The all time lowest interest rates in Australia have made the investors to invest heavily in the residential estates. There has been a noticeable price rise in the real estate prices by up to 5 and 3.5 percent in Sydney and Melbourne respectively, over the last quarter. According to Robert Miller, MD BIS Shrapnel, there is an increase in the investor activity by 30 percent, as compared to last year. Continue reading
Jessica Winch and Steve Hawkes of the Daily Telegraph report a rise in energy bills of the British household by an average 9.2 percent. The changes are going to take effect from 23rd of November.
SSE hikes its prices
Scottish & Southern Energy (SSE) raised the gas prices by 8.4 per cent and electricity prices by 10.2 per cent. The price rise will increase the average annual bill of a duel fuel SSE customer from £1,354 to £1,460. That calculates to an annual rise of an average £106 to a British household. Continue reading
Reserve bank of Australia (RBA) did not change the October cash rate from 2.50%. RBA has kept the official interest rate unchanged, for two months in a row. Experts say that there will be no more cuts. It will either be the same or it will start to rise.
Reason for constant rate
In the RBA meeting held at its headquarters in Sydney, the board has decided to keep the rate at record low of 2.5% and was partly, because of the high house price in the capital cities. The house prices started to hike after the election and the annual increase in the price is 0.5% for the five mainland states per week, accounting to 5.7% housing price rise. Sydney experienced an 8.0 % increase and Perth has the highest rise of 8.8%. The least increase in house price is seen in Adelaide with 0.1%. Continue reading
US shutdown has started from Tuesday, due to the unsettled negotiation between the Republicans and the White House. The US government effectively shut down at midnight in Washington as the two parties did not reach a deal on extending the budget. How will this shutdown affect Australia? For Australia, the initial effect of this shutdown will be small but will cause a drastic effect, if the situation prolongs. Continue reading
The superannuation industry act of 1993 states that unless the parties are dealing on arm’s length terms, a trustee must not invest. A trustee can borrow from a member of the SMSF on a term of no arm length or more favorable to any other parties.
Low or no interest loan
The awareness of the zero interest loans is necessary for any superannuation savers with self managed funds. The zero interest loans are made by the SMSF trustee under a limited recourse borrowing arrangement. Continue reading
Canberra Times’ business columnist Elizabeth Knight recently spoke to David Jones boss, Paul Zahra, about the effect of online shopping on Australian retailers.
Zahra said that he believed Australian shoppers hadn’t yet fully realised they were paying more for their online overseas purchases and probably wouldn’t until they checked their monthly credit card statements.
Liberal MLA Giulia Jones has called for the ACT government’s small business loan scheme to be expanded to include stay-at-home fathers who wish to start a business.
The scheme provides micro loans of up to $3,000 for low income earners who want to start a business from home. It currently offers funding to a range of groups including women, young people, Aboriginal and Torres Strait Islanders, migrants and gay, lesbian, bisexual, transgender and intersex applicants.
According to the president of the Real Estate Institute of Australia (REIA), many small businesses are being held back by an inability to obtain adequate finance from lending institutions.
Peter Bushby said that research by the ABS showed around 20% of small businesses lack sufficient access to additional funds to grow their businesses.
Venture capital investors are now looking long and hard at the opportunities offered by new online lending platforms, which are springing up in opposition to the banks and traditional lenders.
One such US platform, Lending Club, has recorded more than US$2 billion in loans made to date, with others in the UK and Australia jostling for a position in this lucrative new marketplace.
A recent survey has revealed that over 50% of British SMEs (Small to Medium Enterprises) expect to grow in the next year, indicating that optimism about an economic recovery is starting to spread.
The survey was conducted by BDRC Continental and commissioned by a business finance taskforce, set up by the UK’s six largest banks.