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Young homeowners are more likely to use their home as an ‘ATM’ than their Boomer parents. Here’s why

<div class="theconversation-article-body"><em><a href="https://theconversation.com/profiles/rachel-ong-viforj-113482">Rachel Ong ViforJ</a>, <a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a> and <a href="https://theconversation.com/profiles/christopher-phelps-378137">Christopher Phelps</a>, <a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a></em></p> <p>For many Australians, the family home is their largest financial asset. With an increasing variety of ways to tap into home equity, the temptation to access this wealth is ever growing.</p> <p>Homeowners increase the debt owed on their home when they borrow against their <a href="https://doi.org/10.1080/02673037.2013.783202">equity</a>. Standard mortgage home loans now provide facilities for relatively cheap or free withdrawals of equity from the home.</p> <p>This turns the <a href="https://theconversation.com/your-home-as-an-atm-home-equity-a-risky-welfare-tool-22000">home into an ATM</a>, which borrowers can access when they choose.</p> <p>Our new <a href="https://doi.org/10.1080/02673037.2024.2400158">study</a> asks what motivates Australians to tap into their home equity, and how does this behaviour change with age?</p> <p>Surprisingly, despite having much lower housing equity levels, younger homeowners borrow often, and borrow more, than their Boomer parents.</p> <h2>How common is equity borrowing?</h2> <p>Using 15 years of data from the government-funded <a href="https://melbourneinstitute.unimelb.edu.au/hilda">Household, Income and Labour Dynamics in Australia </a>(HILDA) survey, we tracked the mortgage debt and repayments of homeowners aged 35 and over.</p> <p>The chart below shows younger owners are far more likely to engage in equity borrowing.</p> <p>In 2006, nearly 39% of the youngest homeowners, aged 35–44, borrowed against their home equity. By 2021, this number had dropped to 29%. Despite the decline, it’s still 24 percentage points more common than those aged 65 and over. The older group has remained steady at about 5% over the years.</p> <hr /> <p><iframe id="Ll9Cw" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/Ll9Cw/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe></p> <hr /> <h2>How much do equity borrowers withdraw from their home?</h2> <p>Among those who use their home like an ATM, younger borrowers now withdraw larger amounts than older borrowers.</p> <p>In 2006–07, equity borrowers aged 35–44 and 45–54 withdrew on average $43,000 and $57,000, respectively (expressed in real values set at 2022 price levels). By 2021, the amount withdrawn by these two age groups had climbed to $70,000 and $100,000.</p> <p>On the other hand, the amount withdrawn by borrowers aged 55 or older fell from more than $50,000 to less than $40,000.</p> <hr /> <p><iframe id="ujq3S" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/ujq3S/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe></p> <hr /> <h2>What motivates equity borrowing?</h2> <p>Young homeowners’ equity borrowing behaviours are sensitive to changes in house prices and debt values, and their financial risk preferences. Among those aged 35–44, a $10,000 increase in the primary home value raises the likelihood of equity borrowing by ten percentage points.</p> <p>Every $10,000 in debt against the primary home reduces the likelihood by 2.8% percentage points. Those willing to take substantial financial risk are eight percentage points more likely to borrow against their home than those who are risk-averse.</p> <p>Those aged 65+ are not inclined to borrow, and exhibit little change in equity borrowing behaviour with variations in asset, debt, income or financial risk preferences.</p> <h2>Why borrowing practices differ between age groups</h2> <p>As well as being more likely than older homeowners to borrow against equity, the younger group also withdraws higher amounts than their Boomer parents.</p> <p>This is despite younger borrowers already carrying much higher debt against their primary home. Among those in our study who engaged in equity borrowing in 2021, the median debt before borrowing was $401,000 for 35-44 year-olds compared to $0 for those aged 65+.</p> <p>As real house prices have risen over decades, the current generation of young homeowners has had to invest more money into purchasing their first home than previous generations.</p> <p>It’s therefore not surprising the primary home is now widely viewed as a financial resource to be <a href="https://theconversation.com/your-home-as-an-atm-home-equity-a-risky-welfare-tool-22000">tapped into to meet spending needs</a>.</p> <p>On the other hand, most Baby Boomers bought their first home at more affordable prices than their children, and at lower levels of debt. Now they don’t appear to be spending their kids’ inheritance by drawing down housing wealth.</p> <p>In fact, older parents may shy away from equity borrowing to <a href="https://www.pc.gov.au/research/completed/wealth-transfers/wealth-transfers.pdf">bequeath wealth to children</a>. Some also <a href="https://doi.org/10.1017/S0047279417000058">dislike passing debt</a> on to their children.</p> <p>Older people may also avoid equity borrowing due to concerns about <a href="https://treasury.gov.au/sites/default/files/2023-08/p2023-435150.pdf">aged care costs</a>. Some may be hampered by <a href="https://doi.org/10.1016/j.jue.2013.08.003">poor financial literacy</a>.</p> <h2>More debt ahead without policy changes</h2> <p>Present trends suggest young homeowners will remain indebted for longer periods, and more and more will <a href="https://theconversation.com/more-of-us-are-retiring-with-mortgage-debts-the-implications-are-huge-115134">retire with mortgage debt</a>.</p> <p>For indebted retirees, there are real prospects of <a href="https://theconversation.com/fall-in-ageing-australians-home-ownership-rates-looms-as-seismic-shock-for-housing-policy-120651">drawing down of superannuation</a> to pay off mortgages in retirement.</p> <p>This may impose extra burdens on the age pension system. Another unwelcome consequence, which may add to health costs, is the prospect of <a href="https://www.ahuri.edu.au/sites/default/files/migration/documents/AHURI-Final-Report-319-Mortgage-stress-and-precarious-home-ownership-implications-for-older-Australians.pdf">debt-related psychological distress</a> among those who can’t pay off their mortgage in old age.</p> <p>If the current trends continue, the <a href="https://www.afr.com/policy/economy/what-happens-when-australia-s-boomers-hand-5-trillion-to-their-heirs-20240515-p5jdvf">great wealth transfer</a> that has already begun looks set to <a href="https://theconversation.com/not-everyone-wins-from-the-bank-of-mum-and-dad-73842">further entrench inequality</a> between those who have access to the bank of mum and dad and those who do not.</p> <p>Encouraging older people to use their housing equity to fund their needs in old age may lighten fiscal burdens on younger generations. But policy reforms will be needed to relieve concerns about the risks of equity borrowing in old age.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/238924/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><a href="https://theconversation.com/profiles/rachel-ong-viforj-113482"><em>Rachel Ong ViforJ</em></a><em>, ARC Future Fellow &amp; Professor of Economics, <a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a> and <a href="https://theconversation.com/profiles/christopher-phelps-378137">Christopher Phelps</a>, Research Fellow, School of Accounting, Economics and Finance, <a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a></em></p> <p><em>Image credits: Shutterstock </em></p> <p><em>This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/young-homeowners-are-more-likely-to-use-their-home-as-an-atm-than-their-boomer-parents-heres-why-238924">original article</a>.</em></p> </div>

