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How to add maximum value with renovations.

Renovating is one of the best ways for property owners to increase the value of their homes. If you’re looking to add value to your home, but don’t want to renovate every room, it can be difficult to decide where to start.

Here are some ideas to help you decide which part of your property to focus on for the best results.


The kitchen

The kitchen is widely regarded as the best place to start when renovating – and while it can be a lot of work, the rewards can be substantial. Despite being one of the most expensive rooms in the house to renovate, there’s no need to break the bank.

An updated kitchen can make a huge impact on potential buyers, by giving your home a ‘ready to move in’ feel. The Housing Industry Association of Australia report that the average cost of a kitchen renovation(PDF) in Australia is $21,862, but the difference a modern kitchen makes when you’re selling can be substantial.

As far as appliances go, you might choose to purchase a single-brand suite to give a cohesive look and feel to the room. However, there’s often no need to go ‘top of the line’ when it comes to elements such as ovens. Adding value is about keeping costs to a minimum while refreshing the room.


The bathroom

Next on the list is the bathroom, a key element in any house – especially if the structure isn’t particularly modern. Similar to kitchens, an updated bathroom can provide a home with a much-needed contemporary boost, and it doesn’t have to cost the earth.

There are a number of cost factors to consider when renovating a bathroom that don’t apply to other rooms in the house, such as plumbing and waterproofing. Moving the location of sinks, toilets and showers can add a lot to the overall cost, and this money probably won’t result in a lot of value being added in the long run. Therefore, a key tip for doing up a bathroom: don’t overcapitalise.

It’s important to consider the home as a whole, and the features you believe will be desirable for your location and target buyers. If you’re hoping to attract a family, for example, consider installing a bath.


The great outdoors

Another area ripe for high-impact renovation is gardens and back yards. Opening up the rear of your home to create an outdoor entertainment area is effectively the same as adding a whole new room.

If your home already has an outdoor entertaining area, it’s worth considering whether there are elements that could be updated. Adding an outdoor kitchen or designated barbecue area can have a positive impact on the value of the property.

And because first impressions count, don’t overlook the front yard.  ‘Curb appeal’ can be the difference between potential buyers driving by or stopping to take a look inside.

There’s more to adding value than giving your property a quick lick of paint and hoping for the best. The right renovation, in the right area of the house has the potential to add tens of thousands to the value of your home – and choosing the right way to invest your time and money could mean a better result when you decide to sell.

 

Source: (Your Loan Hub)

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How supermarkets influence your buying.

When you walk into a supermarket, the game begins between you and the sales/marketing team of that supermarket. Your goal is usually to get in and out with the groceries that you need. Whereas, their goal is to influence your buying in an attempt to get you to spend as much money as possible. Largely, this is done by specifically designing a supermarket that leverages off the findings from behavioural economics research.

The entrance

A humble trolley
Prior to walking into the supermarket, you will often head over to the trolley area. Unfortunately, there is more to that humble trolley than you might think.

One of the first shopping trolleys, referred to as a ‘folding basket carrier’, was introduced in 1937. It consisted of a foldable metal frame that moved around on wheels and could hold two small baskets. Since then, the design has undergone numerous changes. However, of most note has been its size and carrying capacity. For example, most trolleys that you find today in supermarkets are much larger in size and carrying capacity than their predecessors.

Whilst there are many good reasons for this change, a larger array of items available in supermarkets to purchasefor example, a major reason is the impact that a trolley’s size and carry capacity has on us from a psychological point of view. Namely, the bigger the trolley, the greater the likelihood that we will be inclined to fill it further.

First impressions 
You have probably heard the phrase, ‘First impressions matter’. When it comes to supermarkets, this is particularly relevant. As we often have multiple competing priorities, setting the time aside to do the shopping can be quite stressful (especially if we have children that need to tag along). This means that our initial mood when we step through the entrance of a supermarket can often not be ideal from the point of view of a supermarket’s sales/marketing team. Namely, we want to get the experience over and done with as quickly as possible.

Consequently, after negotiating the trolley selection, the first thing that confronts you in a supermarket is often the bakery and fresh produce sections, as well as some ambient music playing over the internal speakers. The smell of freshly baked goods, the brightly coloured fruits and vegetables, and the often slow tempo music are all attempts to try to ‘recalibrate’ your mood to something more conducive. They are looking to elicit two main responses, relaxation and hunger, because studies have shown that these things can influence your spending behaviour:

  • Relaxed = more time spent in the supermarket, leading to increased purchasing.
  • Hunger = more food item purchases.

