Conventional wisdom says that if you want to save money, you put it in the bank. However, a new study from financial comparison website RateCity shows bank savers aren’t making the most of their spare change.

The record low interest rate of 1.5 percent set by the Reserve Bank of Australia in August 2016 has been a blessing for mortgage holders, but it’s hurt the interest returns of bank savers.

RateCity found $10,000 deposited in an online savings account and earning the average maximum rate of 1.9 percent would only just keep pace with the level of inflation. The average base interest rate, the amount bank savers earn without meeting additional requirements, is a measly 0.96 percent.

“There are still a handful of accounts that will offer you relatively high interest, at rates of up to 3 per cent,’’ conceded Sally Tindall, a spokesperson for RateCity. “However, the harsh reality is most savings accounts can’t even match inflation which is a worrying state of play.”

While consumers are always free to conduct their own research and sniff out the best interest rates, financial expert Ryan Watson conceded comparing accounts can be difficult.

“Loyalty plays no part in obtaining a competitive interest rate. You simply must shop around on a regular basis,’’ he said. “As with most things, the devil is in the detail — be sure to read the terms and conditions in full, i.e. minimum investment period to obtain bonus interest, for example.”

Ms Tindall added that often the interest rates for savings accounts “drop like a lead balloon” after honeymoon periods, making them less attractive than they first appear.

At Chase Edwards, we encourage our clients to think beyond the banks. Our financial experts can suggest innovative ways to grow your wealth faster than you might think. Call us on 1300 854 833 to organise your free financial health check and learn more about partnering with us to maximise your savings.

Mounting household debts, the rapidly rising cost of living, and unexpected expenses are making many Australians worry about their financial situations. However, according to new research commissioned by Comparethemarket.com.au, the average Aussie isn’t worried enough to start saving. The lackadaisical attitude Aussies are famous for means many of us take a fairly relaxed approach to our money management, even as our financial situation becomes direr.

The financial comparison site study spoke to 1000 about their outlook on money. A quarter of the adults surveyed said they feared losing their job. Yet should they face redundancy, many won’t have a nest egg, with a third of Aussies surveyed claiming they don’t squirrel away money for unexpected emergencies.

Those of us who are saving often aren’t saving much. 44 percent of savers put aside $200 or less each month. A further 27 percent saved between $200 and $500. That means more than seven out of 10 Australian savers cannot afford to save any more than $500 a month.

You might assume older Australians are old enough and wise enough to know the value of saving, but over-55s are the least likely to put money away. Forty-nine percent of over-55s don’t save at all. That’s significantly more than the 32 percent of 25- to 54-year-olds classed as non-savers, and the 27 percent of 18- to 24-year-olds.

“Financial engagement is low, given the huge sums of money, the debt that households are in,” Abigail Koch, a spokesperson for Comparethemarket.com.au, told news.com.au. “Wages are flat and the willingness of banks to lend has left people with huge mortgages and rising costs of living. They are managing at the moment, in a low interest rate environment, but that could be a ticking time bomb.”

Laura Higgins, a representative from ASIC’s MoneySmart, said engaging Australians in their financial future is essential, yet difficult.

“Worrying about money is something that keeps people awake at night, but it is still a challenge to keep them engaged,” she explained. “Young people living for today is not something new and it’s a long, hard job ahead getting them to think about savings, superannuation and the future.”

While interest rates are low, climbing debt levels and the rising cost of electricity, groceries, petrol, and other necessary expenses can make many Australians worry about their finances. If you’re one of them, don’t stay disengaged for one more day. Turn to Chase Edwards instead! Our money experts will help you plug into your finances and get back on track. Call us today on 1300 854 833 to learn more about our comprehensive services.

Our personal credit histories will no longer be a mystery to us if the Australian government gets its way. The Turnbull government wants credit agencies to share detailed credit information with their customers by the middle of next year. Politicians argue that when customers have evidence of their track record paying back debts, they’ll be in a stronger position to negotiate better rates for everything from their home loan to their utility bill.

As treasurer Scott Morrison explained, the new system would mean people “who pay back their loans and do the right thing won’t have to be paying for those who don’t.”

“The great thing about letting people have greater access to their own data and their own performance on how they pay back their loans means they should be able to ask for and get a better deal because they’ve got the runs on the board to prove it,” he added.

However, some consumer experts aren’t convinced by the government’s plans. Gerard Brodie of the Consumer Action Law Centre told the ABC he fears lenders could use credit information to charge customers who pay late or miss payments more for their products and services.

“We may actually see an influx of expensive ‘priced for risk’ type products – like credit cards charging up to 60 per cent per annum for those that are considered not good payers,” he suggested. “Those sort of toxic products do exist in other countries that have this reform like America and the UK.”

