Apartments and multi-storey homes are about to get a little safer for children thanks to a rule change around windows in new buildings.

The Australian Building Codes Board has ruled that all windows in new homes and apartments that are more than two metres off the ground must be either fitted with window locks that stop the window being opened more than 125mm (12.5 cm), or must have reinforced screens to prevent children from falling from a height.

The changes will be included in the National Construction Code from May 2013.

The Australian Building Codes Board estimates that owners and builders will choose to fit 80 per cent of windows with locks, and the remaining 20 with reinforced screens. Its research priced window locks from $20 – $70 each, and strong screens from $130 a square metre, putting the average cost of a suitable screen at $130.

Ron De Vere, a project manager with the Australian Building Codes Board, says the decision was made after wide consultation with industry, and with fire authorities across the nation.

De Vere said an economic analysis that took into account the cost of installing locks and screens versus society’s cost of treating children who had fallen from windows showed that the broader cost-benefit of the changes was around zero.

However, "the board was swayed by the risk to children and the danger of children falling out of buildings", he says. "It’s a bit like the pool safety issue, the child drowning … the value of a child’s life is so crucial."

Danny Cass, a professor of paediatric surgery at the Children’s Hospital Westmead, has welcomed the changes saying the recognition that children could access windows and easily climb or fall out of them was a win for commonsense.

"Before, they thought a kid couldn’t climb that high but … they often pull things up to it, or beds are placed next to it," Cass says.

Just a like a pool safety fence though, children will only be protected when adults remember to lock the windows and check that the reinforced screens are in good order.

The board backed away from an initial proposal to mandate window guards for windows two stories or above in all domestic dwellings.

It also a decided against that a proposal to increase to one metre the minimum floor-to-sill height of openable windows in rooms that are four metres from the ground outside.

The minimum floor-to-sill height will effectively remain at 865mm as the current provisions require a barrier of 865mm be in place to any openable window that is more than four metres from the ground, and it is common practice to place the bottom of the window at that height, using the wall itself to create the barrier.

The floor-to-sill height requirement will remain even where a lockable or removable device or screen is in use – in case the device or screen is inadvertently unlocked or removed. However, the minimum height from ground level at which the window-to-sill or barrier rule comes into play will drop from four metres to two metres after evidence showed serious injury can happen when a child falls from just two metres.

The changes will come into effect from May 2013, a timeframe the board says will allow industry to prepare for the changes.

An average of one child a week is taken to hospital in Australia after falling from a window. According to figures from the Children’s Hospital Westmead, 80 per cent of children who have fallen from a window have significant injuries, and four out of five children who fall from windows are aged under five. For information on keeping your kids safe near windows, click here.

Cass says the next challenge is making windows in existing housing and apartment stock safer for children. Cass is part of a working party on child falls at the Children’s Hospital Westmead. The group will meet again this month to explore further recommendations for existing properties.

Story by Carolyn Boyd, source: www.domain.com.au

As we head into 2012 pondering where the housing market is headed – will it be down 10 per cent as some commentators are expecting, or will others be on the money with predictions of 5-7 per cent growth – there is some interesting news emerging about home loans.

Out today are figures showing mortgage holders are increasingly being lured by fixed rates.

Despite predictions about one, two or even three rate cuts coming over the next six months, a growing number of homeowners are locking in their rates now. Data from the Australian Bureau of Statistics shows fixed loans grew from 10.6 per cent of new housing loans before the most recent rate cut in November to 11.1 per cent.

And mortgage broker AFG reveals that 19.2 per cent of loans arranged through its business in December were issued at fixed rates, a big jump from 8.2 per cent six months earlier.

An odd move you may think given all the predictions are for official rates to fall further this year. But CommSec economist Savanth Sebastian argues people are simply getting in at what they can afford.

“It’s more about ensuring you can purchase a place within your budget and within your limits," he says. "While the risks are to the downside [for rates to fall], I think the fixed rate market has already priced in a couple more rate cuts,” he says.

In addition “even though the Reserve Bank will cut rates, the banks need to pass it on. So the fixed market is looking very attractive, not only do you need a couple more rate cuts [for variable rates to match fixed] but you need it all to be passed on as well to justify where the fixed market is.”

Many homebuyers may also be wary that should there be a swift change in the economy, rates can easily shoot back up. 

“We saw straight after the GFC how rates rose, it certainly would have caught some home buyers that were on the edge in terms of repayments, so at least this way they can sleep easy,” says Sebastian.

Further news on the home loan front could point to a slightly more positive year for property than last, where we saw prices fall across the board. Australian Bureau of Statistics figures have revealed that the number of new owner-occupier housing loans rose by 1.4 per cent in November while the value of loans rose by 2.2 per cent.

However, home loans aren’t being drawn down – rather potential buyers are simply getting their finance sorted and sitting back and waiting until the right time to buy.

So while for the past eight months there’s been consecutive jumps in the number of home loans being approved, in November the value of loans that had actually been drawn down was two per cent lower than a year ago, and commitments not advanced were almost 11 per cent higher than the previous year.

