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Think $5.50 is too much for a flat white? Actually it’s too cheap, and our world-famous cafes are paying the price

<a href="https://theconversation.com/profiles/emma-felton-143029">Emma Felton</a>, <a href="https://theconversation.com/institutions/university-of-south-australia-1180">University of South Australia</a> Even in a stubborn cost-of-living crisis, it seems there’s one luxury most Australians <a href="https://www.comparethemarket.com.au/news/what-australians-wont-give-up-cost-of-living-crisis-report/">won’t sacrifice</a> – their daily cup of coffee. Coffee sales have largely <a href="https://www.statista.com/statistics/866543/australia-domestic-consumption-of-coffee/">remained stable</a>, even as financial pressures have bitten over the past few years. So too have prices. Though many of us became upset when prices began to creep up last year, they’ve since largely settled in the range between $4.00 and $5.50 for a basic drink. But this could soon have to change. By international standards, Australian coffee prices are low. No one wants to pay more for essentials, least of all right now. But our independent cafes are struggling. By not valuing coffee properly, we risk losing the <a href="https://bizcup.com.au/australian-coffee-culture/">internationally renowned</a> coffee culture we’ve worked so hard to create, and the phenomenal quality of cup we enjoy. <h2>Coffee is relatively cheap in Australia</h2> Our recent survey of Australian capital cities found the average price of a small takeaway flat white at speciality venues is A$4.78. But in <a href="https://pabloandrustys.com.au/blogs/drinkbettercoffee/global-coffee-prices">some international capitals</a>, it’s almost double this, even after adjusting for local <a href="https://www.investopedia.com/updates/purchasing-power-parity-ppp/">purchasing power parity</a>. <iframe id="gaplH" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/gaplH/" width="100%" height="400px" frameborder="0"></iframe> In London, a small flat white costs about A$6.96. Singapore, A$8.42. In Athens, as much as A$9.95. <h2>The cafe business is getting harder</h2> Over the past few decades, coffee prices haven’t kept pace with input costs. In the early 2000s, after wages, food costs, utilities and rent, many cafes <a href="https://www.coffeecommune.com.au/blog-why-are-cafes-so-expensive/">earned healthy profit margins</a> as high as 20%. The <a href="https://www.ibisworld.com/au/industry/cafes-coffee-shops/2015/">most recent data from IBISWorld</a> show that while Australian cafe net profits have recovered from a drop in 2020, at 7.6%, they remain much lower than the Australian <a href="https://www.money.com.au/research/australian-business-statistics">average business profit margin of 13.3%</a>. For an independent owner operating a cafe with the <a href="https://www.ibisworld.com/au/industry/cafes-coffee-shops/2015/">average turnover of A$300,000</a>, this would amount to a meagre A$22,800 annual net profit after all the bills are paid. <h2>What goes into a cup?</h2> Just looking at the cost of raw inputs – milk, beans, a cup and a lid – might make the margin seem lucrative. But they don’t paint the whole picture. <figure class="align-center "><img src="https://images.theconversation.com/files/584949/original/file-20240328-24-rlngpk.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/584949/original/file-20240328-24-rlngpk.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=600&fit=crop&dpr=1 600w, https://images.theconversation.com/files/584949/original/file-20240328-24-rlngpk.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=600&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/584949/original/file-20240328-24-rlngpk.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=600&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/584949/original/file-20240328-24-rlngpk.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=754&fit=crop&dpr=1 754w, https://images.theconversation.com/files/584949/original/file-20240328-24-rlngpk.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=754&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/584949/original/file-20240328-24-rlngpk.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=754&fit=crop&dpr=3 2262w" alt="A takeaway coffee cup showing the price inputs, with wages and operation costs making up over 65% of the cost of a coffee" /><figcaption>Chart: The Conversation. <a class="source" href="https://pabloandrustys.com.au/blogs/drinkbettercoffee/whats-in-the-cost-of-coffee">Data: Pablo and Rusty's Coffee Roasters</a>, <a class="license" href="http://creativecommons.org/licenses/by-sa/4.0/">CC BY-SA</a></figcaption></figure> Over the past few years, renting the building, keeping the lights on and paying staff have all become <a href="https://www.reuters.com/business/ground-down-australia-coffee-shops-an-early-inflation-casualty-2023-07-10/">much bigger factors</a> in the equation for coffee shop owners, and many of these pressures aren’t easing. 