Australian households already have a cumulative debt equal to 100 percent of the nation’s gross domestic product (GDP). That’s well ahead of other advanced economies which have an average debt of 63 percent of the GDP. Experts fear the government’s proposal would increase the debt problem, especially for low income households.

Consumers may also be unable to secure the services they need, like home loans, based on their past behaviours.

Whether the government passes their proposed new laws or not, having a good credit rating is important. Missing payments or making late payments is typically more expensive in the long run. The good news is, it’s never too late to get into better financial habits and turn your credit history around. Avoid paying penalties and get your finances in order with Chase Edwards. We can help you pay down your debts on time and grow your wealth. Would you like to know more? Call us on 1300 854 833 today!

We’re often told home ownership is out of reach of many young Australians, but it seems that’s not quite true in Queensland. More young Australians are buying homes in the Sunshine State than anywhere else in Australia, according to new research from CreditSimple.

The Australian credit rating website analysed mortgage application data for the first half of 2017. It found Queensland had the highest percentage of buyers under 30 years old. Seventeen percent of Queensland’s buyers were in this younger demographic, well above the national average of 15 percent.

Western Australia also posted better than average results, with 16 percent of all home loan applications coming from under 30s. South Australia was in line with the national average.

Victoria (14 percent), New South Wales and Tasmania (both 13 percent), the Australian Capital Territory (12 percent), and the Northern Territory (11 percent) were less favourable real estate markets for young people, with results below the national average.

It’s easy to see why Queensland is so attractive to young homeowners. In July 2017, the median house price in Brisbane was $490,000. That’s far more accessible than homes in the New South Wales and Victorian capitals, which sat at $856,000 and $655,000 respectively.

“It’s really showing that Queensland is a more affordable place and Queenslanders under 30 are more active in the property market, particularly in regional areas like Toowoomba,” CreditSimple spokeswoman Emily Price told news.com.au.

Surprisingly, despite Victoria posting results less than the national average, the Victorian suburbs or Truganina, Hoppers Crossing, Craigieburn, and Roxburgh Park had the greatest percentage of young home buyers in the country. Kearney’s Spring and Glenvale in Queensland and Liverpool and Moorebank in New South Wales are also very popular among young buyers.

If you’re ready to turn your dreams of home ownership into reality, Chase Edwards can help. Whether you want to purchase your dream home or an investment property, our advisers can put you on the right path and guide you through the process until the keys are in your hands. Call us on 1300 854 833 to learn more about our services.

Are you making plans for your retirement? If you’ve been dragging your feet putting a retirement strategy in place, you’re not alone. A new study from Australian Unity has revealed 77 percent of Australians aged 45 to 64 and 47 percent of Australians aged 65 to 84 aren’t planning or being proactive about preparing for their retirements. These frightening results come despite 85 percent of the 1,000 Aussies surveyed admitting they feel uncomfortable with their financial situations.

“Worryingly, the data shows more than three-quarters of 45 to 64-year-olds are running blind,” David Bryant, the chief executive of Australian Unity Wealth, told Money Management. “They’re neglecting to get advice, not proactive about planning, and a good majority have no idea about the recent government changes.”

The Australian Unity study also found that 58 percent of pre-retirees had insufficient funds in their superannuation accounts and would need to rely on the Age Pension to survive.

Not that those surveyed seemed too worried about that. Just 30 percent of the pre-retirees surveyed said they were making payments above their employer’s compulsory contributions to their superannuation accounts. Forty-seven percent of the Australians surveyed also didn’t have any investments, aside from their super, that they could rely upon in their old age either.

Australian Unity also spoke to retirees, who had some words of wisdom to pass on to other Australians yet to leave the workforce. They said finding a trustworthy financial planner is crucial for generating the savings needed for a comfortable retirement. They also encouraged Australians to pay down their debts, including credit card balances and mortgages, as quickly as possible. As income can easily be wasted, the retirees urged other Australians to review their spending habits regularly.

As retirement looms, the prospect of planning for your golden years can become even more daunting. At Chase Edwards, we understand how intimidating retirement planning can be. That’s why you need an experienced financial expert by your side. Call us on 1300 854 833 to arrange your free, no-obligation financial health check, the first step towards getting your retirement savings in order. It’s never too late, or too early, to start planning for your retirement.

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Do you struggle to find the money you need to meet your monthly mortgage repayments? If you answered yes, then you’re not alone. Moody’s Investors Service report recently found mortgage delinquency rates have hit a three-year high across the nation. Delinquency rates in Western Australia, Tasmania, and the Northern Territory have never been higher at any other period in history. 

Moody’s financial researchers found the number of people delinquent on their mortgage has risen across every Australian state and territory within the last year. Just 26 regions had fewer people missing mortgage repayments than 12 months ago, compared to 61 regions where delinquency rates grew. Perhaps surprisingly considering the capital’s notoriously high property prices, most of the suburbs with low delinquency levels were in Sydney. In contrast, the residents of mining towns in Western Australia and Queensland were struggling, making up nine out of the ten areas with the highest mortgage delinquency rates. 