Money & Banking

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Homeowner fined just $667 over fire that killed six people

<p>A homeowner has been slapped with a fine for smoke alarm failure after a house fire killed six people. </p> <p>The 61-year-old woman has been forced to pay just $667 for failing to install legally required and compliant smoke alarms, after a father and his five children died in the property due to a deadly house fire. </p> <p>Donna Rose Beadel was the owner of the home on Russell Island where Wayne Godinet, 34, and his five sons were residing in August 2023. </p> <p>The house was engulfed in flames, also destroying two neighbouring homes and leaving several people needing treatment for minor burns and smoke inhalation, while the children's mother Samantha Stephenson, and another woman survived the blaze. </p> <p>Cleveland magistrate Deborah Vasta handed down the maximum fine of $667.25 to Ms Beadel for failing to comply with smoke alarm legislation, saying, "It seems a pittance, however it's not for me to comment on the laws."</p> <p>"It's absolutely no excuse that she failed to keep abreast of the laws required of an investment property owner in having the premises legally wired with smoke detectors after January 2022," Vasta said.</p> <p>The fine comes just weeks after the children's grandmother claimed her daughter had "begged" their landlord to <a href="https://oversixty.com.au/finance/legal/major-claim-in-investigation-into-deadly-house-fire-that-killed-five-children" target="_blank" rel="noopener">fix</a> the smoke alarms in the house.</p> <p>When Ms Beadel was charged for her involvement in the tragedy, Rebecca Stephenson claimed that her daughter had spoken to the landlord about updating the smoke alarms in the property just one week before the fire. </p> <p><em>Image credits: Nine</em></p>

Legal

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Homeowners often feel better about life than renters, but not always – whether you are mortgaged matters

