Edi­tor’s let­ter

Money Magazine Australia - - CONTENTS - Effie Za­hos, Edi­tor, Money magazine

It ap­pears first home buy­ers reckon now is a great time to make their move. The lat­est ABS hous­ing fi­nance fig­ures in­di­cate that first-timers ac­counted for 18.1% of owne­roc­cu­pier loans in June. Num­bers haven’t been this good since 2012. In­vestors, on the other hand, ac­counted for 41% of new mort­gage lend­ing in June, their low­est share in seven years.

While the Re­serve Bank hasn’t had to move rates to soften the mar­ket, other fac­tors have been do­ing this. And, as Ross Green­wood points out in his col­umn (page 72) , in­vestors are “be­ing di­verted to where – for now – there are bet­ter re­turns, namely the stock­mar­ket”.

First home buy­ers are cer­tainly no fools for jump­ing in. Last month, we saw our pop­u­la­tion hit 25 mil­lion – 33 years ahead of sched­ule.

As Money’s chief com­men­ta­tor, Paul Clitheroe, points out in his col­umn (page 10): “The long-term out­look for prop­erty is, as ever, all about sup­ply and de­mand. Those able to buy in this down­turn are likely to see a con­tin­u­a­tion of the past. Wealth and pop­u­la­tion are grow­ing rapidly. This will drive the next up­turn in years to come.”

Money didn’t want to wait too long so we asked the prop­erty ex­perts from Lo­ca­tionS­core.com.au to find the sub­urbs with the best growth prospects. Look­ing to 2020 and us­ing the nine key met­rics in their lo­ca­tion score al­go­rithm, they were able to scan over 15,000 sub­urbs and iden­tify 100 that are set to boom in five price brack­ets.

We hope this cover story takes some of the

guess­work out of pick­ing a prop­erty, or at the very least pro­vides you with a good start in your search.

On an­other note, as we were head­ing to the print­ers, the fee-for-no-ser­vice scan­dal hit $1 bil­lion in com­pen­sa­tion. It’s one thing to charge a mas­sive fee but quite an­other to charge some­thing for ab­so­lutely noth­ing.

On the fi­nal day of the two-week royal commission hear­ing into su­per­an­nu­a­tion, the banks were put on no­tice that they could face crim­i­nal charges. You can read more about this on pages 12 and 70, or you can do some­thing about it by mov­ing your nest egg away from the funds where the trus­tees, as Su­san Hely re­ports, can­not be trusted.

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