We are currently in the fifth month of the year and there have already been extraordinary global affairs that have affected the financial trends for the rest of 2022.
Even before Russia’s invasion of its neighbour, Ukraine, countries across the globe were experiencing rising inflation rates. The costs of goods and services are up front and evident, with rising petrol prices and the cost of daily consumables. According to the ANZ-Roy Morgan consumer confidence survey, household inflation rates have jumped by 5.6%, the highest level since November 2012. The inflation fear has bled into consumer sentiment concerning economic and financial health, with many individuals less inclined to purchase big ticket items and instead invest, save or even seek higher wages from other companies.
Working from home will continue to change the market
Working from home is now common- practice in the workforce, with many businesses compelled to shift to a more flexible work environment. As a result, employees are able to move further away from the CBD and subsequently, move to affordable locations. However, as individuals switch up their lifestyle and move to coastal or rural regions of NSW, the once affordable housing market in those areas have drastically increased, with prices on the mid-north coast and Jervis Bay region showing uncharacteristic growth rates as an example.
Positioning your investments around the pandemic
With little else to do during the pandemic, many households found themselves with larger cash reserves of savings. As a result, many households were readjusting their financial goals. Where once they may have saved for a holiday, they were now with the ability to reduce their home loan, purchase an investment property or invest a lump sum of money.
The pandemic taught us the unpredictability of the future, employment and financial position which has led to many individuals diversifying their investments across multiple regions to minimise the impact of a single market.
Home construction to reach new heights
As house prices increase to never-before-seen heights, more property owners are being forced out of their suburbs due to these changes. . 88,445 homes began construction in 2021 reports that 88,445 new home commenced construction in 2021. A number of these were assisted by the Federal Government Builder scheme. This trend will see many homes completed in 2022, and therefore, a rise in supply and a rest in house price pressure is expected.
If you are feeling uneasy, or have concerns regarding your financial position, contact Locumsgroup today for an obligation free appointment today.