Australian Consumer Confidence Drops To Recessionary Levels
Kanebridge News
    HOUSE MEDIAN ASKING PRICES AND WEEKLY CHANGE     Sydney $1,455,257 (+1.86%)       Melbourne $939,047 (+0.87%)       Brisbane $807,503 (-0.36%)       Adelaide $776,642 (+1.97%)       Perth $663,542 (+0.53%)       Hobart $725,310 (-0.13%)       Darwin $628,752 (-0.50%)       Canberra $945,068 (-0.50%)       National $937,840 (+0.95%)                UNIT MEDIAN ASKING PRICES AND WEEKLY CHANGE     Sydney $708,884 (-0.36%)       Melbourne $480,103 (+0.14%)       Brisbane $446,784 (+0.58%)       Adelaide $362,663 (+2.01%)       Perth $377,189 (+0.73%)       Hobart $536,098 (+0.28%)       Darwin $355,667 (+3.76%)       Canberra $490,461 (-1.86%)       National $495,198 (+0.01%)                HOUSES FOR SALE AND WEEKLY CHANGE     Sydney 8,985 (-175)       Melbourne 12,700 (-109)       Brisbane 9,286 (-64)       Adelaide 2,841 (+103)       Perth 8,366 (+33)       Hobart 1,123 (+25)       Darwin 257 (-1)       Canberra 926 (-10)       National 44,484 (-198)                UNITS FOR SALE AND WEEKLY CHANGE     Sydney 7,920 (+22)       Melbourne 7,053 (-113)       Brisbane 2,062 (-26)       Adelaide 476 (-10)       Perth 2,299 (-9)       Hobart 159 (+6)       Darwin 389 (+10)       Canberra 534 (+12)       National 20,892 (-108)                HOUSE MEDIAN ASKING RENTS AND WEEKLY CHANGE     Sydney $700 (+$10)       Melbourne $530 (+$5)       Brisbane $570 ($0)       Adelaide $550 ($0)       Perth $575 ($0)       Hobart $555 (-$10)       Darwin $700 ($0)       Canberra $688 (-$3)       National $616 (+$1)                    UNIT MEDIAN ASKING RENTS AND WEEKLY CHANGE     Sydney $695 (+$35)       Melbourne $500 ($0)       Brisbane $540 (-$10)       Adelaide $430 (+$10)       Perth $520 ($0)       Hobart $465 (-$5)       Darwin $528 (-$3)       Canberra $550 ($0)       National $539 (+$5)                HOUSES FOR RENT AND WEEKLY CHANGE     Sydney 5,712 (+34)       Melbourne 5,560 (+64)       Brisbane 3,823 (-32)       Adelaide 1,147 (0)       Perth 1,688 (+32)       Hobart 268 (-6)       Darwin 110 (-12)       Canberra 668 (-37)       National 18,976 (+43)                UNITS FOR RENT AND WEEKLY CHANGE     Sydney 6,667 (0)       Melbourne 4,237 (+88)       Brisbane 1,265 (-39)       Adelaide 337 (-14)       Perth 696 (-12)       Hobart 126 (-2)       Darwin 184 (-15)       Canberra 534 (+8)       National 14,046 (+14)                HOUSE ANNUAL GROSS YIELDS AND TREND         Sydney 2.50% (↓)     Melbourne 2.93% (↑)      Brisbane 3.67% (↑)        Adelaide 3.68% (↓)       Perth 4.51% (↓)       Hobart 3.98% (↓)     Darwin 5.79% (↑)        Canberra 3.78% (↓)       National 3.42% (↓)            UNIT ANNUAL GROSS YIELDS AND TREND       Sydney 5.10% (↑)      Melbourne 5.42% (↑)        Brisbane 6.28% (↓)     Adelaide 6.17% (↑)        Perth 7.17% (↓)       Hobart 4.51% (↓)       Darwin 7.71% (↓)     Canberra 5.83% (↑)      National 5.66% (↑)             HOUSE RENTAL VACANCY RATES AND TREND       Sydney 1.6% (↑)      Melbourne 1.8% (↑)      Brisbane 0.5% (↑)      Adelaide 0.5% (↑)      Perth 1.0% (↑)      Hobart 0.9% (↑)      Darwin 1.1% (↑)      Canberra 0.5% (↑)      National 1.2% (↑)             UNIT RENTAL VACANCY RATES AND TREND       Sydney 2.3% (↑)      Melbourne 2.8% (↑)      Brisbane 1.2% (↑)      Adelaide 0.7% (↑)      Perth 1.3% (↑)      Hobart 1.4% (↑)      Darwin 1.3% (↑)      Canberra 1.3% (↑)      National 2.1% (↑)             AVERAGE DAYS TO SELL HOUSES AND TREND       Sydney 27.3 (↑)      Melbourne 27.4 (↑)        Brisbane 32.7 (↓)     Adelaide 25.3 (↑)      Perth 32.9 (↑)      Hobart 28.5 (↑)      Darwin 39.8 (↑)      Canberra 27.1 (↑)      National 30.1 (↑)             AVERAGE DAYS TO SELL UNITS AND TREND       Sydney 26.3 (↑)      Melbourne 26.4 (↑)      Brisbane 29.9 (↑)      Adelaide 24.3 (↑)        Perth 36.5 (↓)     Hobart 25.2 (↑)        Darwin 32.0 (↓)       Canberra 28.6 (↓)       Canberra 28.6 (↓)           
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Australian Consumer Confidence Drops To Recessionary Levels

