Blog

March 8, 2017

The relationship between interest rates and housing affordability

A fall in interest rates is usually greeted with delight by homebuyers. The lower the interest rate the less the mortgage repayments on a particular house, right? Well, maybe. However, lower interest rates also mean borrowers can service a bigger loan. In a competitive housing market that can push up prices. So what’s really going on? Have recent falls in interest rates been good or bad for homebuyers? The numbers crunched In mid-2011 the average interest rate on a standard variable home loan was 7.79% p.a. and the average price of homes across Australia’s eight capital cities was around $478,000. […]
March 1, 2017

A little trust can pay a big dividend in super

The Australian superannuation system has many fine qualities, but if you were asked to rate it on the basis of trust – on a score of 1 to 10 – what would you give it? Trust is a simple but elusive concept to measure. Are we talking about trust in: The government regulatory and policy settings? The institutions that manage the more than $2 trillion in assets? The financial advisers who support the fund members? Is trust even important? The super guarantee system is mandatory for Australian workers, who cannot opt out of the 9.5 per cent contribution to super […]
February 22, 2017

When love blossoms later in life, the financial and legal consequences

Falling in love is a magical and wondrous experience, but once the heart flutters have settled a little and two people move towards a more serious relationship, various challenges may need to be addressed. Many of these challenges can be easily resolved when we’re young and carefree, but what happens when Cupid appears – or reappears – later in life?   Unlike earlier relationships, when love blossoms late in life careers have slowed down or ceased, the children have left home, and health and fitness may not be what it had been, meaning that a ‘lifetime’ of togetherness may not […]