With all the concern about the state of the US and European economies, it’s little wonder buyers have been taking a cautious approach.

So just what will entice all these cashed-up potential home buyers to jump? Could a February rate cut be enough?

CommSec’s Sebastian thinks so. “Even the thought of rate cuts should prompt activity levels to increase over the next few months,” he says.

Story source: www.domain.com.au

New home sales jumped in November in response to the Reserve Bank’s interest rate cut.

The sales of new homes rose 6.8 per cent in November, following a downwardly revised increase of 2.8 per cent in October, according to the Housing Industry Association – Jeld Wen new home sales report.

While detached house sales surged 9.8 per cent, apartment sales slumped 17 per cent, HIA said today.

“Interest rate cuts, both those we’ve had and those that are still warranted, provide a … catalyst for a sustained and strong recovery in new home building conditions,” said HIA chief economist Harley Dale.

The Reserve Bank in November lowered the interest rate to 4.5 per cent from 4.75 per cent, in response to increased concerns about the European sovereign debt crisis slowing the global economy and hurting Australia’s growth.

It was the first reduction since April 2009. In December the RBA cut the key rate by another 25 basis points.

Capital city home values also posted their first monthly rise in 2011 in November, edging up 0.1 per cent seasonally adjusted, according to RPData.com.

For the year to November, however, capital city home prices fell 3.5 per cent.

"This is a healthier but not unexpected result," Dr Dale said.

"With falling interest rates, a competitive building market, and a greater availability of skilled trades amidst still very soft overall demand conditions, now is clearly a good time to build a new home for those who are financially set to take that decision.

“There is, however, a long way to go to restore new home sales volumes to acceptable levels," he said. "At present sales volumes are running at least 20 per cent below what you could conservatively call
healthy."

Sales soar in NSW

The volume of detached house sales soared 22.8 per cent in New South Wales and 11.6 per cent in Victoria. They also rose 5.7 per cent in Western Australia and 4.7 per cent in Queensland. In South Australia they fell 11.3 per cent.

Mr Dale said a full recovery in housing activity wouldn’t emerge unless the government offered well-targeted stimulus and began to reform housing planning policy to cut the barriers to new housing supply.

Measures of growth in the construction sector show that it remains under pressure, as households borrow less and real estate prices keep housing out of reach for would-be buyers.

The Australian performance of construction index for December, released today, remained under the 50 point level separating expansion from contraction for the 19th straight month even as the index rose by 1.4 points to 41 in December, helped by the resources-related construction.

Australian Industry Group director of public policy Peter Burn said the two-speed economy was visible in construction data, with "a clear divide between the expanding engineering construction sub-sector and the still-contracting commercial and residential construction sub-sectors".

House building fell 5.7 points in December to minus-32.9.

"The increased pace of contraction in the house building sub-sector in December remains deeply concerning,"  Mr Burn said.

Story by Chris Zappone www.domain.com.au

AUSTRALIAN housing markets displayed a generally resilient performance in 2011, reflecting the inherent security of residential real estate in this country, particularly when compared with housing markets in similar open-market economies.

The year was always set to be a period of correction for Australia’s housing markets following the unsustainable growth in house prices recorded through 2009 and 2010.

Between January 2009 and June 2010, Melbourne’s quarterly median house price rose by nearly 30 per cent, with Sydney’s up by almost 20 per cent over the same period. All other capitals also recorded big rises in house prices over those 18 months.

Housing affordability crashed by the end of 2010, with surging house prices and rising interest rates combining to send buyers into hibernation.

Australian Property Monitors data has revealed that capital city housing markets have generally performed encouragingly in 2011 despite the pressure on housing affordability generated in 2010 and a mixed economic performance in 2011.

The national median price for houses over the year to October 2011 fell by just 1 per cent compared with the previous year, with median unit prices rising by 1.2 per cent over the year. The 2011 result follows a 17 per cent rise in the national median house price over the year to October 2010 and a 12.2 per cent rise in the median unit price over the same period.

The best capital city performers were Melbourne and Sydney, where annual median house prices rose by 1 per cent. Darwin and Adelaide house prices were flat and Hobart down 1.5 per cent.

The worst performers over the year were Brisbane and Perth, where annual median house prices fell by 3.5 and 4.75 per cent respectively.

The unit market clearly outperformed the housing market over the year to October 2011, with Sydney recording median unit price growth of 2 per cent followed by Melbourne and Darwin up by 1 per cent. Brisbane and Perth were again the underperformers, with annual unit prices falling by 1.3 per cent and 3.5 per cent respectively.

Bureau of Statistics data confirms the solid performance by Australian housing markets in 2011, with the number of owner-occupier housing loans rising by 2.4 per cent over the 10 months ending October compared with the same period in 2010.

New South Wales was the best performer with an increase of 8 per cent, with Western Australia surprisingly in second place with growth in home loans of 7 per cent over the year, courtesy of a surge in the past three months – indicating perhaps growing late-year momentum in that market.

