Sep 21, 2022

Business Update – 21 September 2022

Welcome back to our Weekly Digest. Read on for the latest updates and some ideas to help us all move forward.

Unprecedented rental demand could affect interest rates

As the RBA raises the cash rate to ease inflation, the astounding rise in rent prices will begin to factor into the inflation data – leading to higher interest rates.

Air New Zealand flies nonstop from Auckland to New York for the first time

It’s the first nonstop AKL-JFK flight, and is seen as a cheeky move towards Australian competitor Qantas, which has no comparable route. The flying time was a little over 16 hours.

Coming soon: an electric vehicle that can tow your caravan

While there is no solid release date yet, some manufacturers have planned an Australian release for vehicles with truly hefty towing capabilities.

Paying off your mortgage is the best move if you can manage it

While it can be tempting to continue with minimum payments on an investment property to gain the tax rebate, you’re really only coming out ahead if you don’t have the equity to pay the mortgage off, or if you are earning more in interest elsewhere.

Renewable energy transition is well underway, but we have a storage problem

Last week, the share of power being generated from coal and other fossil fuels dropped to record lows, as solar and wind power shares leapt to new records. However, the excess produced by renewables showed the growing need for storage to soak up the extra capacity produced.

Low demand for coal spells trouble in WA

Despite skyrocketing prices for the commodity on global markets, Griffin Coal was put into receivership last week. As renewable power sources increase, the coal industry is having trouble figuring out how to remain profitable as demand for its product shrinks but is still important sometimes, especially during extreme weather.

Australia just might dodge this recession

Despite other developed economies being tipped for recession, we’re sitting in a good position. Because of high export prices and a weak currency, Australia is benefitting from a cash windfall that could see us through.

Is the property market about to go haywire again?

A recent report from ANZ pegs property values to drop by an average of 20 per cent before the markets recover. However, with a $3.78 trillion difference between their last forecast and what actually happened, some people are questioning whether these forecasts carry any weight.

Experts warn of a rate cliff for many Australians coming by the end of the year

Borrowers who are on fixed interest home loans that are about to expire could suffer a huge price increase between now and the holiday season. Recent data shows that 25 per cent of borrowers are already struggling to pay their monthly home loan.

Are you ready for Christmas?

Customers were shocked last week to see Kmarts all over the country getting out their Christmas displays already – more than 100 days before Christmas.

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