24 Oct 2019
Newealth Video: The bigger picture
- Posted by Dejan Pekic BCom DipFP CFP GAICD
21 Oct 2019
Market Metrics: Yield
- Posted by Dejan Pekic BCom DipFP CFP GAICD
Investment income has been comprehensively reduced since the 2008 Global Financial Crisis (GFC).
The income from growth assets (both rent from property and dividend from shares) has dropped.
The income from defensive assets (interest from bonds) has collapsed.
The facts are that if you had invested in term deposits over the past 40 years you would have missed out on one of the best growth asset return periods (property and shares) in Australian history.
WARNING, past performance is no guarantee of future performance.
This does not constitute Personal Advice and to discuss if this is appropriate for your given circumstances please do not hesitate to contact us directly.
Click for charts.
17 Oct 2019
The Wealth Report 2019: Ultra-High Net Worth
- Posted by Dejan Pekic BCom DipFP CFP GAICD
The numbers are spectacular.
You will meet the definition of Ultra-High Net Worth (UHNW) if you have over US$30m (AU$44m) in assets excluding your primary residence and Australia has and estimated 3,062 such individuals.
The United States has the most with an estimated 51,912.
Alternatively, you will meet the definition of High Net Worth (HNW) if you have over US$1m (AU$1.5m) in assets excluding your primary residence and globally we are about to reach 20 million such individuals for the first time.
Click for chart.
20 million is truly rarefied air when you consider that our planet hosts 7.53 billion people.
Click for The Wealth Report 2019.
3 Oct 2019
Market Metrics: Commercial Property
- Posted by Dejan Pekic BCom DipFP CFP GAICD
Cap rate (capitalisation rate) is the term used to indicate the rental return that is expected to be generated on commercial real estate investment property.
It is almost never used in reference to residential property.
The movement of cap rate over time is also used to give a direction on the price of commercial real estate investment property.
For instance, if the cap rate is falling then this indicates that the price of office, retail, industrial property is climbing and if the cap rate is rising then price of real estate investment property is dropping.
The attached research shows that the valuation of office, retail, industrial property has now stretched passed the 2007 high which was just before 2008 Global Financial Crisis and when cap rates where at their lowest this century.
We are not recommending buying or selling commercial real estate investment property. Instead we are pointing out the fact that it is not cheap.
Click for chart.
Importantly, the key thing to remember is that when fear and panic take hold, that is when an investor is presented with the best opportunity to buy more quality assets at reasonable or better still discounted prices.
