Oliver's Insights - Australian home prices turning back up again

The key points are:

  • CoreLogic data shows average home prices rose 0.3% in February, after a brief three-month downturn of just 0.4%.

  • The upswing came in anticipation of, and then confirmation of, an RBA rate cut which boosted buyer confidence.

  • Annual growth in rents slowed to 4.1%yoy, the slowest since 2021. Poor rental affordability leading to rising average household sizes and easing student arrivals are weighing on demand for rental property.

  • Australia continues to have a chronic shortage of homes, estimated to be around 200,000 dwellings and possibly as high as 300,000. This partly explains the resilience of home prices despite the rise in mortgage rates since May 2022.

  • RBA rate cuts are expected to drive a modest upswing in average prices this year. However, while there is still a big housing shortfall in Australia, the upswing will be starting from a point of still poor affordability, interest rates are only likely to fall modestly, and population growth is slowing.

  • After 4.9% growth last year, we expect average property prices to rise around 3% this year.

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Advice Evolution and Fintegrity Monthly News Update

Welcome to this month's update from Advice Evolution and Fintegrity, where we share the latest insights and developments to keep you informed in today’s evolving landscape.

Top 10 concerns of retirees and how financial planners can help

Retirement marks the beginning of a new chapter—one filled with opportunities for relaxation, travel, and spending time with loved ones. 

However, it also brings unique challenges and uncertainties that can impact financial security and overall well-being. From managing healthcare costs to ensuring that savings last, retirees face a variety of concerns that require thoughtful planning and professional advice. 

Top 5 reasons people fear consulting a lawyer and why they should reconsider

Seeking legal advice can be a daunting task for many people. 

The idea of consulting a lawyer often stirs up feelings of anxiety and hesitation. Whether it’s due to misconceptions about the legal profession or personal experiences, people tend to avoid legal consultations until absolutely necessary. 

Renting a property to live in: key considerations and questions for your landlord

Renting a property is a significant decision that can impact your lifestyle, financial situation, and overall comfort. 

Whether you’re moving into your first apartment, relocating for work, or downsizing, understanding the rental process and knowing the right questions to ask can help you avoid unexpected surprises. 

Determining the right amount of life insurance coverage: the role of a financial adviser

Life insurance is a crucial financial tool designed to provide financial security to your loved ones in the event of your passing. 

However, determining the right amount of coverage can be challenging, as it depends on various factors such as income, debts, dependents, and future financial goals. 

Why is wellbeing important & what do we need to do to achieve it?

When people come across the term wellbeing, they usually associate it with physical health. However, wellbeing also encompasses other aspects of a person, namely their mental, social and spiritual health.

The reason wellbeing is so important is that it influences one’s outlook on life and a sense of happiness and satisfaction.

Advice Evolution & Fintegrity Newsletter - February

Stay up-to-date with the tips, news and updates from Advice Evolution and Fintegrity’s latest newsletter.

  • Understanding generational segments: lifestyles, financial needs, and technology expectations

  • Top 10 questions to ask your financial adviser and why a close relationship is key through life’s stages

  • The importance of financial advice in living a lifestyle of choice

Check out the newsletter

Oliver's Insights - Seven key charts for investors to keep an eye on

The key points are:

  • So far shares have been relatively resilient but uncertainties are mounting particularly around Trump’s policies.

  • We remain upbeat on a 12-month view but expect a rougher more constrained ride this year for shares, with a 15% plus correction likely somewhere along the way.

  • Seven key charts worth watching are: Trump’s tariffs; long term inflation expectations; inflation; business conditions PMIs; profit growth; the gap between earnings yields and bond yields; and the $US. Right now, they are mixed.

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How will the rate cut impact your mortgage?

The Reserve Bank of Australia (RBA) recently cut the cash rate by 0.25%, prompting many lenders to reduce their variable interest rates, potentially lowering your repayments.

The Moneysmart mortgage calculator can help you see how this change affects your payments and assist with planning.

If you're benefiting from the rate cut, consider using the extra cash to pay down credit card or buy now pay later debt, start a savings habit, or even keep paying the higher rate to pay off your mortgage faster. Every dollar counts, so plan how you can make the most of this extra money.

