Even if you’ve taken your profits out of property and invested them elsewhere, you still can’t afford to ignore this issue. With so many Australians holding mortgages, and the big four banks making up such a large part of our economy, any shock that starts in housing could spread across the entire country.
As a former financial planner, some of the greatest value I could add to my clients’ portfolios was by reducing their tax liabilities. Both current taxes and future ones. But there’s a difference between a good tax strategy, and investing because of a tax benefit.
A daily commute from Sydney to Melbourne will be feasible. It’s just a small part of a technological revolution slowly creeping into modern life. And it could be game-changing. This new technology could have a very strange effect on future Australian property prices.
The main thing holding the RBA back from moving right now is weak household spending. That’s largely because of the huge debt burden households are carrying.
Investors in Australia’s banks — who are likely homeowners as well — need to think carefully about how exposed they are to this sector. Bank profits are built on Australian property.
REA ended the week by releasing its FY17 full year results. Revenue from continuing operations was up 16% to $671.2 million. But thanks to impairment charges, net profit was down 18.5% to $206.3 million.
Discussion of Aussie real estate tends to focus on Sydney and Melbourne. But for insight into what it could look like if it all goes wrong, look west.
The Reserve Bank of Australia (RBA) kept the cash rate at 1.5% on Tuesday; saying the Aussie dollar is high and it needs to fall to support the economy.
China has plan that will provide a growing market for trade. It’s the largest overseas investment plan ever launched by a single country.
In today’s Money Morning…the argument for keeping interest rates on hold in Australia…how much are rising house prices a burden on the economy?