Top 10 Energy Saving Tips
Tuesday, February 20, 2007
Instead of providing ways to save money on your loans, I thought it would be an appropriate time to include some ways to save money on your energy bills...and of course save the planet at the same time. For more detailed info go to http://www.sustainable.energy.sa.gov.au
An energy efficient home incorporates common sense design principles, selection of the most appropriate fuel sources, energy efficient appliances & technology, and the minimisation of our energy use - resulting in;
A reduced need for expensive heating & cooling appliances and systems
reduced appliance and system running costs, and therefore energy bills
reduced energy related greenhouse gas emissions
An energy efficient home incorporates common sense design principles, selection of the most appropriate fuel sources, energy efficient appliances & technology, and the minimisation of our energy use - resulting in;
A reduced need for expensive heating & cooling appliances and systems
reduced appliance and system running costs, and therefore energy bills
reduced energy related greenhouse gas emissions
Our top 10 energy saving tips are:
1. Insulation: heat entry and exit in your home can be greatly reduced by installing appropriate "R" value insulation in the ceilings and external walls (if possible). This will result in a lower need for heating and cooling.
2. Thermostats: set any heating and cooling thermostat temperatures as low as you feel comfortable with during winter (suggest 19-20oC) and as high as you feel comfortable with during summer (suggest 25-26oC). Each 1oC above during winter and below during summer will increase energy use by around 10%.
3. Shading: shade all windows, other than those that face south, with fixed shading devices e.g. awnings and pergolas. An unshaded square metre of glass will let in almost as much heat as a one-bar radiator.
4. Fans: are relatively inexpensive to run at around 2c/hr. While they do not cool the air they can reduce the need to switch on other higher energy consuming appliances and systems.
5. Water Efficient Shower Heads: install AAA rated shower heads which dispense water at 9litres/minute compared to 20-25litres/minute in a more traditional shower head. The less water needed the less energy required to heat. For more information on AAA rated shower heads click here.
6. Solar Hot Water: consider installing a solar hot water system. If you live in Adelaide the sun can contribute 60-70% of your hot water. This will significantly reduce the need to heat water using electricity or gas.
7. Refrigerators: try and get by with only one fridge/freezer. If you have a second fridge and/or freezer only turn it on when required, or better still dispose of it.
8. Fluorescent Lighting: replace incandescent lighting in frequently lit rooms with fluorescent lighting, either tubes or compact fluorescent globes. This lighting uses approx one fifth the energy of incandescent globes and can last up to 10 times longer. Compact fluorescent globes are available at most supermarkets.
9. Standby Power: this is energy used by an appliance/item while plugged in but not performing it’s primary function e.g. the red standby light on your TV/VCR. If an appliance has a standby mode, where and when appropriate switch off these appliances at the power point when not in use or when you are going away for a few days or more.
10. Energy (Star) Ratings: where applicable use appliance Energy (Star) Ratings to select energy efficient appliances. The more stars the more efficient.
posted by Daniel Serratore @ 12:52 pm,
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Movement in Fixed Rates
Thursday, February 01, 2007
Its seems that most of the major lenders have had a crack of the fixed rate market of late.
AMP started the trend with a suprising 5 year fixed at 7.09% while the others remained around 7.30%. Bankwest then entered the 5 year fixed scene at 6.99% and CBA followed up at 7.09% for a 3 year fixed. These rates have since increased.
Well, now its St George's turn...and they are turning up the heat!
For a limited time they are offering a 3 and 5 year fixed rate at 6.95%.
Do the banks know something about the future of interest rates that we don't??
posted by Daniel Serratore @ 12:37 pm,
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How to take advantage of the forthcoming property boom
Tuesday, January 02, 2007
Author: Michael Yardney
Date: December 1, 2006
Property booms never last, but neither do property busts. So how can investors make the most of the next property boom when it eventually comes around, as it surely will?
The answer is simple.
The investment strategy that has worked well for the most successful investors and will work just as well as the next property cycle rolls on is to invest in real estate for long term capital growth. And capital growth will always occur in our major capital cities in Australia with median property prices increasing by about 10% per annum over a 10 year period.
Why?
It's all to do with the value of the land, which is related to the supply and demand for that land.
