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Friday 19 November 2010 The sound and the fury Few things divide neighbours like noise. So what can we do about it? Chances are you entered this world screaming your head off, and your poor mum was likely doing the same: birth is seldom a quiet event. From that rowdy start, life requires us to navigate a complex love-hate relationship with noise -- to strike a balance between the sounds we hear, and those we make. Read the full article 1. Consumer sentiment surprisingly resilient Consumer sentiment remained reasonably buoyant in the first week of November, surprising analysts after the hike in interest rates by both the Reserve Bank and subsequently the Commonwealth Bank. The Westpac Melbourne Institute Index of Consumer Sentiment fell by just 5.3 per cent to 110.7 in November. Westpac's Chief Economist, Bill Evans, commented that it is a surprisingly resilient result, as the average monthly fall in the Index in response to previous rate hikes above the average variable mortgage rate was 9.3 per cent. "As we saw in the 2005 - 2008 period, increases moving rates above that "normal" level (7.4 per cent) are usually deeply disturbing for consumers", Mr Evans said. Prior to January 2008, these rate increases were not accompanied by banks increasing their variable mortgage rates by more than the RBA cash rate rise. At the time of the November survey only one bank had announced its new variable mortgage rate in response to the RBA's rate hike. It is expected that the response could be quite different once the other major banks clarified their policies. The report shows that the rate hikes resulted in a 6.8 per cent fall in the confidence of those respondents holding a mortgage compared to a 3.1 per cent fall from those who are tenants. Other factors will have partially offset the negative impact of the rate hike, including the strength of the Australian dollar, the labour market and the share market. "Somewhat surprisingly, respondents remain constructive on their finances over the next 12 months (up 0.5 per cent)", Mr Evans said. "Even more surprising, but certainly welcome, is the very modest fall in opinions on "whether it is a good time to buy a major household item" which after surging by 9.9 per cent last month only fell by 1.9 per cent. "Along with October, this component is printing its highest levels since the consumer boom periods of 2005 and 2007." Mr Evans concluded the report by predicting that it is unlikely that there will be any further rate hikes by the Reserve Bank until the June quarter 2011. 2. Housing finance lifts Home loans rose slightly in September, according to figures released this week by the Australian Bureau of Statistics (ABS). In seasonally adjusted terms, the total value of dwelling finance commitments excluding alterations and additions rose 1.0 per cent in the month of September 2010. The value of loans for owner-occupied housing rose 0.6 per cent, while loans for investment housing rose 1.7 per cent. The number of loans for the purchase of established dwellings rose 1.6 per cent to 41,369 in September. The number of loans (seasonally adjusted) for construction rose by 0.5 per cent in September 2010, however loans for the purchase of new dwellings fell by 3.2 per cent, to be down by 33.5 per cent on September 2009. Over the three months to September 2010 total housing loans dropped by 24.3 per cent compared to the same period in 2009. In seasonally adjusted terms, the total number of owner-occupier loans increased by 0.4 per cent in New South Wales, 1.1 per cent in South Australia, 4.9 per cent in Western Australia, 1.7 per cent in Tasmania, 2.2 per cent in the Northern Territory and 1.1 per cent in the ACT Total owner-occupier loans fell by 1.4 per cent in Victoria and by 0.5 per cent in Queensland. The number of first home buyers, as a percentage of total owner occupied housing commitments, increased slightly from 15.5 per cent in August to 15.9 per cent in September - a modest increase but still well below the long-run national average of 20.1 per cent and dramatically down from the 27.1 per cent level a little more than a year ago. 3. Buying money still costly - or is it? The debate over the true cost of offshore wholesale money continues to rage, as borrowers backed by both sides of government lob shots at the big banks for daring to even consider raising interest rates above the Reserve Bank's 0.25 per cent increase, let alone making enormous profits for share holders. The banks claim their cost of funding has increased sharply and insist they have to pass that cost on to customers while the Reserve Bank and the government counter by saying there is no justification for rate rises above the official cash rate increase. Who is telling the truth? According to financial services research company Canstar Cannex, the real cost of funds to the banks is a very complicated and convoluted thing to unravel. "It's all very well to speculate but very few outsiders are privy to the real figures of each monetary deal done by the individual banks, however, our research does show one very interesting piece of the bank funding puzzle," Cannex research manager Chris Groth said. "Our interest rate tracking over the last four years has identified a trend which might just support some of what the banks are saying. "Prior to the GFC online savings accounts were tracking well below the official cash rate. However, since early 2009 the rates paid to online savings accounts start to track above the official cash rate and they have remained consistently ahead. "The banks are scrambling over themselves to attract retail deposits to fund their loan books," Mr Groth said. "While the banks, the government and the Reserve Bank argue over the real cost of funding, Canstar Cannex can confirm that retail deposits are now a more expensive source of funding than they were prior to the GFC. "This is good news for cashed-up savers but not so good for home loan borrowers." Adding to the consumer confusion is the current debate about early exit fees, exception fees and the cost to consumers of switching loans. It is little wonder home loan borrowers are nervous about what the future holds. "In a rate cycle trending upwards there is always the temptation to lock in an interest rate through a fixed-rate product to eliminate the sting of any future rate rises," Mr Groth said. "We've seen some very attractive fixed rate offers in the market over the past quarter but, by and large, most people prefer to take their chances with variable, as fixed loans account for only 3.4 per cent of borrowers." Timing is crucial when taking out a fixed rate loan, said Canstar Cannex. Their research shows that in only 9 of the past 36 months (Nov '07 - Oct '10), borrowers would be ahead on their monthly repayments by locking in an interest rate rather than taking a variable rate loan. The greatest return received would have been in April last year where, on a $300,000 loan, almost $3,000 in repayments would have been saved. "Borrowers should not be discouraged from looking to fix at least part of their loan, as fixing delivers repayment certainty, the potential to save money on repayments and an interest rate buffer should rates increase further," Mr Groth said. On the flipside, borrowers should remember that they run the risk of losing money if rates decrease and that exiting early from a fixed loan may attract high fees. "Your best bet is to shop around for the best fixed rates which currently show a 3.29 per cent range between the lowest and highest," Mr Groth said. "Don't forget that refinancing or switching may attract fees which should be considered when doing the maths on whether fixing or maintaining your current loan is the best way to go." Canstar Cannex this week released its home loan star ratings report which compared 1,600 home loans from 110 lenders. The report compares fixed and variable home loans for residential as well as investment purposes, awarding five stars to those loans offering outstanding value through a combination of rates and features. 4. Councils admit fees hit housing costs A government body has finally acknowledged what the property industry has been saying for years - that infrastructure charges are destroying housing affordability, the Property Council of Australia announced this week. The Property Council's Acting Executive Director Ken Morrison said comments made in the Courier Mail by Local Government Association of Queensland (LGAQ) President Paul Bell represented a major shift in attitude. "It is pleasing to see the local government sector recognise that high infrastructure charges cripple housing affordability, and commit to work with industry to find a solution," Mr Morrison said. "However, more radical changes will need to be made to the current regime -the situation has become so dire that tinkering around the edges is simply not enough", he added. The Property Council anticipates that a soon-to-be-released draft report by the Queensland Government's Infrastructure Charges Taskforce will result in a fairer infrastructure charging regime for that state. 5. Unreal estate Would you invest in a property you couldn't physically visit? How about one that no one else could, either? In a society where so many things can be done online, it's no surprise that virtual properties are selling - what may surprise is the price tag. One cyber-mogul recently sold off his properties in Entropia Universe (a global online gaming platform with a real cash economy) for nearly AU$345K. According to numerous Forbes bloggers, the man known in the game as Neverdie mortgaged his real home to purchase land a few years ago for $100K and proceeded to build up his online property portfolio on an exclusive asteroid around the game's first planet. One of his creations - Club Neverdie - became a must-see for users of the game, featuring over a dozen bio-domes, a nightclub, a mall, and other venues in which players could spend real money on virtual goods and services. He is said to have sold off all of his properties over the past year, amounting to around $645K. It may have been a risky move, but it did see a reasonable return on a $100K investment. 6. Sleep takes flight We may be flightless mammals, but that has never stopped us from dreaming of flying. Now Dutch design group Tjep has created a space for us to sleep like birds while our dreams take flight. Tak is essentially a large sofa made of fifty soft rubber branches entangled in the shape of a nest, which can be expanded depending on the size of the flock.

