Worried about interest rates? Or the house price crash? Here’s what you can do NOW
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What are the current trends in interest rates affecting homeowners and renters?
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How does inflation impact the economy and interest rates?
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What are the implications of rising interest rates for consumers?
That means it's not specific to you, your needs, goals or objectives, so don't act on the information until you've spoken with your financial advisor. You'll find our full disclosure, disclaimer and link to our financial services guide in the show notes. Kate Campbell, welcome to this episode of the Australian Finance Podcast.
It is good to be back, Owen, for this special bonus episode.
Yep, we're recording remotely. And we're recording on a very important topic for a lot of folks. We're talking about basically the uncertainty in the economy, the uncertainty in the investing markets, the uncertainty with mortgages, with rent. And basically, everyone's a bit scared right now. And this is a really short episode that's going to break down what's going on in the Australian economy, what's going on in the global economy. and what you can do about it.
What strategies can homeowners use to manage their mortgage repayments?
So we're going to spend a bit of time reminding you of the good things that you can do to make sure you're prepared for whatever comes next. So maybe we'll start with, I'll start with like the big picture. You can explain some of the implications for people and then we'll jump into basically the steps that we outline and how you can not only survive a period of uncertainty, but maybe even thrive. So first of all, I guess what's going on? Well, we know that interest rates have gone up in the Australian economy. If you pay attention to the news, you'll know that interest rates have gone up in the UK. They've gone up in America and many other places around the world. And the reason that they've gone up is the world economy, the global economy has a problem with inflation, whether it's the war in Ukraine or
whether it's the food shortage as a result of that, whether it's energy prices going up because of a myriad of reasons, whether it's people just being overstimulated by government handouts or checks, whatever the reason, we have inflation. And inflation, as you know, is the rise in cost of goods.
How do rising interest rates affect renters and their housing costs?
So a cup of coffee might go up 50 cents over the next year or so. And so as a result of that rising in prices, what we're having to do as an economy and as various countries, we have to increase interest rates. The idea behind increasing interest rates is it puts a handbrake on the economy because all of a sudden you think, well, things are more expensive. I'm not going to pay as much. So, for example, I made the joke a few weeks ago that I haven't had an iceberg lettuce in months. I don't know about you, Kate. I haven't had one. And the reason is that they're too expensive. Now, that's an extreme example. In February, I also recorded a video saying that the price of puppies have gone up.
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Chapters
8 chapters
1
What are the current trends in interest rates affecting homeowners and renters?
0:00–0:33
2
How does inflation impact the economy and interest rates?
0:33–1:29
3
What are the implications of rising interest rates for consumers?
1:29–2:17
4
What strategies can homeowners use to manage their mortgage repayments?
2:17–3:24
5
How do rising interest rates affect renters and their housing costs?
3:24–4:07
6
What proactive steps can individuals take during economic uncertainty?
4:07–4:43
7
How can improving skills and networking help during tough economic times?
4:43–5:27
8
What positive outlooks exist despite current economic challenges?
5:27–29:19
Speakers
2 identifiedMore from Australian Finance Podcast
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