Choppy Waters and Short Supply | From Money Printing to Rate Rises | Taming the Australian Share Market | Q&A

Choppy Waters and Short Supply: What Australia’s Housing Crunch Means for Everyday Borrowers

Australia’s housing market faces structural challenges, with supply constrained by labour shortages, zoning delays, and infrastructure bottlenecks. Risky loan structures, such as 40-year terms and extended interest-only periods, are amplifying household vulnerability. Borrowers tempted by incentives or low repayments may underestimate long-term costs and exposure to rate rises. Practical resilience strategies include conservative borrowing limits, shorter loan terms, and diversifying beyond property to maintain financial stability.

From Money Printing to Rate Rises: What Broad Money Growth Means for Savers and Borrowers

Broad money growth plays a critical role in shaping inflation and interest rates, influencing household budgets and borrowing costs. The surge in money supply during 2020–21 helped fuel inflation, while recent stagnation explains its decline. If money growth accelerates again, inflation may remain stubborn, keeping interest rates higher for longer and eroding real returns for savers. Households should stress-test finances for higher rates, maintain buffers, and diversify investments to protect purchasing power.

Taming the Australian Share Market: Equal Weights, Factors and Discipline for Everyday Investors

The Australian share market is heavily concentrated in banks and miners, creating hidden risks for index investors. Strategies like equal-weighting and factor investing can improve diversification by spreading exposure across sectors and tilting towards value or smaller companies. These approaches are not about chasing trends but about maintaining balance and discipline over time. Regular rebalancing and a clear portfolio structure help investors stay on track without relying on market predictions.

 

Q & A

1. Salary sacrifice vs personal deductible contributions – what’s better?
   Both offer similar tax benefits; the choice depends on flexibility and timing preferences.
2. Do I still need personal insurance after paying off debts?
   Review existing cover to ensure it aligns with current income, loans, and family needs before adding new policies.
3. Is a will enough for estate planning?
   No – super, insurance, and beneficiary nominations require a broader plan to avoid delays and disputes.

If you would care to share your experience with me, please comment below!