The layout

Department locations
Have you ever had to pick up some mid-week supplies, such as bread and milk, and found yourself with a few extra items when you reach the checkout area? One of the reasons for this is the layout of the supermarket departments (bakery, fresh produce, meat/deli, general grocery, dairy, frozen goods etc.).

By placing essential items, such as the bread and milk example above, at different ends of a store, it requires you to walk through other departments to get to what you want. This tactic is aimed at distracting and enticing you towards other items that you see along the way.

Aisles
There are many tactics employed by the sales/marketing team when it comes to aisles, such as displays and general product placement. We have listed a few here:

  • Displays. Research has shown that when people shop, they tend to go around the edges of the supermarket, dipping in and out of the aisles. Consequently, items on display at the end of aisles aim to entice you. Unfortunately, despite them often being accompanied by signs saying ‘SPECIAL’, they are usually highly priced items (with high-profit margins) when compared to alternatives.
  • Aisle width. You will often find that the aisles are quite wide in supermarkets, noticeably more so than in the past. This is not just for your convenience when manoeuvring your oversized trolley around other people (and their oversized trolley). Wide aisles, just like the freshly baked goods, the brightly coloured fruits and vegetables, and the slow tempo music, aim to make you feel relaxed and… relaxed = more time spent in the supermarket, leading to increased purchasing.
  • Eye level. It’s often human nature to focus on things that are at eye level. The sales/marketing team frequently take advantage of this by putting expensive items at eye level (even if they have a SPECIAL sign). As such, by looking above and below eye level, you may find cheaper, but still good quality alternatives. However, importantly, certain aisles are set to influence two different eye levels, namely, adults and children. You can probably guess which aisles these are.
  • Charm pricing. By marking an item with a nine at the end ($5.99), many of us are still falling victim to the belief that it’s a good deal. This can be in terms of a comparison between a rounded alternative ($6.00) or with shopping in general.
  • Spend and save. You have probably seen multiple purchase pricing many times before, the five-for-$5 deals for example. Often people that are enticed by this offer tend to buy five items when in fact they probably only needed one. A slight variation to multiple purchase pricing, but with a similar premise, is the ‘buying one item and getting the second for half price’ example.
  • Emotional purchases. There are some items in the supermarket that you may engage with on an emotional level, coffee/tea or baby food for example. Because of this, you may spend a little more time before making a decision. As such, you will often find these types of items in the middle of the aisle. The rationale behind this can be as follows:
    • It draws you further into the aisle so that you interact with other items.
    • It stops you from obstructing others from entering the aisle.
  • Layout swaps. When you have been shopping in a particular supermarket for some time, you might reach a point where you think you have figured out where everything is located. This serves to not only make you more efficient in your shopping time, but also less susceptible to distractions and enticements. Consequently, from time to time, a supermarket will undergo a layout swap, with the aim of disorientating you and subsequently exposing you to other items.

The finish line

Checkouts and those last minute purchases
You made it, albeit probably with a little more in your trolley than expected. Now it’s time to put everything through the checkout. But wait, what about those chocolates, magazines, and chewing gum that are just within arm’s reach. This is one of the last attempts by the sales/marketing team to get you to purchase more items. Unfortunately, this can often be especially difficult to navigate past if you have children accompanying you.

Moving forward

As you might have already been aware, the supermarket is a complex place. Thought has been put into every little detail often with the sole aim of influencing your buying. So when you do your next grocery shop take some time to be mindful of all the different tactics that are employed by a supermarket’s sales/marketing team – you might just find that you spend less and save more.

Lastly, we leave you with a few handy tips for your next shop:

  1.  Plan your meals in advance.
  2.  Consult your fridge/freezer/pantry for items you already have.
  3.  Write a shopping list before heading to the supermarket.
  4.  Although, not always possible, consider leaving children at home with the spouse.
  5.  Opt for a basket over the shopping trolley.
  6.  Look at the unit prices between packaged and unpackaged items.
  7.  Despite rewards programs, don’t be afraid to shop around for a better price.

 

Article source here.