The percentage of respondents who expect good times for the economy over the next five years dropped to 10%.

By JAMES GLYNN
Wed, Jun 15, 2022 10:24amGrey Clock < 1 min

Australian consumer confidence dropped 7.6% last week to the lowest levels since the economy experienced a damaging recession at the start of the 1990s, according to a survey by ANZ Bank and pollster Roy Morgan.

ANZ head of Australian economics David Plank said news of a 50 basis-point rise in official interest rates by the Reserve Bank of Australia last week surprised many and sharply dented confidence.

Confidence is at its lowest since early April 2020, during the early stages of the Covid-19 pandemic. Outside of the pandemic, consumer confidence hasn’t been this low since January 1991, the midst of the early 1990s recession, Mr Plank added.

Reflecting the dire state of sentiment, the percentage of respondents who expect good times for the economy over the next five years dropped to 10%, its lowest level on record, he said.

So far this year household spending has been resilient despite the softness in consumer confidence. The RBA, for one, will be looking closely to see whether this divergence can continue, Mr Plank added.

Weekly inflation expectations decreased 0.1 percentage point to 5.6%, while its four-week moving average was unchanged at 5.5%, the survey showed.

Sentiment around current financial conditions dropped 1.0%, while future financial conditions fell 10.1%. Current economic conditions declined 7.2% after a 9.4% loss the week before. Future economic conditions were down 4.6%, according to the survey.

Consumers also reported a 14.4% drop in their willingness to buy a major household item.

The weekly ANZ-Roy Morgan Australian Consumer Confidence Rating is based on 1,454 interviews conducted online and over the telephone during the week to Sunday.

Reprinted by permission of The Wall Street Journal, Copyright 2021 Dow Jones & Company. Inc. All Rights Reserved Worldwide. Original date of publication: June 15, 2022.

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The wealth creation guide, no matter what your age

There’s more to building substantial savings than putting away what you can after paying your bills

By Nina Hendy
Mon, Mar 27, 2023 4 min

Whether you’re starting your wealth creation journey in your 20s, 30s, 40s, 50s or beyond, the core principles remain consistent. Create more income, manage your savings, and invest intelligently. 

We look at the best wealth creation strategies depending on which decade you’re in right now. 

