Future Returns: Why Women Need to Participate in Financial Planning
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    HOUSE MEDIAN ASKING PRICES AND WEEKLY CHANGE     Sydney $1,603,134 (+0.55%)       elbourne $989,193 (-0.36%)       Brisbane $963,516 (+0.83%)       Adelaide $873,972 (+1.09%)       Perth $833,820 (+0.12%)       Hobart $754,479 (+3.18%)       Darwin $668,319 (-0.54%)       Canberra $993,398 (-1.72%)       National $1,033,710 (+0.29%)                UNIT MEDIAN ASKING PRICES AND WEEKLY CHANGE     Sydney $748,302 (+0.18%)       Melbourne $497,833 (-0.44%)       Brisbane $540,964 (-1.56%)       Adelaide $441,967 (-0.38%)       Perth $442,262 (+1.33%)       Hobart $525,313 (+0.38%)       Darwin $347,105 (-0.72%)       Canberra $496,490 (+0.93%)       National $528,262 (-0.02%)                HOUSES FOR SALE AND WEEKLY CHANGE     Sydney 10,189 (-104)       Melbourne 14,713 (+210)       Brisbane 7,971 (+283)       Adelaide 2,420 (+58)       Perth 6,383 (+298)       Hobart 1,336 (+6)       Darwin 228 (-12)       Canberra 1,029 (+8)       National 44,269 (+747)                UNITS FOR SALE AND WEEKLY CHANGE     Sydney 8,795 (-1)       Melbourne 8,207 (+293)       Brisbane 1,636 (+1)       Adelaide 421 (-4)       Perth 1,664 (+15)       Hobart 204 (-1)       Darwin 404 (-2)       Canberra 988 (+12)       National 22,319 (+313)                HOUSE MEDIAN ASKING RENTS AND WEEKLY CHANGE     Sydney $800 (+$5)       Melbourne $600 ($0)       Brisbane $640 (+$10)       Adelaide $600 ($0)       Perth $660 ($0)       Hobart $550 ($0)       Darwin $700 ($0)       Canberra $690 ($0)       National $663 (+$2)                UNIT MEDIAN ASKING RENTS AND WEEKLY CHANGE     Sydney $750 ($0)       Melbourne $590 (+$10)       Brisbane $630 ($0)       Adelaide $490 (+$10)       Perth $600 ($0)       Hobart $475 (+$23)       Darwin $550 ($0)       Canberra $570 (+$5)       National $593 (+$4)                HOUSES FOR RENT AND WEEKLY CHANGE     Sydney 5,364 (+80)       Melbourne 5,428 (+4)       Brisbane 4,002 (+12)       Adelaide 1,329 (+16)       Perth 2,113 (+91)       Hobart 398 (0)       Darwin 99 (-5)       Canberra 574 (+39)       National 19,307 (+237)                UNITS FOR RENT AND WEEKLY CHANGE     Sydney 7,687 (+257)       Melbourne 4,793 (+88)       Brisbane 2,098 (+33)       Adelaide 354 (-11)       Perth 650 (+5)       Hobart 135 (-1)       Darwin 176 (-9)       Canberra 569 (+14)       National 16,462 (+376)                HOUSE ANNUAL GROSS YIELDS AND TREND       Sydney 2.59% (↑)      Melbourne 3.15% (↑)      Brisbane 3.45% (↑)        Adelaide 3.57% (↓)       Perth 4.12% (↓)       Hobart 3.79% (↓)     Darwin 5.45% (↑)      Canberra 3.61% (↑)      National 3.33% (↑)             UNIT ANNUAL GROSS YIELDS AND TREND         Sydney 5.21% (↓)     Melbourne 6.16% (↑)      Brisbane 6.06% (↑)      Adelaide 5.77% (↑)        Perth 7.05% (↓)     Hobart 4.70% (↑)      Darwin 8.24% (↑)        Canberra 5.97% (↓)     National 5.84% (↑)             HOUSE RENTAL VACANCY RATES AND TREND       Sydney 0.8% (↑)      Melbourne 0.7% (↑)      Brisbane 0.7% (↑)      Adelaide 0.4% (↑)      Perth 0.4% (↑)      Hobart 0.9% (↑)      Darwin 0.8% (↑)      Canberra 1.0% (↑)      National 0.7% (↑)             UNIT RENTAL VACANCY RATES AND TREND       Sydney 0.9% (↑)      Melbourne 1.1% (↑)      Brisbane 1.0% (↑)      Adelaide 0.5% (↑)      Perth 0.5% (↑)        Hobart 1.4% (↓)     Darwin 1.7% (↑)      Canberra 1.4% (↑)      National 1.1% (↑)             AVERAGE DAYS TO SELL HOUSES AND TREND       Sydney 29.7 (↑)      Melbourne 30.9 (↑)      Brisbane 31.2 (↑)      Adelaide 25.1 (↑)      Perth 34.4 (↑)      Hobart 35.8 (↑)      Darwin 35.9 (↑)      Canberra 30.4 (↑)      National 31.7 (↑)             AVERAGE DAYS TO SELL UNITS AND TREND       Sydney 30.0 (↑)      Melbourne 30.5 (↑)      Brisbane 28.8 (↑)        Adelaide 25.2 (↓)       Perth 38.3 (↓)       Hobart 27.8 (↓)     Darwin 45.8 (↑)      Canberra 38.1 (↑)      National 33.1 (↑)            
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Future Returns: Why Women Need to Participate in Financial Planning

