Quick ‘n easy Chocolate Yule Log recipe

Try our quick ‘n easy Chocolate Yule Log recipe for dessert at your Christmas lunch this year.
Preparation time: 10 minutes and 30 minutes refrigeration
Cooking time: 5 minutes
Serves: 6

Ingredients:
One cup thickened cream
400g Dark Cooking Chocolate, chopped
500g Double Choc Sponge Roll
Icing sugar

Method:

1. Place cream and chocolate into a small saucepan and stir over low heat for about 5 minutes, until chocolate has melted and mixture is smooth. Transfer to a bowl and refrigerate for about 30 minutes, stirring occasionally, until the chocolate mixture has thickened to a spreadable consistency.
2. Cut one end of the sponge roll at an angle and reserve. Place larger sponge roll onto a serving platter. Spread some chocolate mixture over the roll and, using a fork, rough the surface to represent tree bark.
3. Place the smaller piece of sponge roll at the side of the log to represent a cut branch. Cover with remaining chocolate mixture. Dust with icing sugar.

Christmas lunch : Tis the season to avoid all the fuss and spend less!

With Christmas cheer brings many challenges. We show you some tips and hints to avoid the stress.

Christmas is typically one of the most stressful events of the year. The expense of buying gifts, the pressure of last minute shopping and the heightened expectations of family togetherness at Christmas day lunch can all combine to undermine our best intentions.

But while we cannot avoid the fuss associated with Christmas traditions, we can be better prepared. Here are some practical suggestions to help you reduce your stress and costs associated with feeding the family on Christmas Day.

Have a plan: Start with a list – just start with the basics to guide you through. Plan your menu and write a shopping list.

Shop around: Be a smart shopper and you’ll not only save money but stress. Make a few rounds of the specialty shops and supermarkets for ideas on food and to check specials. Don’t wait till Christmas Eve to shop, when the stores are generally hectic. Many pre-packed products can be bought now. Each time you do a normal shop buy a few Christmas items as well.

Consider doing your food shopping online: The store will deliver your groceries to your door. (Keep in mind that this option is more expensive than visiting the supermarket yourself.

Have a budget: And stick to it! Avoid last minute impulse spending. Shopping at discount places is a smart way to save on things like table decorations, household items and nibbles.

Keep it simple: And keep the food easy. Have lots of fresh fruit drinks or punch. Cakes and desserts can be prepared in large quantities ahead of time. So can dips and beverages. Outdoor barbecues always go down well.

Book in advance: If you plan to have lunch at a restaurant, try not to wait till the last minute, as some restaurants may be fully booked months in advance.

On the day: Preparing a meal for family and friends can be both enjoyable but stressful. Some tips for reducing the stress of Christmas cooking include:

• If you are cooking lunch at home, delegate tasks. You don’t need to do everything yourself
• KISS principle: You could always arrange for a buffet lunch, where everybody brings a platter, or a barbecue
• Write a Christmas Day timetable – e.g. 9am put the turkey in the oven, 10am set the table
• Make time for you: Remember, this is your Christmas as well. Allow time during or at the end of the cooking to chill out a little, get ready or have a drink

Christmas barbie:
Barbecues are the perfect way to celebrate Christmas, they are easy to do and take little preparation. Barbecues also mean the host doesn’t have to spend the whole time in the kitchen and allows them to be outside with family and friends. And with lots of sides and salads your food will be prepared in no time!

Celebrity Chef Justin North’s Top 5 Tips for Christmas lunch Stay relaxed, have fun and enjoy your cooking by being prepared and going back to classic simple dishes. An excellent side dish is potatoes sprinkled with salt, garlic and thyme, wrapped in foil and placed on the BBQ. Marinate steaks in aromatic rubs to enhance the flavour and tenderness of your favourite cut of meat. Keep fish succulent, moist and juicy by stuffing a whole fish with herbs and SAXA Sea Salt Flake Salt. Made up of a pinch of sugar, grated zest of a lime and lemon and SAXA Sea Salt Flakes, create your very own salt cured salmon or trout. Just cover the trout or salmon in a citrus salt mix, cover in cling wrap and leave in the fridge for a few hours to marinate. Large desserts in the middle of the table are a great way to entertain. And they can be prepared before Christmas Day. For a great trifle that packs a punch without using alcohol, try a splash of pineapple juice and ginger beer to soak your sponge.

 Try our quick ‘n easy Chocolate Yule Log recipe. Click here!

Aussies tightening their belts this Christmas

Two thirds of Australians will be spending less on Christmas presents this year – with the majority choosing to holiday at home rather than go away, new surveys have shown.

