When you have found the right property and need a deposit to secure the purchase, a deposit guarantee may assist buyers whose funds are currently tied up. A deposit guarantee is a substitute for the cash deposit. The deposit guarantee is issued by a guarantor, for a fee based on its value and duration of cover. At the time of... Read more
By Shane Oliver, Head of Investment Strategy & Chief Economist from Oliver’s Insights, AMP Capital, Edition 39 2015 Key points: The more we are exposed to information about how our investments are performing, the greater the risk that we will be disappointed and at risk of making poor short term investment decisions. The greater access to information around short term... Read more
Retirement villages can provide an appealing self-contained environment, physically and socially geared to the needs of retired people. It has been said that ‘retirement villages are not a financial investment, but rather an investment in a lifestyle’. There are certainly costs of a retirement village lifestyle and it is vital to be fully informed. Retirement village contracts are diverse, with... Read more
For those individuals earning more than $180,001 p.a. you will see your tax rate reported as 45%. However in reality this rate is incomplete. Once you have added in the 2% Temporary Budget Repair Levy and the 2% Medicare Levy your real tax rate becomes 49%. Further, for individuals in this highest tax bracket without adequate Private Health Insurance, your... Read more
By Shane Oliver, Head of Investment Strategy & Chief Economist from Oliver’s Insights, AMP Capital, Edition 36 2015 Key points Australian housing remains overvalued and this has one hand in hand with high household debt. Against this, supply has been constrained and there has not been a deterioration in lending standards. The hot Sydney and Melbourne property markets are showing... Read more
By Shane Oliver, Head of Investment Strategy & Chief Economist from Oliver’s Insights, AMP Capital, Edition 35 2015 Key points Risks regarding China and the Fed may be receding a bit for now but there remains plenty to keep an eye on including the risk of an “accident” flowing from slower emerging market growth and the plunge in commodities. However,... Read more
By Shane Oliver, Head of Investment Strategy & Chief Economist from Oliver’s Insights, AMP Capital, Edition 34 2015 Key points Investing during times of market stress and volatility can be difficult. For this reason it’s useful for investors to keep a key set of things – call them rules – in mind. The key rules, in my view, are: make... Read more
By Shane Oliver, Head of Investment Strategy & Chief Economist from Oliver’s Insights, AMP Capital, Edition 33 2015 Key points Periods of declines and volatility in share markets are a normal part of the way they work. Share market falls tend to be deepest when associated with recession (particularly US recessions). Share market falls boost the medium term return potential... Read more
The Luxury Car Tax Thresholds effective from July 1, 2015 and applicable for the 2015/16 financial year are as follows: • ‘Standard’ motor cars $63,184 • ‘Fuel efficient’ motor cars $75,375 (unchanged) A fuel efficient motor vehicle has a fuel consumption that does not exceed 7 litres per 100 km. This is as a combined rating under the vehicle standards... Read more
By Shane Oliver, Head of Investment Strategy & Chief Economist from Oliver’s Insights, AMP Capital, Edition 30 2015 Key points A perfect storm of factors led by China worries have caused turmoil in shares. Our view remains that what we have seen is likely to be a correction (albeit severe) rather than a new bear market. It’s too early to... Read more