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Oliver's Insights - The RBA starts cutting rates

The RBA starts cutting rates -implications for the economy and investors

The key points are:

  • As widely expected, the RBA cut its cash rate to 4.1% from 4.35% after 13 rate hikes reflecting “more confidence that inflation is moving sustainably towards” the 2-3% target.

  • However, the RBA noted that it is “cautious on prospects for further policy easing”.

  • We expect the RBA to cut again in May and August taking the cash rate to 3.6% this year with another cut next year.

  • The start of a gradual easing cycle should help provide support for the shares and home prices, albeit some of the good news on rates has already been factored in.

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Oliver's Insights - Investment outlook Q&A

Investment outlook Q&A - Tariff man & Aust exports, the RBA, $A & gold

 The key points are:

  • Trump’s tariff war has potentially another 6-9 months to go at least. This poses an ongoing threat to shares, but their relative resilience so far risks emboldening Trump to do even more.

  • Even if Australian exports are not exempted from US tariffs the direct economic impact will be minor eg, steel and aluminium exports to the US are just 0.03% of Aust GDP.

  • The RBA is expected to start cutting interest rates next week and trade war uncertainty adds to the case to cut.

  • It could take till 2032 before Australian real wages get back to 2020 levels. Decent economic reforms could speed this.

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Oliver's Insights - More Trump tariffs (and deals) - implications for investors and Australia

The key points are:

  • US President Trump has announced tariffs on Canada, Mexico and China and is threatening more tariffs.

  • The one-month delay to tariffs with Canada & Mexico is a sign they may be averted, but the uncertainty with more tariffs likely means a volatile ride for investment markets.

  • Australia is vulnerable to a US/global trade war via a hit to China, but its less vulnerable than many other countries.

  • Trump’s trade war adds to the case for an RBA rate cut as its more of a threat to Australian growth than inflation.

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Advice Evolution & Fintegrity Monthly News Update

Welcome to this month's update from Advice Evolution and Fintegrity, where we share the latest insights and developments to keep you informed in today’s evolving landscape.

Market volatility: why time in the market matters more than timing the market

Market volatility is an inherent part of investing. Prices fluctuate due to economic changes, geopolitical events, and investor sentiment. 

While the unpredictability of the market can cause anxiety, it’s essential to understand that volatility is a natural component of long-term wealth creation. Instead of fearing it, savvy investors embrace it with a calm, disciplined approach, focusing on the principle that time in the market is far more critical than attempting to time the market.

Understanding estate planning and key legal tools: why legal advice is essential

Estate planning is the process of organising and managing your assets during your lifetime and determining how they will be distributed after your death. 

It goes beyond simply writing a will; it involves making key decisions about property ownership, financial management, and medical care in the event of incapacity. 

Aussie-made tax breaks urged to combat forced labour

The rapid shift to renewable energy should not depend on forced labour to dig up and process critical minerals to make batteries, solar panels and wind turbines, an anti-slavery expert says.

Fiona David, creator of the Walk Free Global Slavery Index, is calling for a “bi-partisan approach” on proposed tax breaks to boost Australian-made products as another salvo against human trafficking and modern slavery.

Solar boost could mean good news for renters, regions

Low-income households, renters, and people in regional and rural areas could be among those who benefit most from greater investments in solar energy projects.

Environment and community groups issued their assessments on Tuesday after Energy Minister Chris Bowen revealed he had directed the Australian Renewable Energy Agency (ARENA) to accelerate solar electrification projects.

Bid for better education standards to fix skills crisis

Australia must set new education targets aimed at returning to the 10 top rankings among developed countries for key subjects, or else risk a chronic skills shortage, a peak business group says.

It calls for a lift in standards to reverse the decline in students’ performance and for a careers counsellor to be placed in every school to help meet future demand.

Neil Rogan on Fear & Greed: How advisers deliver value beyond their fees

Neil Rogan, Managing Director and Head of Distribution, sat down with Sean Aylmer on the Fear & Greed podcast to unpack the findings of our 2024 Value of an Adviser report. From helping clients navigate emotional decisions during market volatility to optimising tax strategies and enhancing retirement outcomes, financial advisers deliver value that typically exceeds the fees they charge.

Listen to the podcast

Moneysmart tips: Is 2025 your year to thrive?