<p><a href="https://theconversation.com/profiles/rachel-ong-viforj-113482">Rachel Ong ViforJ</a>, <em><a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a></em>; <a href="https://theconversation.com/profiles/hiroaki-suenaga-1477343">Hiroaki Suenaga</a>, <em><a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a></em>, and <a href="https://theconversation.com/profiles/ryan-brierty-1477346">Ryan Brierty</a>, <em><a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a></em></p> <p>Homeownership has long been thought of as the <a href="https://www.abc.net.au/news/2017-08-23/why-australians-are-obsessed-with-owning-property/8830976">great Australian dream</a>. For individuals, it’s seen as the path to adulthood and prosperity. For the nation, it’s seen as a cornerstone of economic and social policy.</p> <p>Implicit in this is the assumption that owning a home rather than renting one makes people better off.</p> <p>It’s an assumption we are now able to examine using data from the government-funded <a href="https://melbourneinstitute.unimelb.edu.au/hilda">Household, Income and Labour Dynamics in Australia</a> (HILDA) survey, which for two decades has asked questions both about homeownership and satisfaction with life.</p> <p>The <a href="https://melbourneinstitute.unimelb.edu.au/__data/assets/pdf_file/0007/4694137/ContinuingPersonQuestionnaireW23M.pdf">overarching question</a> asks "all things considered, how satisfied are you with your life? Pick a number between 0 and 10 to indicate how satisfied you are".</p> <p>We also looked at people’s satisfaction with their financial situation, their home and the neighbourhood in which they live.</p> <p>In a study published in the journal <a href="https://journals.sagepub.com/doi/10.1177/00420980231190479">Urban Studies</a>, we linked those answers to home ownership and characteristics including age and income.</p> <p>As expected, we found homeowners were generally more satisfied with their lives than renters. But we also find the extent to which they were more satisfied depended on whether or not they were still paying off a mortgage.</p> <h2>Mortgaged homeowners about as satisfied as renters</h2> <p>Outright home owners were 1.5 times as likely to report high overall satisfaction as renters. But home owners still paying off a mortgage were only a little more likely to feel high overall satisfaction.</p> <p>Similarly, outright owners were 2.3 times as likely to report high financial satisfaction as renters – but mortgaged owners were only 1.1 times as likely.</p> <p>When it comes to satisfaction with their home and neighbourhood, the differences were less extreme.</p> <p>Outright home owners were 3.1 times as likely to report high satisfaction with their home as renters, while mortgaged owners were 2.8 times as likely.</p> <p>Outright owners were 1.6 times as likely to report high satisfaction with their neighbourhood as renters, and mortgaged owners 1.4 times as likely.</p> <p>The results also varied with age and income.</p> <hr /> <p><iframe id="hK9Ua" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/hK9Ua/3/" width="100%" height="400px" frameborder="0"></iframe></p> <hr /> <p>As shown in the graph above, outright owners were more likely to report high financial satisfaction than renters across almost the entire age range.</p> <p>But mortgaged owners only showed a demonstrably greater financial satisfaction than renters between the ages of 25 and 50.</p> <p>Beyond age 50, the existence of a mortgage debt burden appeared to cancel out any boost to financial satisfaction from homeownership. This potentially reflects the growing financial stress of making mortgage payments as retirement approaches.</p> <hr /> <p><iframe id="f2GSl" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/f2GSl/3/" width="100%" height="400px" frameborder="0"></iframe></p> <hr /> <p>By income, mortgaged owners reported experiencing more financial satisfaction compared to renters the more they earned between A$80,000 and A$240,000. Outright owners experienced more financial satisfaction than renters up to A$320,000.</p> <p>Beyond these income levels, owners did not have greater financial satisfaction than renters, perhaps because high-earning renters have other sources of financial satisfaction.</p> <h2>How satisfied people feel beyond 60</h2> <p>In other respects, outright owners and mortgaged homeowners showed similar patterns, becoming more satisfied with their homes relative to renters the more they age up – until the age of 60. That’s when their satisfaction relative to renters declined, as illustrated below.</p> <p>This decline might reflect the growing physical burden of maintaining an owned home as people age.</p> <hr /> <p><iframe id="oLrHz" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/oLrHz/2/" width="100%" height="400px" frameborder="0"></iframe></p> <hr /> <p>Our study has important implications. One is that age matters.</p> <p>Although older people consistently express a desire to <a href="https://www.ahuri.edu.au/analysis/brief/whats-needed-make-ageing-place-work-older-australians">age in place</a>, we found satisfaction among those who owned vs rented their home declined beyond age 60. This suggests better integration between housing and care is critical to support people ageing in place.</p> <p>Another implication is that as low-income owners are more reliant on their homes as a source of relative financial satisfaction than high earners, they are <a href="https://www.cambridge.org/core/journals/journal-of-social-policy/article/housing-equity-withdrawal-perceptions-of-obstacles-among-older-australian-home-owners-and-associated-service-providers/268F54A8EAA1E9ECA118E243505AA9FD">more exposed</a> in times of crisis. They may face the risk of being forced to sell suddenly with little time to consider the consequences.</p> <p>And another implication is as the relative financial satisfaction of mortgage holders disappears after the age of 50, and as more of us approach retirement with mortgages intact, more of us will either <a href="https://journals.sagepub.com/doi/10.1177/00420980211026578">postpone retirement</a> or become dissatisfied.</p> <p>Our findings suggest the extension of mortgage debt into later life should be discouraged if the benefits of the Australian dream are to be preserved.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/215147/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><a href="https://theconversation.com/profiles/rachel-ong-viforj-113482"><em>Rachel Ong ViforJ</em></a><em>, ARC Future Fellow &amp; Professor of Economics, <a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a>; <a href="https://theconversation.com/profiles/hiroaki-suenaga-1477343">Hiroaki Suenaga</a>, Senior Lecturer School of Accounting, Economics and Finance, <a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a>, and <a href="https://theconversation.com/profiles/ryan-brierty-1477346">Ryan Brierty</a>, PhD candidate, School of Accounting, Economics and Finance, <a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a></em></p> <p><em>Image credits: Getty Images</em></p> <p><em>This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/homeowners-often-feel-better-about-life-than-renters-but-not-always-whether-you-are-mortgaged-matters-215147">original article</a>.</em></p>

Home & Garden

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Snake catcher’s “hilarious” find in homeowner's toilet

