August 2016 – Private Client Newsletter

In this issue:

  • Property – Rent, buy or invest?
  • SMSF rules change, again
  • Fear Factor – Getting out of your comfort zone

As August gets underway Australia’s iconic wattle trees are beginning to bloom, the annual signal thatwinter is almost over. On the economic front, there is still a chill in the air but encouraging signs that investors have put the uncertainty of the federal election and Brexit behind them.

Australia’s annual rate of inflation fell from 1.3 per cent to 1 per cent in the year to June, the lowest level in 17 years. This puts inflation well below the Reserve Bank’s 2-3 per cent target band and increases the likelihood of a rate cut to stimulate growth and consumer spending. Consumer confidence sagged in July amid uncertainty surrounding the federal election and Brexit, before making a slight recovery late in the month. The ANZ/Roy Morgan consumer confidence index lifted 0.5 per cent to 115.5 in the week to July 26, down 1.3 points over the month. The Australian dollar remains stubbornly high at around US75c, after rising above US76.5 mid-July. This is higher than the Reserve Bank would like and is another factor pointing to a rate cut to improve the nation’s competitiveness.

Against this sluggish economic backdrop, global sharemarkets provided some good news for investors over the past month. The US market hit a new all-time high, UK shares posted a string of weekly gains in the aftermath of the Brexit fallout while the Australian All Ordinaries Index was up around 6 per cent.

Active Portfolio Management, Cash Flow Planning, Centaur Financial, estate planning, Gold Coast Financial Planning, Insurance, Investment strategy, Lending, Mortgage Reduction, Property portfolio services, psychology, Retirement Income Solutions, Self Managed Super Fund, SMSF, SMSF Advice, Strategic Financial Advice, superannuation planning, Tax Planning,Property – Rent, buy or invest?

Buying a home has been heralded as the way to get ahead for generations of Australians. But with housing affordability a rising concern for would-be first home buyers and their parents, many younger Australians are beginning to weigh up whether it’s better to buy, rent or invest in residential property … Read more

 

Active Portfolio Management, Cash Flow Planning, Centaur Financial, estate planning, Gold Coast Financial Planning, Insurance, Investment strategy, Lending, Mortgage Reduction, Property portfolio services, psychology, Retirement Income Solutions, Self Managed Super Fund, SMSF, SMSF Advice, Strategic Financial Advice, superannuation planning, Tax Planning,

SMSF rules change, again

As every trustee of a self-managed super fund (SMSF) knows, the ATO loves shifting the goal posts. This time the taxman’s big change is to grant a seven-month extension on the deadline for SMSFs to ensure any property loans they have are operating on an arm’s length basis … Read more

 

 

Active Portfolio Management, Cash Flow Planning, Centaur Financial, estate planning, Gold Coast Financial Planning, Insurance, Investment strategy, Lending, Mortgage Reduction, Property portfolio services, psychology, Retirement Income Solutions, Self Managed Super Fund, SMSF, SMSF Advice, Strategic Financial Advice, superannuation planning, Tax Planning,

Fear Factor – Getting out of your comfrot zone

“Life begins at the end of your comfort zone.”  “Everything you’ve ever wanted is one step outside your comfort zone.”   “Outside of the comfort zone is where the magic happens.”  Sound familiar? We’ve all heard the phrase before – in a book, on a motivational poster, in a meme, as part of an ad… Read more 

 

As always, if you would like to discuss the contents of this newsletter please give us a call 07 5559 5760.

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