August edition

Welcome to Fraser Wealth Management’s August edition.

I feel I should be calling it the early Spring edition given the warm temperatures we are currently experiencing all up and down the East Coast of Australia.

We are now over the halfway mark for 2017. Investors have experienced a mix of positives and negatives.

Starting with:

- Changes to Superannuation are now implemented

In its first budget the Turnbull Government proposed a variety of changes to Superannuation legislation including decreasing the Concessional and Non-Concessional contribution caps as well as changes to taxation rates and the amount that can be invested within pension phase.

- Changes to Lending Standards

The Australian Prudential Regulating Authority (APRA) proposed changes to Australia’s bank and non-bank lenders by authorizing that they need to hold more capital on their books to mitigate any unforeseen risks to their mortgage books from a downturn in the Australian Property Market. Consequently, banks have tightened the lending standards to households and property investors where by loan to value ratios have decreased and worst of all some rates have increased.

- Financial Markets

Share markets around the world have remained buoyant throughout the previous 6 months with low volatility and all-time highs experienced on US markets. The US cash rate rose in June by 0.25% indicating that the continued growth of the world’s largest economy remains evident.
The Australian Share market returned over 10% for the 2016-2017 Financial Year. Returns are predicted to slow a little bit this year but still remain solid. The Australian economy still remains resilient as ever, in June the economy achieved the longest run of uninterrupted economic growth in the developed world.

I have packed in some articles that cover topics from applying for finance to Aged Care and consolidating your superannuation accounts as well as some general information on a popular strategy for property investing.

If you have any queries or wish to discuss anything in more detail please feel free to give me a call.

Warmest Regards

Alex Sutherland BCom (Ec&Fin), Dip(FP), CertSMSF

Financial Planner

What does your credit score really mean?

Lenders look at your credit score or credit rating, which appears in your credit report, to work out if they should lend you money or give you credit. Here we explain how your credit score works and what you can do to improve it.

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2016-17 saw strong returns for diversified investors - here are five reasons why returns are likely to be solid in 2017-18.

The past financial year turned out far better for investors than had been feared a year ago. This was despite a lengthy list of things to worry about ...

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Multiple super accounts in a 'gig' society

How many super accounts do you have? No doubt, some people have even more super accounts than credit cards.

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Compare principal & interest and interest-only home loans

Finding out which home loan is right for you depends on your personal situation.

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Don’t be driven by short-term sentiment and emotion

Whether you invest in funds, shares or property, price matters at precisely two times - when you buy and when you sell. We may naturally react to price movements, but short-term sentiment should not steer our financial decisions.

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6 things to think about when buying a car

Here’s a list of questions to ask yourself when you’re on the hunt for a new set of wheels.

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Your options in aged care explained

With multiple avenues to explore, thinking about aged care earlier rather than later could provide you or your loved one with greater flexibility.

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What's your most important asset?

It's not your house or car but your ability to earn a living - and it's commonly underinsured.

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Watch out for tax scams

Nearly 50,000 Aussies fell victim to tax scams over what was only a small period last year.

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How to speed up your home loan approval

Asking how long it takes to get a loan approved is like asking how long a piece of string is. There are, however, some things you can do to help hurry your application along.

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'Rentvesting' - enter the property market without sacrificing your current lifestyle

As property prices continue to rise, purchasing in a centrally-located or sought-after area is out of reach for the average working millennial. But for those who are still eager to enter the market, there is a way to get the best of both worlds.

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