Category: Investors

Empowering parents Empowering parents in the journey towards equitable financial support for their children’s aspirations of homeownership is a transformative concept. Because can the average person still afford a home? Our Leg Up introduces an innovative framework that allows parents to harness the equity in their homes as a financial springboard. And so this ensures…

Do house prices grow faster than wages? The short answer is yes. Over the long term, history shows house prices tend to follow nominal GDP (as shown in the chart) which grows faster than income. What is nominal GDP? Well it is the total production/income of all households. This includes the growth in the number…

Retirees tend to remain where they are most comfortable. Put simply, the longer you can hold onto your home, the greater certainty you will have over your retirement. It is no surprise that we are holding onto our homes longer than ever before. The average ‘hold period’ for all households rose nationally in the latest…

The recent NSW election result should see the end of the public service wage cap. By far the biggest cost will go toward nurses’ wages. Unfortunately removing the wage cap while overall hospital funding is capped will make the problem worse. The Federal Albanese government caps hospital funding at only 6.5% growth. Every 1% that…

The recent banking crisis is likely to further increase the interest rate on your property portfolio. Right now, the banks are sending a letter with an increase every month. In most states, regulations only allow you to increase the rent once a year so how do you keep up with the rising cost? If you…

Property is a great way to build wealth for wage and salary income earners. Many Australians have taken the opportunity to build their wealth this way, often with 2 or more properties. As interest rates have increased, banks are suddenly less willing to lend. They said no to the house! Many property investors have significant…

An increasing number of people are looking to supplement their income to meet the rising cost of living. More and more the pressure is making Australians reach out to loans, even those in retirement. Loans to retirees are offered as a viable way to relieve the pressure. Unfortunately, these loans are often at much higher…

Have you ever got to the front of the queue at the supermarket with a week full of groceries only to have your card declined? What if you were an entire bank with a week ‘worth of customers withdrawals’ waiting at the checkout, only to be declined? When our card fails, we get embarrassed and…

The government encourages retirees to downsize by allowing you to sell your home and place the proceeds into your superannuation account. These are aptly named “Downsizing contributions into superannuation”. Now, they will charge you 30% on any investment earnings once your super balance eclipses the threshold. Many Australian homes are very valuable, sufficient to tip…

You have been building savings buffers in your home loan. You are making it safer so shouldn’t you get a better deal? According to the RBA, you are keeping the banks stable. Don’t you deserve a reward? Banks publicly say how low risk most of their home loans are. The RBA goes further to say…

34 cliches can’t all be wrong! Reap what you sow, chickens come home to roost, get out what one puts in, … Put simply, we need to continue to invest if we want to keep lifting our living standards. Total investment across the economy is well below the peak of the mining boom. The same…