I remember many years ago reading an article written by John Edwards of Residex, www.residex.com.au. It went something like this…
Imagine someone discovered a new island just off the coast of Northern Queensland and a number of smart entrepreneurs decided to set up business there because land was cheap as no one else really wanted to live or work there.
Over time people would want to move to the island because there were jobs available there. These new residents would need to build houses.
Remember, it was just a small island so after a few years the island would be full and there would be no room to build more houses. The island was now thriving and more people wanted to move and live there, but there would be no more land left to build houses.
What could they do?
With no vacant land left, they could only buy a piece of land that was already occupied. They would have to pay the people already living there for the privilege of moving to that island and if there were lots of people wanting to move to the island those willing to pay the highest price would get to live there.
The more people that wanted to live on that island, the higher the cost of housing would be. This causes capital growth.
Capital growth is highest in an area where there is a demand for property and the land is scarce. If you look at Melbourne, Brisbane and Sydney you can instantly see why house prices grow there faster than they do in regional Australia.
Sydney has almost run out of land because of its geographic boundaries. In Melbourne the perimeters of the city cannot expand because of town planning boundaries. While there is a huge demand for property in Queensland and in particular South East Queensland, there is still quite a bit of land available for new housing, but as most people want to live near Brisbane or near the water, much of the most sought after land has been taken.
One thing to remember about scarcity is most people want to live in the most desirable locations. In Melbourne it is the inner south east suburbs and near the water. In Sydney the most desirable areas are in the harbourside and water suburbs. In Brisbane they like to live near the CBD or near the water.
As our next property cycle comes around, as it already has in some parts of Melbourne and Brisbane, it will be the most desirable, the most sought-after areas that start growing first. These are usually the most affluent areas. People living in these areas can usually afford to upgrade or improve their houses. At the beginning of the property cycle these are the houses that will grow in value first.
What happens to those people who cannot afford to buy in the most desirable areas?
They buy in the next most desirable suburbs. This has been well documented in previous property cycles. Prices will start to increase in the more affluent and desirable areas and then start to ripple outwards to adjoining suburbs.
How can investors take advantage of this knowledge?
Firstly, understand the big picture. Understand where we are in the general property cycle. We are hovering around the bottom of the slump stage of the property cycle in Sydney and well located properties are definitely selling well in Melbourne and Brisbane where the cycle is in its early upturn phase
Next, become an expert in the suburbs that are going to grow in value first. Get to know those areas so you can pick the bargains in those suburbs near the city, near the water or in the more affluent, the more desirable suburbs.
If you buy a good property in those areas you are likely to achieve excellent capital growth in the next 5 years.
Then over the next few years the suburbs one ring further out will start to make good investment sense. It is only near the end of the cycle that the outer suburbs, those that have traditionally been first home owner areas get good capital growth.
The spread of capital growth from the inner to the outer suburbs is called the ‘ripple effect’.
How to Grow a Multi Million Dollar Property Portfolio - in your spare time
This article appeared in Property Investment Update www.propertyupdate.com.au. It was written by Michael Yardney, a property commentator, director of Metropole Properties, author of How to Grow a Multi-Million Dollar Property Portfolio - in your spare time.
posted by Daniel Serratore @ 12:56 pm,
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Want to feel better? Sign a mortgage
Author: Jessica Irvine
Date: December 20, 2006
Publication: Sydney Morning Herald
Despite being up to their eyeballs in debt, people who have mortgages have a greater sense of wellbeing than footloose renters, research shows.
A survey of personal wellbeing by Professor Bob Cummins, from Deakin University's school of psychology, reveals lower levels of wellbeing among renters compared with mortgage holders at all points on the income chain.
Renters were more likely to be single, lead a more mobile lifestyle and miss out on the bond that was formed between partners when they committed to a mortgage together, Professor Cummins said.
He also found Australians reported higher levels of wellbeing after the September 11, 2001, and Bali terrorist attacks, because these forced them to think about the importance of families. "All of this created an amazing sense of external threat that Australia had not really had since World War II," he said. "This kind of threat caused people to bond much better."
Signing a mortgage was a good way to increase wellbeing because it acted as a "long-term bonding mechanism", like marriage, giving couples greater certainty in their relationship, the professor said. "They have a clear investment in their combined future. People who rent have not made that kind of mutual commitment."
Renters reported lower levels of wellbeing than mortgage holders and home owners at every point on the income scale. While higher incomes did bolster wellbeing, a renter with an annual income of $90,000 was only slightly more satisfied than a home owner on less than $15,000 a year.