By contrast, the number of home loans approved in Queensland in the year to October fell by 8.4 per cent compared with the same period in 2010.

The nature and strength of Australian housing markets in 2011 was always to be determined by the underlying supply and demand characteristics of individual markets and the strength of national and local economies.

In addition to the affordability barriers created by the prices surge and interest rate rises of 2009 and 2010, housing markets have had to encounter unexpected headwinds in 2011. The impact of the central Queensland and Brisbane floods was not restricted to the local housing markets. National economic output was affected through reduced coal exports and the cost of the reconstruction levy. Higher prices for fruit and vegetables also affected household budgets nationally.

The impact of catastrophic natural disasters on the national psyche and confidence cannot be underestimated, particularly given Australia’s recent propensity for financial conservatism, especially when it comes to buying or borrowing.

The Japanese earthquake and associated tsunami in March also contributed to lower economic growth and reduced consumer confidence.

Stalling economic growth in 2011 was also a product of continued mixed performances by various industry sectors, particularly retail, manufacturing, tourism and construction. As a consequence, all capitals recorded rises in unemployment through mid-year. All these factors combined to subdue consumer capacity and confidence and consequently dampen home buying activity through 2011.

Most Australian capital city housing markets are, however, set to record growth in median prices over 2012 as the national economy gathers strength. The Australian economy is primed to expand strongly on the back of a significant resources boom with the Organisation for Economic Cooperation and Development predicting gross domestic product will increase by 4 per cent over the year.

Melbourne, Adelaide and Hobart will be the underperformers in 2012, with median house price growth of between zero and 5 per cent.

Melbourne’s balanced housing supply and demand mix offers buyers a wide choice and it remains the most tenant-friendly capital city rental market. Affordability barriers, however, remain for home buyers.

With the Victorian economy showing signs of running out of puff, particularly as the recent construction boom abates, the housing market is set to drift sideways though 2012. The possibility remains of some growth in median house prices by the end of 2012 as the impact of a strong national economy filters through.

Dr Andrew Wilson is senior economist for Australian Property Monitors.

Source: BusinessDay

www.news.domain.com.au

If you’re a parent, you likely have several giant bins filled to the brim with toys for your little ones. And with Christmas (ho ho ho!) over you’re likely to have gotten toys in all shapes and sizes.  And while I’m no bah humbug, the relative size of our children’s toy boxes has become incredibly large given their small stature, and the environmental problems are equally ill-proportioned:

• Mountains of trash: Of the 40 million toys thrown away annually, 13 million are put into the rubbish according to green living website www.ecolife.com.
• Difficult recycling: Because toys are made from many different materials – plastics, metal, glass, computer components, and more – they are incredibly difficult to recycle and in many cases are not accepted by recycling facilities.

Once Christmas is over, we try to keep the toys under control (as well as our carbon footprint) by having a post-Christmas clean-up and getting rid of toys that haven’t been used or the children have simply grown out of.

Donating used toys to a good cause can be one of the most effective ways to recycle toys. Not only does this prevent garbage from being sent to landfills, it provides a second life for your used toys, which means the materials will go on functioning for many months or years to come. The sky’s the limit when it comes to donating used toys – use your imagination to find a person or charity who could use your second hand toys:

• Children’s charities
• Children’s hospitals
• Churches
• Day cares
• Family members
• Friends
• Neighbours
• Playgroups
• Thrift shops like those through St Vincent de Paul or the Salvation Army

Not all toys can be donated to charities for various health and ethical reasons. To ensure that your toys have the best chance of being given away rather than trashed, consider these toy donation guidelines:

• Toys should be nontoxic
• Ensure that the toys are clean and are not missing parts
• Broken toys are unlikely to be accepted, especially if they pose a choking hazard
• Avoid toys with a religious theme unless you’re donating to a faith-based charity
• Toys that require batteries are not as suitable for donation as they will require the parents of the child to purchase batteries (which may be out of their budget)
• Toys made from things like fabric, cardboard, paper, and other absorbable materials are often rejected as they are difficult to clean and disinfect

In addition to donating used toys, there are many ways you can recycle toys so that they don’t end up in the landfill:

• Contribute to a toy library: Some communities have toy libraries that are like book libraries – you can check toys in and out so that your child is never bored with their personal stash. Each toy library is unique to the local community, so the best way to find one in your area is to do a search online for your city/town name + “toy library.”
• Sell or trade: Sometimes a toy is too valuable to simply give away, in which case you could try to sell it.
• Recycling centers: Some communities have set up recycling programs for large plastic toys and metals toys as well, though you will need to call ahead to determine your recycling centre’s toy recycling policy.
• Deconstruction: If your recycling centre will not take your toys as is, sometimes you can dismantle them yourself to recycle the various components, such as the paper, cardboard, metal, and plastic which can then be put with other recyclables of the same kind. Cardboard and paper components can also be composted.

If you have any good ideas for what can be done with second hand toys we’d love to hear from you.