“Sixty six per cent of respondents said they’ll be spending less money on Christmas gifts this year,” says Homeloans’ national marketing manager Will Keall, commenting on the nationwide Homeloans’ Christmas Spending Survey.

“The key reasons they have given are the rising cost of living and economic fears. There’s been a resounding response to our survey question about why they’re cutting down on their spending this year: higher petrol, electricity, water, insurances, food costs...

“Other respondents have cited less disposable income, higher utility costs and now the carbon tax, which has affected their spending habits. A couple of people even stated that they are watching their pennies in case of a Euro meltdown.”

The majority of respondents of the survey admitted they use their credit cards to purchase Christmas gifts (62 per cent), with only six per cent having a special Christmas saving account. And 70 per cent put a limit on each Christmas present.

Despite limits being put on gifts, 62 per cent of those with children who believe in Santa, say they do buy presents every year for their children, in addition to gifts from Father Christmas.

“Many people said that the Santa presents would just be small or token gifts this year,” Keall says. “But parents don’t want tough economic times to bring an end to the Santa fantasy!”
Home sweet home
Three quarters of respondents (76 per cent) admit they won’t be going away for the summer holidays, with many saying they just cannot afford it. “Staycations certainly seem to be the choice this year, and some of the respondents said they’ll be working on their homes or doing renovations, so any spare money is going towards this,” Keall says.

It’s a sentiment borne out by the latest Crossman Insights survey, which showed that most Australians are forgoing the traditional summer holiday this year, choosing instead to stay home or close by, and only taking relatively short breaks.

Those living in South Australia and Western Australia are most likely to be staying home (64 per cent), compared with 54 per cent among those living on the Eastern Seabord. Among those who are going away, 54 per cent are only planning a short break of up to seven nights, with 19 per cent away for just three nights or less.

The Newspoll survey also found that of those going away, the preferred accommodation is bunking down with family and friends (42 per cent), while 22 per cent will be staying in a hotel, 17 per cent in an apartment or rented holiday home, 15 per cent will be camping, 14 per cent staying in a resort and 13 per cent in a caravan or holiday park.

Additionally, 42 per cent believe they will be spending less than $1000 on all travel, accommodation, food and spending money for all people in their household travelling with them. Almost two in 10 Australians with children will be spending $500 or less on the entire family getaway.

Safe as houses

Australians have long had a love affair with property – not only to live in, but also to invest in. Indeed, we’ve always had one of the highest home ownership rates in the world (around 70 per cent of households), not to mention the more than 1.5 million Aussies who own investment properties. The appeal of investment properties? Potential capital growth, rental income and tax benefits.
Residential property has consistently proven to be one of the best ways of building wealth over the years. For example, in Sydney the median price of houses more than doubled in the 10 years to 1996.

This long term growth in the value of residential property in most major cities in Australia has occurred even though some years showed a decline in price. While all investments have some elements of risk, the history and the track record of successful investors show that residential real estate is an essential part of a balanced investment portfolio.

There continues to be strong demand for good rental housing, with around 30 per cent of Australians renting their homes. And with population levels continuing to rise (according to the Australian Bureau of Statistics our population is growing by around 1.5 per cent per year), it stands to reason that there will be increasing demand for rental properties.

A good barometer for the level of demand is vacancy rates. Traditionally, a vacancy rate at around three per cent indicates a balanced market that discourages rent increases. Below three per cent, demand outstrips supply – and rents rise.

On a national basis, the residential vacancy rate has hovered around 1.8 to 1.9 per cent for the last few months. According to SQM Research, this rate could be an indirect result of the continuous lack of buyer interest in the housing sales market of late.

Across Australia, most major cities have been experiencing record low vacancy rates.

In Sydney, the rental vacancy rate in October 2011 was 1.3 per cent for properties within a 0-10km radius from the CBD. The picture is slightly better in metropolitan centres outside Sydney, with vacancy rates up 0.6 per cent to 1.9 per cent in Newcastle and up 0.2 per cent to 1.8 per cent in Wollongong. On the Central Coast, vacancy rates were down 0.2 to 1.7 per cent.

Across Australia it’s a similar story. Perth and Canberra proved to be the nation’s tightest rental markets in October, with Canberra holding steady at 0.7 per cent, while vacancies in Perth fell 0.2 per cent to match Canberra. Conversely, Melbourne led capital cities in vacancies, with a rate of 3 per cent. In October there were almost 11,000 properties available to rent, up 0.8 per cent compared with the previous year.
“It is very possible we will see Melbourne vacancies continue to rise from here as there is, even at this point in time, new stock still just being completed new,” says managing director of SQM Research, Louis Christopher.

