What a ride 2024 has been in the financial landscape in Australia and global events. From market swings to global headlines, it’s been a year that’s kept us all on our toes and has passed all too quickly. As we reflect together, let’s look at the moments that shaped not just our financial world, but the stories that had us all talking.
Read on for a 2024 financial review.
The AI Revolution Hits Home
Remember when AI was just something from sci-fi movies? This year, it became part of our everyday lives. From helping doctors diagnose patients faster to reshaping how businesses operate, AI’s impact has been impossible to ignore. We’ve seen this firsthand with many of our business owner clients adapting their operations to stay competitive in this rapidly evolving landscape.
A Review on Interest Rates in 2024
If there’s one topic that dominated our client conversations this year, it was interest rates. After the RBA’s aggressive moves in 2023, this year brought the theme of ‘staying as is’. The cash rate held firm at 4.35%, as the Reserve Bank focused on bringing inflation back within its 2–3% target range (Source: Reuters).
For homeowners and investors, the higher rates made borrowing more expensive, with mortgage repayments continuing to strain household budgets. It wasn’t just property buyers feeling the pinch – businesses also grappled with increased costs for loans, forcing many to reassess growth plans.
For our Sydney property investors and homeowners, each RBA announcement has been like watching a nail-biting sports final.
The Sydney Property Market’s Plot Twist
Speaking of property, Sydney’s market had its own storyline this year. Home values increased by 4.5% this year despite the headlines about interest rates.
We’re seeing strong competition at auctions across the city, with buyers moving quickly even as more properties come to market.
Looking ahead, ANZ Bank’s forecast of a 5% rise in Sydney property values for 2025 suggests the momentum isn’t slowing down – good news for current owners and those looking to make their next move on the property ladder.(Source: Property Update).
For our clients looking to help their kids into the market or considering their next investment move, it’s been crucial to cut through the noise and focus on individual circumstances rather than headline-grabbing predictions.
Global Events that Hit Close to Home
This year reminded us just how connected our world is. Events like The Paris 2024 Olympics, the U.S. Presidential Election and conflict in the Middle East sent ripples through global markets, affecting everything from fuel prices to supply chains.
These events tested the resilience of investment portfolios and business strategies alike.
U.S. Presidential Election
We’ve had a lot of clients ask us about what Trump coming back into power means for the economy.
The fact that the election result has been decisive, with the result largely in line with prior market consensus, should be, and has been, generally supportive for share markets.
A Republican victory implies a supportive environment for the corporate sector and removes the possibility of higher corporate tax rates. Forecast company earnings should be largely unchanged following the election, and, as such, the implications for share markets are likely to be limited.
Whilst it could be argued that increased tariffs are ultimately bad for economic growth across the globe, this will take time to play out and there is a reasonable possibility that the appetite for restrictive trade initiatives will dilute over time.
But here’s what really matters – history tells us your financial success isn’t tied to who’s sitting in the White House. Markets have grown under both parties, through all sorts of political dramas. The real risk isn’t about who’s in power – it’s letting short-term noise knock you off track from your long-term plans.
Remember, this is about your great life and the future you’re building. If you’re feeling uncertain about how this might affect your specific situation, we’re here as your sounding board and to advise.
Paris Olympics 2024
The Paris Olympics did more than showcase athletic excellence – it offered a preview of how major sporting events reshape economies. While we felt minimal direct impact here in Australia, the Games influenced global travel patterns and consumer spending, touching businesses involved in international trade and tourism.
With Brisbane 2032 on the horizon, it’s a valuable glimpse into how a mega-event can create both opportunities and challenges for investors, business owners, and property holders. The ripple effects we saw in Paris could be amplified when the Olympics land on our shores, potentially reshaping everything from property values to business growth in Southeast Queensland – and beyond.
Looking Forward
Looking ahead, if 2024 has taught us anything, it’s that the ability to adapt while staying focused on long-term goals is more important than ever.
Whether you’re climbing the corporate ladder, scaling your business, or planning for retirement, the key has been to see through the short-term noise to what really matters – your version of a great life.
While we can’t predict what 2025 will bring, we know that having clarity about your financial world gives you the power to say ‘yes’ to bold life choices, whatever the headlines might be.
Reflect on your 2025 goals, what do you want to achieve?
Financial freedom? Buying a home? Scaling your business? Looking to retire (or create a retirement plan)?
As your team, we’re here to help you navigate whatever comes next. Whether it’s maximising new opportunities or protecting what you’ve built, we’re ready to help you make more possible in 2025.