What to expect from the Australian property market in 2025
Residential real estate in Australia has shown resilience, recovering strongly since early 2023 despite recent minor price declines. The market is expected to experience a year of two halves in 2025, with a slower first half followed by increased activity as interest rates fall. Persistent high interest rates, affordability issues, and a housing supply-demand imbalance will continue to challenge the market. Strong immigration and demographic shifts will drive demand, particularly in urban centres like Sydney, Melbourne, and Brisbane.
An investor’s guide to potential U.S. policy changes in 2025
U.S. policies are set for significant changes in 2025 under full Republican control, impacting economic growth, inflation, corporate earnings, and interest rates. Key areas to watch include tariffs, immigration, taxes, and deregulation, with mixed effects on economic growth and inflation. Corporate earnings are expected to benefit from tax cuts, while higher long-term interest rates are anticipated. Immigration restrictions may slow potential economic growth, but deregulation could support increased business activity, particularly in the financial and energy sectors.
Howard Marks warns of market froth
Howard Marks highlights the potential for a market bubble, emphasizing the psychological elements of investor behaviour and the overvaluation of certain stocks. He points out the dominance of the “Magnificent Seven” stocks and their significant impact on market indices. Marks also discusses the historical difficulty of maintaining top market positions and the risks associated with high valuations. While he acknowledges current market exuberance, he stops short of declaring it a full-blown bubble, suggesting caution moving forward.
Q & A
- I’ve heard that when my children inherit my superannuation, they will have to pay tax on it. Is this true, and how does it work?
- I saw on the news that most markets are currently at all-time highs. Should I consider moving my superannuation into the “cash” option to avoid potential losses, and then reinvest once the market drops?
- My mother is 85 years-old and we are looking to move her into aged care. I’m worried about how we are going to fund it. What are our payment options?