<p>Adelaide man Rolly is no stranger to catching and safely relocating venomous snakes, but a recent job had him in stitches.</p> <p>He has been a snake catcher for over five decades and revealed to <em>Yahoo News Australia </em>that it’s not often the reptiles that shock him the most, rather it's his insight into other people’s lives.</p> <p>"I've seen everything," he said. "From whips and chains in the cellar to dope crops in a shed.”</p> <p>The most recent and “hilarious” insight came from a phone call he received from a panicked resident who asked him to retrieve a snake from her toilet. After receiving an image of the “reptile”, Rolly called the resident back immediately.</p> <p>"Look it's not a snake, it's some type of tapeworm... and it's probably come out of your bum," he recalled himself telling her. "I think you need to go to a chemist.”</p> <p>Rolly uploaded the image of the creature and shared the conversation with followers.</p> <p>“As snake catchers we do quite often get unusual phone calls and findings - so this one we just add to the list…,” he began his caption.</p> <p>“phone call “I’ve got a snake in my toilet”. Snake Catcher “Ok can you send me through a photo and I’ll call you back”.”</p> <p>“Caller “Sure I’ll do that now”.”</p> <p>“Snake Catcher “Ah I think you need to go to the chemist and ask for some Conbantrin - it’s not a snake”.”</p> <p>“Caller “Con wha”.”</p> <p>The post, which attracted more than 3,000 reactions on the social media site was instantly flooded with comments.</p> <p>“I'd rather see a snake in my loo then that lol,” one wrote.</p> <p>“At least the toilet is clean !” another joked.</p> <p>A person with seemingly first-hand experience chimed in and said, “I went on a call out years ago and had the same thing. I didn't know what to say to them.”</p> <p>The situation did not deter Rolly from his job and he seemed in good spirits.</p> <p>"I was going to ask her if she wanted to go fishing and she could have stood next to me and supplied the worms," he joked.</p> <p><em>Image credit: Facebook</em></p>

Family & Pets

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Real estate agent divides internet with “sweet gesture” to hopeful homeowner

<p dir="ltr">A real estate agent has divided the internet after sending a hopeful homeowner a scratchie ticket along with a rejection letter. </p> <p dir="ltr">The anonymous wannabe buyer shared a photo of the letter they received from their agent with the scratchie card alongside it on Reddit, explaining how they had missed out on their dream home. </p> <p dir="ltr">The letter begins in capital letters, reading “Really sorry you missed out”.</p> <p dir="ltr">“I wanted to personally thank you for your interest in my recent listing and say how sorry we are that you missed out.”</p> <p dir="ltr">“I know how keen you were to make it yours, and as much as we love our work, there are parts that are difficult.”</p> <p dir="ltr">“Telling someone the bad news that they have missed out on a property they are very keen on, is certainly the worst part of our role.”</p> <p dir="ltr">“I wish we had more properties like this one for those who have missed out on this home.”</p> <p dir="ltr">“I enclose a scratchie to try and soften the disappointment.”</p> <p dir="ltr">“The agent said they hoped the wannabe homeowner would win some cash so ‘next time you can extend your offer just that little bit more’.”</p> <p dir="ltr">The $1 scratch card gave the unsuccessful applicant the chance to win $100,000 in a game of Tic Tac Toad. </p> <p dir="ltr">The gesture prompted a mixed response from commenters, with most readers calling out the agent for being “condescending”. </p> <p dir="ltr">One comment read, “Might just be poorly worded, but this comes across very condescending and patronising. ‘Lol sorry you’re too poor. Maybe if you win some money we’ll be able to take it from you.’”</p> <p dir="ltr">Another pointed out the agent’s potential grovelling to the buyer, saying “Absolutely no real estate agent is sending anything like this to mere tenants.”</p> <p dir="ltr">Another frustrated renter wrote, “Great! Now if I could get a scratchie with every unsuccessful rental application, I wouldn’t need to rent.”</p> <p dir="ltr">A few commenters praised the real estate agent’s actions, believing they had good intentions by including the scratchie. </p> <p dir="ltr">One person wrote, “They didn’t have to give anything but still did. The wording could’ve been better but still, something for nothing.”</p> <p dir="ltr">One other person was shocked by the support for the agent in the comments of the post, putting it blatantly, “They said ‘so next time you can extend your offer just that little bit more’.”</p> <p dir="ltr">“Their intention is clear. They’re saying to offer more money. I genuinely am surprised by the comments on this post thinking this is a nice gesture and not blatant manipulation.”</p> <p dir="ltr"><em>Image credits: Reddit</em></p>

Real Estate

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“What have I done?!” New homeowner’s instant regret

