This year is shaping up to be another volatile year for the share market, but financial experts say that there are positive trends that should prevent too much pain for share portfolios and super funds.
Prescott Securities shares specialist Travis Adams said that 2014 had been “a little bit frustrating” amid negative consumer sentiment. He said that 2015 would feature low interest rates, low oil prices and a low Aussie dollar. All these factors are usually good news for companies and their share prices.
Westpac chief economist Bill Evans said the RBA would cut rates twice this year to 2 per cent – starting next month – to” bolster domestic demand and lower the Australian dollar” before the outlook for the global economy became clearer. ANZ expects the cash rate to rise to 3 percent by December, more hawkish than the consensus forecast of rates being held all year at 2.5 per cent.
So far as real estate cycles are concerned, the majority of the country is an upswing. SQM Research managing director Louis Christopher said he expected that 2015 to be another positive year for residential property owners. Melbourne and Sydney had a great 2014 and one can see prices increasing in these two cities in 2015, but property price growth in these two cities wont be as good as 2014. the rest of the country can look forweard to a year which will be even better than 2014.
Sellers if you are planning on selling a property in 2015, it could be a good year for you. Firstly, the number of properties for sale is relatively low which puts upward pressure on the prices of properties that are for sale. Secondly, you should consider selling your property later in the year as property prices should be higher at the end of 2015 than at the beginning of the year.
Buyers, with limited property for sale, there is heightened competition for the properties that are on the market. One can expect many prospective purchasers at home opens and auctions. If you want to secure a property in 2015 one should plan and prepare. Go and see your bank and/or broker before you start looking for property so that you have an idea of how much you can borrow so that you can bid or make an offer with confidence.
The best news for investors is that interest rates will stay low in 2015 (or possibly fall further). If you have not yet fixed part of your mortgage on your investment property, you should seriously consider it.
Renters if you are going to be looking for a property to rent at the beginning of the year, join the queue. The rental market is at its hottest from mid-January to late February so make sure your application stands out from the rest of the crowd. Have all your paper work such as references, photo ID and employment details ready to give to the property manager/landlord at the first home open.
If you have any further queries about your personal financial or tax situations please do not hesitate to contact us at Fortis Accounting Partners.