Rents on the rise
For property investors, a combination of factors makes investing an appealing situation. The housing market remains soft across Australia’s capital cities, but conversely rental growth has been solid (helped along by the tight vacancy rates).

According to the Australian Bureau of Statistics, the dollar value of rents has been rising at a four to five per cent pace during 2011.

The good news for Sydney landlords is that rents are increasing. Over the past year we have seen Sydney rents increase by 5.9 per cent for houses and 5.4 per cent for units. That brings the weekly rent for a typical Sydney house up to $550 and to $513 for units.

In Brisbane, house rents were up 4.8 per cent and unit rents up 8.4 per cent, while in Perth house rents increased 10.1 per cent and unit rents by 6.8 per cent over the year. In Melbourne, rent on a house has increased by just 1.9 per cent over the past year and unit rents have remained flat.

In South Australia, investors can find some solid returns in the current real estate market with yields in certain areas recording nearly five per cent, according to the Real Estate Institute of South Australia (REISA).

REISA data shows that whilst the sales market is slower than recent years, there is still plenty of opportunity for astute investors. REISA President, Mr Greg Moulton, said that yields of over 4.5% can be found in outer metropolitan Adelaide and in key regional centres and these suburbs should catch the eye of investors.

“The latest yield data is showing that there is substantial opportunity for investors in the Adelaide metropolitan area, as well as key regional centres, and many of these areas have a purchase price of less than $250,000,” he says. “There is real opportunity out there right now, especially as property prices have softened a little, so now is the time to start thinking about investing.

“With the assistance of a professional property manager, a nest egg could quietly grow into quite an attractive retirement holding, so it’s never too early to think about long-term investment.”

Supply vs demand
In Sydney, Brisbane and Perth there is a common denominator causing the strong rental conditions – new housing supply which is insufficient relative to growth. For example, the number of dwellings that commenced construction across NSW during the June quarter was just 6696. This compares with Victoria, where housing demand is virtually the same as NSW, and where there were 14,684 dwelling starts.

In Queensland, the number of new homes that started construction in June 2011 was 34 per cent below the long-term average, and in Western Australia new dwelling starts were 13 per cent below average. New home starts in Victoria were 30 per cent higher than the long-tem average.

With the Australian housing market remaining soft in many areas, according to the October RP Data-Rismark Home Value Index, there may be some good buys to be had by investors. Capital city home values dropped four per cent over the 10 months to October, although in Darwin home values were up 2.4 per cent over the three months to October.

Rismark’s managing director Ben Skilbeck says: “While home owners and property investors have endured a 2.8 per cent tapering in actual home values over the course of 2011, rental growth has been very solid.”

Investors seeking to maximise their rental return are advised to buy where rental demand is likely to be the highest and supply constraints are evident. Established suburbs close to major working nodes are generally a safe bet, as are suburbs close to universities and major public transport hubs.

City	Vacancies Sep '10	Vacancy %	Vacancies Aug'11	Vacancy %	Vacancies Sep '11	Vacancy %
Sydney	6,178	1.2%	7,769	1.4%	7,894	1.4%
Melbourne	7,986	2.2%	10,197	2.8%	10,926	3.0%
Brisbane	4,594	1.8%	4,673	1.9%	4,893	2.0%
Adelaide	1,410	1.0%	2,311	1.6%	2,378	1.7%
Perth	1,923	1.2%	1,559	1.0%	1,436	0.9%
Canberra	262	0.6%	289	0.6%	308	0.7%
Hobart	281	1.2%	448	1.9%	485	2.1%
Darwin	291	1.3%	215	0.9%	216	0.9%
National	39,682	1.5%	46,923	1.8%	48,179	1.9%

Source: SQM Research

Win a $100 Christmas Wish Card!*

Homeloans is doing some research on Christmas spending habits. To help us do this, we have constructed a brief survey that will help us gain an insight into whether people will be changing their Christmas present spending habits this year - and if so, why. By completing the short, seven-question survey, you could be in the running for a $100 Christmas Wish gift card.

Answering the following questions should only take a few minutes of your time. To begin the survey, please click on the link below.

And don’t forget you’ll be in the running for a $100 Christmas Wish gift card! If you’re the winner, with one simple swipe you could buy electronics, appliances, homewares, stationery, toys, groceries, petrol, liquor or cosmetics – to name but a few.

Please be assured that all the information you provide is confidential, results will be aggregated and no individual will be identified in any way.

 

*Conditions Apply

Win a $3000 travel voucher!*

Member Advantage is offering you the chance to win two prizes of Intrepid Travel Vouchers for a destination of your choice. There will be two separate draws, each valued at $3,000 (AUD). Vouchers are to be used towards an Intrepid Travel land based trip - just add the airfares and you're set!
How do I enter?