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Friday 12 November 2010 Illawarra Business Awards The 2010 Integral Energy Illawarra Business Awards will again turn the spolight on the Illawarra business community and celebrate the achievements and diverstiy of the region's business community. The awards congratulate and recognise the many success stories that make up our local business community. They acknowledge and promote the importance of local business to the future growth and development of the Illawarra, articulate the key drivers of growth for the region and give vital recognition to the region's most successful and innovative businesses. 1. Dwelling approvals continue to fall Building approvals continue to drop Australia-wide, despite a surprise lift in private house approvals in New South Wales, according to figures released this week by the Australian Bureau of Statistics (ABS). The total number of dwellings approved fell 6.6 per cent to 12,143 dwellings in September 2010; the ABS reports that this figure has been showing falls for six months, in seasonally adjusted terms. The largest falls were recorded in Victoria (down 10.0 per cent) and South Australia (down 24.9 per cent). Tasmania recorded a rise in dwelling approvals (1.0 per cent) this month, while New South Wales (down 1.5 per cent), Queensland (-2.3 per cent) and Western Australia (-2.0 per cent) all fell, in seasonally adjusted terms. The number of private sector houses approved dropped 2.2 per cent with falls in Victoria (down 3.6 per cent) and Western Australia (down 10.7 per cent), while New South Wales (8.1 per cent), Queensland (0.5 per cent) and South Australia (0.4 per cent) rose. The value of total building approved fell 3.2 per cent in September in seasonally adjusted terms. The value of total residential building fell by 4.5 per cent while non-residential building fell by 0.7 per cent following a rise last month. 2. Construction improves The national construction industry remained soft in October largely due to ongoing weakness in activity and new orders, although the rate of contraction was less than the previous month. The latest Australian Industry Group Australian Performance of Construction Index (Australian PCI®) in conjunction with the Housing Industry Association lifted 3.2 points to 44.0 in October (readings below 50 indicate a contraction in activity). While the four major sectors again spent the month in negative territory, there was a distinct slowing in the pace of decline in the house building and commercial construction sectors. House building lifted 15.5 points to 47.9, the sector's highest reading in five months. AIG Director Public Policy, Dr Peter Burn, said that project delays and intense competition to secure existing contracts is continuing to have an adverse impact on activity, especially in the engineering construction and apartment building sectors. 3. New home sales drop The number of new homes sold rose in September, but not enough to reverse the general trend over recent months, a new report has revealed. The latest HIA/Jeld-Wen New Home Sales Report, a survey of Australia's major residential builders, showed that the number of new homes sold increased by just 0.6 per cent in September 2010. However, sales were down by 14 per cent for the September 2010 quarter and 15 per cent below the level of new home sales for the September quarter of the previous year. HIA Chief Economist, Dr Harley Dale, said that leading indicators signal a contraction in new home building in the post stimulus environment of 2011. "Warnings from the banks of pending increases in mortgage rates outside of changes in monetary policy have been unhelpful to buyer confidence and are causing potential buyers to stay on the side-lines", Harley Dale said. "As it stands the lack of available credit from Australian banks to small and medium sized residential developers is contributing to the renewed weakness in new home building conditions that has become evident over the course of 2010," Harley Dale added. Detached house sales increased by 1 per cent in the month of September 2010 but were down by 15 per cent over the quarter. Sales in the multi-unit sector fell by 2.4 per cent in the month and were down by 1.5 per cent over the quarter. In the month of September 2010 detached new house sales increased by 5.9 per cent in New South Wales and by 3.6 per cent in Queensland, although both these markets suffered double digit declines in sales volumes in the September quarter. Sales fell by 3.1 per cent in Victoria in the month of September and were down by 4.6 per cent in South Australia and 1.8 per cent in Western Australia. 4. Stop ants in their tracks With all the rain we've been having lately, you may have noticed an increase in the number of ants in your home. Ants marching in lines through the house have long been welcomed as a sign of rain, so long as it is just an occasional visit. However, an infestation of ants can be a sign of potential structural damage to your house, as well as being a constant nuisance. Whatever the reason they are coming in the house, you'll no doubt want to deter the critters. If you are averse to using chemical sprays and poisons, let's try some age-old remedies. Old Wives' Tale #714 says that ants will not cross a line of chalk, so you could try laying down some guidelines using a stick of chalk from the local newsagent. If that doesn't have the desired effect, Old Wives' Tale #715 suggests wiping surfaces with oil from the Pennyroyal plant. Pennyroyal is a mint, which can be grown in a shady spot by the back door so that there are always leaves to crush when needed. 5. Bottom dollar tree change Another tiny Australian town is offering annual rents at a smaller figure than its population size, in a bid to strengthen the community and save local schools. Similar to the effort to pump new life into the drought-stricken NSW town of Cumnock (population 295), a few farming properties around Trundle, NSW, have become the nation's most affordable real estate. According to the incentives website there are currently 7 farmhouses available with a rental price of $1 a week. Anyone who is looking for bottom dollar rentals and handy with a paint brush and hammer is welcome to apply. Applicants should also be keen to experience rural living and (preferably) have a family who would love to be part of a vibrant and welcoming community. 6. Sofa gets a grip They may seem benign, yet couches are well known to be diabolical thieves of the contents of our pockets. Anyone who's cleaned one out will have been astounded at the veritable treasure trove of coins, pens, keys, notes and anything else that could possibly slip between the cushions. The key is to beat them at their own game, and that's just what Lost In Sofa does. Japanese architect Daisuke Motogi's design is in the shape of an armchair but covered with padded cubes that will encourage you to actually store things between them, from books, pens and papers, to cups of coffee, phones and remotes.

