Property Market Information: Saving money through home loans

By the resi financial blog team, 18 December 2014

Property Market Information: Saving money through home loans

The Australian Securities and Investments Commission launched a new piece of research on December 17, which provides interesting insights into how Australians save money. Unsurprisingly, the inaugural Australian Financial Attitudes and Behaviour Tracker found that many Aussies choose to use their home loan or super to create savings for their future.

According to the report, in the last six months 82 per cent of Australians saved some money in one way or another. Of those that saved money over the last half a year, around 1 in 5 chose to pay extra on their mortgages to not only stash away cash, but to reduce interest payments in the long run.

Furthermore, 14 per cent used voluntary superannuation payments to increase the amount of money they are putting away for a rainy day.

Market awareness

Over one third of Australians (35 per cent) indicated that they held investments in something other than their home or superannuation. Of those with additional investments, as many as 1 in 10 said that they did not understand something in which they had invested in the last 6 six months.

Awareness of trends in any market give a significant edge to investors. For those 10 per cent that do not understand their investments or strategy, sitting down with a financial consultant could be a good idea.

Keeping track of developments around the country also provides a good indicator of future property hotspots. The release of a new government strategy for Western Sydney on December 14 by Minister for Planning Pru Goward may be a great starting point. The plan will see major government investment in elevating Parramatta's CBD to a prominent business district, as well as increasing infrastructure and job availability in the area.

Those looking to get into the Sydney residential property market could do well to consider getting ahead of the curve by investing in these areas before they are developed.

Whether you are planning on increasing your savings through your home loan, or investing in residential property, talk to a resi loan specialist to find an appropriate strategy for your unique situation.

Categories: Home Loans, Property Investment