Homeloans customers will just need to use any of the services under their Member Advantage benefits program from 1 October 2011 until 1 December 2011 then simply send Member Advantage a receipt or proof of purchase, together with a fully completed entry form and you’ll be in the draw to win.

Whether you want to explore the ancient wonders, trek through breathtaking landscapes, sample local delicacies or just take a short break to unwind. You’ve got to be in it to win it!

There are so many benefits through your Member Advantage program to choose from for you to be eligible for the draw.

Visit Member Advantage to enter!
*Conditions Apply. Click here for terms and conditions.

The latest trends in outdoor furniture

It doesn’t seem that long ago when a typical backyard consisted of a grass patch, a clothesline and a barbeque with simple table and chairs. Today, with the boundaries between indoors and out blurring, Australians expect the same style, quality and comfort from outdoor entertaining as we do from our indoor living areas.

So how do we bring the inside out?

Opening homes to nature’s elements with indoor areas flowing effortlessly to outdoor entertaining spaces combining harmoniously with landscaping creates the all important Australian alfresco lifestyle. As the concept of the outdoor room has grown in popularity, so too has the range of designer outdoor furniture.

It’s now possible to create an idyllic entertaining area, regardless of the size and orientation of your outdoor space, and then decorate it with virtually any style of furniture imaginable – from classic and whimsical to ultra-contemporary, all in weatherproof materials that are appealing enough to move inside and out.

Dylan Nye from Impressions Outdoor Furniture in Castle Hill, Sydney says just like the kitchen, the alfresco area is now the hub of the home, where more and more we escape to and relax.

“When it comes to the outdoor furniture scene a key trend that has emerged is woven synthetic wicker furniture,” Dylan says. “Synthetic wicker has all the beauty of natural wicker, plus a host of other benefits too. It is proving to be one of the most popular choices – and for good reason; it is sophisticated yet natural, sturdy, stylish, rust proof, easy to care for and brings a resort-style ambience to any backyard, providing a strong link between inside and out. Plus it’s UV, fade and water resistant.

“Dark mahogany and black wicker still dominate, while the ever popular natural stone tables continue to service our French provincial customers. Colours are moody and sophisticated; black, brown and charcoal grey are key tones.”

Gone is the bulky outdoor furniture that dominated a few years ago; today the look is lightweight, finely woven and laser-cut so that the sunlight can flow through the nooks and crannies of your outdoor furniture. Low-key powder-coated aluminum furniture is taking over where high-shine aluminum left off.

“We are seeing a strong trend in outdoor fireplaces adorned with beautiful deep seat modular settings. It is hard to differentiate these days between indoor and outdoor furniture with the use of sleek stainless steel and glass,” Dylan says.

“It is very important when looking at outdoor furniture to consider the warranty that comes with it, particularly when associated with outdoor wicker and UV ratings. At Impressions, we specialise in getting our customers into the right furniture for their home, taking into consideration design and location.

“Continuity of style is the key to an elegant home; from the front of the house where a first impression is made, right through to the back of home for a lasting impression.”

Take a seat (comfortably!)
Outdoor cushion trends

Not long ago, plastic chairs were about all that was available to furnish your alfresco area – but luckily times have changed, and the fabric industry has helped drive the changes. These days your outdoor chairs or sofa can be covered in a material that’s just as soft and stunning as the fabric on your living room furniture. The choice of colours, patterns and textures has never been better!

Vibrant colours, bold patterns and stripes are big hits this summer, says Anna Day from Elements Weatherproof Soft Furnishings. If bold and bright is not your style, try the various hues of blue.

“Look to your outdoor furniture for inspiration,” says Anna. “Formal furniture calls for classic mixes of charcoal with striped grey and white scatters. Contemporary furniture lines come to life with bright stripes of red, blues and oranges.

“Also look to your planting schemes for inspiration or tones used poolside. Even exterior feature walls can be highlighted with the correct colour choice in your soft furnishings.

“The transformation of adding colour and texture to the furniture and your outdoor area is simple, fun and easy to do, and achieves fabulous results. People are increasingly wanting the same sense of style for outside as well as inside.”

Easy upkeep

Using the correct materials for outdoor use is imperative to sustain the elements of the Australian climate. Whether poolside or for use in entertaining or dining areas, choosing a superior fabric provides a low maintenance product with an extended lifespan.

“In recent times, even polyesters have been passed off as outdoor fabrics,” explains Anna. “Today olefin and polyolefin mixes are being marketed for outdoor use. The 100% solution dyed acrylics remain the leaders in true outdoor fabrics because they provide water, UV, chlorine, salt and mould/mildew resistance.

