Territory Stories

The Northern Territory news Tue 6 May 2014

Details:

Title

The Northern Territory news Tue 6 May 2014

Other title

NT news

Collection

The Northern Territory news; NewspaperNT

Date

2014-05-06

Description

This publication contains may contain links to external sites. These external sites may no longer be active.

Language

English

Subject

Community newspapers -- Northern Territory -- Darwin; Australian newspapers -- Northern Territory -- Darwin

Publisher name

News Corp Australia

Place of publication

Darwin

File type

application/pdf

Use

Copyright. Made available by the publisher under licence.

Copyright owner

News Corp Australia

License

https://www.legislation.gov.au/Series/C1968A00063

Parent handle

https://hdl.handle.net/10070/250658

Citation address

https://hdl.handle.net/10070/554033

Page content

24 BUSINESS TUESDAY MAY 6 2014 NTNE01Z01MA - V1 Breaking the back of share buying Lower brokerage costs are making shares attractive, writes Sophie Elsworth INVESTORS dabbling in the sharemarket have enjoyed significant falls in their online brokerage costs. Some charges for online share trading have decreased by as much as 24 per cent in the past few years. Analysis by financial services firm Canstar shows the average brokerage costs for a $1000 trade has fallen from $25 in 2010 to $19 this year. In the same period, brokerage costs for trading $10,000 has fallen from $26 to $20 a drop of 20 per cent. CommSec general manager of distribution Brian Phelps says a growing number of people are becoming do-ityourself investors and turning to online to buy and sell shares. Weve probably got about 1.8 million accounts at CommSec at the moment, he says. Clearly they are not all active but thats how many accounts are open and we are opening upwards of 2000 accounts a week. Its the ease of use factor which is the main reason people do it online. Investors who dont buy shares online can opt to do so through a stockbroker or direct from a company through a public float. While stockbrokers are often considered to offer much more advice on what to buy and sell, online broking is becoming much more advanced. Phelps says CommSec has not moved its brokerage charges since 2002. It has sat at $19.95 for an internet-based trade up to $10,000. He says most of CommSecs investors are aged in their 40s and 50s. CMC Markets head of stockbroking Andy Rogers says during the global financial crisis, investors took a hit, and it is only recently that they have started to flock back to the market. This is the first year since 2009 that the number of frequent traders has increased, and thats for people making more than four trades per month, he says. That shows us clients are becoming more engaged and more active in the market on the back of excellent returns. Gut feeling must be in tune with your brain ROBERT Gils, the director of Wild Breads, says shares and property alternate as his favourite investments. What was your first investment and how did it go? A two-block land parcel on the Sunshine Coast for $8000 at the age of 20. It resulted in a 300 per cent gain within 18 months. What is your favourite type of investment and why? Dependent on the economy, my preference is property or shares, very rarely at the same time. About 90 per cent of my shares are blue chip, which usually returns a gain due to my preferred low-risk option. What is the best investment advice you have received and who was it from? It was from my traditional European father: If your gut feeling is not in tune with your brain then its not right for you. I invested six figures on a share transaction, immediately got cold feet and three minutes later I sold with a net increase of 10 per cent. Lesson learnt when four hours later the share reduced by 35 per cent. How do you approach investment risk? High returns equals high risk. My policy is conservative and Im happy with returns that reflect my investments. What has been your bestperforming investment? Property and shares equally. And the worst? Business is all about timing. I had a lot of external interference through a new venture, which resulted in my support withdrawing their financial backing. Where do you get your information about investing? Self research. Property is based on supply and demand. Shares are