<p><span style="font-weight: 400;">After moving to their new two-storey home by the bay in Victoria, Ros Morton was in tears.  Despite the amazing views of Port Phillip Bay, stunning sunsets and finally living close to her grandchildren, there was one major problem…</span></p> <p><span style="font-weight: 400;">“I’d had a full hip replacement and was having difficulty rehabilitating,” says Ros. “I was in this fabulous house and thinking: </span><em><span style="font-weight: 400;">What have we done!? How am I ever going to navigate the stairs?</span></em><span style="font-weight: 400;"> </span></p> <p><span style="font-weight: 400;">“I could barely drag myself up from ground level, let alone carry shopping or washing from one floor to the other. We were seriously considering another move.”</span></p> <p><span style="font-weight: 400;">The Morton’s main living area is on the top floor of their peninsula home – ideal for drinks on the deck and sighting ships in the distance, but not so great if you are physically challenged. “I had to rely on my husband Stuart to do all the lifting, which was difficult because he was going through his own medical treatment at the time,” explains Ros. </span></p> <p><span style="font-weight: 400;">“We were in trouble and I felt trapped.” </span></p> <p><span style="font-weight: 400;">Ros had always been active and involved in community life, but now she says she “had no chance of connecting with anyone because I couldn’t get in and out of the house easily. And the thought of moving again was more than either of us could bear!”</span></p> <p><span style="font-weight: 400;">The solution?</span></p> <p><span style="font-weight: 400;">“</span><a rel="noopener" href="https://resilift.com.au/?utm_source=over60&amp;utm_medium=website_article" target="_blank"><span style="font-weight: 400;">RESiLIFT</span></a><span style="font-weight: 400;">!” answers Ros. “A friend found a brochure at The Home Show. I was considering installing a stairlift, but it was unsightly and too big for our stairwell. </span></p> <p><span style="font-weight: 400;">“We viewed a RESiLIFT at someone’s home, and as soon as I saw it, I realised my life was about to change. Thankfully, another expensive re-location was off the agenda and our lift was installed extremely quickly.</span></p> <p><img style="width: 0px; height: 0px;" src="https://oversixtydev.blob.core.windows.net/media/7843576/rosmorton_resilift_sept2021_rd02.jpg" alt="" data-udi="umb://media/71f5257f78fb4ef3bebe3bd4a472a0a0" /></p> <p><span style="font-weight: 400;">As soon as Ros saw a RESiLIFT, she realised her life was about to change.</span></p> <p><span style="font-weight: 400;">“As it’s a free-standing lift with no shaft, the building modifications were minimal, and it simply plugs into a standard domestic outlet! All of these factors combined to make it an easy choice,” says Ros.</span></p> <p><span style="font-weight: 400;">Tax Agent George Dimitropoulos, who recently observed his parents install a RESiLIFT into their home, says that “installing a lift is an undoubtedly justified financial decision. The full cost of installing a RESiLIFT in my parents’ home, including building works, was $35,000 all up. If they were to have downsized, aside from the potential impact this can have on people’s pensions, the stamp duty alone is astronomical. For a $700,000 value home you are looking at $37,000, and for a million-dollar property the stamp duty is $55,000.</span></p> <p><span style="font-weight: 400;">“The costs all stack up. As well as the stamp duty, you need to add selling cost (advertising and agent fees will be approximately $25,000), relocating costs, possible ongoing storage fees or disposal fees.”</span></p> <p><span style="font-weight: 400;">Luckily for Ros, she discovered RESiLIFT before the stress and expense of moving again.  As is often the case, “Visitors can’t even see the lift at first glance”, laughs Ros. “It looks as if it was built with the house. It has also enabled our friends with physical limitations to visit us easily.”</span></p> <p><span style="font-weight: 400;">“The RESiLIFT has given me the freedom to come and go as I please,” she continues. In her retired life, Ros is active within the community and supporting her family with babysitting.  “I feel useful again and can do all the domestic duties I used to,” she says proudly.</span></p> <p><span style="font-weight: 400;">“My independence and confidence have been completely restored. Thanks to RESiLIFT.”</span></p> <p><span style="font-weight: 400;">So if you’re in a quandary about whether you need to move home, before you decide, arrange a complimentary home consultation today.</span></p> <p><strong>This is a sponsored article produced in partnership with <em><a rel="noopener" href="https://resilift.com.au/?utm_source=over60&amp;utm_medium=website_article" target="_blank">RESiLIFT</a></em>.</strong></p>

Real Estate

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“Get your facts straight!”: Homeowner rages at "dobber" neighbour who called police

<p>A landlord has made a furious sign in response to an anonymous complaint from a neighbour about the landlord leasing her holiday home in the Central Coast to an essential worker.</p> <p>Tanya Watson, landlord, rented her Woy Woy granny flat to holiday makers since March 2018 but decided to reserve it for essential stays only during the coronavirus pandemic.</p> <p>“I had very strict criteria about who I would accept,” Ms Watson told<span> </span><em><a rel="noopener noreferrer" href="https://au.news.yahoo.com/coronavirus-home-owner-furious-at-police-call-about-her-granny-flat-072726296.html?guccounter=1" target="_blank">Yahoo News Australia</a></em>.</p> <p>“Essential workers, essential family trips... they had to have a really good reason for coming and be able to provide me with ID and proof of that reason”.</p> <p>Watson decided to rent the flat out to an essential worker who was relocating to the Central Coast for three months, but the decision was only made after Watson checked the details with her future tenant’s employer.</p> <p>The granny flat was rented on a three-month lease, but on Good Friday, police knocked on the door just two days after the new tenant moved in.</p> <p>“They had received an anonymous complaint that I was operating as holiday accommodation during the COVID-19 lockdown on holiday properties,” Ms Watson said.</p> <p>Her new tenant was left shaken and Watson herself was “embarrassed”.</p> <p>“She was shocked, a young girl on her own who has moved from interstate, I had to make sure she was ok,” Ms Watson explained.</p> <p>To make sure no further accusations were made, Watson posted a sign on the front of her property which will remain there for as long as she needs it.</p> <p><img style="width: 500px; height: 281.25px;" src="https://oversixtydev.blob.core.windows.net/media/7835613/sign.jpg" alt="" data-udi="umb://media/6b85663d3fc845d7846d8cddb3cac10b" /></p> <p>“For your information - Get your facts straight first,” the sign says.</p> <p>“Thanks to the dobber of our rental property. Yes - you are nosey. Yes - you reported us to the police with false facts. Yes - the police verified that I am a responsible owner who has a tenant in my granny flat on a lease.</p> <p>“Mind your own business and stop wasting police time.</p> <p>“This is a rental, not holiday accommodation, so keep walking,” the sign reads.</p> <p><em>Photo credits: <a rel="noopener noreferrer" href="https://au.news.yahoo.com/coronavirus-home-owner-furious-at-police-call-about-her-granny-flat-072726296.html?guccounter=1" target="_blank">Yahoo News Australia</a></em></p>

Travel Trouble

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How homeowners could cash in on homes with higher energy ratings

