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Superannuation Concessional Cap Raised By $10,000

August 7, 2013

The salary you sacrifice will reap super dividends for you and more quickly so if you are nearing 60 or already over it, reports Noel Whittaker for “The Observer”.

The superannuation concessional cap has been raised from $25,000 a year to $35,000 a year. So what does it mean in practice? You know that your employer is expected to put 9.25% of your yearly salary into your superannuation fund.

For somebody earning $100,000 a year, this amounts to only $9,250 so additionally that employee can now put $25,750 instead of $15,750 (which would have been the case had the concessional cap remained at $25,000) into his super.

While the salary he sacrifices definitely reduces his ‘take home’ (short-term loss) but the boost his superannuation fund gets outweighs the loss in “take home’ as well as the taxes he needs to pay on the contribution.

In this regard, Transition to Retirement (TTR) pensions can also come handy.

You can read the original article here.

What To Do If You Fail A Property Settlement Date

July 17, 2013

Rob Balanda for the Property Update advises how buyers should act if a real estate deal fails being closed on its intended date of settlement.

In cases when you do not show up on the property settlement date, sellers get one-up on the buyers and often quote a higher price (let us say $100,000 more than the agreed amount). Buyers give in, fearful of the Breach of Contract nightmares. However, the best way to go ahead is to engage your solicitor.

Let the seller or his solicitor know about the delay (and purely banking reasons for it). In the event of their asking for a higher sum, politely refuse citing paucity of cash. Do so over phone rather than through a letter.

If they do not agree,lure them with the ‘deposit’ bait. Tell them that you are ready to free the deposit amount right then instead of paying at the time of settlement.

If they act fastidious, go one notch higher on negotiation- tell them that you are ready to increase the deposit amount (do not increase the amount more than the penalty they are seeking, in this case less than $100,000).

Your solicitor will invariably take care of the situation and you won’t need to cough up a higher purchase rate.

You can read the original article here.

Population Growth Has Triggered Housing Demand

July 10, 2013

Tim Lawless for the investment strategy blog “Property Update” reports that housing demand has hit the highest mark in the last 3 years. This has lot to do with annual population growth hovering near 1.75% for the last quarter of 2012.

Population growth has piggybacked on overseas migration and natural increase (number of deaths subtracted by number of births). Lawless says that it is the overseas migration which has contributed as much as 60% to population growth in recent times.

He also offers a state-wise report which suggests that Tasmania and South Australia have been backbenchers in terms of population growth while Victoria and Queensland are among the toppers.

The Federal Budget and changes in labour quota is expected to bring down the overseas migration, believes Lawless.

You can read the original article here.

Do you think that the interstate flow of migrants will increase for Sydney this year?

8 Tips To Boost Your Chances Of Success

July 1, 2013

higher productivity at office We are all good people but certainly not without our grey areas. When these “grey areas” overpower us we become less productive, one way or the other. Jeff Haden for the magazine Inc. tells us about the 8 must-avoid mistakes for achieving greater productivity.

Chinese Tourists Look Beyond Regional Hotspots in Australia

June 15, 2013

1423011_praia_do_bessa_-_joo_pessoa-pb A weakening Australian dollar has made it easier for foreigners to avail our tourist spots. Michael Yardney for the Property Update reports that the signals from global tourism had become frail in the light of a buoyant Aussie dollar.

However, the tourists are coming back in big numbers, now that the Aussie dollar is coming down in worth.

Chinese tourists are already showing very keen interest in visiting Australia and the tourist surge from its shores has pushed past the traditional toppers- Britain and Japan.

The Chinese middle class is finding more and more disposable income with them and they along with the Indian middle class are looking for more frequent holidays down under.

While this is definitely good news, we can witness a shifting trend here too. Unlike yesteryears, the holiday seekers, primarily the Chinese tourists, are not looking for regional locations and its surf and sail. Instead, they are eyeing the capital cities and an urban holiday scene.

Thus, it would serve well to look for holiday properties in the top capital cities and make money through them. For all you know, you may get the Asian tourists interested in investing in your property.

You can read the original article here.

Mid-market segment to benefit most in remainder of 2013

June 14, 2013

1415060_business_graph Sydney’s middling properties, ranging from $500,000 to $1.5 million, could benefit most in the year 2013. Larry Schlesinger for the Property Observer says that they could rise as much as 10% in prices, outperforming the First Home Buyer segment and the Prestige Market.

Sydney property market should overall exhibit a growth of close to 5%. Consumer sentiment sub-index for “time to buy a dwelling” has recorded a leap of 11.2%, closing at 142.7

There are three prime reasons for it

Buyer confidence at its peak since the GFC
Low interest rates
High auction clearance rates

All this should drive dwelling prices in mid-market segment higher.

You can read the original article here.

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