If you can remember back to when we were able to go to the pub, ‘last call’ always signified that the bar was about to close for the night and this was your last chance to get a beverage.
‘What? Already?’
The end of the night can creep up on you, because time flies when you’re having fun.
However, you don’t have to be having fun. Time can also speed by when there’s a lot happening…like the year 2020 for example.
We’d barely begun picking up the pieces from the deadly bushfire season, when we were thrown into pandemic panic… if you can believe it, that first lockdown was now more than seven months ago.
While it’s felt like a long year for many (shout out to our poor friends in Victoria especially), it’s about to be all over.
So ask yourself, when it comes to your finance goals, what have you been able to achieve?
And is there enough time to make the rest of the year count.
Bank backlog
If you were still planning to buy property this year, you’re running out of time. An average settlement period of six weeks would take you through to Christmas, and that’s after you’ve sourced the property and made a successful offer.
If you’re in a position to offer a shorter settlement to the vendors, you might be able to get the deal done, but if you need to borrow money from the bank, that could be a whole new kettle of fish.
The pressure put on the banks by COVID and its financial mess means many have a backlog of loan and other applications they will need to get through before assessing yours.
There are stories out there at the moment about buyers picking up great property deals, only to run out of time to settle before the bank is able to pick up and process a loan application that they would be all but certain to grant.
The flipside is that if you don’t need finance approved, you may be able to swoop in and pick up a property from an eager vendor while your competition struggles to get their finances sorted.
As government grants and economic stimulus begin to wind up, there will be a lot of people looking to offload assets to free up capital or get rid of some of their debt.
A motivated seller may mean you pick up a property for $50,000 cheaper than you otherwise would have and that will be money you have earned on the way in when the market gets back into the swing.
Get in shape for summer
There is never a wrong time to make sure your finances are in the best health possible.
Look at the interest rates you are paying on investment properties or your permanent place of residence.
Chances are, you will be able to get a better deal by refinancing, or even calling up your own bank and threatening to look elsewhere unless they give you a rate reduction.
Especially since the RBA dropped rates yet again. With the official rate set at 0.1% there are now lenders offering rates below 2% and RBA Governor Philip Lowe says it will realistically be at least three years before rates look like rising again, so you’re in a strong bargaining position for a better deal.
Prepare for next year
While you’re at it, look at whether you can get a better deal in other areas affecting your household budget.
If you have been with the same energy provider or health insurer for longer than a year for example, you are missing out on a better deal from elsewhere.
Pick up the phone and you may save thousands and make sure you’re ready to start the new year with maximum borrowing power freed up.
Set your 2021 goals now and get the jump on those that do so in January. Make plans and get what you need into place to make sure next year is a great one.
And talk to a Zinger Finance strategist to see what you need to do to get finance ready for your 2021 goals.