“Each year we see the range increasing to more textured and patterned fabrics which are soft enough to be used indoors as well as out yet provide maximum durability and longevity.”

The Elements range of cushions includes bench seat cushions, day bed cushions, seat pads and throw cushions. “A major goal of ours is to help people glam up their gardens,” adds Anna.

Light my fire Traditionally the domain of indoor spaces, the open fireplace is ‘on the move’ – and it’s increasingly being integrated into outdoor rooms for year-round ambience, warmth, as a lighting element, or to make a clear design statement. “Outdoor rooms have become one of the hottest trends in home design – and with householders wanting to use them throughout the year, outdoor fireplaces have become very popular,” says Stephane Thomas, director of The Fire Company and creator of EcoSmart Fire, the award-winning range of bioethanol fires. “Think lighting, atmosphere, or simply and effectively transforming an outdoor space to create a design statement or eye-catching focal point. Whatever the use, the EcoSmart Fire is changing the paradigm. “Akin to the kitchen being the heart of the home, a fireplace is widely considered the centrepiece of an outdoor room. It’s the ultimate drawcard, adding a comfort factor much like plush cushions and furnishings do indoors.”

Self managed super funds rush for property

For many years, property investment has been one of the mainstays of the Australian investment environment. Many people like a tangible investment, and bricks and mortar has always been popular. And over the past 16 months, the growing appeal of property has become even more evident following the introduction of new rules, whereby it became easier for self managed super funds (SMSFs) to borrow to invest in property. Added to that softening house prices, record low vacancy rates and strong rental income, and you can understand why more people with SMSFs, or DIY super funds, have been enticed to take that step.

According to recent Australian Taxation Office figures, investment in direct property represented 15.4% of total assets managed by DIY funds, up from 13% three years ago. The ATO also found that SMSFs invested an additional $500 million in direct real estate over the March 2011 quarter.

This increase coincides with the appeal of DIY super funds continuing to grow, with $3 billion added to SMSFs over this period, taking the total invested to $418 billion held by 7,500 funds.

There are certainly significant benefits in direct investment in property. For example, one of the main benefits of buying property in a SMSF is that capital gains tax is much lower – i.e. 15% if the property is held for less than one year, 10% if held for longer, and potentially nil if the property is sold when you are in retirement and your superannuation is paying a pension. In addition, net rental income is taxed at a maximum rate of 15% in an accumulating super fund, and nil tax in a super pension fund (compared with up to 46.5% in your personal name).

Rental income received by the SMSF is also non-taxable and can go straight off the loan and will not count as a trustee contribution.

Older properties take on new sheen

With the recent news that the ATO has released draft rules allowing SMSFs to renovate properties they hold – provided they don’t borrow the money to make the improvements – property is likely to become an even more attractive asset for DIY funds to hold.

The ruling, released in September 2011, allows renovations to properties held in SMSFs as long as the money comes from within the fund (it cannot be borrowed) and the renovation does not fundamentally alter the nature of the property. Previously the ATO has ruled that SMSFs could not borrow money from any sources to improve their properties.

Many in the industry have called the ruling on improvements a welcome relief, given that real estate assets are usually held for a long time and obviously need some revamping in that time.

Peter Burgess, the national technical manager of the SMSF Professionals Association of Australia (SPAA), told the Australian Financial Review: “This change will mean that property is now a more attractive option than it was previously.”

The ATO has also clarified rules around borrowing to repair property. SMSFs will be able to borrow to undertake repairs as long as it does not change the character of the dwelling.

So what’s covered under self managed super funds’ property improvements? It’s best to check with the ATO, but it can include:

• Installing a new pool
• Building a new garage
• Extending/renovating a kitchen or bathroom
• Adding a second storey to a house
• And for farms, adding a new set of cattle yards, a new windmill, a dam

Be aware

It’s vital that property investors who use their self-managed super funds to borrow and acquire real estate fully understand their obligations and comply with the law, the ATO has warned.

ATO superannuation assistant commissioner Stuart Forsyth has said that the coming year will be a “big year” for regulation and compliance. Mr Forsyth told the audience at the recent Institute of Chartered Accountants’ National SMSF Conference in Melbourne that the ATO is acquiring new powers to prevent breaches of legislation.

There are many complex laws restricting the use of SMSF’s to borrow money which you need to understand. You really do need to get some good advice from a qualified financial consultant first before implementing any strategy, as they will be able to help you better understand and abide by these laws and also to advise you whether this is an appropriate solution based on your needs and circumstances.

Homeloans offers a home loan which allows established SMSFs to borrow funds for the purchase or refinance of residential investment properties. Click here for more information.

