Flourish Health & Wellbeing eMag - Latest Edition - Flipbook - Page 54
Flow-On Effects:
Mortgages, Property,
and Beyond
Interest Rates
When trade tensions slow the
economy, central banks (like
the Reserve Bank of Australia)
o昀琀en lower interest rates to
s琀椀mulate spending. Lower
rates can make your mortgage
repayments a li琀琀le more
manageable.
But if trade tensions ease
and in昀氀a琀椀on creeps up,
we could see interest rates
climb again, meaning higher
home loan costs.
Home Ownership
Lower interest rates can push
more buyers into the market,
increasing compe琀椀琀椀on and
poten琀椀ally driving up house
prices — not great news if
you’re a 昀椀rst-琀椀me buyer.
More Than Prices: Jobs,
Wages & Shortages
Tari昀昀s can lead to shortages
if goods become too
expensive or supply
chains get tangled up. And
businesses facing higher
costs might freeze hiring or
limit wage increases.
What Can You Do?
Good news: you’re not
powerless. Here are a few
smart moves:
• Buy Local Where
You Can: Support
local growers and
manufacturers to
sidestep some of the
tari昀昀 s琀椀ng.
• Track Prices: Use fuel
price apps and grocery
specials to stay ahead of
increases.
• Review Your Budget:
Factor in poten琀椀al price
hikes for essen琀椀als like
groceries and petrol.
• Stay Informed: Keep an
eye on trade news —
knowing what’s coming
helps you plan.
• Get Professional
Advice: If you’re making
big 昀椀nancial decisions,
like locking in a 昀椀xedrate mortgage, speak to
a trusted advisor.
Australia is actively
working to diversify trade
rela琀椀onships — meaning
we’re not pu琀�ng all our
eggs in one basket. Deals
with alternate countries
could ease some pressures,
keeping prices in check
and opening up new
opportuni琀椀es for local
businesses.
While we can’t control
global trade tensions from
our own kitchen table,
understanding how they
work can help us be琀琀er
navigate the ups and downs.
