{"id":187412,"date":"2025-01-01T17:21:56","date_gmt":"2025-01-01T06:21:56","guid":{"rendered":"https:\/\/propertyupdate.com.au\/?p=187412"},"modified":"2024-12-24T15:43:05","modified_gmt":"2024-12-24T04:43:05","slug":"8-ways-you-may-be-better-off-financially-in-2025","status":"publish","type":"post","link":"https:\/\/propertyupdate.com.au\/8-ways-you-may-be-better-off-financially-in-2025\/","title":{"rendered":"8 ways you may be better off financially in 2025"},"content":{"rendered":"

So what will 2025 bring?<\/p>\n

According to Canstar<\/a>, millions of Australians could see financial relief in 2025 with changes afoot aimed at easing cost of living pressures.<\/p>\n

S0 let's look at 8 ways you may be better off financially in this new year<\/p>\n

1. Rate cuts:<\/span><\/h2>\n

While RBA cash rate cuts are not guaranteed, they are highly likely with all big four bank economic teams expecting cash rate cuts in 2025.<\/p>\n

While economist keep changing their mind about the the timing of the first cut and number of cuts we will enjoy, just two rate cuts in 2025 could see a typical borrower\u2019s monthly repayment drop by $181, if they had a $600,000 debt with 25 years remaining.<\/p>\n\n\n\n\n\n\n\n\n\n
Big four bank cash rate forecasts<\/strong><\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\nNo. cuts in 2025<\/strong><\/td>\nDrop in monthly repayments by end of 2025 - $600K loan<\/strong><\/td>\n<\/tr>\n
CBA<\/strong><\/td>\n4 - starting Feb<\/td>\n$358<\/td>\n<\/tr>\n
Westpac<\/strong><\/td>\n4 - starting May<\/td>\n$357<\/td>\n<\/tr>\n
NAB<\/strong><\/td>\n3 - starting May<\/td>\n$269<\/td>\n<\/tr>\n
ANZ<\/strong><\/td>\n2 - starting May<\/td>\n$181<\/td>\n<\/tr>\n
Source: www.canstar.com.au<\/a>. Based on an owner occupier with the RBA av. rate of 6.33%, $600,000 loan and 25 years remaining. Assumes banks pass cash rate cuts on in full. Note NAB is forecasting 2 more cuts in 2026.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\u00a0<\/strong>2. Easing inflation:<\/span><\/h2>\n

We are over the peak of inflation, and while the price of most goods and services won\u2019t be falling, the Reserve Bank expects prices to rise at a more sustainable pace in 2025.<\/p>\n

The RBA expects headline inflation will rise in the second half of 2025 with the end of the electricity rebates, however, trimmed mean inflation, which takes out irregular or temporary price changes, will hit the top of the central bank\u2019s 2-3% target band by mid-next year, and drop to 2.8% by the end of 2025.<\/p>\n

Of course that's what they're waiting for in order to start lowering interest rates.<\/p>\n

\"Inflation<\/a><\/p>\n

Source: ABS, RBA Statement of Monetary Policy, published Nov 2024.<\/p>\n

3. Boost to support payments:<\/span><\/h2>\n

A range of support payments are increasing from 1 January 2025 in line with inflation<\/a>.

<\/div><\/p>\n

Income and asset thresholds will also increase.<\/p>\n

This includes:<\/p>\n