BLOGS

Why common-sense tax reform is vital to Australia’s future

A few weeks ago, I discussed the limitations of using monetary policy – increasing interest rates – to tackle inflation. I highlighted that only 37% of Australians have mortgages, so they are the only ones that are directly affected by higher rates. Conversely, around 30% of Australians without mortgages benefit from higher interest rates as …

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What does the rental yield tell you about a property?

A property’s rental yield is the amount of gross rental income that it attracts relative to its market value. In Australia, gross residential property rental yields typically fall between 2% and 5% annually. This yield can provide insights into a property’s fundamentals and therefore anticipated investment returns. What drives a property’s rental yield? Two primary …

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Why industry super funds are less tax efficient?

The treatment of taxation liabilities hinges on the investment structure of your superannuation. That is, pooled super funds like industry funds subtract tax before it’s paid. This is an important factor to consider because, depending on the amount of your super balance, it can have a significant effect on your retirement savings. While tax implications …

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Does Australia need a recession? Have we become lazy?

The recent decision by the RBA to raise interest rates may have surprised some people. While some argue that rates have already increased significantly and coupled with rising living costs, this could eventually control inflation, it is important to recognise the persistent threat that high inflation poses to an economy. Furthermore, central banks aim to …

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Forecasting property investing returns: What can we expect?

Property investors should think about the investment returns they can anticipate over the next decade and beyond. This process assists in shaping realistic expectations to make informed financial decisions. It’s most advisable to create these expectations based on evidence and data. The past decade has delivered below average returns The chart displayed below illustrates the …

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Property 101: How much do you know about property?

Readers of this blog own property or intend to purchase it in the future, whether for owner occupied or investment purposes. Property is an excellent asset class for accumulating and preserving wealth. This is primarily due to its fundamental nature as a necessity, its historical tendency to appreciate in value, and the relatively lower level …

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Share market outlook: How to navigate the risks and capture the opportunities 

Navigating the stock market in the coming years may prove challenging, primarily because markets need to adapt to higher interest rates. Whilst there are significant risks to avoid, I also believe there are promising opportunities worth considering. Do these 3 things to successfully invest in stock markets To maximise your investment returns in the stock …

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Should you invest your super in property with borrowings?  

In 2007, laws changed to allow SMSFs to borrow for property investments if they met specific compliance rules. This led to a surge in super-funded property investments from 2007 to 2017, totalling around $45 billion. However, major banks withdrew SMSF borrowing products between 2017 and 2018 and super contribution rules were tightened, making this strategy …

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ETFs vs. Managed Funds: Which investment vehicle is right for you?

Exchange Traded Funds (ETFs) have gained significant popularity in the past 8 years, with total investments in Australian ETFs soaring from $20 billion in mid-2015 to over $150 billion by mid-2023, representing a remarkable growth rate of more than 27%. This surge can be attributed to the compelling advantages ETFs offer over traditional managed funds. …

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How do rising construction costs impact property investment returns?

A property’s value is typically divided into two components: the land value and the value of any improvements, such as the dwelling. Conventionally, land tends to appreciate over time, while buildings depreciate as they get older and suffer more wear and tear. However, the rise in construction costs poses an interesting question: what impact does …

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