Which Sydney suburb has the highest rental yield? The average rental yield in the greater Sydney area is 2.8 per cent for houses and 3.7 per cent for units according to SQM Research. Some suburbs in Sydney are outperforming the average yield. For freestanding houses, the Lower North Shore area has the highest average rental yield at 3.5 per cent. South-western Sydney and Western Sydney have an average rental yield of 3.3 per cent per year. For units, the Sydney CBD has the highest average rental yield of any Sydney suburb with 4.4 per cent. The Hills District, South- western Sydney and Western Sydney have average rental yields on units of 4.1 per cent. Neobank Up Bank turns one with 135K customers. Australia’s first neobank brand Up Bank is one year old today. Up is a joint venture between South Melbourne-based Ferocia and Bendigo and Adelaide Bank. Up Bank has 135,000 customers, 250,000 accounts and $100 million in current deposits one year after launch, said Dominic Pym from Ferocia. Up added 100,000 customers over the last eight months following the inclusion of payments functionality in the Up Bank app in April. The average age of Up Bank customers is 27. Up is developing an international remittance function in the Up app with TransferWise. Big banks are more trusted than little banks. Australians “are not very trusting” of their banks or big companies in other industries according to new research surveying more than 2,000 people by Deloitte. 42 per cent of people “trust major banks to keep their money safe”, with regional banks, mutual banks, and superannuation funds generally less trusted. “Digital banks … were trusted by only 10 per cent of people, and distrusted by 29 per cent,” said Deloitte. “Technology companies have the lowest trust score, trusted by only nine per cent of people. Is switching banks too hard? New research from Deloitte shows that 20 per cent of Australians have switched at least one loan or banking product from one bank to another lender or financial institution in the last three years. Switching is not difficult for most products said the Deloitte report, “It’s not as difficult as people perceive. Once someone has switched, they realise it is not as difficult as they might have thought.” RAMS cuts home loan rates from today. RAMS has cut variable and fixed home loan rates, effective from today, 16 October 2019. RAMS’s variable home loan (Owner Occupier Principal and Interest) rate has been reduced by 0.15 percentage points to 4.86 per cent p.a. (comparison rate 4.92 per cent pa). RAMS’s investor variable rate (P&I) home loan has also been cut by 0.15 per cent p.a. to 5.37 per cent p.a. (comparison rate 5.44 per cent). RAMS has cut fixed rates as well with the two and three-year fixed rates now set at 3.39 per cent pa (comparison rate also 3.39 per cent pa). Rental yields in Sydney declining. Rental yields in Sydney have been declining for 10 years according to the latest Herron Todd White (HTW) residential investment report using SQM Research. Average rental yields for houses in Sydney fell from 3.7 per cent in August 2009 to 2.8 per cent in August 2019. Average rental yields for units fell from 4.9 per cent to 3.7 per cent over the same ten-year period. “As prices began to fall over the past two years, rental yields did not climb as expected,” said the HTW report. “Increasing rental vacancies put downward pressure on asking rents.” Credit card spending is declining. Spending on credit and charge cards increased by 1.1 per cent in August, the lowest monthly growth rate in 30 years, according to MWE Consulting. “We need to go back to 1989 to see a lower annual rate of growth,” said MWE’s Mike Ebstein. “Account balances also fell by 1.7 per cent, a new low.” In the 12 months to the end of August 2019 the number of credit and charge cards on issue fell by 3.3 per cent to 15.69 million in Australia. In 2017 there were more than 16.7 million cards on issue. Are credit cards still popular? The advent of ‘buy now pay later’ providers has contributed to the fall in credit card spending in Australia but debit cards are the real reason Aussies are turning away from credit. Debit cards accounted for 44.7 per cent of all card-based payments in 2016 and are now expected to overtake credit and charge cards with more than fifty per cent of annual spend before the end of 2019.” “The shift from credit cards to debit has lost no momentum over the last twelve years. Citi Australia, with a new range of retail and card deals was one of the few local card issuers to grow credit card balances in August 2019.