“The impact of lower commodity prices, rising underemployment and less favourable housing market conditions are having a negative influence on the ability of borrowers to meet mortgage repayments, leading to higher delinquencies,” the Moody’s Investors Service report said.

High mortgage delinquency rates are troubling because they often bring a higher risk of mortgage defaults. That’s why it’s important to take action early. If your mortgage has put you under financial pressure, Chase Edwards can help. Call us on 1300 854 833 to learn more about our mortgage reduction services and how they ease your money worries and put you on the path to financial freedom. 

Local property investors are getting even younger, according to new findings from Mortgage Choice’s 2016 Investor Survey.

The national mortgage broker’s report found nearly 51 percent of Australians investors were 34 years or younger when they bought their first investment property. Just three years ago, only a third of investors were 34 years or under when they made their first property investment.

John Flavell, Mortgage Choice’s chief executive officer, said he was surprised so many young Australians managed to purchase investment properties in such a challenging financial environment.

“With property price growth outpacing wage growth over the last few years, saving a deposit and buying property has become very difficult for a lot of younger Australians,” he admitted. “Furthermore, the recent spate of investment lending changes has made it tougher – in some instances – for younger Australians to obtain finance to buy property.”

Most young Australians said they invested in property to make money to set themselves up for the future. Real estate has shown itself to be the lucrative investment many young Australians are looking for. Property prices have grown significantly across most Australian markets. For example, CoreLogic data shows a combined 10 percent increase in property values across the capital cities over the last 12 months. 

“This level of price growth ensures property owners – specifically property investors – see a great return on their investment,” Mr Flavell said.

With interest rates at historic lows, there’s never been a better time to invest in property. However, becoming a property investor for the first time can be

A new national study from Yellow Brick Road has found most Australians wait until they’re close to retirement to seek professional financial advice. Just 22 percent of the 1,000 Aussies surveyed said they’d used the services of a financial adviser. Forty percent of those were 55 years or older.

The study revealed Australians are reluctant to seek financial advice for a number of reasons. Sixty-three percent of those surveyed felt they didn’t need financial advice, while 34 percent were deterred by perceived costs. Fifteen percent said they were worried about the reputation of financial advisers while 14 percent believed their services were only for the wealthy. Twelve percent of those surveyed said they were too embarrassed about their financial situation to discuss it with a professional.

Failing to seek professional advice early can have serious implications for your financial future. Australian Bureau of Statistics data shows more Australians than ever believe they won’t retire before the age of 70. Twenty-three percent of Australians think they’ll need to delay their retirement plans, compared to just 8 percent a decade ago.

Many Australians are also doing it tough after leaving the workforce. Two-thirds of Aussies rely on government welfare as their main income source. While half of Australians independently fund their retirements, they risk outliving their savings.

Chase Edwards is here to help all Australians enjoy greater wealth now and prepare for their futures. We’d love to sit down with you for a financial health check so you can learn more about your financial situation and how we can help. This is absolutely free and you’re under no obligation to use our services if you don’t feel they’re right for you. What have you got to lose? Call Chase Edwards on 1300 854 833 to book your complimentary financial health check today.

Dr Andy Krause and Dr Gideon Aschwanden, a property lecturer and an urban analytics lecturer from Melbourne University, have researched what local renters really want. Their findings can help property investors find homes appealing to renters, both in the Victorian capital and in key investment markets across Australia.

A lavish home with water views might appeal to you, but most renters would prefer a more modest dwelling. Location always matters in real estate, but choosing a property close to desirable facilities is more important than selecting one in an affluent neighbourhood. By considering Domain Group data, the researchers found the most profitable investment properties were within 500 metres of train stations or close to universities.

“Renters, generally speaking, have lower incomes and are less likely to own a vehicle and are more dependent on public transportation,” Dr Krause explained to news.com.au. “It’s probably safe to say they are generally younger as well and are more amenable to taking public transport — it’s easier for somebody in their 20s than somebody in their 70s.”

As renters are typically young, they also seek different amenities than homeowners. For example, the research found homeowners want properties close to schools, but this isn’t a major concern for renters.

“I think our research shows if you’re buying an investment — your second or third home purely to rent out — you need to think about amenities renters want, don’t think about what you want,” Dr Krause said. “An investor needs to change their mindset a little bit and ask themselves what renters pay for, whether that’s proximity to public transport or something else.”

If you’re ready to put the advice of the Melbourne professors into practice and purchase your own investment property, make sure you speak to the experts from Chase Edwards first. Book your free, no-obligation financial health check to better understand your financial situation, then let us help you along the journey, from organising your financing to seeking out tenants. Read through our testimonials to discover how we’ve helped other Australians just like you build their property investment portfolios.