Spring into your garden and reap what you sew

Wondering whether to get stuck into your gardening this spring? There are plenty of reasons why it’s a great idea. Not only will your garden look good, you could also be boosting the value of your property!

A well-designed garden is the perfect way to frame your home and add significant value. So putting down roots and sowing the seeds now will pay off when you eventually sell up.

According to a recent Husqvarna Global Garden Report, a well-kept garden can increase the value of your property by 12 per cent. The report stated that homeowners could receive 3.6 times more than the amount invested in their property if they maintained their garden.

Martyne Bird from Birds Landscape Design and Management says a well planned and eye-catching garden can turn your investment into further added value for your home. She explains that garden elements which contribute to the value of a property include a well-maintained lush lawn, inviting entertaining areas, stonescaping with designed stone paths, decorative trees/bushes and colourful plants.

“Planning a garden implies bringing all the outdoor elements together, in perfect harmony to complement each other. Capture your vision by combining a blend of materials, water usage, plant selections, form and function to bring life to your home,” says Martyne.

Michael Roberts, principal of Louis Carr Real Estate, says your home is frequently neglected in favour of interior renovations, but come sale time it's first impressions that count. “A lawn and garden are the first things people see, so all could be lost before they even enter the house,” Michael says. “Investing in your garden can go a long way in improving your home's street appeal and saleability.”

Martyne adds that it’s important to make the best use of your largest living space. Today homeowners tend to spend most of their time outdoors – so by creating an indoor/outdoor room you bring the garden into your home, thus providing a tranquil environment for the family.

“There is not a garden past or present where the element of water hasn’t improved the garden,” Martyne says. “Water adds sound and movement, which is soothing to the spirit and adds a dramatic way of including a feature or focal point that gives your garden depth and interest. Water features can be clean cut and formal or rambling rock creek beds that are informal. The decision is purely up to the personality that creates it.”

Brad Wheatley, principal of BW Property Consultants, says showing your home at its full potential and helping buyers fall in love with it will mean more dollars on sale day.

“Tasteful landscaping and gardens are a successful and cost-effective way of doing this,” Brad explains. “An average home can be lifted by a gorgeous garden; a $10,000 investment could add $30,000 to the value by attracting stronger interest.”

Martyne suggests a few ways on how to go about creating your own masterpiece. Decide on a theme. It could be about relaxation, your favourite colour or echo your personality. The plants selected will entirely be based upon what you want to achieve. Focal points. Think about which areas you want to draw attention to, what patterns and designs appeal to you, and where you want designs repeated. Those extras. A water feature, bird bath, stepping stones, pathways or statue. Anything small and simple or big and dramatic. Be mindful. Try to match your outdoor spaces to the style of your home. Having a formal, manicured garden outside a weatherboard house doesn’t make sense, anymore than having a wild cottage garden in a brand new contemporary house does. Be smart. Observe other gardens and talk to people who have done the job themselves. Work out everything from design to cost – and avoid getting carried away.

Betting on a Melbourne Cup day rate cut

Nearly 12 months ago, on a day when most Australians were preparing to watch the race that stops the nation, the Reserve Bank of Australia (RBA) announced what many argue was the rate hike that stopped the nation. For the seventh time in just over a year, the target cash rate was increased by 25 basis points. To make matters worse, over the months that followed we were being threatened with further increases, as the RBA battled to keep inflation in-check.

What a difference a year makes. We haven’t seen an interest rate hike since, and as we approach Melbourne Cup day for another year, the sentiment among economists is in stark contrast to 2010. With economic outlook being downgraded across the globe, the prospect of the RBA reducing interest rates on the first Tuesday in November could be at shorter odds than the favourite for Race 7 at Flemington.

“Consumer confidence has been weakened by the lurking threat of interest rate hikes,” says Greg Mitchell, Homeloans general manager of retail sales.

“But as economists have now changed their outlook, we’re seeing this consumer sentiment improve”.

The latest retail sales figures, released by the Australian Bureau of Statistics (ABS) last week, validate Mitchell’s claim. The past two months have seen positive, albeit modest growth in retail trade of 0.6% (seasonally adjusted) per month.

“Despite global economic concerns, particularly in Europe and the US, many Australians are feeling comforted by the fact that their mortgage repayments don’t appear to be increasing in the foreseeable future,”  says Mitchell.

The international financial volatility has led to significant decreases in fixed rates in recent months, giving home owners more certainty when it comes to their mortgage repayments.

“Fixed rates reflect forecasts of where interest rates are headed,” Mitchell adds.

“So not only do they provide borrowers with the ability to guarantee what their repayments will be over a given period of time, they paint an optimistic picture of what the future holds for interest rates.”
If lenders are pricing for it, and economists are predicting it, then the possibility of a rate reduction on Melbourne Cup day is looking increasingly likely.

