By Shane Oliver, Head of Investment Strategy & Chief Economist from Oliver’s Insights, AMP Capital, Edition 19 2016 Key points The success of Trump and Sanders in the US, the close Brexit vote and the Australian Federal Election campaign suggest median voters have shifted to the left and support for economic rationalist policies has fallen. The risk is that a... Read more
A builder must take out job-specific insurance for home building work valued over $20,000, under the Home Building Compensation Fund (previously known as Home Warranty Insurance). If you are a home owner, check that a valid insurance certificate has been obtained for the work you want done. Do this before work starts and before paying any money. Without it, you... Read more
New rules will apply to sellers of certain taxable Australian property under contracts entered into from 1 July 2016. The new legislation imposes a 10% non-final withholding obligation on the purchaser of certain taxable Australian assets when they believe the vendor is a foreign resident. Purchasers will be required to pay 10% of the purchase price to the ATO which... Read more
Until recently people with a HELP loan who moved overseas did not have to repay their debt as long as they remained offshore residents. From 1 January 2016 no matter where you live, the requirements for repayment of a HELP debt are the same. All people with a HELP debt who exit Australia with the intention to work overseas for... Read more
Over the past 12 months, combined capital city home values have increased by 7.6%, with the annual rate of growth down from a recent peak of 11.1% recorded in July last year. Melbourne has maintained its number one growth position, with annual capital gains of 11.1%. Sydney’s annual rate of growth has continued to moderate, having almost halved from its... Read more
The self-managed superannuation fund (SMSF) sector has experienced extraordinary growth over the last 15 years now accounting for almost $600 billion of superannuation, overtaking the retail superannuation sector now worth about $550 billion. Most individuals cite the desire for investment control and reduction of fees as their driver for establishing an SMSF. There is no question that a SMSF offers... Read more
Many Australians living overseas experience some difficulty when trying to arrange finance for a property purchase. Though there are some lenders who will refuse loans for expats as standard policy, many lenders will lend – albeit with more stringent requirements than for an Australian resident. Some lenders will consider overseas net income when calculating your borrowing capacity, though they typically... Read more
There is now a new loan product available for commercial funding under $1 million. Previously commercial loans had a higher interest rate than residential loans, were limited to a Loan to Value Ratio of 60-70% and the loan term was typically 10 years, making monthly repayments high. In contrast, new commercial lending has a loan rate on par with residential... Read more
By Shane Oliver, Head of Investment Strategy & Chief Economist from Oliver’s Insights, AMP Capital, Edition 10 2016 Key points China’s economy is seeing an ongoing transition from manufacturing & investment to services & consumption at the same time that it is continuing to deregulate. This transition will entail slower growth than seen last decade and bouts of uncertainty. However,... Read more
By Shane Oliver, Head of Investment Strategy & Chief Economist from Oliver’s Insights, AMP Capital, Edition 9 2016 Key points Very expensive housing and high household debt leave Australian housing vulnerable. However, in the absence of either a recession or much higher interest rates a property crash looks unlikely. The Sydney and Melbourne property markets are likely to slow further... Read more