Professor Cummins said men in particular had a lower sense of wellbeing if they lived or rented alone. When a man and a woman lived together, the survey found men were more satisfied than women when assuming the role of sole breadwinner. "It is still not a normal thing for a couple to be in a household where the female is the sole income earner," Professor Cummins said. Men and women were happiest when they shared responsibilities equally, he said.
The survey also identified insecurity about income as a powerful influence on wellbeing, despite low unemployment. "People tend to commit their income each week to maximise their lifestyle with very little view to having some buffer if things go wrong," Professor Cummins said.
The survey of 2000 people was commissioned by the health insurance and financial services company Australian Unity.
posted by Daniel Serratore @ 12:31 pm,
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Salary Packaging - Attention NSW Health Employees!
Saturday, December 23, 2006
What is Salary Packaging?
Salary Packaging is a tax effecive way for employees to pay for expenses including mortgage repayments, novated car leases and rent payments.
Under a Salary Packaging agreement, employees can pay for the above from their pre tax dollars, rather than after tax dollars – which can reduce the amount of tax they pay each year.
Fringe benefits Tax
The payoff with Salary Packaging is that you may need to pay for FBT (fringe Benefits tax). Some items are FBT exempt such as laptop computers and car parking, whilst other items have a maximum benefit before they attract FBT.
For an example of how Salary Packaging can benefit you follow this link
http://www.ato.gov.au/individuals/content.asp?doc=/content/24632.htm&page=12&H12
If your employer offers a Salary Packaging scheme, we recommend you first seek advice from a skilled accountant. If you don’t know of a good accountant email us and we will recommend one for you.
posted by Daniel Serratore @ 11:10 am,
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Make sure you Plan!
Saturday, December 16, 2006
Strategy is Important!
If you are a property investor, it is important that your lending structure is well thought out.
Mortgage Insurance or LMI applies to most loans with less than a 20% deposit. The trouble with mortgage insured loans though is that they will only allow a certain amount of ‘exposure’ to each borrower. The amound depends on the insurer, and the borrower.
Let’s say you have two properties, both with loans that use the same mortgage insurer. If you are looking at another property, that Mortgage Insurer may not lend you any more regarless of whether you service for the loan - because you are 'over exposed'.
There are two main main Mortgage Insurers in Australia – GE and PMI. You will then need to choose a lender that uses a different insurer.
By developing a lending strategy from the outset, you can avoid overexposure with lenders and ensure that your future borrowing will not be hampered in any way. To do this effectively, it is essential that you use a Mortgage/Finance Broker that has access to several lenders and is aware of which mortgage insurers they use.
posted by Daniel Serratore @ 11:01 pm,
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Insurance Insurance!
Clients often ask me which insurance is necessary once they purchase a property.
You can insure almost anything these days, although property owners should consider the following:
Home Building Insurance:
This covers your home in the event of loss. If it is damaged beyond repair this insurance will cover the rebuilding of the house to the amount covered, and will often also cover the expenses of living in temporary accommodation .
Home Building Insurance will cover the replacement of some parts of your house that are damaged, eg. Broken glass, doors etc
It usually also covers you up to a certain amount if someone injures themselves in your property.
Home Building Insurance is a condition of any home loan. Lenders request a copy of the insurance before settlement
Home Contents Insurance:
As suggested, this covers the contents of your home should they be damaged or stolen.
Contents include all items that are not a fixed part of your building. There are usually two options:
General Contents Insurance. Here a total amount is covered, without nominating specific items. Be sure to determine the maximum replacement value of each type of item under this insurance. Eg. Maximum for jewellery, paintings etc
Specific Contents Insurance. This will cover specific items that you nominate to their agreed value
Ensure you choose an insurer with ‘new for old’ replacement – meaning that they will replace what you lost with a new replacement. This type of insurance is not required by lenders.
Landlord Insurance
Depending on the insurer, this insurance can vary.
If your property is rented out, it can cover:
- Both the building and contents
- Rent if your tenant suddenly leaves or doesn’t pay
- Injuries that occur on your property
- Loss of rent if your property is damaged
- Damage caused by your tenant
Strata Title Insurance
If you own a unit or a property under strata title, the building is generally insured by the body corporate. Strata Title insurance covers you for damage to your property that is not covered by the body corporate, like broken shower screens and windows.
