Tag: Liberum Financial Planning

The Australian housing market – the big picture

October 13, 2016

Key points

  • Expensive housing and high household debt leave Australian housing vulnerable. But without a recession or much higher interest rates a property crash is unlikely.
  • However, the surging supply of apartments and the continuing strength of the Sydney and Melbourne property markets pose an increasing risk. Average dwelling prices in these cities are likely to see another cyclical 5-10% price downswing around 2018, with unit prices in oversupplied areas likely to decline 15-20%.
  • The combination of high house prices, huge gains in Sydney and Melbourne, low rental yields and a coming surge in the supply of apartments mean property investors need to be careful. Best to focus on undersupplied, less loved parts of the property market.
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The value of having a financial adviser

May 30, 2016

Having an appropriate financial plan in place covers more than just investments and insurance. The same goes for a financial adviser – there are some you will just click with.

Here we provide some ideas on finding one that you feel comfortable with, who can help you improve your financial future.

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Key Man Insurance

February 23, 2016

Key man insurance, sometimes referred to as key person insurance, provides cover against business losses that may be incurred as a consequence of the prolonged absence or death of the business owner or a key member of staff.

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Shares hitting bear market territory – the fear of fear itself or something more fundamental?

February 18, 2016
  • The malaise in financial markets is continuing with Australian shares now joining Europe, Japan and emerging markets in a bear market.
  • Global growth worries could drive more short term weakness. But in the absence of a US/global recession it’s hard to see a deep and long bear market.
  • The key for investors is to recognise that periodic declines in share markets are normal, that selling after big declines just locks in a loss, that dividend income from a well-diversified portfolio is little affected by share market volatility and that income flow from Australian shares is now very high relative to bank deposits.
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The plunging oil price – why and what it means

February 2, 2016
  • Oil prices are down more than 70% from their levels two years ago driven by a combination of a surge in supply relative to demand and a rise in the value of the $US.
  • Further weakness down to $US20/barrel is possible, but we are getting closer to the point where supply slows.
  • So far the negative impact on oil producers has predominated but ultimately it will be positive for growth.
  • The fall in petrol prices is saving the average Australian household around $14 a week versus two years ago.
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SMSF Quick Tip

January 11, 2016

If you want more control over your retirement nest egg, this tip is for you …

Review your super and retirement needs and explore if a SMSF could be appropriate for you.

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Review of 2015, outlook for 2016 – more of the same

December 8, 2015
  • 2015 has been a messy year for investors as worries about China, emerging countries and the Fed caused volatility and uneven returns across asset classes. Australian shares continued to underperform.
  • 2016 is likely to see continued okay but uneven global growth, low inflation & easy monetary conditions. While the US is likely to raise rates gradually, other countries including Australia remain biased to further easing.
  • Most growth assets, including shares are likely to trend higher, resulting in reasonable returns. But volatility is likely to remain high as the easy gains are well and truly behind us.
  • The main things to keep an eye on are the Fed, China and the ongoing rebalancing of the Australian economy.
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Crystals and investor worries as we go from seasonal weakness to strength

October 22, 2015
  • Risks regarding China and the Fed may be receding a bit for now but there remains plenty to keep an eye on including the risk of an “accident” flowing from slower emerging market growth and the plunge in commodities.
  • However, our broad assessment remains that the cyclical bull market in shares is likely to reassert itself in the seasonally strong months into year end.
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