Source:  www.ecolife.com

Read more on how to be green at www.yonderr.com.au

Ongoing discount loans lose momentum

Borrowers’ preference for fixed rate home loans is continuing at an unrelenting pace regardless of recent cash rate cuts, national loan approval data from Mortgage Choice has revealed.

Fixed rate loans accounted for 24% of all new home loan approvals during December 2011, up from 21% in November and well above the 12-month average of 15%. Demand for this loan type has risen for seven consecutive months, increasing 13 percentage points since May 2011.

Company spokesperson Belinda Williamson said, “Consecutive cash rate cuts in November and December 2011 have not swayed Australian borrowers’ desire for fixed rate loans.”

“It is possible borrowers’ need for certainty around their home loan repayments, coupled with the affordability of fixed rate loans are the driving forces behind demand for this loan type.

“During December fixed rates were significantly lower than variable rates, in some cases the difference was one percentage point or more.

“Our loan data shows fixed rates are now more in demand than they have been in over three and a half years at the expense of variable rates, which have lost popularity among new borrowers.

“Customer demand for variable rate loans fell from 79% to 76%, well down on the 12-month average of 85%. The most popular variable rate home loan with new borrowers, ongoing discount rate loans, slipped from 44% to 41%, also well below the 12-month average of 35%.”

Basic variable loan demand rose marginally to 15% of all approvals in December, up from 14% in November while standard variable loan demand fell slightly to 16% from 17%. Interest in line of credit loans dropped to 3% from 4% and the uptake of introductory rate loans was steady at 1%.

For more information visit: www.mortgagechoice.com.au

While swimming is a great form of exercise, the downside is that pools require vast amounts of water. Just to fill the average backyard pool takes 50,000 litres – and that’s roughly one third of the water used by an average person in a year.

Even more water is needed for regular top-ups. All up, a home with a pool uses 10 per cent more water than a home without a pool.

But surprisingly, water isn’t the only conservation concern – swimming pools are energy intensive too. According to the NSW Government, running a pool pump will increase your household energy use (and your carbon footprint) by 17 per cent and that’s not including energy needed for pool heating.

So does this mean we should fill in our swimming pools? Has the backyard pool become an extravagant luxury this planet can no longer afford? While we can argue back and forth on the pros and cons of a swimming pool there are a number of ways to cut down on pool energy and water use.

Slash water wastage

An uncovered pool can lose up to one-and-a-half times its total volume in one year through evaporation. In Sydney and Brisbane, rainfall can come close to replacing half the evaporation, assuming that it falls at the right time and in the right amounts so the pool doesn’t overflow. Yet in a dry city like Perth, rain compensates for only 10 per cent of the water lost.

There is one really simple way to save water – invest in a pool cover and reduce evaporation by up to 97 percent. For an outlay of $500 – $1,500 you can purchase a cover that will also prevent heat loss at night, thereby extending the swimming season and saving on heating costs.

As an added bonus, covers also keep leaves and dirt out of the pool and reduce the evaporation of the chemicals used to keep the pool clean.

The type of filter you use can also make a big difference to water efficiency. Sand filters can waste up to 15,000 litres of water each year because they require backwashing to clean the filter. Cartridge filters, on the other hand, can be cleaned with a quick rinse from the hose, saving water and reducing the amount of pool chemicals dumped into the sewer.

Finally, make sure you have no leaks – one drip per second adds up to 7,000 wasted litres a year.

Top up with rainwater

No matter how vigilant you are at preventing water loss, the pool will need an occasional top-up. A simple idea is to attach an inexpensive rainwater diverter to a downpipe to direct water into your pool. Some models on the market can also prevent the first flush of leaves entering your pool.

Just bear in mind that during a large downpour you may need to divert the flow back to the stormwater to ensure the pool doesn’t overflow. A better but more expensive solution is to install a rainwater tank so you can store water for when you need it.

Create a zero-emission pool

It’s an expensive exercise to operate your pool pump continuously – just running it for eight hours a day will cost about $650 per year and emit four tonnes of greenhouse gas emissions.

The solution is to purchase a solar pump that will cost nothing to run.

Many pool owners like to extend the swimming season by heating their pool – but how do you avoid puffing more greenhouse gases into the air? The answer is to go solar.

If your roof is unsuitable, a heat pump is another greenhouse friendly option. Heat pumps work by absorbing heat from the air and transferring it to stored water – a bit like a reverse refrigerator. While they use electricity, the amount required is tiny. Traditionally used for household hot water they are now available to heat swimming pools. Since warm water evaporates faster than cold water it’s even more important to cover a heated pool – it will also reduce heat loss.

Also crucial for optimum operation is an easy-to-install solar controller that monitors and regulates water temperature.

Cut down on chemicals

Pools use rather a lot of nasty chemicals – of which chlorine is the most significant. The concentrated liquid form of chlorine, sodium hypochlorite (or bleach), is extremely corrosive and regarded as highly toxic by the US EPA. For these reasons it should be securely stored and kept out of reach of children. It is acutely toxic to aquatic organisms, which is another reason to avoid sand filters, which create high volumes of chlorinated backwash.

