Earlier this year we highlighted the impact the winding down of the mining boom was having on real estate in Port Hedland, Western Australia. Now the doom and gloom has spread across to the east coast. The latest town to experience serious property pain is Gladstone, Queensland. It has had some serious investment around port facilities and liquid natural gas plants, with money spent in the billions. At the same time property developers moved in build and capitalise on the expected demand for real estate. Things peaked for real estate back in 2013 though. Since then anyone buying on the…

Just some news to keep you all on your toes. Insurance Premiums on the Rise A client, who maintains an additional industry superannuation account, recently received a rude shock upon noticing a significant increase in insurance premiums being deducted from their industry account. Checking with their fund, they were advised they’d previously been advised of the increase – something they disputed. Unfortunately, the increased charges had been milking their fund and despite ongoing complaints, they were unable to have the unwanted premium increases reversed. Some insurance premiums within super have been increasing significantly this year, but generally you’d expect to…

You can save for a lot of things, but saving your way to prosperous retirement is near impossible. Historically (and this isn’t expected to change any time soon) unless you’re enjoying a truly significant wage and saving a massive amount of it, the conspiring elements of taxation, inflation and less than market returns will ensure your savings won’t meet your long term expectations – unless you’re intending to live like a church mouse. Yet despite all evidence pointing to the contrary, people still see cash as “safe” and investing is akin to “gambling”. A new survey by BlackRock of Americans…

Economic Overview The scale of China’s economic slowdown and the policy response to it were among themes that preoccupied global markets in the September quarter. On August 11, China devalued its currency by nearly 2%, a move that fuelled concerned about the success of China’s efforts in rebalancing its economy from investments and exports to domestic consumption. Given China’s substantial demand for iron ore, coal and other raw materials, concern about its slowdown was cited as one possible factor – alongside supply issues – in driving down commodity prices, resource stocks and related currencies like the Australian dollar. In the US,…

Have you ever made yourself suffer through a bad movie because after paying for the ticket or rental you just had to get your money’s worth? Some people invest the same way. Behavioural economists have a name for the tendency of people and organisations to stick with a losing strategy only because they have put so much time and money into it already. It’s called the “sunk cost fallacy”. Let’s say a couple buy a property next to a highway on the belief planting trees and installing double-glazing will block out the noise. Thousands of dollars later the place is…