After 5 years analysing the rich, I found there are 4 paths to wealth

After 5 years analysing the rich, I found there are 4 paths to wealth

KEY POINTS

·        I spent five years interviewing millionaires, trying to figure out how they amassed their wealth.

·        After analysing my research, I determined that there are generally four paths to wealth, which often overlap: the Saver-Investor, the Big Company Senior Executive, the Virtuoso, and the Dreamer-Entrepreneur.

·        Almost anyone can be a Saver-Investor, but becoming a Virtuoso or a Big Company Senior Executive is harder and more risky.

The top 5 per cent of households in America reported $US197,651 or more in income in 2016, according to the Tax Foundation. This same top 5 per cent controlled 60 per cent of the nation’s wealth, according to the Federal Reserve Survey of Consumer Finance.

‘Confusing’ mortgage process affecting home purchases

‘Confusing’ mortgage process affecting home purchases

According to Aussie’s new Cutting through the Home Loan Crap report, of the 2,079 Australians surveyed by Lonergan Research between 28 June and 7 July 2019, 70 per cent of respondents described the home loan application process negatively.

More than two-thirds (68 per cent) of Australians stated that they had experienced a challenge whilst trying to get a home loan, with more than half (53 per cent) citing challenges relating to the application process itself.

Issues with the process included “a long, tedious process”, “too much red tape/paperwork” and “feeling unsure of which home loan was suitable”.

The best and worst performing suburbs in Australia

The best and worst performing suburbs in Australia

Australia’s best and worst performing suburbs of the past 12 months have been revealed. New data shows the hotspots that have completely bucked the national downward price trend and those that have borne the brunt of it.

The figures, released as part of Domain’s June quarter house price report, showed the Ballarat suburb of Mount Pleasant took out the number one growth spot in the country, its median house price having increased by a whopping 26.2 per cent in the 12 months to June this year, while Brisbane’s riverfront haven in the western suburbs, Chelmer, recorded a 25.2 per cent rise in its median house price.

There's never been a better time to refinance your home loan

There's never been a better time to refinance your home loan

There are 3 Key Indicators providing a compelling argument to support the contention there has never been a better time to refinance your home loan OR take out another one. Let’s consider them.

 

  • Historic Low Int Rates

  • Banks reduce sensitivity rate increasing the amount you can borrow

  • Home and Unit prices have begun improving

 

It was only 7 months ago when banks were raising variable and fixed rate home loans by as much as 0.30%; out of sync with official cash rates.

APRA bins buffer, let's lending rip

APRA bins buffer, let's lending rip

The Australian Prudential Regulation Authority has removed the serviceability buffer that required banks to assess all borrowers against their capacity to repay the loan at 7 per cent.

Under the new rules, banks will merely add 250 basis points to the rate paid in order to assess whether or not the loan is suitable for the borrower.

As interest rates have moved lower and lower, mainstream lenders have begun to offer fixed loans at rates as low as 2.99 per cent but borrowers were still being assessed against their ability to repay at 7 per cent or more than twice the available interest rate. Banks typically add another 25 basis points on top of the APRA hurdles.

Crack-up: What every apartment owner needs to know about defects

Crack-up: What every apartment owner needs to know about defects

Too few people are accountable for the quality of building work, say the professionals who assess the scale of problems.

 Brace yourself. Defect inspectors say the hundreds of apartment dwellers who were forced to evacuate three buildings in Sydney are just the beginning.

"All buildings across Australia have defects," says building inspector and facilities manager Lynda Kypriadakis.

On Wednesday, The Sydney Morning Herald revealed residents of 30 "loft" units at 19 Gadigal Avenue in Zetland have been unable to live in their homes for months: forced to leave due to water damage and a faulty fire prevention system.

SMSFs face new setback

SMSFs face new setback

Self-managed super fund members will next week face a new setback when NAB announces tough new controls on business property lending, despite offices, factories and surgeries being one of the sector's most popular investments.

The $726 billion SMSF sector is facing several challenges amid proposals to reform use of franking credits, restrict lending and impose minimum amounts for assets under management.

Small business is complaining about a new credit crunch as lenders clamp down following the Hayne banking commission

How to spot a perfectly managed apartment block

How to spot a perfectly managed apartment block

With consumer confidence in brand-new or off-the-plan apartments taking a hit after the Opal Tower crisis in Sydney, many potential purchasers are turning to established apartment blocks as a safer option.

 

Basically, you want a well-managed building: everything else flows from that. But how do you find this unicorn of an apartment block?

The obvious answer is to avoid the bad ones (duh!)