The need for chlorine can be minimised through your choice of water treatment system. UV and ozone systems cut down the amount of chlorine needed by 70 to 80 per cent, and ionisers also reduce the need for chlorine.

Salt chlorinators have the advantage that you don’t need to handle chlorine although you’ll still end up with sodium hypochlorite in the pool solution.

You can also reduce chlorine use by keeping your pool clean and preventing its evaporation with a pool cover. Avoid locating plants that drop their leaves close to the pool and ensure filters are cleaned regularly. To avoid chemicals altogether consider a natural swimming pool.

The upshot?

Pools may be an unparalleled summer luxury – let’s face it, there’s nothing quite like a midnight dip on a hot summer night – but they are certainly not the eco-friendliest addition you can make to your backyard.

If you are going to have a pool, there are ways to make yours the greenest in the neighbourhood. With rainwater and solar power, you can reduce your pool’s impact to near zero.

Of course, for those of us lucky enough to live near the sea, a river, lake or mountain stream, nature provides the greenest swimming pool of all.

Read more here.

Story source: www.yonderr.com.au

At Lois Buckett Real Estate we take pride in taking care of our clients and it is always heart-warming to recieve testimonials confirming that we are doing the right thing. Below are 2 of the more recent ones that were recieved in both our Sales and Rental departments.

For Elise Benson – Sales Consultant:

I have been meaning to put fingers to type and send you this email to express my personal appreciation and satisfaction at having had Lois Buckett Ral Estate manage the sale of our father’s property in Ballina Headlands Leisure Park. Particular mention though must go to the lovely agent Elise Benson who has been with us all the way from sign-up of sale.

I have bought and sold a few homes in my time and I can honestly say it was a real pleasure having Elise as our agent. Elise’s honesty, integrity and determination has made her stand out to me as an agent who is prepared to go that “little bit extra” for her clients than any other agent I have had business associations with.

I believe that word-of-mouth advertising is far more penetrable than any other form of marketing, and having  received the positive and professional service I have had from Elise over these few months, I have had no hesitation in referring her, or your agency to anyone interested in selling or buying properties in your area.

Once again, thank you Elise for your dedication and sensitivity in our sale, and for the little “extras” you deliver – it makes all the difference!

I wish your agency and Elise every success for the future.

For Simon Rawlins – Leasing Manager

Having recently rented at Pacific Parade Lennox Head, I am writing to inform you on our most pleasant experience of dealing with Simon Rawlins.

His service, demeanour and diligence was wholly appreciated and a true credit to your company. Due to work commitments, Simon’s expediencey saved myself and, in particular my pregnant wife, from the stress associated with finding a new home to live in.

We only too gladly recommend your company to all we meet and look forward to having a productive, positive relationship with you in the future.

Congratulations and keep up the great work!!!

Home loans by value fell in October and remained flat over the year, suggesting the housing sector remains stagnant.

The Australian Bureau of Statistics (ABS) said on Monday that total housing finance by value fell 2.5 per cent in October, seasonally adjusted, to $20.458 billion.

The ABS data also showed that the value of home loans was largely unchanged from October 2010, when it was reported at $20.593 billion.

The number of home loans approved in October 2011 rose 0.7 per cent.

National Australia Bank chief economist Robert Henderson said Monday’s data showed the housing market was still deteriorating.

Mr Henderson said it was a fairly dismal report on the housing market, with falling lending in value terms and construction and investment lending both weak.

Recent data, including the national accounts figures released last week, have highlighted the weakness of the housing sector.

"It is clear that over the foreseeable future Australia will fall well short of building the number of new homes required for both owner-occupiers and renters," Housing Industry Association chief economist Harley Dale said.

"Amidst the growing risks to our economy from the situation in Europe, now is the time to be providing stimulus to the new home building sector while at the same time reinvigorating the housing supply reform process, which currently lies dormant."

Commonwealth Bank of Australia senior economist Michael Workman said Monday’s ABS figures were a little softer than he expected.

"If you go back and look at the data over the last 15 years or so, housing credit growth still remains exceptionally weak.

"So, for the housing market, it’s strongly biased towards the buyers rather than sellers and it looks like it’s going to stay that way."

Mr Workman said the Australian dollar and local bond futures were largely unaffected by the data.

RBC Capital Markets fixed income and currency strategist Michael Turner said the October housing figures were a little dated.

"China has already reported trade data for November, and the finance data do not reflect the November and December (monetary) policy easing (in Australia)," he said.

"As such, there are limited implications for markets.

"We expect more timely domestic data to better reflect the softening in global growth in coming months, which should justify further easing (of interest rates) and a move to accommodative territory in 2012."

ICAP senior economist Adam Carr said the housing data showed the Australian lending market was recovering even before the Reserve Bank of Australia (RBA) cut interest rates.

