Have you been finding it difficult to build wealth recently? It might be that you're not seeing as much growth in your savings accounts, or superannuation investments, or it might even be that you can't budget to buy all the things you want. There's a reason for this, and it's all to do with how hard people are finding it to get ahead with their finances, according to The New Daily.
It's becoming more and more expensive to buy a home. It's harder to save for a new car. It's difficult to accrue money in your savings and see worthwhile returns from interest. That's partly because of the official cash rate, which the Reserve Bank of Australia set at a record-low 1.5 per cent in August 2016. If you want to see great returns from your hard-earned money, or if you want to switch to a more suitable everyday card that rewards you for sound financial decisions, the team at CAPE has the answer for you.
It's difficult to accrue money in your savings and see worthwhile returns from interest.
Just because your wealth isn't growing as quickly as you'd like doesn't mean you aren't seeing good performance from your assets, however.
The value of property
Homes are the largest investment most people make throughout their lives. It's no wonder, either, because it's where we likely spend the most time, and it's something we take pride in. Nobody wants to be ashamed of their home, so they buy something that makes them feel good. However, that's becoming more difficult as the value of houses and apartments rise.
The current median dwelling value in Sydney is $1,066,060, according to the CoreLogic RP Data monthly indices to the end of January. Melbourne isn't too far behind, either, with a median dwelling value of $870,060. What's more, nine of the top 10 most expensive suburbs in the whole country are in New South Wales – the least affordable being Point Piper with a median dwelling value of over $9 million!
That being said, it's now cheaper than ever to repay our home loans, states The New Daily. While we might not be seeing our bank accounts grow as quickly as we'd like, it's easier for us to repay our mortgages, and the value of the homes we already own are growing rapidly. The median dwelling value in Sydney increased by 15.97 per cent in the last 12 months alone. Your bank accounts at your current big bank might not be growing soundly, but your home value likely is.
So, while our liquid assets might not be hitting the targets you may have expected at the same time last year, 70 per cent of the country who own a home (according to McCrindle research from August 2016) are sitting pretty on capital gains.
Here at CAPE, we understand how important it is for you to build wealth and create the financial freedom you've always wanted. We're here to help, so get in touch today to make the switch to our services and start making the most of your current wealth.