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How to modernise your kitchen on a budget.

A new kitchen doesn’t have to cost the earth. Check out these savvy ideas for an updated kitchen with an old-fashioned price tag.

If you want to modernise your kitchen but you’re concerned about the cost, don’t be dismayed. There are many ways to get a new kitchen without destroying your bank balance.

Downgrade to upgrade

Saving money doesn’t mean you have to compromise on everything in your new kitchen. Select a few fittings or features that you want to spend a little more on, then budget in other areas. For example, if you have your heart set on a granite benchtop, perhaps you could have a tiled splashback instead of a glass one. By choosing one or two standout features, you can still achieve the ‘wow factor’ you’re looking for.

Don’t move mountains

You can save on electrical and plumbing contractors by working within the design of your existing kitchen. Keep your sink, oven and gas hotplates in their current positions, to minimise structural and design costs.

Buy off the shelf

It can be expensive to get cabinets, shelves or tables custom-made. While this may be your only option when you’re working with an unusual space, it might still be possible to buy some fittings off the shelf.

Stores such as Ikea and specialist kitchen suppliers sell flat pack or modular cabinets that you can assemble yourself, which should cost less than hiring a professional installer. Also, think of creative alternatives – if your dream kitchen has an island bench, why not consider a small table or a unit on wheels instead, for a relaxed country feel.

Refresh rather than renovate

Before you gut your entire kitchen, consider whether you would be happy with just a few changes. Refreshing the cabinets with new handles and a lick of paint can change the look of a room entirely.

Other low-cost changes that can lift your kitchen include replacing the benchtop, installing new window blinds and modernising the light fittings. Laminate has also had a revival, with stylish colours and designs that may just transform your kitchen at minimal expense.

Net a bargain

The internet is a treasure trove of bargains, but it’s not just the large retail stores that offer special deals online. Many individuals and small businesses offer surplus stock or items they simply don’t need on sites like Gumtree and eBay. You’ll be amazed at what people will sell for a fraction of the original cost.

Recycle

Just because you want a new kitchen doesn’t mean you can’t salvage some of your current fittings. Perhaps your tapware has hipster retro charm, or you have hardwood boards hidden beneath your lino flooring. Look at your existing kitchen objectively before you start throwing anything out.

DIY

While you may not have the time or skill to DIY everything, you may be able to save some dollars by splitting the workload with your tradies. Paint the walls on the weekend or tile the splashback, and you’ll have the satisfaction of knowing you did it yourself.

Creating your dream kitchen without breaking your budget is certainly possible. Don’t be overwhelmed by the initial quotes, just look at where you can make little changes without compromising on your vision.

When planning your renovation, contact your mortgage broker to find out how they can help you get into your new kitchen.

 

 

Article source here.

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Child care benefit and rebate

Raising a family can be one of your toughest, but most rewarding experiences. The decision to return to work after a given period may be due to one or a culmination of many factors. For example:

  • The child reaches a certain age and you have more free time
  • The added income to the household to help reduce debt, accumulate wealth and plan for retirement.

When you do decide to return to work, you may need to consider your options for child care.

In recognition of the costs associated with child care, the Government provides eligible families with financial assistance payments, such as the Child Care Benefit and Child Care Rebate.

Please note: From July 2018, the Child Care Benefit and Child Care Rebate will be replaced with a single Child Care Subsidy. Under the new system, families with an adjusted taxable income equal to or lower than $65,710 could receive a subsidy of 85% of the actual fee charged, up to an hourly fee cap. The subsidy will taper down as a family’s adjusted taxable income increases, reducing to nil at $350,000.

Child Care Benefit

The Child Care Benefit helps with the costs for approved or registered child care. To be eligible for the Child Care Benefit, certain criteria apply. For example:

  • Your child needs be attending approved or registered child care
  • You need to ensure that your child meets the immunisation requirements
  • You must be the person responsible for paying the child care costs
  • You meet the residency requirements
  • You must meet the income test (for approved care only).

The payment options for the Child Care Benefit can be:

  • Fee reduction (approved care only). Paid directly to your chosen child care service provider to reduce the child care costs you pay throughout the year.
  • Lump payment. You pay the full child care costs throughout the year and then lodge a claim at the end of the financial year to receive a lump sum payment.

