December 10, 2015

‘Unretiring’ retirees

It could be called ‘unretiring’ if there were such a word. This is the practice of retirees making a decision to return to work. Financial needs, medical advances and greater longevity are among the most obvious reasons why some retirees decide to try to make a comeback to the paid workforce. Another reason is that a retirement lifestyle may not prove as satisfying as perhaps envisaged. In the depths of the Global Financial Crisis (GFC), such publications as Money Magazine in the US and Forbes magazine published articles about retirees returning to the workforce mainly to rebuild their then diminished nest eggs. And long […]
December 10, 2015

What’s really happening with property?

There’s little doubt that property is an attractive investment option for many, but with the media reporting conflicting news about the Australian property sector, it’s difficult to understand what’s really going on. Many people considering an investment in property have a preference for direct property; residential, industrial or commercial. Among other reasons, this popularity may be driven by an economy that is currently living with record low interest rates. Alternatively, property trusts offer small-scale investors the opportunity to invest in properties not directly accessible to them, such as large retail developments or overseas projects. Over recent years, however, there’s been […]
December 10, 2015

A different direction for interest rates?

In a rather unusual move in October, the big banks began announcing increases to their home loan interest rates, even though there has been no change in official cash rates. Why did they do it and what does it mean? Strong banks While Australia has a strong banking system, the regulator, the Australian Prudential Regulation Authority (APRA), has introduced rules to make it even stronger. One outcome is that the ‘big four’ banks (ANZ, CBA, NAB and Westpac) will need to hold more capital to help shield them from any potential increase in bad loans or other economic upheavals. Previously, […]