Learn to manage despite rising Fuel Costs
The national economy is like a very complex piece of machinery with parts and sub-parts, each interconnected to make up the whole. When one part is affected, it ultimately has an impact on the rest of the machine.
Every day we hear of the cost of a certain commodity rising, while another plummets. While it is not necessary from the Aussie home buyer’s perspective to have an advanced understanding of economics and appreciate how these processes work, it is well worth your while knowing certain relationships that different aspects of the national economy have with each other as they hold unavoidable implications for your personal circumstances, if you are a home owner paying off a mortgage.
One such relationship is that between interest rates and the cost of our most widely consumed commodity, petrol. Although we can expect to see another interest rate cut before the upcoming Federal Election, increasing fuel prices and the depreciating Aussie dollar could quite likely make things difficult for Aussie home buyers.
The Aussie dollar has fallen below 91c US for the first time since September 2010, which comes as a result of oil prices going through the $100 US mark for the first time in a year. The last time oil was as expensive, the Aussie dollar was at $1.05 US which protected local motorists from the full impact of the price. On this occasion however since the dollar is actually falling, this is will only help amply any changes in the price for fuel.
FuelWatch predicts that the price of unleaded petrol could exceed beyond 153c per litre, the highest for the year. There is little doubt, the mining investment boom has slowed down as great hope is placed on households and businesses to start spending in order to keep the economy ticking.
Given the depreciating value of the dollar and the increase in cost for fuel, as long as Aussie home buyers are watchful in their spending, right now is still a great time for taking out a new mortgage or start exploring options to see if your existing home mortgage can be switched to a package with a cheaper interest rate.
Visit www.switchmyloan.com.au to see how much money you can save today!
Call 1300 307 155 and start saving today!
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