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Friday 05 November 2010 Viva La Gong Festival 2010 Wollongong's festival of culture and creativity will bring the heart of Wollongong alive with a spectacular street parade, followed by an artistic extravaganza. Listen to fabulous music, experience exciting performances by local and visiting acts, and enjoy delicious food from around the world in a carnival atmosphere unique to Wollongong. 1. Interest rates on the move THE Reserve Bank of Australia (RBA) moved this week to head off inflation, deciding to lift the official cash rate by 25 basis points to 4.75 per cent, the first rate rise since May this year. In a statement announcing the decision, Reserve Bank Governor Glenn Stevens made a point that the demand for labour has continued to strengthen and that some further increase is likely over the coming year. "Given these conditions, the moderation in inflation that has been under way for the past two years is probably now close to ending", Governor Stevens said, adding that inflation is likely to rise over the next few years. "This outlook, which is largely unchanged from the Bank's earlier forecasts, assumes some tightening in monetary policy", he concluded. The rate rise means that borrowers with an average mortgage of $300,000 will have to pay an extra $49 a month. 2. Community spirit is the winner Public architecture projects demonstrating a winning mix of `community spirit, intensity, humility, beauty and hope for the future' have dominated the nation's top architecture awards for 2010. From urban design to public, commercial, heritage, interior and sustainable architecture, projects skilfully blending these elements took top honours presented at the 30th Australian Institute of Architects' National Architecture Awards. A total 33 awards and commendations across 12 categories were awarded to projects in Queensland, NSW, Victoria, Tasmania, South Australia, and offshore in Singapore, Thailand, Japan, Tanzania, Indonesia and India. Presenting the awards, Jury Chair Melinda Dodson remarked that it has been a contradictory time for architecture, with economic buoyancy followed by economic downturn. "As architects we're part of a carbon emitting industry, so it's natural that the jury reflected on the future, applied the 'enduring architecture' test, and the essential test of sustainability", Ms Dodson said. "We were heartened by the many instances of architects demonstrating leadership, advocacy and innovation. "Projects where a positive transformative act had occurred, resulting in new ideas for the profession and for the community about architecture; architects doing ordinary things in extraordinary ways. Ms Dodson said that while the 2009 jury worried about a lack of expenditure on public urban design projects, in 2010 the opposite was true. As a result, the City of Sydney and Australian public emerged as this year's big winners, with five projects commissioned by the council picking up major awards. Surry Hills Library and Community Centre in Sydney by Francis-Jones Morehen Thorp (fjmt) received a National Award for Public Architecture and a National Award for Sustainable Architecture. The much used and enjoyed Pirrama Park at Pyrmont Hill by Thalis Architecture + Urban Projects/Aspect Studios/CAB received the Walter Burley Griffin Award for Urban Design, while the equally well-frequented Paddington Reservoir Gardens by Tonkin Zulaikha Greer with JMD Design and the City of Sydney received a National Award for Urban Design and National Award for Heritage. Australia's top award for international architecture, the Jørn Utzøn Award for International Architecture, was awarded to a revolutionary, naturally ventilated 66-storey apartment building in Bangkok, The Met, by Singapore-based practice WOHA. In total six international projects received Awards and Commendations, including an orphanage in Tanzania, and "extraordinary" house for one of the world's top designers in Japan. For the first time in the history of the national awards, Australia's most prestigious residential award - the Robin Boyd Award for Residential Architecture - Houses, was presented to a Tasmanian practice and house - the Trial Bay House by Hobart practice HBV Architects. The jury commented that this "exceptional house may be one with such calmness and serenity that it is hard to leave. The remodelling and additions to the Trial Bay House have created such a house." The Frederick Romberg Award for Residential Architecture - Multiple Housing was presented to Brisbane-based practice Donovan Hill for the Seaspray Resort and Spa at Zilzie in Queensland. The practice also picked up a National Award for Residential Architecture - Houses for their Z House in Brisbane. In another win for Tasmania, a National Award for Small Project Architecture was presented to the Strangio House by Maria Gigney Architects, with the jury saying "the creative and sensitive conversion of a 170 year old stone barn into a compact but exciting contemporary residence is a superb example of how to reuse old building stock". 3. House prices plateau After a run of increases, house prices in Australia's capital cities remained flat through the September quarter, according to figures released this week by the Australian Bureau of Statistics (ABS). Preliminary estimates show the price index for established houses rose 0.1 per cent in the September quarter 2010. This result follows five consecutive quarters of quarterly increases in the eight capital cities index. Through the year to September quarter 2010, the index has increased 11.5 per cent. Prices rose in Melbourne (up by 2.7 per cent), Perth (up 0.4 per cent) and Darwin (up 0.3 per cent) and decreased in Sydney (down 0.9 per cent), Brisbane (down 2.1 per cent), Adelaide (-1.4 per cent), Hobart (-1.4 per cent) and Canberra (-0.4 per cent). Through the year to September quarter 2010, the index increased 11.5 per cent. 4. Time to go, e-waste How many old mobile phones, printer cartridges and dead batteries do you have lying around your home or office? Next week could be the perfect time to finally get rid of them, as National Recycling Week (November 8 - 14) has e-waste in its sights. About 6,000 tonnes of household batteries end up in landfill each year making them one of the most common forms of hazardous waste disposed of by Australian households, according to environment group Planet Ark. Together with local councils across Australia, Planet Ark are encouraging residents to round up their used and unwanted batteries, printer cartridges and mobile phones and take them to local collection points for recycling. "As well as eliminating the risk of landfill environmental contamination, recycling electronic products saves resources as many of the heavy metals contained within these items can be recovered and used to make new products." Residents can find local battery recycling options on their local Council's page of Planet Ark's RecyclingNearYou.com.au website - a service which provides reuse, recycling and safe disposal information for more than 32 different materials ranging from aluminium cans to x-ray film. "Of the 1,400 e-waste recycling enquiries which Planet Ark receives each day, over 800 relate to household batteries, printer cartridges and mobile phones," says Planet Ark's Manager of Recycling Programs, Janet Sparrow. "We're really pleased to see so many Australians actively searching for e-waste recycling solutions and we encourage residents who are unsure how to recycle their electronic products to visit Recycling Near You." "Australia Post offers free recycling of printer cartridges and mobile phones through the `Cartridges 4 Planet Ark' and MobileMuster programs," says Sparrow. "To recycle your used printer cartridges, place them in the `Cartridges 4 Planet Ark' recycling bins located in store. Mobile phones and accessories can be placed in a MobileMuster Reply Paid satchel which residents can collect at the counter and post in any street posting box." For further information about any of Planet Ark's National Recycling Week initiatives, visit the PlanetArk website or call the National Recycling Hotline on 1300 733 712. 