WEEKEND READS: Catch up on the most interesting articles I’ve read this week

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.

Australia’s “millionaire middle class” continues to soar

SmartCompany reports that much of the demographic that are considered to be Australia’s middle class, are in fact, millionaires.

The number of millionaire households in Australia grew by 18% in 2014, according to research from the Boston Consulting Group that shows growth in private wealth among Australians is outpacing the global average.scale money gold coins balance

BCG’s 2015 Global Wealth Report, released last week, found the number of millionaire households in Australia increased from 185,000 in 2013 to 215,000 in 2014.

The figures are in line with a global study of high net worth individuals by IT firm Capgemini and RBC Wealth Management, also released last week, which found the stock of high net worth individuals in Australia grew by 4% to 226,000 in 2014.

Stephen Koukoulas, managing director of Market Economics, told SmartCompany it makes sense to see wealthy Australian households continue to grow given the recent strength of the local stock market.

And while the BCG figures did not include property assets, Koukoulas says anyone who purchased a house in Australia during the past three-to-five years has “done well”.

“Over the past five years, the group that is aged between 35-50 years old, their income is increasing, they have a growing pool of super, they have done really well,” he says.

“But those who don’t have a house have not benefited. Those on low incomes, who have little super or none at all, have not made any money.”

While Koukoulas says he is “all for a growing economy and growing living standards”, the inequality of wealth in Australia is an important issue that needs to be considered.

“That’s why the question of capital gains tax is so important,” he says.

Tax Depreciation | Buying a property below market value | First home buyer’s mistakes | Congestion charge in Melbourne | 5 key changes for just $5000

Another great Real Estate Talk show  produced by Kevin Turner.

If you don’t already subscribe to this excellent weekly Internet based radio show do so now by clicking here.

Details of this week’s show:

  •  Cherie Barber tells us about her 5 key improvements when renovating
  • Get some more tips on buying a property below market value from Cate Bakos 
  • Brad Beer from BMT Tax Depreciation explains more about how tax depreciation works following a question a few weeks ago from Sonya
  • Michael Yardney takes a look at the common mistakes made by home buyers – ones that you should avoid

And much more!

China stock bubble

In a recent blog, Pete Wargent asks ‘Is this a Red Alert?’

For anyone feeling brave, here are the technicals:


After holding support the SSEC followed through higher to close at 4,690.15.

There is resistance at 5,030 and “support” (of sorts) at 4,530.

To put this in context the index has exploded higher from below 2,000 in only March 2014.

Stock markets in China have added $6.5 trillion in 12 months, while there are alarming stats being reported about the inexperience (or otherwise) of China’s new breed of investors.

It’s a monster stock bubble of epic proportions.

And it will probably end in tears.

Reserve Bank: prepare for even higher house prices

The Sydney Morning Herald reports that the Reserve Bank has warned of even higher home prices, saying stocks of unsold land suitable for development in Sydney and parts of other cities are getting “unusually low”.

property investors

Builders have also lifted their margins, as record low-interest rates encouraged more investors and owner occupiers to borrow to buy property.

“Shortages are most evident in Sydney, where greenfield land releases have not kept pace,” the RBA assistant governor Christopher Kent said in an address to the Australian National University on Monday.

“Inflation of building material prices has risen and the bank’s liaison suggests that some builders have increased margins,” he said. “Inflation in new dwelling costs has risen to be almost 2 percentage points above its average.”

Dr Kent said the evidence to date suggested that the two interest rate cuts this year were working as they should, boosting consumer spending and borrowing for housing. But spending on renovations was down and many borrowers were responding to the low interest rates by more quickly paying down their loans.

Ever wonder why all those pop songs sound kinda the same?

Well, it’s pretty simple – they all use the same 4 Chords! Watch the proof here:

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:

Apartment prices VS house prices

10 success habits self made millionaire’s learned from their parents

Beware of high-risk property investments

2015 personal tax planning checklist

3 ways to pay off your home loan sooner


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Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and his opinions are regularly featured in the media. Visit Metropole.com.au

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