🦘 Inflation Spikes To 2024 Highs, Luna Park For Sale, Housing Profits Soar to 14-Year High

G’day everyone!

Here’s what we’ve got in store for you today:

• Inflation Spikes To 2024 Highs

• Luna Park For Sale

• Housing Profits Soar to 14-Year High

Let’s have a look at the market snapshot before jumping into the news:

Inflation Spike Sets Stage for Possible Rate Hike

Brace yourselves, homeowners!

Inflation is soaring to new heights, hitting 4% in May – its highest level in 2024 – and it's setting the stage for a potential 14th interest rate hike from the Reserve Bank of Australia (RBA).

This inflation surge is beyond what economists predicted, leading to a stock market dip and the Australian dollar ticking up to US$66.7c.

Housing costs are climbing fast, with rents jumping 7.4% and home building costs up nearly 5%.

Plus, those electricity bills are not lightening any loads, rising 6.5%, while fuel costs jumped a hefty 9.3% compared to last year.

With the RBA wrestling these price hikes, households are feeling the crunch.

The next crucial update will come on July 31 with a quarterly inflation reading that could tip the scales on whether the RBA decides to raise rates.

Market bets show nearly a 50% chance of a rate hike in September, a huge leap from pre-data release levels. 

Treasurer Jim Chalmers is trying to downplay the spike, calling it part of a global trend, but Opposition spokesman Angus Taylor is throwing shade, blaming the government.

Economists are split: some, like Deutsche Bank's Phil O'Donaghoe, expect a rate hike unless inflation reverses dramatically; others, like RBC’s Su-Lin Ong, think holding back could protect jobs.

The RBA’s next move comes hot on August 5-6.

Whatever happens, it’s going to be a nail-biter for anyone with a mortgage. Stay tuned for more financial drama!

Sydney's Luna Park Up for Grabs: Iconic Theme Park Listed for $70 Million

Sydney’s beloved Luna Park is officially on the market with an asking price of around $70 million!

The iconic harbourside amusement park, which dates back to 1935, has been listed for sale by its current owner, Canadian asset manager Brookfield.

The sale is being handled by local real estate agency CBRE.

This isn't just any old piece of real estate. Luna Park is a landmark with a rich history and strong brand presence.

Simon Rooney from CBRE highlighted the uniqueness of this opportunity, noting that such trophy assets are rare finds in the market.

Luna Park has undergone significant transformations over the years.

CEO John Hughes pointed out that the park has seen a $40 million upgrade in the last four years, introducing new rides and experiences that have boosted visitor numbers.

This includes the heritage-listed Coney Island funhouse and the 3,000-capacity Big Top event venue.

Brookfield has owned Luna Park for two decades and has poured significant investment into its development.

Managing Director Ruban Kaneshamoorthy noted that as Brookfield shifts focus to other core assets in Australia, it’s time for new owners to take the reins and lead the park into its next exciting chapter.

So, if you’ve got a spare $70 million lying around and a love for rollercoasters, Luna Park might just be calling your name.

Who wouldn’t want to own a slice of Sydney’s cultural history?

Cha-ching! Aussie Housing Profits Soar to 14-Year High

New data from CoreLogic has revealed that housing profits in Australia have hit a 14-year pinnacle.

Key Points at a Glance:

• Record-Breaking Profits: Housing profits are at their highest level in 14 years.

• Winning Streak: Over 94% of the 85,000 properties resold in Q1 saw gains.

• Big Earners: The median gross profit stands at $265,000.

• Small Losses: Median loss for some was $40,000.

• Longevity Matters: Homeowners who held onto their properties longer (think decades) reaped the highest rewards.

• City Smackdown: Adelaide and Brisbane shine brightest, with a mere 1.6% of resales recording a loss. Meanwhile, Melbourne and Sydney saw higher loss rates, with Melbourne at 9.2% and Sydney steady at 8.4%.

• Perth’s Comeback: The Perth market has bounced back spectacularly, slashing loss-making sales from 43.8% in June 2020 to just 6.4% this March.

• House vs. Units: Houses are the golden geese, with 97.1% of resales making gains, compared to 89% for units. Median profit for houses? A cool $320,000. For units? $172,500.

So, what does this mean?

The Aussie housing market is riding high, with substantial gains for many sellers, especially in cities like Adelaide and Brisbane.

Meanwhile, Perth’s resurgence is nothing short of impressive.

Homeowners, it’s time to celebrate those golden bricks!

Westpac in Hot Water Over Closing Remote NT Branch

Westpac just got a wrist slap for abruptly shutting down a branch in Tennant Creek, a remote NT town, leaving 3,400 customers stranded!

The branch, 1,000km south of Darwin, was a lifeline for many, including elderly and non-English speakers who now struggle with online banking.

The Banking Code Committee (BCCC) wasn’t thrilled, saying Westpac’s slow response hurt vulnerable folks the most.

Everyday, about 30 people needed branch assistance, and the sudden closure in September 2022 hit them hard.

BCCC Chair Ian Govey called out Westpac for lagging in communication and support.

People got closure notices 21 days post-shutdown and backup staff arrived five weeks later - far from timely help.

Westpac cited safety issues like damaged premises and targeted ATMs for the closure.

They did send SMS alerts and posted notices but admitted they dropped the ball on extra support.

Now, under the heat, Westpac vows not to close more regional branches immediately and promises better customer support.

This saga still lingers, with CatholicCare NT stepping up to assist affected locals.

Westpac’s name is on the BCCC’s naughty list, as they publicly denounced the bank’s handling of the situation.

Here’s hoping Westpac’s pledges ring true and they avoid more hiccups in the future!

You Made It!

If you’ve read all the way up to here, we just wanted to let you know that you’re an absolute legend!

Time to go to work and show off how clued up you are about what’s going on in the business world 💪

Keep an eye out for tomorrow's newsletter. Until then, we’d love to get your feedback below!