Australian Property Mark forecast of 10 to fifteen% enhance (ABC News Breakfast interview)

At the global markets Aussie Futuresheading up the Dow ending the day down but take a look at that gold that isincredible that it shot through that $2,300 an ounce we might talk more about thatand uh get an understanding of what's going on with the gold price for more on finance we'rejoined by James Gerard from the financial advisor website James good morning to you can we talkabout house prices as well because you need a bucketload of gold to buy them these days andthere's suggestions that it might even be going up more that's right Lisa so Oxford economicsAustralia is predicting that house prices in most capital cities of Australia are going to go up by10 to 15% per year for the next 3 years and that's higher than the long-term average growth rate of7.5% and so the reason for these forecasts is due.

To the economics of demand and Supply so on thesupply side we're seeing an ongoing shortage of new houses despite the federal government wantingto increase the National Housing stock and on the demand side we're seeing strong buying from newmigrants and foreign buyers and that's filling the void left by domestic buyers who are a bitshell shocked at the moment with 13 interest rate increases over the past two years with theaverage home loan rate going from around 2% to over 6% today so based on all that um whatwe're seeing is that the house prices have been going up and we're seeing record numbers ofmigration into Australia over over 550,000 people have migrated to Australia and that's pushedproperty prices higher with Perth leading the way they're up 18% for their house prices overthe past 12 months and the forecast for Sydney.

Is for the average house price to be almost $2million in 3 years time and even though 35,000 people have departed Sydney over the past 12months there's been over 150,000 people from overseas that have settled in Australia so that'sled to the Sydney property Market increasing by 8% over the past 12 months and that's likely tokeep going up if interest rates come down later this year as predicted and local buyers come backinto the market yeah James extraordinary hey um we're apparently having to work longer as well newresearch from KPMG that's right Lisa so these days people are working an average 3 to 5 years longerbefore they're retiring so that means that we're retiring in our mid-60s on average compared toour early 60s 20 years ago and there's a couple of reasons for that so the first is that there'sbeen structural changes to our labor market which.

Means there's been less Reliance on manual laborwhich has enabled more people to continue working into later ages rather than have to retire due tohealth reasons and we've also had other reasons why people have been able to work longer there'sbeen strong labor market conditions and that's been supportive of older Australians workingand of course after Co and lockdowns we've had more flexible working environments with peoplebeing able to to work from home more and that's encourag people to work longer and when itcomes to retirement in general there's a few different dates and Ages which can be a littlebit confusing so previously you could retire at age 55 and access your super but that's now age 60and the age that you can access your super while you're still working is 65 and that's different tothe age that you can access the age pension from.

Center link which is 67 and just coming back touh people working longer I think that we've seen people work longer because if you retire at 60 onaverage you're going to live another 30 years into retire so people are probably working longer sothat they can build up a bigger nest egg and not potentially deplete all of their Savings in theirlifetime James we preface all our conversations with letting our viewers know they should seektheir own Financial advice on all these matters but we are getting into tax time uh what have yougot some tips for us to reduce tax absolutely Lisa so it's still that the same case one of the thebiggest uh tax tips is to salary sacrifice into Super uation when put money into Super you'renot paying up to 47% income tax your tax rate on that super contribution is 15% and up to 30%if you're a higher income earner over earning.

Over $250,000 so for this financial year the capis 27,500 and you need to remember that includes both your employer contributions plus your salarysacrifice so when you're trying to work out how much extra you want to put into Super you needto take into account that employer contribution and as an extra tip for people who have less than$500,000 in super and if they haven't maximized their super over the past five Financial yearsthey can go to the ATO portal inside of mygov and see how much they can catch up and make alumpsum super contribution pre-tax and that's really helpful for people who have big taxableevents such as selling an investment property or selling a share portfolio they can make thatcatch-up contribution to reduce tax but Lisa as you said this is all general information andpeople should seek professional advice before.

They Implement any contribution strategy wealways love your cont tions so James gerad thanks for having thanks for coming on Thankyou Lisa a 21-year-old man will appear in the

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