<p>Everybody wants an energy-efficient home. After all, an energy-efficient home is comfortable to live in, without large energy bills. These can be important factors for prospective home owners or renters. <a href="http://builtbetter.org/node/8139">Our review</a> of international research found energy-efficient homes typically fetch a higher price.</p> <p>An energy performance rating is one way to show how “energy hungry” a home could be. In many countries, it is mandatory for the seller to obtain and disclose a home’s rating. <a href="https://ec.europa.eu/energy/en/topics/energy-efficiency/energy-performance-of-buildings/energy-performance-buildings-directive">For European Union countries, this has been the case for ten years</a>.</p> <p>But that’s not the case in most of Australia. Only one of the states and territories – <a href="https://www.accesscanberra.act.gov.au/app/answers/detail/a_id/1492/%7E/energy-efficiency-rating-%28eer%29-statements">the ACT</a> – has a regulated scheme to disclose the energy-efficiency rating of housing to prospective buyers.</p> <p>Disclosing energy ratings is <a href="https://www.energy.gov.au/government-priorities/energy-productivity-and-energy-efficiency/commercial-building-disclosure">standard practice in the commercial building sector</a> in Australia. <a href="https://www.buildingrating.org/file/1215/download">Previous research</a> showed this increases the value of buildings with higher energy ratings (a price premium). Our <a href="http://builtbetter.org/node/8139">recent review</a> of international research looked to see if a similar effect exists in the residential sector.</p> <p><strong>What does the research show?</strong></p> <p>The majority (23) of the 27 relevant studies we reviewed found more energy-efficient homes fetch higher prices than less energy-efficient, but otherwise comparable, homes. So what sort of price premium do houses with a higher energy rating attract? It’s typically around 5% to 10%.</p> <p>Price effects were considered in two ways. The first involved comparing rated versus unrated residences. The second compared higher-rated residences with lower-rated ones. In both cases, a price premium was found to exist.</p> <p>The reported price premium varied substantially by study, country and real estate market. <a href="https://www.emerald.com/insight/content/doi/10.1108/IJHMA-09-2014-0035/full/html">One study</a>, in Belfast, found a 27% price premium for higher-rated buildings. <a href="https://www.sciencedirect.com/science/article/pii/S0301421516303482">Another in the Netherlands</a> found a price premium of 2.7% for similarly higher-rated dwellings.</p> <p>Only <a href="https://www.sciencedirect.com/science/article/pii/S014098831830166X">one study looked at Australia</a> (the ACT scheme, which has operated since 2003). It found a 2.4% price premium for a six-star house and a 9.4% premium for a seven-star house compared to a 3 star home. For Australia, with a median house price of $773,635 in late 2019, the ACT results equate to potential price premiums of $18,500 and $72,721.</p> <p>Obviously, it isn’t just the energy rating of a house that affects its price. Location, size, age and other relevant features of a property influence the final price. Researchers use a statistical method, called <a href="https://www.investopedia.com/terms/h/hedonic-regression.asp">hedonic regression</a>, to estimate the effects of all these factors. A home energy rating was included as one of these factors.</p> <p>The studies we reviewed were published between 2011 and 2019, covering 14 countries and ten energy performance rating schemes. Most of the studies (18) considered the European Union’s Energy Performance Certificate (EPC). Although there are differences in how each EU country defines and manages these certificates, they are broadly comparable, in that they use a standard A (high) to G (low) grade.</p> <p><img src="https://images.theconversation.com/files/310183/original/file-20200115-151834-c1hbeb.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="" /> <span class="caption">Example of a displayed Energy Performance Certificate from the UK, with an A to G rating. The certificate include details on how to improve the rating and indicates the potential rating if all upgrades were completed.</span></p> <p><strong>How would this system benefit Australia?</strong></p> <p>This system would obviously be good for people trying to sell (or wanting to buy) energy-efficient homes, but it’s also good for our society. It has been estimated <a href="http://coagenergycouncil.gov.au/sites/prod.energycouncil/files/publications/documents/Report%20for%20Achieving%20Low%20Energy%20Homes.pdf">almost half the homes that will be in use in 2050 have already been built</a>. If we are to meaningfully reduce carbon emissions from our cities and built environment, we need to tackle our existing building stock.</p> <p>A scheme that allows owners to capitalise on the energy efficiency of their home would change the economics of <a href="https://theconversation.com/the-other-99-retrofitting-is-the-key-to-putting-more-australians-into-eco-homes-91231">retrofitting existing homes</a>. Owners would have a clear incentive to improve energy performance without the need for large government subsidies.</p> <p>Unfortunately, there is <a href="http://www.asbec.asn.au/wordpress/wp-content/uploads/2016/01/160119-ASBEC-National-Framework-for-Residential-Ratings-Policy-Platform.pdf">no agreed method to measure energy-efficiency</a> for the majority of existing Australian homes (i.e. those outside the ACT). This means there is no simple way for prospective owners or renters to make an informed decision about the likely comfort and future energy bills for a home.</p> <p>Other countries have already shown the path forward. Key steps include:</p> <ol> <li> <p>define a nationally consistent rating tool for existing homes. The Victorian government has developed the <a href="https://www.energy.vic.gov.au/energy-efficiency/residential-efficiency-scorecard">Victorian Residential Efficiency Scorecard</a>. This voluntary tool provides owners with a star rating for the overall energy performance of their home. It also provides specific information on its performance during hot weather, as well as recommendations on how to improve that performance</p> </li> <li> <p>provide a framework for owners to voluntarily disclose the certified energy performance of their home at the point of sale or lease. Only owners of higher-rating homes will be likely to do this voluntarily</p> </li> <li> <p>legislate for mandatory disclosure of a home’s energy rating when it’s being sold or leased</p> </li> <li> <p>introduce minimum standards of energy performance for rental properties. Once a property’s energy performance is rated and disclosed, the government has a powerful policy lever to drive improvement of the energy efficiency of the existing building stock. For instance, <a href="https://www.gov.uk/guidance/domestic-private-rented-property-minimum-energy-efficiency-standard-landlord-guidance">in the UK</a>, owners are obligated to improve the energy performance of any property they wish to offer for rent to at least grade E (on an A-to-G scale).</p> </li> </ol> <p>Our review of international academic literature suggests home buyers typically value a more energy-efficient home. When presented with easily accessible information in the form of an energy performance rating, they are willing to pay more.</p> <p>Hence, energy rating disclosure policies can help consumers make informed decisions that will result in lower energy bills and more comfortable homes. At the same time, by allowing sellers to capitalise on energy-efficiency improvements through a certified rating, government can support reducing carbon emissions from our existing building stock.</p> <p>To ensure we realise these societal and environmental benefits, all levels of government should co-ordinate to enact appropriate nationally consistent legislation.</p> <p><em>The author would like to acknowledge Michelle Zwagerman for her contribution to this article.</em><!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;" src="https://counter.theconversation.com/content/128548/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: http://theconversation.com/republishing-guidelines --></p> <p><em><a href="https://theconversation.com/profiles/daniel-daly-140665">Daniel Daly</a>, Research Fellow at the Sustainable Buildings Research Centre, <a href="http://theconversation.com/institutions/university-of-wollongong-711">University of Wollongong</a></em></p> <p><em>This article is republished from <a href="http://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/homes-with-higher-energy-ratings-sell-for-more-heres-how-australian-owners-could-cash-in-128548">original article</a>.</em></p>

