BLOGS

ETFs vs. Managed Funds: Which investment vehicle is right for you?

Exchange Traded Funds (ETFs) have gained significant popularity in the past 8 years, with total investments in Australian ETFs soaring from $20 billion in mid-2015 to over $150 billion by mid-2023, representing a remarkable growth rate of more than 27%. This surge can be attributed to the compelling advantages ETFs offer over traditional managed funds. …

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How do rising construction costs impact property investment returns?

A property’s value is typically divided into two components: the land value and the value of any improvements, such as the dwelling. Conventionally, land tends to appreciate over time, while buildings depreciate as they get older and suffer more wear and tear. However, the rise in construction costs poses an interesting question: what impact does …

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Want the option to retire/reduce working before 60? Consider establishing a third super fund

Many people face two financial planning challenges. Firstly, their projected super balance may not be enough to fund their desired living expenses in retirement. Secondly, they would like to enjoy the flexibility of being able to reduce working hours (or even retire in full) in their 50’s.   Often, the solution to these two financial …

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Is Perth the next property market to explode?

Despite bearish property price forecasts over the past few years, capital city markets have proven to be very resilient. I note that Westpac joined other major banks last week by revising its property price growth forecast higher to 7% for the 2023 calendar year. However, Perth is the outlier. Its median house price has only …

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Foundations are important when building something valuable

Engineers know that for a building to remain structurally sound for many decades it must have strong foundations. It doesn’t matter how good a building is above the ground, if the foundations are substandard, the building won’t last. The same is true for building wealth. There are several foundational matters that investors must optimise before …

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How important is it to own your own home?

The ‘great Australian dream’ has always been to own your own home, debt free. It gives you financial security, and over the past three to four decades, homeowners have enjoyed rising prices which has helped them build wealth. But is it always a good idea to own your home, or is renting better? Put differently, …

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