5. Surfing the net on top of the world You think it's hard getting customer service to connect your home phone? Try lodging a complaint from Mount Everest. Once a gruelling trek requiring courage, strength, and a strong resistance to the adverse effects of total isolation, it is now possible to surf the internet and make video calls through a 3G network set up by a Nepalese telecommunications network around Everest base camp. Even though less than one third of Nepal's population has access to telecommunications services, Ncell, a subset of Swedish owned company TeliaSonera, will provide coverage for climbers and trekkers all the way to the summit of the world's highest mountain, the UK's BBC reported recently. The company has also reportedly announced that over the next year it would invest more than AU$100m to boost mobile coverage across the country. 6. Prose by any other name would sell as sweet It seems bright colours and nonsensical catchphrases are no longer the selling trump cards they once were. In a throwback to a more elegant and interesting time, an estate agency in the UK has banned "meaningless jargon and clichés", and had its staff undertake a poetry course to bring more inspiration to their sales material, the UK Telegraph reported recently. The agency has since featured poems, writing and haikus (a Japanese form of poetry) in listings and on their website. The Telegraph reports that an oceanfront apartment, originally described as "spacious, high quality, and within short walking distance of local shops", re-emerged as: "The first thing you see is the sea meeting the sky; like old comrades they share a warm embrace. Coats of armour; the cornice lines up. Without feeling lonely, the room has an echo. Ornate surroundings, the fire begs a match."

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Friday 29 October 2010 2010 Sydney to Gong Ride A Challenge within a Challenge The Gong Ride is a one of a kind fundraising event. You can pedal 90km from Sydney to Wollongong on any day of the year but it's only on the first Sunday of November that you'll experience the camaraderie, fellowship, unity, safety, scenery and sense of achievement for pedalling in support of people living with MS. But be quick because numbers have been capped so places are limited! To maintain the safety and enjoyment of participants, local residents and other road users and in consultation with the NSW Police and the RTA, the event will be capped at 10,000. More Information 1. Planning key to the city Urban density and long-term strategic planning are essential if Australian cities are to meet the challenges of increased population, traffic congestion, water shortages and climate change, a report has found. The ADC Cities Report, which is the outcome of the ADC Cities Summit that was produced by ADC Forum earlier this year, urges governments to rethink their approach to urban planning to address these challenges and maintain the liveability of our cities. "We need to focus on better cities, not necessarily bigger cities," said one of the authors of the report, John Stanley, Adjunct Professor at the Institute of Transport and Logistics Studies at the University of Sydney. "Increasing density in the middle suburbs, around public transport corridors, will drastically improve the efficiency of our cities while maintaining their liveability." A key recommendation is the establishment of a National Centre for Cities, which would provide policy and planning advice to all levels of government and promote community involvement in policy and planning for our cities. "Australian cities are facing myriad and complex challenges that require a long-term strategic approach with strong community engagement," Professor Stanley said. "The establishment of a National Centre for Cities would allow these issues to be considered in a way that looks beyond election cycles." Dr Ian Winter, Executive Director Australian Housing and Urban Research Institute agreed. "It is critical that Australia invests nationally in the high quality research that is needed to underpin high quality urban policy development", Dr Winter said. The Report addresses interconnected issues such as transportation, housing, productivity, infrastructure, environment, population, urban design, social inclusion and governance. Along with increased urban density, there is a need to focus on enhancing the existing villages within our cities, embrace water sensitive development, reduce greenhouse gas emissions, better utilise existing infrastructure and consider the development of new cities. "We need to look beyond our existing cities and consider the expansion of our regional centres, as well as the development of whole new cities," Professor Stanley said. "There is a case for resourced-based cities in the north west, which could be closely linked to our regional neighbours, while a high-speed train in the east coast corridor could turn regional centres into major cities." 2. Sunny future for solar industry The sun will shine out of Newcastle, when an ambitious new solar project goes online, the CSIRO announced this week. CSIRO has this week begun installing 450 large mirrors, called heliostats, for Australia's largest solar-thermal tower system at the CSIRO National Solar Energy Centre in Newcastle, New South Wales. The tower is designed to demonstrate that, after the cost of carbon is taken into account, electricity can be generated by sun-power at the same or less cost than fossil fuel-generated electricity. Creating 2.4 x 1.8m panels of glass mirrors for a solar field is no easy feat. The glass needs to be a specific concave shape to achieve a highly accurate reflection point and strong enough to withstand extreme weather events. Once installed, the heliostats will concentrate the sun's rays to create temperatures of up to 1000°C. The heliostats have a lightweight steel frame with a unique, simple design, specially created for mass production for the commercial market. The units are smaller than many heliostats currently being used around the world, but just as efficient, more cost effective and much easier to install. CSIRO's Energy Transformed Flagship Director, Dr Alex Wonhas, said the economical design of the heliostats will also make solar fields more cost effective to build and operate. "It's a local idea generated by CSIRO and manufactured by a local company, which will have global impact," Dr Wonhas said. "We hope that one day we will see these economical heliostats used in solar fields all over Australia and the world." The heliostat field is part of CSIRO's new solar Brayton Cycle project - a solar tower and field that generates electricity from just the air and sun. The heliostats are part of an advanced new solar technology developed by CSIRO and manufactured by Central Coast company, Performance Engineering Group. The project has been supported by the Australian Government through the Australian Solar Institute (ASI) as part of the Clean Energy Initiative. 