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Edition: 106

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Edition 106

  • 24 April 2015

Australia's housing prices impact on other investments, Sydney's housing bubble, the reason for average returns from index funds, facts for bond investors, and thinking about retirement planning.

Impact of house price falls on other assets

Australians are heavily invested in residential property and the impact of a property crash is obvious for those assets. But the consequences for many other investments should be considered.

Sydney residential market – bust in the making?

Sydney house prices were up 14% in the year to March 2015. What's making the market so strong, how much longer can the growth persist and will it ultimately end in tears? Unfortunately, there are no simple answers.

Index funds invest in the bad and the good

The promise of diversification, low costs and access to overseas markets are boosting the popularity of all types of index funds, but broadly diversified cap-weighted equity index funds can only promise ‘average’ returns.

Income-seekers: these 'myths' could come back to haunt you

Low interest rates have left many income-oriented investors scrambling for yield. If interest rates rise, will individual bonds, dividend paying stocks or cash be safer than the core bond funds so often recommended?

Retirement catches most people unplanned

Despite the publicity about long life expectancy, research on Australian retirement highlights a lack of planning, and most people do not determine their own retirement date.

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Indexation implications – key changes to 2026/27 super thresholds

Stay on top of the latest changes to superannuation rates and thresholds for 2026, including increases to transfer balance cap, concessional contributions cap, and non-concessional contributions cap.

The refinery problem: A different kind of energy crisis in 2026

The Strait of Hormuz closure due to US-Iran conflict severely disrupted global energy supply chains. While various emergency measures mitigated the crude impact, the refined product market faces unprecedented stress.

The missing 30%: how LIC returns are understated, and why it matters

The perceived underperformance of LICs compared to ETFs is due to existing comparison data excluding crucial information, highlighting the need for proper assessment and transparent reporting.

Little‑known government scheme can help retirees tap into $3 trillion of housing wealth

The Home Equity Access Scheme in Australia allows older homeowners to tap into their home equity for retirement income, yet remains underused due to lack of awareness and its perceived complexity.

Origins of the mislabeled capital gains tax ‘discount’

Debate over the CGT discount is intensifying amid concerns about intergenerational equity and housing affordability. This analysis shows that the 'discount' does not necessarily favor property investors.

2 billion reasons to fix retirement income

A proposal to address Australia's 'stranded balances' in retirement by requiring super funds to transition members to pension phase at 65, boosting retirement income and reframing super as a source of income.

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