To claim the Child Care Benefit, you will need to apply online or in person through Centrelink.

Approved Care
Approved care is where a child care service provider has been given approval from the Government to pass on the Child Care Benefit to eligible families.

Examples of approved care may include long day care, family day care, in-home care and occasional care to name a few.

If you intend on using an approved child care, the Child Care Benefit can generally assist with:

  • Up to 24 hours per child per week for all eligible families, or
  • Up to 50 hours per child per week if, for example, you and your partner are working, looking for work, training or studying for at least 15 hours per week or 30 hours per fortnight. You may also be eligible if you meet an exception.

For the 2017-18 financial year, the approved care rate for a non-school aged child is $4.30 per child per hour, or $215.00 per week. Whereas, for school aged children, the applicable payment rate is 85% of the non-school aged approved care rate.

It’s important to note that you may receive a different approved care rate depending on your circumstances. For example, the rate payable will depend on your household income, number of children attending child care (and, their hours of attendance), the type of child care service and any special circumstances that may apply.

In terms of the Child Care Benefit income test for approved care, the maximum rate is payable if your family’s adjusted taxable income is less than $45,114 per annum. However, you won’t be entitled to any Child Care Benefit for approved care if your family’s adjusted taxable income is more than the following thresholds:

  • One child and a household income greater than $156,914.
  • Two children and a household income greater than $162,633.
  • Three children or more and a household income greater than $183,655 (plus $34,724 for each child after the third).

Registered Care
Registered care is where individuals are registered with Centrelink as registered care providers.

Examples of registered care may include preschools, kindergartens, outside school hours care services or child care provided by grandparents/relatives/friends/nannies to name a few.

If you intend using a registered child care, you can receive the Child Care Benefit up to 50 hours per child per week if, for example, you and your partner are working (or looking for work), training or studying in the week that child care services are provided. You may also be eligible if you meet an exception.

For the 2017-18 financial year, the registered care rate for a non-school aged child is $0.719 per child per hour, or $35.95 per child per week. Whereas, for school aged children, the applicable payment rate is 85% of the non-school aged registered care rate.

It’s important to note that you don’t need to meet an income test to qualify for the Child Care Benefit for registered child care.

Please note: Your Child Care Benefit may still be paid if you’re charged for child care when your child is absent on a day that they would have usually attended. The annual limit of approved care is 42 absences per child per financial year; however, other conditions apply for occasional care. There is no absence limit for registered care.

Child Care Rebate

The Child Care Rebate is an additional payment to the Child Care Benefit, that helps with the costs for approved child care. To be eligible for the Child Care Rebate, certain criteria needs to be met. For example:

  • You child needs to be attending approved child care
  • You claim and are eligible for the Child Care Benefit for approved child care, regardless of whether your income is over the income thresholds to receive a payment
  • You and your partner are working (or looking for work), training or studying in the week that child care services are provided (unless you meet an exception)
  • You need to ensure that your child meets the immunisation requirements
  • You must be the person responsible for paying the child care costs
  • You meet the residency requirements.

To claim the Child Care Rebate, you’ll need to first apply online or in person through Centrelink for the Child Care Benefit. During this process, you will automatically be assessed for the Child Care Rebate and payment will commence upon being deemed eligible.

The payment options for the Child Care Rebate can be:

  • Fee reduction. Paid directly to your chosen child care service provider to reduce the child care costs you pay throughout the year.
  • Paid to your nominated bank either fortnightly, quarterly or annually (if you opted for this option with your Child Care Benefit, then it will also apply to your Child Care Rebate).

For the 2017-18 financial year, the Child Care Rebate can assist with up to 50% of your out-of-pocket costs associated with child care, i.e. total child care fees less any Child Care Benefit payments and Jobs, Education and Training Child Care Fee Assistance received. This is capped at an annual limit of $7,613 per child.

It’s important to note that you don’t need to meet an income test to qualify for the Child Care Rebate.

Please note: Your Child Care Rebate may still be paid if you’re charged for child care when your child is absent on a day that they would have usually attended. The annual limit of approved care is 42 absences per child per financial year.

These Government financial assistance payments may help make the transition back to work easier for your household.

You may also find our article, ‘Parents returning to work’ useful, this runs through other things to consider when returning to work such as reviewing your personal insurances and your Will, as well as your superannuation.

Article source here.

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