3. Loans for renovations Personal loans are normally associated with cars, holidays and debt consolidation, but people are now using them to fund renovations as well, according to Aussie Home Loans. In June, almost one in five people (18 per cent) who settled a personal loan with Aussie were using it for that purpose, up from 12 per cent in the previous month. The numbers have been steadily growing over the past year, according to Aussie founder and Executive Chairman John Symond, who remarked that personal loans are an effective way of managing larger credit. "A personal loan is a simple easy way to finance larger cost items such as a new kitchen, or other renovations which improve the value of the home," Mr Symond said. "But most importantly, they provide a controlled means of repaying the debt so it is paid off as quickly as possible in order to minimise interest costs." Mr Symond cautioned that homeowners thinking about going down the personal loan path for their home improvements need to ensure they are not over-capitalising on their home. "As long as you do your sums to ensure you are not over investing in the cost of improvements you can actually end up paying less total interest by using a personal loan because you are set to repay the debt over a shorter loan term," he said. "The rule of thumb is 'time beats rate', meaning a loan paid off faster over less time, even if it is a higher interest rate is often better than the reverse." For example borrowing $20K for renovations could cost (in interest paid): * Personal Loan (at 14.49% over 5 years) $8,227.68 * Credit Card (at 16.16% minimum repayments) $22,775.17 * Home Loan (at 6.50% over 30 years) $25,508.90 Mr Symond suggested that using your home loan to fund purchases is not necessarily the smartest move. "Unless you pay it off quickly you could end up paying around three times more than on a personal loan", he warned. "Sometimes a redraw on your home loan can be cheaper than a personal loan but only if you pay it off quickly which clearly not everyone does. "Leaving it for the normal term is actually a very expensive form of credit because you may be paying a great deal more interest than with a personal loan", he concluded. 4. Lighten up - naturally Do you let the sun brighten up your home, or simply rely on electricity to take care of it? Apart from causing your skin to produce vitamin D (which has a vast array of medical benefits), natural sunlight will improve your health, vision and mood as well as saving you money on lighting and air conditioning bills. Allowing natural sunlight into homes has been shown to provide a number of benefits, including - Improvement in moods and attitude, including a decrease in the severity of clinical depression Better actual colour rendering (colours are "true to the eye") Reduced eyestrain Reduced energy waste from electric lighting or air conditioning Bringing natural light indoors can be easy - try adding more windows, or replacing walls and doors with glass. Alternatively, skylights are ideal for turning dark and gloomy areas into bright places to enjoy. Fixed skylights will provide you with the full benefit of the light, but no ventilation, so are ideal for hallways and stairs. On the other hand, opening or ventilated skylights are better for installing in a bathroom, bedroom or kitchen. Some manufacturers even offer skylights with exhaust fans to remove smoke or steam directly into the atmosphere rather than into the roof cavity. Most suppliers these days offer different glazings which provide radiant heat block, UV ray protection and noise reduction. For those days when the heat is too much, or the light too bright, there is a range of blinds that can be operated either electrically or manually. The main types of skylights are: Traditional, fixed skylights with either an acrylic dome or polycarbonate cover on the roof. Ventilated skylights, which allow ventilation through the roof to the outside and provide living areas with fresh air. These can be operated using either handle, rod or remote control. Tubular skylights, also known as sun-tubes, which feed light directly into small locations (such as hallways, cupboards or lavatories) where you otherwise may need to use an electric light during the day. Fire-rated skylights, which are made with fire retardant materials. Whatever your need or situation, it seems that innovation and technology are being applied to make it possible to have natural lighting anywhere in your house, together with ease of installation, weatherproofing and security. 5. Not a half-baked idea There is definitely an art to baking a good loaf of bread. Perhaps that is what inspired designer Andere Monjo to cook up a dinner set you can eat once you've finished your meal. Consisting of plates, bowls, cutlery and napkins, the Baked Table collection is made of a basic flour and water bread mix, then decorated with seeds to create the appearance of embroidery patterns. 6. Three beds, two baths, one ghost With Halloween this Sunday night, our streets are bound to be filled with little horrors roaming from door to door in search of the great candy haul. While many of us are happy to have spooks roaming the streets for one night a year, most don't take as kindly to the idea of sharing a house with ghosts and ghouls all year round. But for those craving a slice of the macabre pie at home and looking for a good study source on the topic, a few websites have materialised in front of our eyes listing a vast array of haunted houses. Hauntedrealestate.com is one example, while the British Tourist Board cheerfully calculates that there are at least 10,000 haunted places in the country, and the Haunted Britain website lists a top 101 ranging from the limping butler of the BBC's broadcasting house to the spectral ape of Athelhampton Hall in Dorset.

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Friday 22 October 2010 A Taste of Viva La Gong Enjoy a taste of the Viva La Gong Festival with a special preview on Saturday 30 October at the Crown St Mall Amphitheatre from 12 noon-2pm. RIOGH Riogh is a six-piece ensemble specialising in Irish and Celtic music, combining classic ballads and upbeat favourites with a fresh take and contemporary sound. Featuring some of the country's finest musicians, Riogh is fast becoming a `must see' in the Australian Folk scene - from classic Irish ballads to Celtic jigs and modern pop tunes, there's something for everyone! Their soaring harmonies and infectious melodies will transport you to another time and place. 1. Pipeline bursts with building work Building orders that have been `in the pipeline' for the last twelve months have now resulted in a solid stream of work, according to data released this week by the Australian Bureau of Statistics. The figures show that the seasonally adjusted value of total building work done in the June 2010 quarter rose 5.7 per cent, to $21,571.8m, following a rise of 7.3 per cent in the March quarter. New residential building work done rose by 9.4 per cent to $10,181.7m in the June 2010 quarter. Work done on new houses increased 7.7 per cent to $6,898.4m, while new `other residential' building rose 13.1 per cent to $3,283.3m. Alterations and additions rose 1.8 per cent to $1,660.4m. Excluding alterations and additions, new residential building lifted 8.7 per cent in the June quarter, which is the fastest rate of growth since the September quarter 2001. The volume of work done on major alterations and additions rose for a fourth consecutive quarter in June, up by 1.8 percent, although the rate of growth has slowed relative to earlier quarters. In the June 2010 quarter, seasonally adjusted new residential work done increased by 7.5 per cent in NSW, 8.9 per cent in Victoria, 4.6 per cent in South Australia, 0.2 per cent in Tasmania, 11.5 per cent in Queensland, 5.3 per cent in Western Australia and 7.2 per cent in the Australian Capital Territory. In original terms new residential work done was 12 per cent higher in the Northern Territory compared to the June quarter of last year. 2. Aussies working fewer hours The long-held notion that Australians are spending longer hours at work has been challenged by new research showing the country's 11.3 million workers spend less time in the office than they did ten years ago. While millions of Australians feel they are working longer than ever before, the Bankwest "Working Times" report shows full time workers put in an average 41.4 hours a week over the past year to August 2010, compared with 42.7 hours a week a decade ago - representing a 1.3 hour decrease in hours worked over the decade. This has handed Australians back an equivalent of more than eight working days over the course of the year compared to 2000. The research also showed that small business owners worked the longest hours in Australia (50.7 hours), while government employees in the public sector worked fewer hours than other Australians (36.8 hours). Once again Gen-Y bucked the trend, working fewer hours than any other age group in Australia, at an age