read about the 3% mortgage stress test, how it may affect your borrowing capacity, and how it may affect your budget.

THE $250 ‘THANK YOU’ PAYMENT

Thousands of households with school-aged children across New South Wales are set to receive a $250 voucher. Premier Perrottet announced this to be a part of a $2.8 billion “Economic Recovery Strategy” to help repair the $50 billion hole left by NSW’s lengthy pandemic lockdown. Here’s what you need to know.

WHAT DO YOU NEED TO KNOW ABOUT THE NEW HOME GUARANTEE?

Building a brand-new home is expensive, so why not get a hand from the government? At the height of the pandemic, the Federal and State Governments have launched initiatives to encourage homebuyers to buy a home. The most recent of these initiatives is called the New Home Guarantee. Be in-the-know.

HOUSING: VALUATION RISES BUT WHAT ABOUT AFFORDABILITY?

The value of Australian residential real estate reached 8 trillion in April. In September, it breached the 9 trillion mark. Housing values are now 28.2% higher than the estimated value of superannuation, the ASX, and commercial real estate combined. How does this affect housing affordability?

MONEY: CAN YOU HOLD ON TO YOUR SAVING HABITS?

More Australians are focused on their savings now than before the pandemic. But with the impending opening of the economy, many may give in to the temptation of spending. With the indicators of convenience economy now apparent, sustaining good money habits may be challenging. It all boils down to you.

THE PLANET: CO2 FROM AU MEGA FIRES OFFSET

When 715 million metric tons of carbon dioxide was coughed up into the atmosphere from the massive 2019-20 wildfires in Australia, scientists feared global warming had just been given a steroid shot. But scientists can breathe – for now – as the Earth did a balancing act in a scene that features the phytoplankton and photosynthesis.

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