In your 20s 

The key to wealth creation is to start early. So if you’re reading this and you’re in your 20s, you’re well ahead of the game. 

Accept that the greatest investment you can make is in yourself and your ability to earn an income. 

“If you want to build wealth in Australia, you need to have a plan to be earning more than $100,000 per annum either now or within the next five years,” financial planner Chris Carlin says. “Most finance experts focus on ways to reduce your expenses, which is important, but for sustainable long-term wealth creation, we believe that you should be focusing on ways to increase your income rather than just focus on reducing your expenses. 

For more stories like this, order your copy of the latest issue of Kanebridge Quarterly magazine here.

“If you need to change careers, study, start a business or ask for a pay rise, do whatever it takes to get your income above that level while you’ve got time on your side. Next step is to buy a house, because the sooner you get your foot in the door of the property market, the easier it will be for you to build wealth over the long term.” 

Bear in mind that your first home doesn’t need to be your forever home. Think of it as your foot in the door to build wealth. 

“If you’re accessing a first home buyers grant, you only need to live in it for 12 months and then you can consider converting it into an investment property or selling it,” Carlin says. 

In your 30s 

This is the time in life to establish a regular investment strategy. Consider long-term investments that you can lock up for five to 10 years. You can take on more risk at this time of your life, which can generate higher returns. 

Set your priorities for life, and don’t take on more debt than you can afford to pay back. 

Also, keep track of expenses and income with budget planners — a great habit to get into now. 

There are many other things you should be considering too, such as topping up your super above the Super Guarantee and reviewing your personal insurance and investments. 

In your 40s 

This can be an expensive time of life, particularly if you’re supporting a family. But you’re probably in a more stable financial position by now, giving you a good springboard into investments such as a diversified portfolio of shares. 

Investing in property is the best option at this age, whether it’s the family home or an additional property that can be utilised for an Airbnb. Also, make sure you rein in your debt. A bank loan for a mortgage is one thing, but debt on credit cards is hard to justify by this stage of your life. 

Invest in your retirement by topping up your superannuation. Even an additional $50 a month will benefit from the wonders of compound interest. 

Generally speaking, shares outperform other investments over the longer term. And if you invest in companies that pay dividends, you’ll benefit from being paid part of the company’s profits, generally twice a year. While dividends are less common in a downturn like we’re having now, they are likely to increase once company profits recover. 

In your 50s (and beyond)

If you’re in your 50s or older, traditional financial planning tends to encourage less aggressive asset classes as people near retirement. 

If you’re in a low asset position due to divorce and having to start again or you’ve missed the real estate boom and are still renting, the main focus should be on controlling spending and pumping money into super and savings and then investing aggressively, advises financial adviser and money coach Max Phelps.

“Property investing is either an option through super, or outside of super if the deposit can be raised,” he says. “Outside of super, properties with scope to improve, extend or subdivide will help build capital faster than normal market growth, to help catch up.”

Share investing could also be an option, with particular focus on high growth funds, such as international securities. 

“Controlling spending at a level just above the aged pension should be a key focus, otherwise it’ll be a big step down when you finally stop work. Use a good budgeting and planning app,” Phelps says.

However, if you own your own home, and have a standard super balance, focus on the home and perhaps look at downsizing opportunities in the future. 

“Maximising super contributions is likely to be beneficial to get the tax savings, potentially using a transition to retirement strategy,” he says. “For those looking for a sea or tree change, we would always recommend keeping the family home until a year or two after moving to a new area to make sure it really suits. 

“For those wanting to stay in the same home forever, releasing equity to buy a couple of high yielding investment properties could be a good option, with the time to pay down the mortgages and keep them for additional income for retirement,” Phelps says. 

If your own home is paid off and you have a high super balance and a strong asset position, the focus will likely be on asset protection and less risky asset allocation for investments, he says. 

Whatever age you are, consider getting help now. The right financial advice early can set you on the right track. 

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