when traditionally Australians worked longer hours in a bid to try and establish their careers. Bankwest Business Chief Executive Ian Corfield said the Bankwest analysis of the latest quarterly labour force data openly challenges what many Australians have long taken for granted - that we are all working longer and harder than ever before. "I'm sure many of us would be astounded to learn that as a nation we each are actually working fewer hours than we were back in 2000," Mr Corfield said. "Some of this appears due to Gen-Ys who have opted for work-life balance at an age when people traditionally worked long hours to try and get ahead and establish in their careers. "I think there's little doubt that many of us are working harder than ever before, but our research shows this doesn't mean we are necessarily working longer. "The thing to remember of course is that for many of us the day doesn't end when we switch off the computer and go home, many Australians are still working with blackberries and laptop computers at home at night and over the weekend. "Even so, our research shows we are actually spending 68 hours less in the office every year, which equates to more than eight working days off compared to 2000. The major employment trend over the past decade has been a shift into part-time from full-time work. Now, 30 per cent of workers are employed part-time, compared to 27 per cent a decade ago. The average hours worked by part-timers has increased by 0.9 hours per week over the past decade from 16.1 to 17.0 hours per week. The average hours of all workers - both full-time and part-time - has fallen by 1.5 hours per week over the past decade from 35.6 hours in August 2000 to 34.1 hours currently. 3. Land sales ease Land sales eased in most Australian capital cities over the June 2010 quarter, according to the latest residential land report from the Housing Building Association (HIA) and property information and analytics provider rpdata.com. The weighted median residential land value for Australia eased by 3.6 per cent over the quarter, but was up 2 per cent over the year to June. Sydney remains the most expensive residential land market in the nation with a median value of $280,000. The Sunshine Coast in Queensland is the second most expensive land market with a median value of $261,750, followed by the Gold Coast ($235,000), Richmond Tweed ($228,700) in New South Wales, and Perth ($227,000). There are twelve markets across Australia with median land values of $100,000 or less. The most affordable land market in Australia is the Mallee region of Victoria ($72,250), followed by the Murray Lands ($75,000) and South East ($78,850) regions in South Australia, and the Mersey-Lyell ($80,000) and Southern ($87,000) regions in Tasmania. RPdata.com senior research analyst Cameron Kusher said falling land volumes and values are mirroring the experience of the established housing market. "Values of established residential dwellings have been easing in recent months, as have volumes, and the market for vacant land is experiencing a similar slowdown", Mr Kusher said. "Despite the fact that sales volumes have fallen, it does not necessarily indicate falling demand and has more to do with affordability factors and the high price of serviceable land. "Australia's growing population is providing plenty of demand for vacant land, the issue is the price and location of the available land." Mr Kusher anticipates that the weakness in sales activity for vacant land will persist over the September quarter. "Although economic indicators such as employment and consumer confidence are positive, the key housing market data including: building approvals, housing finance and values of houses and units are all flat or falling. "Overall, this data suggests that sales activity for vacant land will continue to soften over the coming months," Cameron Kusher said. 4. LG to compensate for energy efficiency Consumers have just a few weeks left to take advantage of an offer of compensation from whitegoods manufacturer LG on certain models of refrigerators, the Australian Competition and Consumer Commission (ACCC) warned this week. LG Australia was found to have breached the Trade Practices Act 1974 by misrepresenting the Comparative Energy Consumption (CEC) of various refrigerator models. Over the course of 2007 and 2009, LG applied for energy label registrations for three refrigerator models, all of which included an energy saving feature which switches the refrigerator to a more energy efficient mode of operation, storage mode, when it is left for a sustained period without opening the refrigerator door. LG did not remove or disable the storage mode during testing prior to applying for the energy label registrations. These initial tests indicated a CEC of 738kWh/year. Subsequent tests conducted by LG showed a CEC of 820kWh/year when storage mode is disabled. ACCC conducted an investigation as to whether LG Australia's marketing of the various models with a CEC of 738kWh/year gave rise to concerns under the Act. In particular, the Commission was concerned that: LG may have represented that the CEC of the various models was 738kWh/year when it was not LG may have represented that the CEC of the various models was significantly lower that it was LG may have misled the public as to the energy efficient characteristics of the various models, and LG's compliance program did not pick up and/or prevent the conduct from occurring. "The cost of electricity is paramount to all consumers in Australia such that energy efficiency claims can significantly influence consumer purchasing decisions," ACCC chairman Graeme Samuel said this week. "Companies need to have in place measures to ensure their claims are accurate." In March 2010, LG Australia announced that it would offer all consumers who bought one of the refrigerator models compensation. As part of the undertaking, LG will keep this compensation offer open until at least November 2010. In addition, LG has undertaken to establish and implement an upgraded trade practices law compliance program, and conduct additional testing on a selection of refrigerators, televisions, clothes washers, clothes dryers and dishwashers prior to release into the Australian market. 5. True colours Like taxes, damage to crockery is a part of life and we always seem to end up a few plates or cups short. Not any more, however, since CMYK tableware - based on the color model cyan, magenta, yellow and key (black) - transforms the inevitable into the imaginative, by turning broken crockery into a work of art. Made with coloured ceramic (styled in CMYK) and coated with a white glaze, the tableware shows its true colours when the plate is cracked, chipped or worn down over time. 6. Not a bad move The richest man in the country that brought Bollywood to the World has now brought us perhaps one of the most extravagant houses in the world. Fifty-three-year-old oil tycoon Mukesh Ambani isn't just the richest man in India, he is also the fourth richest man in the world, which is possibly why the UK Telegraph reported recently he has spared no expense on his new home in Mumbai. Standing 27 storeys high and worth over AU$1.07B, the building contains a health club, gym, ballroom, guestrooms, a range of lounges, 50-seat cinema and requires 600 staff to keep things in order. For a breath of fresh air, there is the elevated garden with ceiling space to accommodate small trees; and for guests there are three helipads on the roof and enough underground parking for 160 cars.

First there was QE2, now La Niña
Economic trends
• Investors are always looking out for “the next big thing”. Currently investors are fretting whether the US economy will experience a double-dip recession, in turn debating whether the Federal Reserve needs to apply more stimulus – more quantitative easing, or QE2.
• But closer to home there is a weather trend to watch – La Niña – an event associated with cooler, wetter weather. There hasn’t been a major La Niña event since the late 1990s and it has implications for a raft of businesses.