The cash rate is now at 4.25 per cent after two consecutive 25-basis point cuts in November and December.

"The 50-basis points worth of cuts we’ve seen will likely see lending growth accelerate over coming months, which will start to add to the strong private demand numbers we’ve seen to date," Mr Carr said.

Story source: www.ninemsn.com.au

Economists are divided on whether borrowers will get a second interest rate cut in as many months on Tuesday.

Seven of the 14 economists surveyed by AAP say the RBA will cut the cash rate to 4.25 per cent from 4.5 per cent on December 6.

On Melbourne Cup day, the Reserve Bank of Australia (RBA) cut the cash rate from 4.75 per cent, saying that recent information suggested inflation had been contained.

With inflation no longer a problem, the bias for the RBA is now firmly leaning towards rate cuts, with 10 of the 14 economists forecasting rate cuts by the middle of 2012.

Citigroup head of economics Paul Brennan is expecting the RBA to cut rates on Tuesday, despite expectations of strong economic growth in the September quarter.

"We see this as a policy of least regret given that the outlook for global growth has continued to weaken in the past month to well below trend," Mr Brennan said.

"We see scope to lower the cash rate to the bottom of the neutral range over the next few months, which would imply a cash rate of four per cent over the next three months."

The biggest risk to economic growth comes from Europe, which may well go into recession, or start another financial crisis, as several members of the euro struggle to meet debt repayments.

There are also local risks to economic growth.

In the past month the RBA, Treasury and the Organisation for Economic Co-operation and Development (OECD) have cut economic growth forecasts for 2012.

In addition to that, official figures for October showed a 10.7 per cent fall in building approvals and retail spending only rising 0.2 per cent.

On the other hand Australia’s mining boom is still going strong, with the sector making its biggest ever contribution to economic growth.

Nomura Australia chief economist Stephen Roberts said he doesn’t expect the cash rate to move for the foreseeable future unless something bad happens overseas.

"My forecast is that they are going to leave it at 4.5 per cent," he said.

"I’m assuming they will hold it neutral all the way through to the end of 2012 but my proviso is if Europe generally does go to hell in a handbasket, then they can drop interest rates a long way."

NAB senior economist Spiros Papadopoulos said the RBA won’t cut on Tuesday but by early next year the pressure will build for another rate cut.

"Obviously there’s a risk that they might cut interest rates next week, given everything that’s been happening offshore in the last couple of weeks," he said.

"On balance, given the fact that the domestic economy has been holding up okay we don’t think they need to rush in to cutting rates."

Story source: www.ninemsn.com.au

We’re on a roll with environmentally-friendly work tips and here are five more great ideas if you have the ear of the boss.

1. Cleaning Products
Whether you’re using an independent cleaning person or the building management has staff in place, now is the time to switch cleaning products to greener versions to drastically reduce indoor air pollution and to avoid adding questionable chemical residue to our waterways. Obviously this is easier to do when you don’t have to go through building management. But even if you can get a building to change one product to green, you’ll really be making a difference.

2. Energy Initiatives
Change light bulbs to energy efficient ones and put up signs reminding staff to pull the plug at the end of the day on things like coffee makers and microwaves, and to turn their computers off at the power point. Standby on many computers equals energy guzzler.

3. Paper Products
Set up a digital file sharing system and make an initiative to print as little as possible. Paper should be 100 percent recycled, and either unbleached, or bleached without chlorine. When you do print, set up your printer to automatically print double-sided. Speaking of printing – refill ink cartridges rather than buying new and if that’s not possible there are plenty of places where you can take them for recycling.

Reuse anything that is printed on one side only as scrap paper, reducing the need for new notebooks in the office. New notebooks, toilet paper, paper towels, business cards and more can all be found in eco-friendlier versions. If you send out lots of mailings at work, choose eco packing materials. Reuse boxes, use shredded papers for packing material and look for padded envelopes containing recycled fibre.

Consider cancelling all your newspaper and magazine subscriptions and go online instead.

4. Stock Your Kitchen
Much of the waste that is created during the day in an office is takeout food containers, coffee cups and water bottles. If you have a kitchen, use it. Simple things can make a huge difference. Fill a cupboard with reusable mugs, plates, glasses, and utensils. Stick a bottle of eco dish soap by the sink. Put in an under the sink water filter. Plug a coffee maker into the wall. Take it a step further by filling it with Fair Trade/organic coffee and putting organic milk in the fridge. You don’t need plastic or wooden stirrers when you have spoons in the cupboard. Sugar and tea also come in Fair Trade/organic versions. Bulk sugar has less packaging than individually wrapped paper packets. Coffee filters, like all paper products, now come in unbleached versions. If you have a microwave, put a few microwave safe glass containers in the cupboard (it’s not a good idea to put plastic in the microwave). If you have a bottle of hand soap or sanitizer in the kitchen, make sure it doesn’t contain an antibacterial (like Triclosan).

