Concerns have been raised that locals are not taking full advantage of the current record-low interest rates to pay down their mortgages now.
Financial adviser Shane West has urged households to consider initiatives to improve their cash flow in order to make hay while the sun shines.
“Now is the easiest time people will have for a while to try and get ahead,” he said.
Mr West, a director at Fennell West in Camperdown, said analysts were unsure exactly how long the record low interest rates would last.
“We don’t know when the rise will happen, but it will happen and we think there is a huge opportunity for people to get ahead before it does,” he said.
“I’m worried that some families might have a false sense of security at the moment, because their finances seem a bit easier due to low interest rates. When the interest rate rise comes, that could put a lot of stress on household budgets.”
Business partner, director Ryan Fennell said any efforts to make extra mortgage repayments now could take considerable strain off families in the years ahead.
“An example of good preparation for the future rate rises is to factor in an increase of one per cent now,” he said.
“On an average $300,000 home loan, if you could find another $250 a month you would not only pay off your principle faster, but guard yourself against the rise when it comes.”
Fennell West, in conjunction with Sinnotts Accountants, will host a free information evening to discuss ways to improve cash flow and capitalise on the opportunity. The session will be held at 6pm on Wednesday, August 26 in their offices at 19 Pikes Street, Camperdown.
For more information or to RSVP please call 5557 3355.