Retirement Income

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“Terrifying”: Warning for homeowners after deadly fire hazard

<p><span style="font-weight: 400;">Homeowners are being warned to avoid making detrimental mistakes and to be aware of little-known hazards in their homes after a family had a terrifying experience with their clothes dryer when it burst into flames. </span></p> <p><span style="font-weight: 400;">The family were sitting in their loungeroom on a Sunday evening in Murrumbateman, NSW when their clothes dryer caught on fire while it was running unattended. </span></p> <p><iframe src="https://www.facebook.com/plugins/post.php?href=https%3A%2F%2Fwww.facebook.com%2F227917010629442%2Fphotos%2Fa.555178817903258%2F2362747297146392%2F%3Ftype%3D3&amp;width=500" width="500" height="502" style="border: none; overflow: hidden;" scrolling="no" frameborder="0" allowtransparency="true" allow="encrypted-media"></iframe></p> <p><span style="font-weight: 400;">Simon McGrath from the Murrumbateman Rural Service told the </span><a href="https://www.canberratimes.com.au/"><span style="font-weight: 400;">Canberra Times</span></a><span style="font-weight: 400;"> that although the family was lucky not to have been injured, that leaving a laundry appliance unattended was a “a common occurrence in Australia in winter”.</span></p> <p><iframe src="https://www.facebook.com/plugins/post.php?href=https%3A%2F%2Fwww.facebook.com%2F227917010629442%2Fphotos%2Fa.555178817903258%2F2362747350479720%2F%3Ftype%3D3&amp;width=500" width="500" height="502" style="border: none; overflow: hidden;" scrolling="no" frameborder="0" allowtransparency="true" allow="encrypted-media"></iframe></p> <p><span style="font-weight: 400;">“A terrifying event for a local family,” the fire brigade wrote on its Facebook page.</span></p> <p><span style="font-weight: 400;">“Please check lint filters. And never leave your dryer on overnight.”</span></p> <p><span style="font-weight: 400;">The family were quickly and swiftly able to move the clothes dryer outside and extinguish the fire with a garden hose. </span></p>

Caring

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Reserve Bank of Australia issues stern warning to homeowners

<p>The Reserve Bank of Australia (RBA) has issued a stern warning to homeowners and mortgage holders that rising interest rates may hurt their hip pockets.</p> <p>RBA’s governor Philip Lowe issued the warning on Tuesday, saying that it's been eight years since the last interest rate hike and that “borrowers have never experienced a rise in official interest rates”.</p> <p>“Over recent times the Australian economy has been improving,’’ he said.</p> <p>“This is good news.</p> <p>“If we continue on this current improving track as we expect we will it is likely that the next move in official interest will be up, not down.”</p> <p>The RBA has kept the interest rate on hold at 1.5 per cent since August 2016.</p> <p>Mr Lowe said his advice to borrowers was to “make sure” they are in a good financial position for interest rates hike.</p> <p>The RBA is expected to increase interest rates in the second half of 2019, depending on inflation rates and the job market, the <a href="https://www.afr.com/markets/rba-governor-philip-lowe-tells-borrowers-to-prepare-for-rate-hikes-20180820-h148m3"><strong>Financial Review</strong></a> reported.</p> <p>Mr Lowe also said homeowners should not assume the value of their homes will continue to rise.</p> <p>“Most of our cities have seen falls in housing prices at some point over the past decade,” he said.</p> <p>“While I would expect housing prices to trend higher over time as our incomes increase, there is no guarantee that your home will be worth more tomorrow than it is today.</p> <p>“So plan accordingly.”</p>

