A key financial goal for most people is to eventually repay their home loan. Last year I outlined 3 questions you must ask yourself to determine whether repaying your home loan is your top priority – see here. The internet is filled with countless ideas on how to repay your home loan faster. However, many of…
I was motivated to write this blog for two main reasons. Firstly, I observed several buyers’ agents on social media proudly advertising short-term capital gains. One instance caught my attention, where a buyers’ agent claimed to have purchased a property for a client 18 months ago for $435,000, asserting its current value at $510,000, implying…
As investors, we gain invaluable insights by experiencing various markets and events, and by reflecting on our actions—those we took and those we didn’t. I firmly believe that experience is the key factor in preventing costly investment mistakes. Hence, I dedicate time each year to ponder the lessons provided by the market in the preceding year. These…
The location of your “great Australian dream” can dramatically alter your wealth-building activities and as such, you must take this into account when developing your investment strategy. Homes are typically not purchased with the sole or dominant reason of building wealth as there are many non-financial, lifestyle factors that influence where we live. However, that…
Sydney’s housing market has shown robust growth since the early 1980s, with the median house price doubling approximately every decade during this period. In fact, several suburbs have delivered above-average growth. Melbourne has experienced comparable growth rates over the last 40 years. However, in contrast to Sydney, property in Melbourne tends to be more affordable,…
This year, many unique factors could influence the property market. Exploring how these elements might impact property prices is intriguing. Of course, the longer-term outlook is important for investors, as it better aligns with their investment horizon. Short-term market expectations likely hold more relevance for potential vendors. Markets hate uncertainty The dominant theme influencing investment…
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…
Many people face two financial planning challenges. Firstly, their projected super balance may not be enough to fund their desired living expenses in retirement. Secondly, they would like to enjoy the flexibility of being able to reduce working hours (or even retire in full) in their 50s. Often, the solution to these two financial planning…
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 they earn…
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…
