Posted in Wealth Creation

http://www.medicalfinancial.com.au/images/Market---Economic-update---01Nov13.pdf

Following up from our presentaion at last nights Investec evening a short message and a copy of the slides we presented:

5 Myths of Financial Independence - slides

An Interesting economic update as it applies to Australian residential property from RP Data. Whilst there are encouraging signs of recovery with clearance rates and valuations improving it remains patchy across the capital cities.

Historically low interest rates are assisting affordability and in turn activity but it will be interesting what effect the continued high household indebtedness has when interest rate settings are increased to more normal levels as the economy improves.

http://www.medicalfinancial.com.au/images/RPData_Capital_Markets_report_SPRING2013.pdf

We have been helping Registrars make smart financial decisions with their money since we set up in business in 2008.

As part of our ongoing commitment to provide financial education, we have condensed some of the key financial things that we beleive Doctors in training should be thinking about, which we attach in the link below:

http://www.medicalfinancial.com.au/images/Tips-and-Traps-for-Registrars---Sept-2013.pdf

We hope you find this information useful. If you do please let us know and share with your colleagues.

Michael Karagianis’s (Senior Investment Strategist at MLC Investment Management), attached report is an interesting update to his more detailed report published in July 2011. If you would like a copy of the original report please let us know.

What’s the outlook for Australia’s housing market?

Australian residential property valuations relative to the rest of the world give cause for concern considering the high personal debt levels of Australian’s.  At Medical Financial we have been speaking about these themes for some time and both RP Data and the RBA have expressed their concerns over the last 12 months. Michael concludes:

“In such an uncertain economic environment, many Australians should carefully consider the extent to which housing dominates their wealth. The current low interest rates make investing in residential property seem appealing, but people in or approaching retirement need stable income flows from their investments. Australian residential property isn’t likely to produce the same returns in future as it has in the last few years and is certainly not likely to produce particularly attractive rental yields. As a result it may be worthwhile considering a more diversified strategy.”