Self Managed Superannuation Funds (SMSF) are still actively being setup by Australians. But there are growing concerns that SMSF property investments are being pushed by aggressive unlicensed property spruikers who are not acting in their best interests.
For some time the Australian Securities and Investments Commission (ASIC) has warned real estate agents that they must have an Australian Financial Services Licence (AFSL) before they recommend the use of a SMSF to invest in property.
The issue of Lenders Mortgage Insurance (LMI) is a question that regularly comes up when guiding clients through property purchases. With housing prices continuing to rise and stagnant wage growth, getting into the property market is becoming increasingly more difficult. Rising house prices and lower wage growth ultimately leads to lower deposits and if you don’t hit the 20% deposit mark, Lenders Mortgage Insurance now comes into play.
Looking at where various market economies are heading for the balance of 2017 and into 2018, we offer the following commentary.
Australia
Reserve Bank (RBA) Governor Lowe recently highlighted the issues facing Australia. Low wages growth, erratic consumer spending and the housing markets in Sydney and Melbourne. He reiterated his warning that the appreciation in the Australian dollar is weighing on inflation and growth and that a lower Australian dollar would be “helpful”.
On Tuesday 9 May, the Federal Government handed down its Budget for the 2017–18 financial year by the federal treasurer Scott Morrison.
It has been called a very ‘Labor budget’. A claim that both Scott Morrison and those from Labor have refuted.
According to Morrison, this year’s Budget is founded on the principles of fairness, security and opportunity.
As advisers, we get an interesting insight into the spending habits of our clients and their attitudes towards credit cards. With over 70% of the population having a credit card, with an average balance owing of $3,083, having a credit card is a part of our culture.
Ok, so there has been a lot of talk about the superannuation changes along with a lot of newspaper column inches devoted to the topic, and it can be quite confusing.
Market Commentary