“The Reserve Bank has certainly started hinting at the possibility of ‘easing monetary policy’, which it doesn’t do lightly,” Mitchell concludes.

“So at this stage a rate cut looks like it might be a good bet, if not in November then in December this year.”

Homeloans has three-year fixed-rate home loans at 6.49%pa* and variable rates from 6.89%pa*.

If you would like to enquire about our low fixed or variable-rate home loans, contact us today!

Homeloans offsets 1,000,000 kg of carbon!

Since the 2010 launch of its Carbon Conscious program, whereby a tree is planted for every new loan settled, Homeloans has now planted enough trees to offset one million kilograms of carbon emissions.

“This is a great milestone,” says Homeloans national marketing manager, Will Keall.

As an organisation we’re proud of the steps we’re taking”.

Homeloans’ Carbon Conscious program involves the planting of a Mallee Eucalypt tree for each new loan settled. Over its growing life, the Mallee Eucalypt will store about 200kg of carbon.

Keall explains that the planting of trees is not the only way Homeloans seeks to act in an environmentally responsible fashion.

“We regularly implement changes within the business to lower our carbon footprint, such as enhancing our recycling systems and implementing power-saving initiatives,” he says.
“
We are currently running a competition among our four main offices to see who can reduce their print quantities by the most.”

Homeloans also offers its customers the ability to reduce their own carbon emissions.
 

Share the news with your friends on Facebook or Twitter!

Tweet

The rush to fixed-rate home loans

Given the financial volatility in recent months, it makes sense that borrowers are seeking to reduce risk when it comes to their home loan. Fortunately, at the same time we’re seeing fixed rates lower than they’ve been for years, so it’s no wonder there’s a rush to fixed rate home loans.

In recent years, many Australians have seen fixed-rate home loans as being risky, explains Homeloans national marketing manager, Will Keall.

“Some borrowers fear being stuck on a fixed-rate while variable rates fall, more than they fear being subject to interest rate hikes on a variable-rate home loan,” Keall says.

“However, when factoring mortgage repayments into your monthly budget, the only way to be assured that your repayments won’t increase is to fix. Many would argue, therefore, that a variable-rate loan is the risky option.”

Typically, fixed-rate home loans offer a fixed-rate term of between one and five years, after which time the loan will revert to the standard variable rate at the time.

Keall refers to fixed rate home loans as “potentially a sensible choice for some borrowers” in times of economic uncertainty.

“In recent months we’ve had very varied views from economists on where interest rates are headed. At the end of the day, no one really knows, so the only way to provide assurance of your monthly loan repayments over the next few years is to opt for a fixed rate home loan,” he says.

Further adding to the argument towards fixed-rate mortgages is the fact that many lenders, including Homeloans, have recently reduced their fixed rates.

“We now have one, two and three-year fixed-rate home loans at well below our cheapest variable rate,” says Keall.

Australian borrowers seem to be seeing the merit in fixed-rate home loans. In fact, there has been a 75% increase in the portion of the number of dwellings financed with a fixed loan in the 12 months to July 2011. (source ABS)

As well as seeing an increase in fixed-rate loans, Homeloans is also experiencing demand in split home loans – where borrowers fix a portion of their loan and leave the remainder at the variable rate.

“If home owners are apprehensive about a perceived risk in fixing their loan, then a split loan may be a safe middle ground,” adds Keall.

Keall advises that for borrowers who want to maintain their repayments at a constant level in their monthly budget, a fixed rate home loan may be appropriate; however, they should carefully consider their options.

“A fixed rate home loan could be considered, but it is important to make the decision to fix in accordance with your personal financial situation and not to try to predict what the market will do,” Keall says.

“Borrowers should consider the terms and conditions that prevail during a fixed rate period, such as whether or not extra repayments can be made , plus and break costs if you discharge your loan early. It is important to ensure that you fully understand how it will affect your financial situation."

Homeloans has one, two and three-year-fixed rates at 6.59%*. See Homeloans’ fixed interest rates here.

If you would like an obligation-free discussion with a Homeloans consultant about fixed rate home loans, please contact us.

The material presented in this article is for general purposes only and does not take into account any individual’s financial circumstances, needs or objectives. All Homeloans loans are subject to lending criteria, terms and conditions. We recommend that you speak to an independent financial adviser before making decisions about your financial situation.*Rates effective 12 September 2011, and subject to change without notice. Click here for Homeloans interest rates table.