By ANDREA RIQUIER
Wed, Mar 29, 2023 8:55amGrey Clock 3 min

It sounds hopelessly antiquated: A female spouse cedes control of the family’s finances, either willingly or unwillingly, to her male partner, only to be caught by surprise when her husband dies.

Yet financial advisors say it’s true—and problematic. Data is spotty, but a 2019 UBS survey of high-net-worth women found that 56% of American women aged 20-34 deferred long-term financial decisions to their spouse, as did 54% of women 51 and older.

Vance Barse is the founder of Your Dedicated Fiduciary, an investment advisor firm based in San Diego, Calif., that has made centring women a bedrock of its practice: two-thirds of its clients are female-headed households.

In a conversation with Penta, Barse says that if women aren’t part of the financial-planning conversation already, they should be. And if they lose their spouse before that can happen, they should be deliberate, not hasty, in finding a trusted advisor.

‘A Little Resentful’

No one wants to think about losing a spouse, but it will happen at some point—and as all the statistics show, it’s far more likely for a woman to outlive her male partner. That’s why Barse tries to centre female-headed households in his business model, but also why it’s wise for couples to make sure the wife has a say in the family finances before she’s all alone.

Barse describes the scenario he and other advisors see far too often with new widows: “After that initial shock, there is acceptance of the reality, which is that she is the one in charge of estate administration, she is the one who receives the estate, and now she is front and centre in her own financial life. There’s a transition where these women may become a little resentful or realise that they don’t have a trusting relationship with the person who was the husband’s—not the family’s—advisor.”

That’s when many widows fire the family’s existing advisor, and go in search of someone they can trust, Barse says.

But Barse says women usually turn to friends and family members for recommendations. Far too often those people aren’t right for the new widow, and may even take advantage of her.

High-net-worth women don’t need a retail advisor selling them whatever mutual fund the home office is hawking, Barse points out—they need what he calls an “in-house, right-hand person” to manage all aspects of the household’s financial life, even if that’s not what the husband’s expectations were while he was alive.

Look Before It’s Too Late

Women with male spouses—even happily married ones—may want to take a more active role in the family’s finances sooner rather than later, even if their husbands are content with the way things have always been, and especially if they feel left out of the conversation.

“When a new client couple first comes in, I ask, in a social situation, which one of you typically talks first,” Barse says. “Whichever of the spouses raises the hand and says I do, I turn to the other spouse. That means we’re giving the less-vocal spouse more of a voice right out of the gate.”

That’s critical, he says, not only because both voices should be heard, but because men and women often bring different perspectives to financial planning. With high-net-worth women, Barse says, “the conversation focuses more on how to make an impact and how to keep as much money in the estate as possible and prevent the heirs from fighting over the assets.”