It can also cover your rent if the tenant doesn’t pay or damages your property,
When deciding on a policy ensure to check what types of damage the policy will cover eg. Fire, flood, hail, robbery etc
Income Protection
This insurance will pay you a portion of your salary in the event that you injure yourself or become sick and are no longer able to work. The length of cover depends on the term of the contract. This type of insurance is generally suited to singles that require steady income to cover their commitments, but don’t necessarily have many people to support should they pass away.
Life Insurance
This is a lump sum payment that is paid to your beneficiary in the event of your death. Life insurance usually covers income protection also.
What do we recommend?
As a minimum, your home will need to have building insurance. (If you own a property under strata title, it is insured by the body corporate)
We also recommend contents insurance to cover your possessions. This insurance is usually cost effective.
It is also important to assess how you would cope if you were suddenly unable to work. Could you meet your commitments? If not, Income Protection is advisable.
Likewise, if you have a family, we recommend you also explore the benefits of Life Insurance
Who do I use?
This depends on what insurance you are looking for! We recommend you contact a trustworthy Insurance Broker that can compare different insurers with you. If you would like us to recommend you an Insurance Broker, please contact us via the email link at the top of this page.
posted by Daniel Serratore @ 10:14 pm,
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Buy Your First Home with only $4000
With the invent of the Stamp Duty concession, $7000 first home buyers grant and highly geared loans, first home buyers are now able to step into the property market with very little deposit.
Here is an breakdown of the deposit needed for a first home buyer to purchase an owner occupied $300 000 property, with a 3% deposit.
Costs:
Stamp Duty $0
Mortgage Duty $0
Application fee $0
Mortgage Insurance $6023 (added to loan)
Legals + Inspections $2000 (approx)
Total Costs Needed upfront: $2000
Plus: 3% deposit $9000
Total Needed: $11 000
Minus: $7000 First Home Buyers Grant
Total Needed Upfront = $4000
Loan Product
This type of loan structure requires a facility that allows a 97% lend with the ability to add mortgage insurance onto the loan. There are quite a few lenders that offer this type of loan, some with low fees and interest rates.
As a first home buyer, genuine savings is not required with most of these loans.
posted by Daniel Serratore @ 4:49 pm,
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First Home Buyers Entitlements
Thanks to the Government, first home buyers in NSW are entitled to two incentives for buying their first home:
1. First Home Owners Grant Scheme
If you are buying your first property which you will live in it for a minimum 6 month period (and move into within 12 months of purchase), you are entitled to a lump sum $7000 payment from the Government.
This money can be made available at settlement (which will reduce your other costs by $7000) or you can claim it after settlement from the Office of State Revenue. A good Mortgage Broker can help you do this
2. First Home Plus Scheme
In addition to the $7000, if you are moving into the property (same conditions as above), you will also have the Stamp duty and Mortgage duty waived for any residential property purchase up to $500 000. For properties over $500 000, here are the discounts:
Property Price---Stamp Duty-----Saving
$500,000.00 ----- $0.00 ------------ $17,990.00
$510,000.00 ----- $4,498.00 -------- $16,191.00
$520,000.00 ----- $6,747.00 -------- $14,392.00
$530,000.00 ----- $6,747.00 -------- $12,593.00
$540,000.00 ----- $8,996.00 -------- $10,794.00
$550,000.00 ----- $11,245.00 ------- $8,995.00
$560,000.00 ----- $13,494.00 ------- $7,196.00
$570,000.00 ----- $15,743.00 ------- $5,397.00
$580,000.00 ----- $17,992.00 ------- $3,598.00
$590,000.00 ----- $20,241.00 ------- $1,799.00
$600,000.00 ----- $22,490.00 ------- $0.00
(excuse the lines, couldn't work out how to paste an excel table!)
