In the 2024 calendar year, the ASX200 delivered a total return of approximately 11.5%. However, most of this growth was driven by just three banks: CBA, Westpac, and NAB, which collectively contributed around 6.5% of the index’s total return. On the other hand, the two major miners, BHP and Rio Tinto, negatively impacted the index’s …
Rentvesting has become an increasingly popular strategy for wealth creation, especially as a response to the challenges of home ownership in major Australian capital cities. This approach involves renting where you desire to live while investing in property. It has emerged as an alternative to traditional home ownership, particularly with the rising issue of housing …
Typically, accountants tend to advise against using a private company structure to hold geared property investments. However, investors shouldn’t automatically dismiss this approach, as it can provide substantial capital gains tax (CGT) savings. Commonly cited disadvantages of a company ownership structure There are two main disadvantages of using a company structure for property investment: Although …
Tonight, the Albanese government released its federal budget for the 2025/26 financial year. Assuming the government is re-elected before the end of May 2025, here’s my clear and concise breakdown of the key announcements: Income tax cuts From 1 July 2026, the income tax rate on earnings between $18,201 and $45,000 will reduce by 1%, …
The concept of the Equity Risk Premium (ERP) is typically used in share market investments, but I believe investors should apply a similar approach to all investment decisions. To ensure investors are adequately rewarded for the risk they take, I like to think of it as the Investor Risk Premium. What is the equity risk …
Since the start of 2020, property prices in relatively affordable regional markets have risen strongly compared to capital cities, partly driven by Covid lockdowns and higher interest rates. I have come across numerous posts from buyer’s agents on social media showcasing the strong short-term gains their clients have made. For example, “Bought this property four …
There are generally three ways to make money: through passive investing, starting, and building a business, and speculation. This blog primarily focuses on pure investing, which in simple terms, involves investing capital to achieve high returns with the least amount of risk. It’s crucial to distinguish between these approaches because they can sometimes overlap, complicating …
I recently met with a new client that I had previously met 10 years ago. Back then, he opted to work with an advisor in his home state rather than engaging us, since he did not live in Victoria. In the end, he never found an advisor and decided to manage his investments himself. Fast …
I have written a lot about the importance of investing in the highest-quality, investment-grade property that your budget allows. The quality of the asset you choose will likely have the greatest impact on its future capital growth rate over the long term. Simply put, you can’t expect above-average capital growth from an average-quality property. To …
Rohan Rajiv from the daily blog, A Learning a Day recently wrote “The definition of strategy that I use in my day to day is that good strategy is defining the right sequence of steps that helps us navigate trade-offs and achieve the end outcome.” This definition of strategy is a perfect fit when it …
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