5. Try carbon offsetting your business

Whether you’re a unique boutique, a mobile business or a large company – or something in between, you’re impacting the environment and if you want to do more about carbon emissions and the boss thinks it’s a good idea, try offsetting.  Carbon offsetting is a way for businesses (and individuals) to invest in projects that prevent or reduce greenhouse gas emissions from being released into the atmosphere. 

Check out the various options and pricing at Yonderr.com.au

If you have any other tips to help create greener workplaces we would love to hear from you – drop us a line today.

For more information on this article, click here.

Story source: www.yonderr.com.au

What do you do if you are young and thinking about investing in property?

A 19-year-old I know has plans to save up to buy his first property, and mentioned that he’s not too sure where to start. Should he do a property course, he wondered? And how do you know where is a good place to buy? Let alone what you should pay.

He’s thinking not of giddily purchasing his first property to live in, but of buying an investment property and slowly, over his lifetime, purchasing some others.

What do you do if you are young and thinking about investing in property?

A 19-year-old I know has plans to save up to buy his first property, and mentioned that he’s not too sure where to start. Should he do a property course, he wondered? And how do you know where is a good place to buy? Let alone what you should pay.

He’s thinking not of giddily purchasing his first property to live in, but of buying an investment property and slowly, over his lifetime, purchasing some others.

We’ve been hearing for a little while now how this is a trend among 20-somethings, and those into their 30s. Buy a place as an investment, often a cheaper unit in a less desirable area, and then tap into the tax advantages of negative gearing (by keeping your outgoings on the property higher than the rent coming in) and either rent yourself in an area you want to live, or stay at home with the baby boomer parents where the board is minimal and the washing comes for free.

So for Jake, and any other young people wondering which way to go, here’s a few tips. And I’m sure readers will offer up plenty more in the comments space below.

1. Ask yourself, should I be investing in property at all, and what do I expect to get from it?

If it’s a road to quick riches you want, then this is not the path to take. Yes, we have seen some huge run-ups in prices over the years, and it’s true that property prices, like the economy, tend to run in cycles, so we will obviously see increases in years to come, even despite the current negativity enveloping much of the globe.

Because property buyers are human, and love to follow a trend, and for some bizarre reason feel more comfortable buying when prices are running hot, there is no doubt there will be price rises once again in the future.

There are a whole bunch of other factors pointing to future price increases too – in some cities the lack of building will keep the supply lower than it should be, the population continues to grow meaning so does demand, and in Australia at least, we remain a wealthy country still experiencing household income growth.

However, don’t bet everything on this happening and by how much prices will go up – instead expect to see, over a longer period of time, steady increases with plenty of troughs along the way as the economic cycle rises and falls.

And now, here’s the cue for all the readers who argue the market is about to tank and that now is not the time to buy property. And with Europe perched on a precipice and the US still in an uncertain state, you do have to question whether the bottom of the market has been reached yet despite the pretty strong fundamentals underpinning the Australian economy at the moment.

However, if you are a young person just starting to save for your first property, you have a bit of time to sit back and watch the market while you save anyway, so don’t fret too much at this juncture.

2. Educate yourself

The mere mention of "property course" sends shivers down my spine. Often it’s run by property spruikers taking hundreds or thousands of dollars off gullible people who are then, at best, fed information they could find themselves by reading widely, or at worst, the poor souls are flogged the company’s own products or services, all with the shiny promise of sky-high returns.

There has never been an easier time to learn the whys and wherefores yourself. The internet has opened up a world of information, and young people wanting to learn a bit more about property should be heading there (to reputable sources) as well as to the property lift outs in newspapers, and better quality magazines.

Want prices? Find them on websites like Domain.com.au or Australian Property Monitors (both owned by Fairfax Media). Want to find the best loan? Check out a loan websites such as ratecity.com.au. And need to know where the market is headed? Read plenty of stories and opinion pieces and rather than taking just one as gospel, glean the general themes from what all have to say.

If there’s a few property terms you don’t understand – such as negative gearing – look them up and get your head around what they mean. That won’t unlock a magical key to property investment for you and land a bag of gold at your feet, but it will stop spruikers taking advantage of your youth and naivety.

3. Take a balanced approach

Property holds a certain glimmer for some young people – perhaps under the encouragement of their parents who prefer a bricks-and-mortar approach. And also because everyone has lived in a house or a unit, but not everyone has held shares or gold or even superannuation.

But if you are young and have the advantage of having your head screwed on the right way and are already thinking about investing, you should be looking at all investment classes impartially. Sure, consider property, but look at it as part of building a balanced portfolio.

Even at 18, 19, you’re not too young to start putting a few extra dollars into super, keeping some of your money in cash in the highest-paying account you can find, and also thinking about a small parcel of blue chip shares to start you off, all while saving to buy your first property. Education, it must be said, can also be considered an investment class in the fact that you are boosting your own potential earning capacity.

And when I say dollars, I really do mean just a few dollars. Even small amounts each week from a meagre income are better than nothing.

