The slowdown in spending by Australian households is gaining speed,according to the latest figures released by the Australian Bureau of Statistics.
The official inflation rate is 4.1 per cent. For people with a job and a home loan,the real inflation rate is much higher.
Lenders have started cutting fixed interest rates on home loans,as markets bet the Reserve Bank will reduce official interest rates later this year.
The outlook for home buyers this year is grimmer than usual,but mortgage brokers say knowing how the system works can give some home owner-hopefuls a leg up.
The turnaround in the property market has boosted Australians’ wealth levels. But the cost of living means they are spending more than they earn.
Australia’s high level of household borrowing could pose risks to the economy as late payments tick up according to the country’s financial regulators.
Fewer Australians will be able to look forward to a debt-free retirement,despite increasing property values and super balances.
Australia’s biggest credit companies intend to tighten their approval criteria following an increase in the number of borrowers doing it tough.
As costs have risen,I can no longer afford the oysters and designer linens. It feels like I’m in the midst of genteel poverty.
Most Australian borrowers are managing financial stress,but rather than a disaster averted it’s evidence that the sky was never falling.
It’s hard to see why a government that tries not to walk past social problems without trying to fix them feels so bound to hold the line on Stage 3 tax cuts.