There are more interesting articles, commentaries and analyst reports on the Web every week than anyone could read in a month.
Each Saturday morning I like to share some of the ones I’ve read during the week.
So enjoy for some weekend reading …and please forward to your friends by clicking the social link buttons on the left.
Rich will just pump money into property, shares, if super tax changes
SMH reported on submissions to the Abbott government’s tax review regarding cutting super tax breaks on the rich.
The submissions state that it won’t bring in more revenue if the wealthy are still allowed to use perks on property and shares.
Submissions, which are rolling into Treasury as the tax white paper process ramps up, are also calling for lower personal tax rates and reduced company tax rates, but a higher goods and services tax rate and base.
Prime Minister Tony Abbott and Treasurer Joe Hockey have already ruled out a number of changes, including raising the GST in their first term, tinkering with superannuation concessions and touching negative gearing.
Superannuation industry peak lobby group ASFA says it agrees that people with large balances shouldn’t be able to get tax breaks on their super earnings, but argues changes cannot be made in isolation of action on other sacred cow tax breaks like negative gearing.
“For most high net worth individuals, tax arrangements relating to capital gains, negative gearing and the family home are likely to have more impact on the achievement and maintenance of wealth than superannuation tax concessions,” it said.
“Therefore, any change in superannuation should also consider whether other changes to the tax system are needed.”
How would Warren Buffet invest in property? | Best buys in Brisbane | Property development tips | House vs apartment plus more
- Michael Yardney asks the question ‘If Warren Buffett were to invest in property in Australia what would he do? How would he approach it?’
- Shannon Davis reveals the areas for best buys under $500,000 in Brisbane
- Nhan Nguyen tells us some tips and traps to completing a profitable property development
- Patrick Bright answers a question from Monica about whether houses make better investments than apartments
- Zaki Ameer shares his 7 tips for entering the investment property market on a modest salary
- Eliza Owen from onthehouse.com.au talks about the top rental return suburbs in Australia.
Commodity prices cascade lower
In his excellent blog Pete Wargent explains the release of the Reserve Bank’s May 2015 Index of Commodity Prices and what it means for investors…
Firstly, and most obviously, on the share markets the resources index has under-performed the industrials and financials, as has indeed been the case for some years now.
Secondly, as the Reserve Bank noted a lower dollar is “both likely and necessary” to support our export prices – so we might expect to see low interest rates for some time to come.
Thirdly, from a real estate market perspective, the pain for a number of mining towns and resources regions has no end yet in sight.
Fourthly, and finally, if you have an investment strategy based around the hope that new mining projects will get up in order to dig rocks out of the ground…you might just want to double-check that you don’t also have rocks in your noggin.
Narrowest home on the market expected to fetch upwards of $700,000
News.com.au reports that the narrowest house on the market in Sydney, is expected to sell for upwards of $700,000.
The home is a mere 2.85m wide.
With an internal area of 48sq m and a land area of 38sq m, the two-storey Victorian terrace at 29 Terry St, Surry Hills, is roughly the same size as a one-bedroom unit.
While the house is definitely small, with little space to swing a cat, it still has the potential to attract a buyer.
Social researcher Mark McCrindle said there was a clear trend of Australians moving away from bigger properties and looking at smaller homes.
“Certainly Australians are responding to smaller properties because the trend has been towards unit and apartment living anyway,” Mr McCrindle said.
Property takes over as Australia’s biggest industry
Property Oz reports that the property industry has almost doubled its contribution to Australian GDP in the last decade and now has the economy’s largest footprint, finds new research from AEC Group.
The property industry’s share of GDP rose to $182.5 billion in 2013-14 – the highest of any industry in the country, reveals the research commissioned by the Property Council.
The Economic Significance of the Property Industry to the Australian Economy report shows that property directly contributes 11.5 per cent to Australian GDP – one ninth of total economic activity.
When indirect contributions are included, the property industry now makes up nearly 30 per cent of the economy.
The industry is also Australia’s second biggest employer – directly creating 1.1 million jobs, more than mining and manufacturing combined. When flow-on jobs are included, the industry generates 2.7 million full time equivalent positions.
Findings from the report were released at the Property Council’s annual Property Leader’s dinner in Canberra last week in front of the nation’s political leaders, including Prime Minister Tony Abbott and Treasurer Joe Hockey.
Source: AEC Report
Weekend video: Common Everyday Expressions Explained!
Today we give you the origins of common everyday expressions you have probably heard before!
Blogs you may have missed this week:
If you didn’t have a chance to read my daily blog, here’s a list of some of the blogs you missed this week: