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.
 

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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.