This is a smart approach because it lets you spread your risk, and not put everything into the one basket. Sure, this mean it will take you a little longer to save for the first property, but time is on your side if you are young, and to use a cliché, Rome wasn’t built in a day.

4. Save as much as you can before buying

If you plan on being a landlord, you will need to have some extra cash available to cover the loan in between tenants, and also to pay for any repairs to the property. If you are buying into an apartment block or townhouse, you may need also extra money to pay for special levies such as building repairs not covered by the sinking fund (the general fund amassed by the body corporate from strata levies).

So the smart thing to do is to save a good amount of money before purchasing so you’re not taking an uncomfortable risk.

5. Research where to buy

The old adage is buy as close to the city as you can and look for properties that don’t have huge outgoings due to lifts and fancy add-ons such as gyms and pools, but do have the advantage of being near good infrastructure.

Closeness to the city can be good but I would also focus on the infrastructure side of things, and whether or not the suburb has the potential to develop over time.

Buying near rail (heavy or light) infrastructure is always a good bet as the infrastructure will stay there for a long time, and as populations continue to grow and further congest areas, the infrastructure will become even more important.

Do carefully think before buying in areas with inherent negatives, such as heavy flight paths or a lot of noise. Also very busy roads can be a problem – it can be smarter to buy just off them.

Keep your tenant in mind – what type of person would like to rent this and do those people generally live in this area?

Do try to buy something that would be easy to sell again in a hurry if you needed to, should your circumstances change. If a property you are buying has sat on the market for months and months, be sure to find out why and be realistic about encountering the same selling problems if you should buy it.

For that same reason it is good to try to buy something that is around the median price for a suburb, as it should have a larger pool of potential buyers.

6. Keep some cash aside after buying

When you buy the property, don’t sink all your money into the loan if you can help it, keep a good chunk in a flexible high-interest earning account (not a term deposit, as you may need to access it at short notice).

Use this as your maintenance fund, and to top up the property loan if you need to (and for many properties, in the early years at least, the rent won’t cover the mortgage, council rates, strata and water supply charges, so you need to be in a position to pay for the gap yourself).

The cash you keep, though, must strictly be for investment and as a reserve for maintenance and loan top-ups, not for holidays or random spending, as you always need a buffer so you aren’t forced to sell at the worst possible time.

7. After you buy, keep saving

Direct any spare cash to your savings account, not your investment loan. Or if you decide to buy a property to live in, use the cash to pay down your own home loan as fast as you can, rather than the investment loan.

By doing this, you make negative gearing work for you because, by keeping the loan against the property larger, you are paying the highest amount of interest you can, while earning interest off your other money you are keeping in cash.

Or in the case of living in your own property you do want to pay that off as soon as possible to get rid of non-tax-deductible debt.

While I’m advocating not dumping all of your extra cash into your investment loan, it is prudent to pay the property off over time to gradually reduce your liabilities, rather than remain solely focussed on negative gearing.

For that reason, interest-only loans on investment properties may not be wise in the longer term, as you are basically betting on price increases to cover you. Yes, price hikes will probably happen over the longer period but you don’t want to bank your entire savings on them.

8. Get your hands dirty

If you buy a property that needs to be fixed up, and you have time on your side, get in and do it. Many things such as pulling up carpets and painting can be achieved with little experience – you just need to have a go.

You might be surprised at just how much painting kitchen cupboards, tired tiles and old baths can rejuvenate a property.

Do be aware of any dangers that lurk in the property though, such as asbestos, and treat them appropriately. And do call in trades for jobs that are beyond you, such as electrics, plumbing and larger tiling jobs.

9. Be a good landlord

Be prepared to spend on maintenance over time and keep your property up to scratch. You’ll attract better tenants, and your property will also hold its value better. Rundown rentals look shabby and often don’t command a good price come sales time.

10. Take your time before buying again

If you have your sights set on owning more than one property, don’t be in too much of a rush. Keep your investing balanced, putting some funds into other classes such as cash, shares and super.

And when you have built enough equity you can then consider buying a second property. Balance your risk though and don’t get yourself in over your head. You want the power to hold each property for as long as you see fit, rather than be forced to sell should disaster strike.

Story by Carolyn Boyd, a property journalist and keen follower of Australia’s housing market.

Source: www.domain.com.au

As some of you may know, if you have been checking out the blog and my Facebook page, I have just recently returned from my annual pilgrimage to Siem Reap in Cambodia.

Although a very challenging 10 days, it is always a moving experience for me.

When I return to the beautiful coastal village of Lennox Head I look upon our area with a different eye, truly grateful for all we have and for the opportunities available to us.

On this particular trip I volunteered to work in the orphanage, school and pre-school in the New Hope Community. Needless to say I met some truly remarkable people and was captivated by the children I had the privilege of working with. The days were filled with many tasks and on any given day I would be overcome with all manner of emotions. Despite the difficulties that face this community the mood and atmosphere is generally very uplifting.

I hope you enjoy these photos which may give you inkling into what a diverse, remarkable place Cambodia is.