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Australians might have to work on their discipline – according to one lender. M E Bank conducted a savings-intentions survey, which indicated more than half of Australian households don’t set an annual budget, and just less than half of those with budgets don’t regularly stick to them.
First up a warning for parents looking to help their children buy a property. Most of us want to give our kids a financial head start, but Mortgage broking group Smartline, suggests we tread carefully if planning to tell a lender in writing that money you advance your child is a gift rather than a loan. By signing a document stating the funds are a gift, you may waive the right to retrieve your money in the future. So – if your child buys a property as a joint asset with a long-term partner, and the relationship breaks down, Smartline says the signed document means your chances of ever seeing the money returned by your child’s ex are slim.
In another story – we hear the “parents of parents” are being impacted in Sydney. Many people dream of a sea or tree change, but the Council of the Ageing in New South Wales says rising house prices are forcing pensioners out of Sydney metro and into the regions. A survey they conducted, found that 20 per cent of pensioners are renters and the Council points out with rents reaching record levels in Sydney, “people will often be choosing between paying their rent and paying for food.” The Council says, as a result, many are moving to regional locations just to make ends meet…
…and finally, Australians might have to work on their discipline – according to one lender. M E Bank conducted a savings-intentions survey, which indicated more than half of Australian households don’t set an annual budget, and just less than half of those with budgets don’t regularly stick to them. The figures also revealed that just under 40 per cent of households don’t keep track of their monthly expenses at all and a similar proportion don’t pay off their credit cards each month. Nicolas Emery of ME Bank says “Good savings habits require commitment to detail and discipline. You just need to track the real costs of your household expenses, set a realistic budget and commit to every single detail, consistently.” Now that’s good advice if your trying to get a deposit together for a home.