Top 10 Saving Tips

As many Australians are choosing to save in the current economic environment, we’ve pulled together our top tips on saving. So whether you’re saving for a deposit on a house, renovations, a holiday, a new car, or just for a rainy day, we hope that you’ll find these useful.

1. Draw up a budget setting out your income and expenses and have a financial plan.
2. Reduce your credit cards usage - credit cards can distract you from a savings plan so keep credit card debt to a minimum.
3. Spend less than you earn - Spend less than you earn is the secret to creating wealth. You won’t get there unless you stick to this one!
4. Try and find something to give up. This one can be tough, but whether it’s the daily coffee, a drink after work, buying your lunch every day, or something else, if you can save small amounts of money on a regular basis it all adds up!
5. Never invest money you cannot afford to lose.
6. Set up an emergency fund - Should be equivalent to approximately two months of expenses and gives you the flexibility in uncertain times.
7. Keeping a money diary to record your spending – Doesn’t work for everyone but it might be a good start if you’re not sure where your money is actually going. Even if it’s for just one month, it could be just enough to identify the little things that are costing you a fortune.
8. Set goals – key to financial success. This is the fun part. Set yourselves incentives for achieving your monthly or fortnightly budget. It’s no fun putting all your money into savings if there is no reward for hard work. What’s your goal? Is it a deposit for your own home, or a holiday with your family? This is what will keep you focused.
9. Don’t gamble. Many of us are tempted by the dream of winning millions, or thousands, or hundreds, but the reality is the odds are stacked against you.
10. Commit to change. The process of getting back on track with your finances can take years and there will be some compromises that have to be made. If you are dedicated and diligent, you will reach your goal.

If the purpose of you saving is to buy property, it may be valuable for you to know that lenders and mortgage insurers are very strict in what they consider savings. For example, they don’t see the repayment of an existing debt as savings, unless you can prove that you made accelerated repayments, and then it’s only those additional repayments can be considered as savings.

Additionally, savings in non-market assets won’t work in your favour either – this goes for savings under the bed, savings invested in cars or consumer goods - this is seen as spending not savings.

Finally, lenders and mortgage Insurers will want to see your deposit grow over a minimum period of six months.

So good luck and happy saving toward that ultimate goal of purchasing your our Home!
See more tips on obtaining finance.

Save, spend or invest: What the experts say

It has been widely documented that Australians are choosing to save rather than spend or invest, much to the detriment of retail and other sectors.

Given the current global economic uncertainly, inflation concerns and on-again off-again threats of interest rate hikes, it’s not surprising that we’re putting cash away and saving it for a rainy day. The question is, however, when will the market decide ‘enough is enough’?

Reserve Bank Governor, Glenn Stevens, has pointed out that until recently, household consumption (let’s call it ‘expenditure’) was increasing at a greater rate than household disposable income. The gap between expenditure and disposable income – savings – was therefore closing, and it doesn’t take an economist to work out that this is not a trend that could be sustained for the long-term. And alas, since the financial crisis of 2008/09 we have seen this trend reverse dramatically, and saving levels are as high as they’ve been for a generation.

If this was a correction we had to have, then what impact have the sovereign debt problems in the United States and Europe, and natural disasters in Australia and abroad had on our spending and saving habits?

Homeloans’ general manager retail sales, Greg Mitchell says that while the levels of savings could not have reduced any further than they had by 2008, the acute reversal is clearly more than a correction.

“Global economic uncertainty, CPI increases, rate hike threats and a new tax are not being ignored by householders,” Mitchell said.

“It’s clear that these are all compounding to create an overwhelmingly cautious sentiment.”

In close correlation with consumer expenditure is the value of household assets. Many of us know all too well what happened to the value of our assets as a result of the financial crisis in 2008/09. In parallel with the decline in the value of our assets came a reduction in our spending habits. And with a reduction in expenditure comes an increase in savings.

So if the value of assets such as property and shares is determined largely by sentiment, then are we just waiting for the market to decide that the future looks bright in order for the future to become bright? We reported last month about the possibility of the property market reaching tipping point, and Mitchell is confident that the tide is turning.

“Financial institutions are very keen to lend, long-term interest rate forecasts have softened, and property is, in many parts of the country, under-valued,” he said.

“After a period of saving, some Australians are well placed to make an investment, and I believe over the medium-to-long term that many will see a solid return.”

So whether or not a particular individual or family has managed to fatten up the piggy bank, the fact that as a nation we’ve been saving at almost unprecedented levels puts us in a position to make the switch to ‘spend’, driving up the value of all of our asset portfolios.

See our top 10 tips on saving.

RBA (Reserve Bank of Australia) decision for March 2011

At its meeting today, the Board of the RBA (Reserve Bank of Australia) decided to leave the cash rate unchanged.