From a financial perspective, this is most likely the most envied and opportune social group of all.
Double Income-No Kids
Double Income-No Kids - Tuesday, May 22, 2012 13:32 - 0 Comments
Since the Reserve Bank dramatically reduced interest rates by half a percentage point last week, most banks have passed on some of the rate reduction to mortgage holders.
Then this week the federal budget increased a range of benefits for low- and middle-income earners. These are designed to help offset the growing cost of living, the impact of the carbon tax and help improve buyer confidence.
The budget has also projected a surplus of $1.5 billion for the next financial year. This will provide a stable platform for the Reserve Bank’s interest-rate policy.
The latest Australian Bureau of Statistics jobs data provides more positive news. Australia’s unemployment rate fell to 4.9 per cent in April, the lowest since March last year. The NSW rate increased fractionally to 4.9 per cent, but it’s still the second-best performing state. Booming Western Australia is at a three-year low of 3.8 per cent.
The Sydney housing market is showing encouraging signs. Median house prices are rising and last Saturday’s auction clearance rate of 60.5 per cent was the best this year.
Consumer confidence is also improving slowly, with retail sales up 1.2 per cent in March, according to ABS data released this week.
Dr Andrew Wilson is the senior economist for the Fairfax-owned Australian Property Monitors.