Have you been squirrelling away money during the latest round of lockdowns?
If so, join the club.
Australian households have been saving an average of 9.7% of their income, according to the most recent data. However, the Reserve Bank forecast that the saving rate will increase to about 15% by mid-spring.
15%!! That’s quite a spring stockpile of nuts, lockdown squirrels!
Maybe it’s a spring savings thing. However, we believe it’s more circumstantial than that. We suspect part of the reason people have been saving is because they’ve been stuck at home.
Once we all got over the online buying trend of the first few lockdown––perhaps when we realised the ‘instant gratification’ might not be so instant with the state of the postal service. We realised there’s not a lot worth spending our hard-earned on at the moment.
Fewer opportunities to spend money in shops, fewer holidays, less eating out. Sounds like a drag, but if you turn it on its head, this equals more savings. Lockdown has come with some bittersweet bonuses, so it seems!
And with those savings, comes more spending in other areas––arguably, smarter areas––property.
The Housing Industry Association recently reported that house new house sales are performing strongly – partly "due to increased household savings during the pandemic".
So, have you been putting your 15% or near enough away during lockdown?
Are you ready to see where your spring savings might land you in the property market?
Give us a call to assess your options and see if we can spend some of your piggy bank on a new home!