What is an asset class? If you are starting to invest, you are sure to come across the term “asset class”. Don’t panic! You’ve probably heard of the different asset classes under their real names: cash, bonds, property and shares. An asset class is simply a group of investments that share similar characteristics, behave similarly in the market and are subject to the same rules and regulations. Most importantly, each asset class comes with different …
The lowdown on rentvesting It’s been a hot topic for the media in the wake of our property boom. But is rentvesting really a magic bullet for securing your financial future? Find out if this rent-for-life and get rich strategy is all it’s cracked up to be. When dinner party discussions get around to the subject of getting rich, property investing is bound to come up. Thanks to a sustained boom in property prices in Australia[1], real …
Has the housing bubble burst? In some states the property market is up, while in others it’s down – if you’re confused by what’s really happening to Australian house prices, read on. Driven by falling markets in Sydney and Melbourne, national house prices fell 0.1% in May, according to figures from property analytics group Core Logic. For the year from 31 May 2017 to 31 May 2018, prices were down 0.4% marking the first annual fall …
Retirement and your mental health It can be hard to stay engaged and keep a positive outlook in retirement, but advances in technology can help enormously. For example, if you are interested in volunteering, websites such as Good Company can instantly put you in touch with hundreds of opportunities, charities and individual projects. Or other options such as renting out a spare room on Airbnb or driving for Uber will not only contribute to keeping you more connected, you can also …
What are “returns”? You’ve heard people brag about the great “returns” they may be earning, but there is more than meets the eye when it comes to talking about returns. Just as the word suggests, returns are what comes back to you from your investments or savings. So if you’ve put money in the bank, your returns will include the interest you’ve earned over and above the money you invested. Total returns If you have successfully …
Will you be renting in retirement? Is owning your home the best option for your senior years? Discover why renting in retirement could be on the rise and explore some advantages of being a tenant in later life. Being secure in a home you own is usually part of the picture – and costs – of life in retirement. In fact, Retirement Standard figures published by the Association of Superannuation Funds Australia (ASFA) are based on the assumption …
Where are we in the unlisted commercial property cycle? Key points Australian unlisted commercial property returns have been very strong this decade thanks largely to the “search for attractive yield” by investors. This return driver is expected to start to fade but rising rents, particularly in the south-east office markets, will provide an offset keeping returns solid for now. Commercial property yields still offer a strong premium relative to bonds suggesting we are a long …
01 February 2018 Higher global inflation and higher bond yields – what’s the risk and implications for other assets? Key points Rising global growth and rising commodity prices indicate the risks to inflation are gradually moving to the upside. This is most acute in the US with the Fed likely to raise rates more than the market expects this year. This supports the view that the 35-year super cycle decline in bond yields is over. …
If you’ve always thought property prices only go up… It may be time to reconsider some myths about property investment. With so much emphasis on property in the media, it can be difficult to sort fact from fiction. But before investing in any type of asset—including property—it pays to consider the pros and cons, and any commonly held misconceptions. Here we bust 3 property myths. Myth 1: Prices always go up Believing that property always …
13 December 2017 Where to find value in the real estate market The so called ‘yield trade’, which has pushed valuations in the Australian real estate market across the various segments right up to their long term averages, will continue in 2018. Even though this ‘search for yield’ phenomenon has been playing out for some years – while interest rates remain low and investors to be pushed into riskier assets in search of income – …