For Widows

Women who have lost a spouse are in a difficult position. The recent loss may make it difficult to think about vetting someone analytically. Still, Barse offers a few considerations, starting with approaching the existing advisor as if he or she were any other candidate for the job.

“It’s highly appropriate to interview different financial advisors and their firms to determine which one feels like the best long-term fit,” he says. “There is no such thing as too much due diligence.”

  • Ask the advisor to detail in writing what products and strategies are in your best interest, what value they will bring to your estate, and how much that will cost you
  • Ask the advisor to outline any potential conflicts of interest in writing. Barse recalls one client whose family advisor had put almost 100% of the household assets in expensive financial products such as mutual funds managed by the advisor’s parent company—but one that just happened to have a different name.
  • Ask the financial advisor to outline how he or she will work alongside other estate advisors such as the CPA, the estate planner, the insurance agent, the realtor, and so on. You need someone to be sure all the professionals are communicating with each other and that there are no gaps.


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New research suggests spending 40 percent of household income on loan repayments is the new normal

By Bronwyn Allen
Thu, Apr 25, 2024 3 min

Requiring more than 30 percent of household income to service a home loan has long been considered the benchmark for ‘housing stress’. Yet research shows it is becoming the new normal. The 2024 ANZ CoreLogic Housing Affordability Report reveals home loans on only 17 percent of homes are ‘serviceable’ if serviceability is limited to 30 percent of the median national household income.

Based on 40 percent of household income, just 37 percent of properties would be serviceable on a mortgage covering 80 percent of the purchase price. ANZ CoreLogic suggest 40 may be the new 30 when it comes to home loan serviceability. “Looking ahead, there is little prospect for the mortgage serviceability indicator to move back into the 30 percent range any time soon,” says the report.

“This is because the cash rate is not expected to be cut until late 2024, and home values have continued to rise, even amid relatively high interest rate settings.” ANZ CoreLogic estimate that home loan rates would have to fall to about 4.7 percent to bring serviceability under 40 percent.

CoreLogic has broken down the actual household income required to service a home loan on a 6.27 percent interest rate for an 80 percent loan based on current median house and unit values in each capital city. As expected, affordability is worst in the most expensive property market, Sydney.

Sydney

Sydney’s median house price is $1,414,229 and the median unit price is $839,344.

Based on 40 percent serviceability, households need a total income of $211,456 to afford a home loan for a house and $125,499 for a unit. The city’s actual median household income is $120,554.

Melbourne

Melbourne’s median house price is $935,049 and the median apartment price is $612,906.

Based on 40 percent serviceability, households need a total income of $139,809 to afford a home loan for a house and $91,642 for a unit. The city’s actual median household income is $110,324.

Brisbane

Brisbane’s median house price is $909,988 and the median unit price is $587,793.

Based on 40 percent serviceability, households need a total income of $136,062 to afford a home loan for a house and $87,887 for a unit. The city’s actual median household income is $107,243.

Adelaide

Adelaide’s median house price is $785,971 and the median apartment price is $504,799.

Based on 40 percent serviceability, households need a total income of $117,519 to afford a home loan for a house and $75,478 for a unit. The city’s actual median household income is $89,806.

Perth

Perth’s median house price is $735,276 and the median unit price is $495,360.

Based on 40 percent serviceability, households need a total income of $109,939 to afford a home loan for a house and $74,066 for a unit. The city’s actual median household income is $108,057.

Hobart

Hobart’s median house price is $692,951 and the median apartment price is $522,258.

Based on 40 percent serviceability, households need a total income of $103,610 to afford a home loan for a house and $78,088 for a unit. The city’s actual median household income is $89,515.

Darwin

Darwin’s median house price is $573,498 and the median unit price is $367,716.

Based on 40 percent serviceability, households need a total income of $85,750 to afford a home loan for a house and $54,981 for a unit. The city’s actual median household income is $126,193.

Canberra

Canberra’s median house price is $964,136 and the median apartment price is $585,057.

Based on 40 percent serviceability, households need a total income of $144,158 to afford a home loan for a house and $87,478 for a unit. The city’s actual median household income is $137,760.

 

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This stylish family home combines a classic palette and finishes with a flexible floorplan

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