Retirement Income

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Analyst warns up to 1 million homeowners on the edge of mortgage default by September

<p>An independent analyst has warned that almost one million Aussie homeowners are “on the edge” of mortgage default in the next two months.</p> <p>Digital Finance Analytics principal Martin North explained that if the big four banks go ahead and increase their standard variable rates by as little as 0.15 percentage points over the next few months, homeowners could default.</p> <p>The <a href="http://www.abc.net.au/news/2018-07-11/up-to-1-million-households-may-go-into-mortgage-default-by-sept/9976268" target="_blank"><em><strong><span style="text-decoration: underline;">ABC</span></strong></em></a> reported that a number of Australian banks – such as Macquarie Bank, AMP, Bank of Queensland, Suncorp and ME Bank – have already started raising their interest rates on their ‘occupier loan’ products.</p> <p>Mr North told <em>ABC News</em> rate rises were almost a certainty, while Aussie Home Loans chief executive James Symond fears the repercussions of this will be locking out potential borrowers from obtaining a mortgage.</p> <p>“I'm almost certain they'll be forced to lift those rates, it's a question of timing, and of course the political reaction when it happens,” Mr North said</p> <p>Now, experts are looking to ANZ, Westpac, CBA and the NAB to make their next move.</p> <p>Mr North believes the rate rises will be in place by September, unless there is an unforeseen change in the global financial market that changes the course.</p> <p>“Today 975,000 households across Australia with owner-occupier mortgages are right on the edge, and there are around 50,000 who are already over the edge and are looking like they could default,” he said</p> <p>The ABC spoke to Commonwealth Bank chief economist Michael Blythe on some of the contributing factors to the predicted interest rise.</p> <p>“Well look all banks are facing the same issue, part of that funding pool that they draw on, be it domestically or overseas, we have seen some upwards pressures on interest rates in those areas,” he said. </p> <p>Mr North said borrowers would be given very little wiggle room with even just a very small interest rate change.</p> <p>With just an interest rate rise of 0.10 per cent, a homeowner in Sydney with a $750,000 mortgage would be required to pay an extra $60 a month.</p> <p>Aussie Home Loans chief executive James Symond told <a href="https://www.smh.com.au/business/banking-and-finance/aussie-chief-warns-buyers-en-masse-won-t-be-able-to-afford-a-home-20180710-p4zqm5.html" target="_blank"><em><strong><span style="text-decoration: underline;">The Sydney Morning Herald</span></strong></em></a> that a number of people would be “locked out” of the property market if banks continue to tighten credit access.</p> <p>“I’m hoping everyone is looking at it very, very carefully, because I’m seeing a credit marketplace tightening a lot, a real lot. And if we saw it tighten any more, I think that you mightn’t get the desired outcomes you want,” he said.  </p> <p>“You might get, en masse, a whole bunch of people that just simply can no longer afford a home, full stop. The big banks are concerned.”</p>

Money & Banking

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Homeowner’s savvy Kmart kitchen hack that saved her $100

<p><span>A woman has shared how she restored a rusty stovetop to pristine condition without paying for an expensive cleaning service.</span></p> <p><span>The happy customer shared two images of her stovetop on Kmart Mums Australia, along with a third image of a $25 steam cleaner from Kmart.</span></p> <p><span>The woman explained that she needed to clean her stovetop ahead of a house inspection.</span></p> <p style="text-align: center;"><span><img width="499" height="460" src="https://oversixtydev.blob.core.windows.net/media/7818015/1_499x460.jpg" alt="1 (131)"/><br /></span></p> <p><span>She used various household cleaners and every cleaning trick in the book, but found nothing was removing the marks.</span></p> <p><span>With no success, she received a quote for it be cleaned professionally but was told it would cost her a staggering $120.</span></p> <p><span>When she went to the shops in a final attempt for a remedy, she found the perfect product.</span></p> <p><span>“Off to Kmart, I went to purchase the Hand Held Steam Cleaner for $25. BAM,” she said.</span></p> <p><span>“If you don't own one of these already you must purchase one!”</span></p> <p><span>Using Kmart’s steam cleaner, she did the job herself and saved $95.</span></p> <p style="text-align: center;"><span><img width="500" height="324" src="https://oversixtydev.blob.core.windows.net/media/7818016/2_500x324.jpg" alt="2 (71)"/><br /></span></p> <p><span>Loyal Kmart shoppers were quick to praise the woman for getting the job done on a budget.</span></p> <p><span>Fellow shopper Rhonda said, “Love my hand held steamer.....I keep looking for stuff to clean.”</span></p> <p><span>Jessica added, “W'oooo! I'm definitely going to get one. Thanks for sharing!” </span></p> <p style="text-align: center;"><span><img width="498" height="360" src="https://oversixtydev.blob.core.windows.net/media/7818017/3_498x360.jpg" alt="3 (31)"/></span></p> <p><span>After receiving plenty of questions from sceptics about whether she used expensive cleaning products to restore her cooker, the woman revealed the process.</span></p> <p><span>She said that she didn’t need to spend time scrubbing and the job was done with just the steam cleaner, the brush attachment and water. </span></p>

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