• Overnight, the World Meteorological Organisation released its latest El Niño/La Niña Update and warns of moderate to strong La Niña conditions over the coming 4 to 6 months.

El Niño, La Niña – what is it all about?
• Over time, Australians have heard a lot about El Niño. This is the weather event that most people associate with drought. And given that most of the noughties were characterised by drought, there has been plenty of discussion about El Niño in recent years.
• But now the discussion has shifted to La Niña. This is essentially the opposite of El Niño, associated with cooler, wetter weather in eastern and northern Australia. The Bureau of Meteorology (BOM) also notes that there tends to be more tropical cyclones in northern Australia when La Niña events occur.
• In late September, BOM indicated that La Niña was well established in the Pacific and indicated that it will last until at least early 2011. The Climate Prediction Centre in the US has projected that La Niña will persist until at least the Northern Hemisphere Spring of 2011 – that is to around March 2011. The CPC says “many models forecast La Niña to strengthen through the November 2010 – January 2011 season before beginning to weaken.” In the US, La Niña autumn/winters tend to be warmer and drier for the Southwest but increasing the possibility of rain and snow in the Pacific Northwest.
• The CPC says that the last El Niño event extended from May 2009 to May 2010. Effectively there have been rolling El Niño events from April 2002 through to 2010, with only a brief La Niña from August 2007 to Jun 2008. The last major La Niña was a two year period from June 1998 to June 2000.
• In contrast to the dry noughties, the 1990s tended to be wetter than normal with a La Niña event occurring from 1995 to 1996 and then another event covering 1998 to 2000.
• The World Meteorological Organisation has just released its latest El Niño/La Niña Update, warning of moderate to strong La Niña conditions over the coming 4 to 6 months. And like the CPC and BOM, the WMO expects the La Niña event which began in June and July 2010 to extend until at least the first quarter of 2011. The WMO said the current La Niña became “moderate to strong” in August and continues at the same strength.

Wet weather on the way?
• The climate models say that cold, wet weather is on the way. Most people in the eastern states would say that it is already here. Queensland had its wettest September on record and Brisbane yesterday had its wettest October day on record. In addition, temperatures have been below-average in eastern and southern states. It was the coldest and wettest September in South Australia in 18 years. Melbourne had its coldest September in 16 years while Sydney had the coldest September in five years.
• The last major La Niña was in the late 1990s, and it is clear from the charts that this was the last time that rainfall across the capital cities was well above normal. For most of the noughties the rolling total of capital city rainfall was below average. But it’s worth noting that over the year to September 2010 that capital city rainfall was in line with the long-term average.

Implications of a La Niña weather event
• A raft of businesses and industries will be affected if a major La Niña event occurs across the summer months in Australia. Amongst those potentially affected are:
• Retailers of seasonal goods – clothing, electrical goods, outdoor equipment, swimming pool operators & equipment
• Utilities – reduced demand for power (air-conditioners, fans etc)
• Insurance companies – potential for floods, more traffic accidents
• Rural producers – effects will vary depending on where and when the rain falls, and in what quantities
• Builders/construction – potential for weather delays with more frequent rain days
• Good rains in recent months through Queensland, NSW and central Australia have served to lift dam levels, fill lakes and boost water flows in key river systems. But somewhat perversely the ending of the drought may reduce the urgency for reform of water allocations in the Murray Darling basin and delay moves to get more appropriate pricing of water to better reflect its scarcity value.
• While the ending of the drought will reduce demands on the Federal Budget for special assistance grants, the occurrence of major floods could result in different demands on government spending.
• The CPC has also noted that a deepening of the La Niña event could lead to more hurricanes in the Gulf of Mexico, disrupting oil production. So far the hurricane season has been relatively uneventful, but it does extend for another month or so until late November, so it bears watching.

What are the implications for investors?
• Retailers are already under pressure given that conservative consumers are reluctant to spend, so a mild, wet summer would represent an additional challenge. Myer currently is in the middle of a Mid Season Sale (ends October 17) with the catalogue dominated by Men’s and Women’s clothing items.
• It is hard enough for investors to account for the vagaries of the economy, let alone the vagaries of the weather. And while La Niña events have predictable effects, climate models aren’t able to accurately determine whether a mild La Niña event is in prospect or something more severe. Still, for investors it is a case of forewarned is forearmed.

Source Craig James, Chief Economist, CommSec

Latest Property News from Ted Hanson

Friday 15 October 2010 Jazz in the Mall Experience all that Jazz at Crown St Mall when the Wollongong Conservatorium Jazz Ensemble performs live featuring top jazz musicians! Venue: Crown St Mall, Address: Crown Street Mall Amphitheatre, Wollongong, Next Date: Saturday, 16 October 2010 Time: 12:30 PM - 1:30 PM Tickets: Free Event Contact No: (02) 4226 1188 1. Housing finance up Home loans rose again in August, according to figures released this week by the Australian Bureau of Statistics. Total number of dwellings financed for owner occupiers, seasonally adjusted, rose by 1 per cent in August, to be down 22.8 per cent on July last year. This was boosted mainly by the number of loans for the purchase of established dwellings, which rose by 1.4 per cent in August. Number of loans for `new' dwellings (construction/purchase of new dwellings combined) fell by 1.3 per cent in August, to be down 25.2 per cent on the same month last year: Of this figure, the number of loans for the construction of dwellings fell by 1 per cent in August, while the number of loans for the purchase of new dwellings fell by 2 per cent in August. The value of lending to finance the purchase of investment housing fell by 3.9 per cent in August, to be down 4 per cent on a year ago; however, the value of lending to finance construction of dwellings for rent or resale rose by 25.6 per cent, to be up 47.1 per cent on a year ago. Peter Jones, Master Builders Australia's Chief Economist, said that a further period of interest rate stability will be critical to engender confidence and encourage upgraders, investors and first home buyers alike. "A solid pipeline of new building work lies ahead, but Australia requires a major phase of residential building to make up for previous weak activity and to cater for the housing needs of the population", Mr Jones said. "Although finance commitments for the building or purchase of new dwellings remain up on the low point in late 2008, loans now need to kick up again following 10 months of correction." "Despite some improvement in recent times, the investment-driven side of the new housing market is still struggling to overcome the credit crunch and is constraining the upswing." Master Builders believes that housing supply side issues and affordability need to be seriously addressed in the new Parliament. Top 2. What annoys Aussies most? Australians appreciate honesty and good service, according to consumer advocacy group Choice, which surveyed more than 1,000 of its members to find out what really gets under their skin. The most prevalent annoyances are all consumer or product-related, it was found. The top three ultimate irritations include hidden fees, having problems returning a faulty product under warranty and being put on hold or not being able to speak with someone on the phone. Largely, the most prevalent gripes suggested