Here is a question – For a couple living in Australia, what does 2 standard coffees a day, 2 dinners and 1 breakfast a week = ? It represents an unbelievable $64 more than what would be the interest payments per week on a $500,000 mortgage. Yes, I love to grab a morning coffee and a dinner out like everyone but it’s amazing to think that after the recent interest rate cuts, a couple could afford to buy their own home for even less than what a few coffees and meals cost. At $5 a coffee and $30 each for a meal that comes to $320 per week for a couple or $160 each. After the reserve bank cut interest rates again recently, I found this week an advertised home loan for 2.67%. So, a $500,000 mortgage @ 2.67% = $13,350 interest per year or $256 a week which is $64 less than a few coffees and an eat out meal here or there.
Staggering but totally true.
There is so much more that I could talk to you about in this video, but if there is just one thing to take away from today make it this - When it comes to property, life has never ever been so good.
Just imagine when the 25 year old today is sitting at dinner with the grand kids in 50 years’ time in 2070 mmmmmm…..
“Little Johhny, 50 years ago in 2019 I borrowed $500,000 to buy my first house for 2.67% interest. The repayments were less than a few coffees and a little bit of tucker for your grandpa”. “Mum, grandpa is talking about 2.67% interest rates he’s losing his marbles mum we spoke about it we’ve got to get him to the nursing home mum he’s losing it”. “No no your not taking me away I promise you interest rates were under 3%”. “He’s got to go to a nursing home he needs more medication, please give grandpa some more pills”.
The lowest interest rates of all time coupled with grants and government concessions delivers to us all the greatest borrowing and buying conditions Australia has ever seen.
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