Pure unadulterated inflation.
Inflation. Often the big bad wolf that hides in and around price rises, forced salary raises and plays havoc with people in the process of paying off mortgages. As we begin to exit some of the hardship that covid provided us, there are a few pieces that could steer us towards a situation where things are challenging, but nowhere near impossible.
Inflation can be a concern because it makes money saved today less valuable tomorrow. Inflation erodes a consumer’s purchasing power and can even interfere with the ability to retire.
Wage growth having to be adjusted for the rising cost of living also affects the cost of production and are typically the single biggest expense for businesses. When the economy is performing well, and the unemployment rate is low, shortages in labour or workers can occur. Companies, in turn, increase wages to attract qualified candidates, causing production costs to rise for the company. If the company raises prices due to the rise in employee wages, cost-plus inflation occurs. And here it is, where we are currently located…
Instead of getting too deep into some of the theory behind the phenomena, I will instead recommend you read this, a piece from Mark Dent and Zachary Crockett that breaks down how inflation is currently affecting the United States. For more of a pure textbook explanation here, as the team from investopedia take a thorough approach in exploring how it all works and for a more locally relevant piece click here as the team at the Guardian discuss the rising cost of living from a domestic perspective.
Todays good reads
The team from SoPerth detail seven fun ways to have the most fun at this time of the year.
Benedict Cumberbatch returns with Sam Raimi at the helm as the strangest doctor.
No Creche? No Problem!
Wanting to work out but no one to watch the kids? You can still get your reps in.
Ways to keep your credit score looking great.
You might not know this, but you are entitled by law to get one free credit report every 12 months, or within 90 days of receiving a credit rejection. (Yep, up until recently I had no idea either) Also for a small fee you can request a report at any time. Being that at the centre of any building process lies finance, knowing what state your credit score is at is a valuable thing that all perspective homebuyers should have in the back of their minds. Also, many Australians have errors on their file. It might be identity theft, or just a simple mistake by the lender. If there’s a mistake on your report, you’ll need to contact:
your credit provider
the credit reporting agency
the office of the Privacy Commissioner.
Oddly, having no debt at all doesn’t make you more creditworthy. In fact, measured credit card use (and prompt on-time payments) is evidence of an ability to manage debt. If you’re not good at managing a credit card, cut your credit card limit back. It’s also wise to only use it for purchases you know you can afford to repay.
Also, don’t go overboard with applying for several credit cards. Each credit application you make is added to your file and lowers your score. Why? Because too-frequent applications can be a sign of financial desperation. Still following?
It all breaks down to this. You are in essence, babysitting someone else’s money and the money’s parents just want to know you’ll return it in one piece. Pay your bills on time. Be steady. Be consistent. Be dependable… and just like that, your credit score will slowly but surely improve. Be patient.
You’ve got this.
A new dawn for Midland
Ok. Now, stay with me… Midland is on the rise. Yes, I’m serious! As the North/South sprawl continues unabated, Midland has finally started to get its moment in the sun.
Less than 20km from the CBD? Check.
All modern conveniences? Check.
A conveniently short distance to the tastes and aromas of the Swan Valley? Check, check, indeed.
Curtin University now has a campus in Midland, accommodating medical nursing, physiotherapy, pharmacy, engineering and business students. Also, the Midland Public and Private Hospital opened in 2015 and delivers health care to both private and public patients, including new services such as cancer, intensive and high dependency care to Perth’s eastern suburbs for the first time.
Also we aren’t just talking about infrastructure either with several communities in the extended area allowing choice of where to build in this emerging region of Perth. Does this pique your interest? If so, reach out to us at Yatta and we can happily take you through what is on offer.
Content with more content
Now if you prefer to consume your information through audio instead of through text (which is understandable) come and check out or podcast which lives here. It is a show we are doing weekly which has a nice blend of education and entertainment aimed at the prospective homebuyer.