Economic & Banking - Your money

Bardon home sells for 13 million at ray white paddington inroom auctions

A young family from Brisbane’s southside snapped up this luxury home at auction for $1.3 million last night.

The two-level property at 138 Simpsons Rd, Bardon, has four-bedrooms and three-bathrooms.

Glynis Austin, of Glynis Austin Properties Ray White Real Estate said there were three listed bidders at the auction.

The starting bid was $900,000, Ms Austin said.

We had quite a crowd, actually about 120 people. Its an active neighbourhood.

She said it was the first home the husband had looked at and fell in love with it immediately.

He actually walked in, looked at his wife and said this is it, Ms Austin said.

He walked in and just loved it.

Seven properties were to go under the hammer at The Ray White Paddington in-room auctions, held at Darling & Co Paddington, but some had sold prior.

The home has a pool, large decks on both levels and city views with a north east aspect.

Brexit 2016 super funds are losing cash after uk vote

A LARGE slice of Australia’s super fund members are facing negative annual returns on their nest eggs amid turmoil on sharemarkets since Friday.

The shock Brexit vote, which caused a 3 per cent slide in Aussie shares, created further carnage in US, British and European markets yesterday morning.

More than 55 per cent of a typical balanced super fund option is invested in Australian and overseas shares, meaning the current weakness will drag down investment returns that previously were clinging to an annual 1-2 per cent gain for 2015-16.

However, super specialists say that people should not make a sudden decision to sell based on the Brexit turmoil, and instead see it as a long-term investment where negative returns are likely every five to seven years.

Balanced super funds have not had a negative annual return since 2008-09. About 70 per cent of Australians have their money in this option.

SuperRatings chairman Jeff Bresnahan said yesterday that people with balanced funds were likely to end up with annual returns between minus-2 and plus-4 per cent.

I think we will end up with the haves and the have-nots, he said.

We think balanced funds will eke out a positive return of about 1 per cent but it will depend on which fund you are with. For growth options, you will probably be just underwater.

US shares fell further than Australian shares following the announcement that Britain would exit the European Union. The Dow Jones index closed 3.4 per cent lower yesterday morning while the broader S & P 500 index dropped 3.6 per cent.

Londons FTSE shares index fell 3 per cent, and major European markets dropped between 6.8 per cent and 12.5 per cent.

You would like to think that Australian markets have reacted as far as they are going to, but who knows? Mr Bresnahan said. The 2015-16 financial year ends on Thursday.

BT Financial Groups general manager superannuation, Melinda Howes, said nobody knew what the end impact of the Brexit would be on investors.

Markets are an emotional beast and we really dont know how this is going to play out, she said.

Most people in their super are invested fairly heavily in equities, and where markets are volatile that will flow through to peoples account balances.

From where we stand now, we could be in for a negative year, but if I knew what it would do before the end of next week I would probably be a very wealthy woman.

Ms Howes said fund members worried about their super should speak to their financial planner rather than make a knee-jerk reaction. She noted that many of the people who panicked and sold during the Global Financial Crisis had missed out on much of the markets strong rebound.

Super is a very long-term investment and thats even the case for people in retirement now. Todays 65-year-old is likely to live to 92 or 93, she said.

Most peoples super fund statements tell them to expect a negative return every five-to-seven years for a balanced or growth fund.

AMP Capital head of investment strategy Shane Oliver said yesterday that many of Fridays falls were exaggerated because markets had climbed earlier in the week in expectation that Britain would remain in the EU.

While eurozone shares fell 8.6 per cent on Friday they only fell 2.6 per cent over the last week, he said.

Over the week as a whole US shares lost 1.6 per cent, Japanese shares lost 4.2 per cent, Chinese shares fell 1.1 per cent and Australian shares fell 1 per cent. Bad but not monumental.

Believe it or not, the British share market actually rose 2 per cent over the last week.