based on the forecasting of our top trading blue chip stocks. How would you invest $25,000 if you were given it tomorrow? Blue chip stocks and more than likely bank shares such as Westpac or ANZ. How do you feel about managed funds? Unless I have input, I am not interested. I prefer to take responsibility for my own decisions not anyone elses. How do you feel about investing overseas? If I do not understand it, so I do not take an interest in it. I dont speculate on the economies of other countries and companies that are outside the controls of the Australian regulations. Whats the most extravagant purchase you have made? It was paying cash for a toy, a CLK 500 Mercedes. Start saving today LOG ON NOW moneysaverHQ.com.au CRUSTY DEMON: Wild Breads director Robert Gils at his commercial bakery in Brisbane. Photographer: Liam Kidston YOUR INVESTMENTS Aussies share their financial stories Investing DEPOSIT WATCH TERM DEPOSIT RATES 90 days 1 year 2 years 3 years Institution $10,000 $25,000 $10,000 $25,000 $10,000 $25,000 $10,000 $25,000 ANZ 3.1 3.1 3.3 3.3 3.9 3.9 4.05 4.05 Bank of Queensland 3.6 3.6 3.65 3.65 3.8 3.8 3.95 3.95 bankmecu 3.3 3.3 3.5 3.5 4 4 4.1 4.1 Bankwest 3.6 3.6 3.7 3.7 3.85 3.85 4.1 4.1 Bendigo Bank 3.25 3.25 3.45 3.45 3.8 3.8 4.05 4.05 Citibank 3.6 3.6 3.65 3.65 3.75 3.75 4 4 Commonwealth Bank 2.4 2.4 3.2 3.2 3.1 3.1 3.95 3.95 CUA 3.4 3.4 3.85 3.85 4 4 4.1 4.1 ecu Australia 3.45 3.45 3.5 3.5 - - - Greater Building Society 3.55 3.55 3.8 3.8 - - - Heritage Bank 3.65 3.65 3.8 3.8 3.9 3.9 3.9 3.9 ING DIRECT 3.4 3.4 3.8 3.8 4 4 - ME Bank 3.7 3.7 3.9 3.9 4.1 4.1 - NAB 3.15 3.15 3.35 3.35 3.85 3.85 4 4 RaboDirect 3.5 3.5 3.65 3.65 4 4 4.1 4.1 St.George 2.9 2.9 3.35 3.35 3.9 3.9 4.05 4.05 Suncorp Bank 2.5 3.2 3.75 3.75 2.8 3.7 2.8 3.7 Westpac 3.15 3.15 3.3 3.3 3.6 3.6 4 4 ONLINE SAVINGS ACCOUNTS (no promotional/introductory rates) Institution Product Name Rate $5,000 Rate $10,000 Cheque Deposit Cheque Withdrawal Direct Credit Direct Debit BPAY RaboDirect Notice Saver 90 4.05 4.05 No No Yes No No Newcastle Permanent BS Online Savings Account 3.6 3.6 Yes No Yes No No Bankstown City CU MoneyMAX eMiser 3.55 3.55 Yes Yes Yes Yes Yes UBank USaver 3.31 3.31 Yes No Yes Yes No Delphi Bank Midas Account 3.25 3.25 Yes Yes Yes Yes Yes Qld Professional CU netsaver 3.25 3.25 Yes No Yes No No Rural Bank Online Saver Account 3.25 3.25 No No Yes No Yes RaboDirect Savings Account 3.2 3.2 No No Yes No No Rates current as at 1 May 2014. Source: infochoice.com.au BORROWING WATCH MORTGAGE RATES Institution Basic rate Intro rate Variable rate Monthly Repay (variable) Fixed rate Home equity rate Total fees1Yr 2Yr 3Yr 5Yr loans.com.au - - 4.54 $1,395.26 - - - - - $443 State Custodians 5.14 - 4.59 $1,402.38 - - - - 4.79 $682 UBank - - 4.62 $1,406.66 4.38 - 4.88 5.56 - $00-395 homeloanHQ - - 4.76 $1,426.73 - - 4.84 - - $1,029 Bank of Queensland 5.43 5.01v 4.87 $1,442.60 4.75 4.79 4.99 5.49 6.36 $150-745 CUA 5.32 5.02v 5.4 $1,520.32 4.89 4.89 4.89 5.5 5.9 $795 Greater Building Society 5.14 - 5.5 $1,535.22 5.09 5.29 5.54 6.04 5.85 Heritage Bank 4.99 - 5.64 $1,556.19 4.49 4.75 4.89 5.59 5.71 $700 QPCU 5.14 - 5.64 $1,556.19 4.89 4.94 5.09 5.75 5.84 $876 ecu Australia - 4.89f 5.8 $1,580.33 4.99 5.29 4.89 5.74 - $00-750 QT Mutual Bank - 4.90v 5.82 $1,583.36 4.89 4.89 5.19 5.59 6.12 $600 ANZ 5.18 - 5.88 $1,592.47 4.94 4.99 5.2 5.94 6.03 $600 NAB 5.23 - 5.88 $1,592.47 4.89 4.94 5.15 5.79 6.03 Commonwealth Bank 5.44 4.79f 5.9 $1,595.51 4.94 4.99 5.24 5.84 6.05 $600 Westpac 5.12 - 5.98 $1,607.70 4.99 5.04 5.29 5.99 6.13 $600 Suncorp Bank 5.41 - 5.99 $1,609.23 4.93 4.95 5.13 5.8 5.99 $600 Bendigo Bank - - 6.01 $1,612.28 4.99 4.94 5.14 5.79 6.11 $764-880 LOW RATE CREDIT CARDS (up to 12%) Institution Product Name Card type Interest rate Annual fees Free days Community First CU Visa Credit Card Visa 8.99 $40 55 Community First CU McGrath Pink Visa Card Visa 8.99 $40 55 Vic Teachers Mutual Bank Visa Platinum Credit Card Visa 9.99 $84 55 bankmecu Low Rate VISA Visa 10.14 $59 0 SCU Low Rate Visa Credit Card Visa 10.49 $30 55 ADCU Low Rate Visa Card Visa 10.99 $49 55 Select Credit Union Visa Credit Card Visa 10.99 $30 55 Virgin Money Low Rate Credit Card Visa 10.99 $99 44 Rates current as at 1 May 2014. Source: infochoice.com.au


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