Kickstart 2025 with a financial reset
Decided that this year is the year you'll build a healthier relationship with money? 

Getting on top of your finances is one of the most common new year's resolutions. And while more than half (52%) of Australians will set a financial goal for 2025, only about 1 in 8 (12%) will stick to it. 

You don’t have to overhaul your life to achieve your financial goals. Even small changes can make a big difference over time. 

Money saving tips 

·   You may be spending too much on streaming services. If you haven’t used a streaming service in months, it’s time to hit that unsubscribe button. Doing a budget can help you identify other expenses you might want to cut back on. 

·   Automate your savings to build an emergency fund. Set up a recurring transfer to your savings account – even $1 or $2 a day, if you can afford it, can help over time to set aside money for unexpected expenses that may come up. 

·   Your super is your income in retirement. Take five minutes when your next super statement arrives to review your balance, fees, and investment options. You can check MoneySmart’s handy guide on how to review your super is here to help.

·   If you got into debt over the holiday period, make a plan to pay it off. It'll feel great to have it behind you.

Visit Moneysmart.gov.au for more simple, actionable tips you can take. 

Advice Evolution & Fintegrity Newsletter - January

Stay up-to-date with the tips, news and updates from Advice Evolution and Fintegrity’s latest newsletter.

  • Life insurance offers a sense of relief and security for both policyholders and their beneficiaries

  • Lifetime pensions urged to make super system easier

  • Ethical investing: what types are there plus the pros and cons

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Oliver's Insights - What’s driven the fall in the $A? Does it threaten inflation and RBA easing?

The key points are:

  • The $A has been hit since September by the return of Trump, a hawkish pivot by the Fed versus the RBA and concerns about the outlook for iron ore prices.

  • We doubt the fall is significant enough to boost inflation much and shouldn’t stop the RBA easing in February if underlying (or trimmed mean) inflation falls as expected.

  • In any case, it’s now had a bit of a bounce from oversold levels as Trump has refrained from Day One tariffs opting for government agencies to investigate unfair trade & tariffs and reportedly more of a negotiating approach. 

  • The $A could be stuck between $US0.60 and $US0.70, but with the risk skewed to the downside if Trump acts more aggressively on tariffs in the months ahead. Note that Trump still said in his inaugural speech that tariffs are coming.

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Advice Evolution & Fintegrity Monthly News Update

Discover valuable insights to help you stay informed, prepared, and empower you to navigate challenges, make informed decisions, and stay on track toward your goals.

Deceased estates: navigating a difficult time with compassionate legal support

Losing a family member or loved one is one of life’s most challenging experiences. 

Managing the legal and administrative responsibilities of a deceased estate can feel overwhelming amid the grief and loss. 

Financial New Year Resolutions to make in 2025

The new year is a perfect time to reflect on your achievements from the ending year and to plan for the new year.

While you can also make resolutions for other aspects of life, financial success should be at the top of your list.

6 tips to overcome the deposit barrier

In Australia, the deposit barrier is a significant challenge for many people who wish to buy their own homes. 

Saving up for a deposit can be a daunting task, especially for first-time homebuyers. 

Tax planning strategies for small businesses

Every dollar counts in business, especially for small enterprises. Therefore, you need to find ways to minimise your tax liability in addition to optimising income or profit.

Welfare payments, wage theft laws to change in new year

Major changes are coming to welfare payments and wage theft laws in 2025. Stay informed about the new regulations that will impact Australians this year.

Advice Evolution and Fintegrity Newsletter - December 2024

Welcome to the December 2024 edition of the Advice Evolution and Fintegrity Newsletter. This month, we explore key insights on managing rising business insurance costs, potential tax changes for large superannuation withdrawals, and strategies for effective retirement planning. Stay informed on the latest trends and developments to help secure your financial future.

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Spend Smarter This Christmas: Avoid the Holiday Budget Hangover

The festive season is a time for celebration, but it can also bring financial stress if you’re not careful with your spending. According to new research from Moneysmart, while 74% of people set a Christmas budget, only 29% stick to it. Many are turning to savings, credit cards, and Buy Now Pay Later (BNPL) services to cover their holiday expenses, which can lead to a post-Christmas financial hangover. If this sounds all too familiar, don’t worry—we’ve got you covered. With these simple tips and strategies, you can enjoy the holidays without the financial regret.