that Aussies loathe being ignored or disregarded by customer service or sales staff. In fact, the older people are, the more annoyed they are with being put on hold and getting no response to their complaints. Interestingly, those who live in rural and regional areas are annoyed by the same things that bug city-dwellers. Residents in NSW, QLD, WA, ACT and TAS get most annoyed about hidden fees, while people in VIC, SA and NT get most infuriated about long queues at checkouts. While the majority of males get most annoyed about hidden costs and fees, women are most infuriated about no-refund policies or lack of replacement for faulty products despite having a warranty. One of the biggest grievances shared by both men and women was being left on hold. However, on the whole, women generally get more irritated than men by most annoyances (outlined below). "It's the simple things that companies often get so wrong", CHOICE spokesperson, Brad Schmitt observed. "Australians appreciate honesty and good service and our Choice report suggests that this is simply not happening. "Australians feel cheated and deceived when companies are not up front about all of the costs involved in the service or product consumers are purchasing" he said. The top 32 things that annoy Australians include: Hidden fees and costs No refund/replacement for faulty products, despite being under warranty Being on hold/not getting someone on the phone Tailgating No response to written or verbal complaints People talking loudly on mobiles in an inappropriate area Door-to-door salespeople/telemarketers People coughing in an enclosed area without covering their mouth Confusing broadband/phone price plans Nonchalant customer service Erroneous bills Cigarette butts littering public areas Unreliable internet Poor advice from financial planners Spam email Late repair people Noisy neighbours Long queues/checkout lines Companies only letting you pay by automatic deduction Poor service from airlines Shrunken products Traffic jams Very slow drivers Purchase thwarted by "sorry, out of stock" Not getting a parking space Supermarket grocery prices Forgetting passwords/PINs Parking fines Crying babies on planes Programming new electronic products Loyalty cards Inaccurate weather forecasts 3. Could do better... The housing supply report's in and showing there is a definite need for improvement, the Housing Industry Association announced this week. The Association's National Outlook report shows that federal stimulus measures ensured the number of new homes built nationally increased by 26 per cent in 2009/10 to 165,209. However, as the measures wind down, housing starts are forecast to decline by 4 per cent in 2010/11 to a level of 159,393. "The fact remains we are not building enough homes to match demand, and going forward our national housing shortage is expected to worsen," said HIA Chief Economist, Dr Harley Dale. "Renewed weakness in new home starts in 2011 would mean there were only two years in ten when starts have risen", Dale said. "That is an appalling result, which highlights the challenge Australia faces in addressing a large and growing housing shortage that will place considerable further pressure on rental markets." By calendar year, housing starts are forecast to increase by 24 per cent in 2010 to a level of 171,442, before dropping by 9.5 per cent in 2011 to a level of 155,155. "Stimulus measures drove a short-lived recovery in new home building and helped Australia avoid a recession" Dale remarked. "However, if we want to address Australia's housing shortage then the Federal Government needs to lead from the front on a range of policy areas including further investment in skills and training, reform of the tax system, an end to excessive regulation, increased land supply, reduced planning delays, and ensuring greater competition in the banking sector so there's adequate finance for development", he added. On the renovations front, low interest rates and renewed growth in home values drove a 5 per cent increase in total activity to a record $32.8 billion in 2009/10. "Total investment in renovations is forecast to tick up by less than 1 per cent in 2010/11 to a worth of $33.1 billion", Dale said. 4. Budgeting for holidays School holidays are over again, but Christmas is so close. Many Australian families find holidays taxing on the household budget, with additional childcare expenses or unpaid time off work, plus the wide-ranging costs for entertaining children during a peak period. With home loan repayments lingering, what's the best way to avoid a blow out and stay ahead? Mortgage broker Mortgage Choice recommends a return to budgeting basics, particularly planning ahead. Company spokesperson, Kristy Sheppard says that adjusting the budget earlier in the school term to save for upcoming holiday expenses should make maintaining repayments easier and see the whole family having a more relaxed time. "When saving for any financial goal you need to set a target, work out how much you need to put away weekly or monthly and ensure the piggy bank still has enough to meet other commitments", Ms Sheppard suggests. Here are some top tips to reduce debt, spend wisely and still enjoy the holidays: Savvy shoppers save online Discounts are often available if you book things in advance and/or purchase online. Prepare early for the break and shop online for accommodation discounts, cheap flights and bargain tickets to concerts, sports events and attractions. Saving money here means more money to spend elsewhere. Make the most of savings An offset account attached to your home loan or a home loan with a redraw facility can put to good use those new savings or dollars being accumulated for holidays. Rather than making deposits into a savings account, adding extra funds regularly or lump sums into a home loan in these ways can increase your savings while acting as contributions to the loan. This helps reduce the interest owing and your loan term. Plus, paying the mortgage is not taxable whereas money in a savings account is. Do some lump sums After the holidays, any money saved (big or small) from your budgeting efforts can be put back into your offset account or deposited into the loan account as a lump sum. Take a 30-year loan of $300K at 7.36 per cent: $500 added at the three-year mark would reduce the term by one month and save over $3K in interest. Imagine the difference made by doing this at the end of every school holiday! Budget for a feast Holidays often lead to lazy snacking. Stay healthy and limit spending on takeaway and junk food by challenging kids to a junior master chef competition - an enjoyable way to eat well, spend quality time together, learn new skills and save money. Redraw only if you need to If you have been working hard to create a financial buffer in preparation for trying times, keep in mind that, as mentioned, some loans allow you the flexibility to withdraw extra payments made. However, some lenders have a minimum redraw amount and may charge you a fee each time. 5. You could be Big Brother Ignoring the fact that it could be another step towards an Orwellian society, a British firm has found a way to fight back against crime using millions of eyes. Internet Eyes, an online event notification system, is offering cash prizes for UK neighbourhood watchers who monitor live CCTV feed from business customers and notify them if a crime is observed. With shoplifting reaching its highest recorded levels, the motive is to detect the crimes as they happen, catching more offenders and steadily decreasing the occurrences. It does make you wonder how long it will be before we have eyes watching our homes in the same effort. 6. The king of crop Anyone with a vegetable garden will know that birds aren't always the best friends to have around, and who better to scare them off than Mr Thriller himself. A Taiwanese farmer has found a Bad way to keep the birds off his rice fields, by setting up two wooden figures adorned with the signature attire of the King of Pop, the UK Dailymail reported recently. One of the scarecrows sports a sequined white glove and black fedora hat, while the other boasts a Thriller-esque jacket. The farmer apparently told news sources that they've been such a great success, he is making a third for his father's farm.