Australian millionaires love real estate
It seems our wealthiest residents have a real thirst for property. The Asia-Pacific Wealth Report shows that Australian millionaires invest more in property than those from anywhere else in the world. The Capgemini and Royal Bank of Canada study found that rich Aussies put around a third of their cash into real estate while the global average is slightly less than a fifth. The level of investment in property has fallen though; last year it was 41 per cent compared to 33 per cent now. The number of Australian millionaires has also increased in the last year, largely driven by investments in property.
No increase in interest rates… for now
The Reserve Bank of Australia has released the minutes of its October board meeting and it’s good news for those with a home loan or about to get one. Interest rates are to stay low well into 2015. The current cash rate of 2.5 per cent has been in place for more than a year and has seen increased competition in mortgage rates as lenders battle to pick up business against the backdrop of increased prices. The RBA board is keen though that low rates should not mean that lenders reduce their standards which would increase exposure to riskier loans. The RBA also noted that high prices in Sydney and Melbourne were being driven by investors with home loans from owner-occupiers being overshadowed in the coming months.
Construction jobs increase this quarter
The Australian construction industry continues to increase with a quarterly report from Hays Construction showing new jobs in the sector are rising by the fastest pace in nine years. Although Sydney and the wider NSW area is leading the growth, Western Australia is also seeing significant demand for project managers in the building industry.
More of us believe the cost of living is higher
A survey shows an increase in the number of people who believe the cost of living in Australia is rising. The poll by Essential reveals that 72 per cent of respondents say the cost of living is higher now than it was a year ago with two-thirds saying electricity is more expensive despite the end of the carbon tax. Generally 44 per cent believe their personal finances have worsened. There is no specific information about home loan repayments although interest rates have reduced payments for many homeowners while the value of their homes has been increasing.
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