Set a realistic budget 

Before you start shopping, decide how much you can afford to spend. Break it down into categories like gifts, food, decorations, travel and entertainment. Track your spending to stay on target.

Be aware of using credit

Pay with cash or debit card and avoid using things such as credit cards and or buy now pay later that you can’t afford. If you do use credit products, stick to what you can afford to repay in full. Consider balance transfers to save on interest but be mindful of fees and repayment deadlines.

Monitor your accounts regularly

Keep an eye on your credit card and bank statements during the holiday season. Report any suspicious transactions to your bank immediately.

Be aware of bad deals or scams

Watch for red flags like “too good to be true” prices, limited-time offers pressuring you to act quickly, or poorly rated or unknown online retailers. Stick to reputable stores, and research sellers before buying.

Get help if you need it

If you’ve gone over budget, take proactive steps to regain control. Create a repayment plan for any debt incurred, prioritising paying off high-interest balances first.

Oliver's Insights - Australia's falling living standards - what's driving it and how to it

  • Falling real wages and a surge in tax and interest payments have led to a slump in living standards.

  • But a broader driver of the malaise in living standards has been a slump in productivity growth from over 2% pa in the 1990s to near zero since 2016.

  • Key policies to boost productivity growth include: tax reform; a cap on public spending as a share of the economy, deregulation; greater incentives to invest; and competition reforms.


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Oliver's Insights - Goldilocks stayed for 2024, but what's in store for investors in 2025

The key points are:

  • The main themes for 2024 were: better than feared growth; global divergence; more disinflation; falling interest rates but with Australia lagging; and more geopolitical threats but not as bad as feared. As in 2023, returns were strong.

  • 2025 is likely to see positive returns, but after the surprising calm of 2024, it’s likely to be far more volatile (expect a 15% or so correction along the way) and more constrained.

  • Expect the RBA cash rate to fall to 3.6%, the ASX 200 to rise to 8800 and balanced super funds to return around 6%.  

  • Australian home prices will likely see further softness ahead of rate cuts providing a boost in the second half of 2025.

  • Key things to keep an eye on are: interest rates; recession risk; a potential trade war; and the Australian consumer.

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Advice Evolution & Fintegrity Monthly News Update

Welcome to this month’s insights. In these articles, we explore tips and advice to help you tackle these important life stages with confidence and clarity. Read on to unlock valuable guidance that can help you move forward.

Navigating small business success: top questions answered with tips

Running a small business requires dedication, resilience, and adaptability. Along the journey, you'll encounter many questions and challenges. To assist, we've addressed five common questions from small business owners and provided actionable tips to help guide you.

Taking a break during the festive season

Numerous countdowns for Christmas and the New Year are everywhere, yet the festive season often arrives unexpectedly. This can lead to feelings of panic and being overwhelmed by the holiday rush. Such emotions can hinder what should be a time for introspection and rest before the new year begins.

Some helpful tips to save money this Christmas

Christmas brings warmth and cheer, but many people are feeling financially strained this year. As the holiday approaches, the need to buy gifts for friends and family is weighed against the current economic climate, leaving many with less money to spend on the gifts they usually give.

Mandatory cybersecurity standards under new laws

New laws in Australia, passed by the Albanese government, will enforce cybersecurity standards for smart devices and require some businesses to report ransom payments. This legislation establishes Australia's first standalone Cyber Security Act.

Investment markets and key developments – Weekly market update 22-11-2024

Despite geopolitical risks, high share valuations, and a declining equity risk premium, positive factors are supporting share markets. These include a "Goldilocks" economic environment, central bank rate cuts, strong earnings growth, and expectations of increased US fiscal spending. US stocks rose 1.7% last week, bringing their year-to-date gain to 25%. Australia's market increased 1.3%, reaching a record high but underperforming the US, with a 10% gain year-to-date. Eurozone and Japanese stocks fell. US 10-year bond yields held steady at 4.4%, while the US dollar rose nearly 7% since the election, pressuring the Australian dollar. Bitcoin is nearing $100K, fueled by expectations of a crypto-friendly US administration.