The Australian, Wealth – Gold report THERE are many ways to buy gold and unless you want some complicated financial instrument the Perth Mint pretty much offers all of them, despite the fact that it owns very little gold itself. “We don’t own any gold, or virtually none at all,” says Perth Mint treasurer Nigel Moffatt. The reason it doesn’t own much gold is that it either borrows at an interest rate of about 15 basis points, holds it on […]
Tag: Investment
Getting the lowdown on low-docs
From The Australian, Wealth: Ed Charles | August 29, 2007 Investors with low-doc loans should reassess them, MORTGAGE brokers are warning property investors to be careful which low-doc and non-conforming lenders they choose to ensure they don’t face interest rate increases over the market rate charged by mainstream banks. The combined effect of the Reserve Bank of Australia’s August rate rise of 0.25 per cent and the knock-on effect of the US sub-prime mortgage crisis means funding costs for non-bank […]
Loan gymnastics
The Australian — Wealth: With mortgage providers jostling for business in a highly competitive market, there is a loan to suit almost anybody, reports Ed Charles July 19, 2006 WITH low interest rates and competition among mortgage providers we are able to borrow more money than ever before to buy homes. In some cases it is possible to borrow four times one’s salary. The problem is that the median cost of a home in Sydney is 8.5 times the median […]
Which bank wants to sell you a package? Every bank
From The Australian: EVERY bank wants to sell you a package. The idea is that if, in addition to a home loan, they can sell you transaction accounts, credit cards, insurance and multiple mortgage accounts for investments they can make more money. And hopefully you can make more money too. This is the thinking behind professional packages which has been extended to the latest generation of portfolio loans. Portfolio loans are where wealth management meets packaged home loans. Typically, for […]
Hybrid markets: Raising the capital bar
After Orica’s success, it seems like hybrid capital raisings are driving the whole M&A market this year. CFO. 01 May 2006 The Australian stockmarket is at an all-time high. The mergers and acquisitions business is booming, and the boom is bringing a wave of new capital-raising to the market. But if 2006 is to be known for anything, it will be the year of the hybrid step-up preference security (SPS). The twist that has caught the market’s interest is that […]
Lucky country is unlucky for some
From IN THE BLACK May 06 Wherever you are in Australia houses are bloody expensive and have been for some time. State and federal governments have debated the issue and there has even been a Productivity Commission report. According to the Demographia International Housing Survey (using September figures) Sydney is the seventh most expensive city in the world to buy property, with the median house costing 8.5 times the median take-home pay. Still, at least you’re not living in Los […]
Next in line
From IN THE BLACK April 06 When it comes to succession planning, many business owners overlook the obvious: selling to their own employees. It’s the dilemma facing all ageing business owners. What to do with the company upon retirement? Many will choose a trade sale of the business. But few are thinking about a sale to their employees. The average age of a family business owner is 57. Over the next five years, more than 40 per cent of business […]
The Sheet: Big banks follow in Commsec’s wake
Also published in Crikey! as well as The Sheet. Commonwealth Bank’s stockbroking business Commsec may face a bigger challenge this year to its leadership of the online broking market as competitors Westpac and National Australia Bank market have upgraded online trading platforms. With listed company IWL buying Westpac’s online broking partner JDV last year, National and Westpac now both have the same company running the back end of their broking platforms. By 2007, Westpac and National will be operating on […]
In The Black: Space Invaders
Commercial property from the March edition. The insatiable demand for office space, especially in Perth and Brisbane, is completely out of step with supply. So expect steep rent hikes over the coming years.