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
By Shane Oliver, Head of Investment Strategy & Chief Economist from Oliver’s Insights, AMP Capital, Edition 7 2016 Key points There is a seemingly long list of global political issues that could affect investors this year: the US presidential election, a vote on Brexit, the rise of populism in Europe, tensions in the South China Sea, tensions between Saudi Arabia... Read more
By Shane Oliver, Head of Investment Strategy & Chief Economist from Oliver’s Insights, AMP Capital, Edition 6 2016 Key points Historically, bear markets in Australian shares have seen an average fall of 33% over 18 months. However, this masks a huge range. 65% of bear markets have seen gains over the 12 months following an initial 20% decline in share... Read more
By Shane Oliver, Head of Investment Strategy & Chief Economist from Oliver’s Insights, AMP Capital, Edition 4 2016 Key points Assets with decent and sustainable yields are attractive in an environment of return volatility as they provide greater return certainty. Bank term deposit rates have collapsed, so it makes sense to continue to look elsewhere for income. Dividends tend to... Read more
By Shane Oliver, Head of Investment Strategy & Chief Economist from Oliver’s Insights, AMP Capital, Edition 3 2016 Key points Oil prices are down more than 70% from their levels two years ago driven by a combination of a surge in supply relative to demand and a rise in the value of the $US. Further weakness down to $US20/barrel is... Read more