If you are buying vacant land the exemption is for land up to $300 000, then there are discounts between $300 000 and $450 000
For more info go to http://www.osr.nsw.gov.au/pls/portal/docs/
page/downloads/other/fhb_factsheet.pdf
How to Apply
First Home Owners Grant Scheme
The easiest way is to make the application with the broker or lender that is organising your finance. This means the money will be made available at settlement. The broker/lender should have a form for you to fill out otherwise you can get it at http://www.osr.nsw.gov.au/portal/page?_pageid=33,63384&_dad=portal&_schema=OSRPTLT
If you need to claim the grant after settlement, you can do so via the Office of State Revenue. Their number is 1300 130 624 or http://www.osr.nsw.gov.au
First Home Plus Scheme
The easiest way to organise this is through your solicitor, before settlement. When you first approach your solicitor or legal representative about your property purchase, advise them you are a first home buyer and you need to apply for the First Home Plus exemption.
posted by Daniel Serratore @ 4:13 pm,
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Its all about the Coffee!
Thursday, November 30, 2006
One of the wonders of the Sutherland Shire is without a doubt the 'Grind Experience'
Richard Calabro founded the hole in the wall under Rydges hotel 5 years ago in January 2002 where he started the smallest business in the world. Not only was it an impossible 12 square meter shop, it was only opened on the weekends , but Richard knew, that with his skilled techniques and personality, eventually word would spread about the coffee at GRIND. And that’s what happened. In a short time people were coming from all over the Sutherland shire to have one of Richard’s coffees on the weekend.
Richard always thought differently to all the other café operators where everyone else is serving bacon and eggs and burgers, he kept to his Italian roots by strictly serving Italian style coffee and complimenting this with a beautiful biscotti or a cake slice. He has kept this his business model up to this day. ‘The only thing we have added on is take-home packs of coffee either whole or ground. The secret to my business is to keep it as simple as possible. Don’t worry about what everyone else is doing and do the best you can with what you’ve got’
Richard’s plan was to not only create a good espresso bar, but to also create a venue for the people. You will see all walks of life go into the shop. From Uni students, Bohos, business men, coffee freaks to ma and pa kettle!
Now 5 years has passed and Richard and his wife Greer are now taking the plunge into a new venture. They have decided to open a new venue where the shop can be opened Monday to Friday for all their loyal customers who come down every weekend and sip and enjoy a Grind brew. They will still have their original Grind opened on Public holidays and the new venue will be opened during the weekdays. After all ‘I’d rather be at GRIND’…
posted by Daniel Serratore @ 9:45 pm,
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Need a Loan...What comes first?
Monday, November 27, 2006
The first thing you need is the right help!
- You can take advantage of a sort-term special from a certain lender. E.g. St George offers a $0 application fee from time to time, and at the time of writing, Adelaide Bank has a six week special on their 3 year Fixed rate.
- Some lenders will lend you more than others. With one scenario we had recently, one major lender would lend $30 000 more than another major lender (both were banks!)
- Certain lenders offer special discounts and offers to certain groups of people. E.g. One major lender will waive mortgage duty for medical staff who have graduated within the past two years, another will give discounts on interest rates for AMEX customers etc.
- If you have a sizable deal, a Broker is in a good position to negotiate your deal with several lenders, to bring down the rate and/or fees
- They will help you work out the best lending structure for your situation by first determining your present and future objectives
- They will support you through the loan process. This includes filling out and submitting the application
- They will be able to supply you with resources to make your borrowing/buying experience easier
- A good broker will be there to answer any questions as long as you have the loan.
- Ask for referrals from your friends and family. This is generally the best way as someone you trust has already experienced the service.
- Ensure the broker is a member of the MIAA (Mortgage Industry Association of Australia)
- Ask the broker what lending institutions he/she represents. Ensure they cover a good selection of the major banks.
- A good broker will never push you into using a particular lender or to fill out an application. They will provide you with all the information you need so you can make an informed choice.
posted by Daniel Serratore @ 9:58 am,
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The Author
Daniel Serratore
Daniel is heading up the new generation of Finance Brokers in Sydney. With his fresh approach and "can do" attitude, Daniel has developed relationships with key people within the Sydney lending market which enables him to source great deals for his clients. Daniel is big on customer service and has built his business purely by referrals from clients and other businesses. You can catch him via the email link on the top of this page
About This Blog
This blog was developed as a resource for our clients and the general public. Although the internet will provide you with many lending providers, I am still to find a resource that shares ideas, tips and general useful info to assist borrowers make the right decisions. Hence this blog was born!
Contact Us
We have included a "Ask the Guru" link in the sidebar. If you have any lending question, regardless of how silly it may seem - send it to us and we will provide you with answers! Likewise, If you have any feedback on the blog, please let us know via the 'Contact Us' link on the bottom of this page.