1. Green coffee price Increasingly <a href="https://www.aa.com.tr/en/environment/brewing-crisis-how-climate-change-is-reshaping-coffee-production/3113886">subject to the effects</a> of climate change, the baseline commodity price of green (unroasted) coffee is <a href="https://perfectdailygrind.com/2024/02/demand-for-robusta-prices-record-high/">going up</a>. Arabica – the higher quality bean you’re most likely drinking at specialty cafes – is a more expensive raw product. Despite levelling off from post-pandemic highs, its price is still trending up. In 2018, it <a href="https://www.statista.com/statistics/675807/average-prices-arabica-and-robusta-coffee-worldwide/">sold</a> for US$2.93 per kilogram, which is projected to increase to US$4.38 dollars in 2025. Robusta coffee is cheaper, and is the type <a href="https://www.lavazza.com.au/en/coffee-secrets/difference-type-arabica-robusta-coffee">typically used to make instant coffee</a>. But serious drought in Vietnam has just pushed the price of robusta to an <a href="https://www.barchart.com/story/news/25094367/coffee-rallies-with-robusta-at-a-record-high-on-shrinking-coffee-output-in-vietnam">all-time high</a>, putting pressure on the cost of coffee more broadly. 2. Milk prices The price of fresh milk has risen by <a href="https://cdn-prod.dairyaustralia.com.au/-/media/project/dairy-australia-sites/national-home/resources/reports/situation-and-outlook/situation-and-outlook-report-march-2024.pdf?rev=b0222df4b01b40d0ae36cf8ac7b01bc0">more than 20%</a> over the past two years, and remains at a peak. This has put sustained cost pressure on the production of our <a href="https://gitnux.org/australian-coffee-consumption-statistics/#:%7E:text=Coffee%20is%20a%20beloved%20beverage,approximately%206%20billion%20cups%20annually.">most popular drink orders</a>: cappuccinos and flat whites. 3. Wages and utilities Over the past year, Australian wages have grown at their <a href="https://ministers.treasury.gov.au/ministers/jim-chalmers-2022/media-releases/real-wages-growth-back">fastest rate</a> since 2009, which is welcome news for cafe staff, but tough on operators in a sector with low margins. Electricity prices remain elevated after significant inflation, but could <a href="https://www.sbs.com.au/news/article/heres-how-much-your-energy-bills-might-go-down-by-and-when/k8g00jheg">begin to fall mid-year</a>. <h2>Specialty vs. commodity coffee: why price expectations create an industry divide</h2> One of the key factors keeping prices low in Australia is consumer expectation. For many people coffee is a fundamental part of everyday life, a marker of livability. Unlike wine or other alcohol, coffee is not considered a luxury or even a treat, where one might expect to pay a little more, or reduce consumption when times are economically tough. We anchor on familiar prices. <iframe id="oDbah" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/oDbah/" width="100%" height="400px" frameborder="0"></iframe> Because of this, it really hurts cafe owners to put their prices up. In touch with their customer base almost every day, they’re acutely aware of how much inflation can hurt. But in Australia, a huge proportion of coffee companies are also passionate about creating a world-class product by only using “<a href="https://medium.com/@samandsunrise/why-is-specialty-coffee-so-expensive-6cf298935e4b#:%7E:text=Specialty%20Shops%20Feature%20High%20Grade%20Coffees&text=Their%20coffees%20are%20hand%2Dpicked,even%20on%20the%20same%20tree.">specialty coffee</a>”. Ranked at least 80 on a quality scale, specialty beans cost significant more than commodity grade, but their production offers better working conditions for farmers and encourages more sustainable growing practices. Although not commensurate with the wine industry, there are similarities. Single origin, high quality beans are often sourced from one farm and demand higher prices than commodity grade coffee, where cheaper sourced beans are often combined in a blend. Running a specialty cafe can also mean roasting your own beans, which requires a big investment in expertise and equipment. It’s an obvious example of doing the right thing by your suppliers and customers. But specialty cafes face much higher operating costs, and when they’re next to a commodity-grade competitor, customers are typically unwillingly to pay the difference. <h2>Approach price rises with curiosity, not defensiveness</h2> When cafe owners put up their prices, we often rush to accuse them of selfishness or profiteering. But they’re often just trying to survive. Given the quality of our coffee and its global reputation, it shouldn’t surprise us if we’re soon asked to pay a little bit more for our daily brew. If we are, we should afford the people who create one of our most important “<a href="https://theconversation.com/how-cafes-bars-gyms-barbershops-and-other-third-places-create-our-social-fabric-135530">third spaces</a>” kindness and curiosity as to why. <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/226015/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/emma-felton-143029">Emma Felton</a>, Adjunct Senior Researcher, <a href="https://theconversation.com/institutions/university-of-south-australia-1180">University of South Australia</a> Image credits: Getty Images 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/think-5-50-is-too-much-for-a-flat-white-actually-its-too-cheap-and-our-world-famous-cafes-are-paying-the-price-226015">original article</a>.

Money & Banking

Ballet flats are back. Here’s what the research says about how they affect your feet

<a href="https://theconversation.com/profiles/kristin-graham-1427672">Kristin Graham</a>, <a href="https://theconversation.com/institutions/university-of-south-australia-1180">University of South Australia</a>; <a href="https://theconversation.com/profiles/helen-banwell-305575">Helen Banwell</a>, <a href="https://theconversation.com/institutions/university-of-south-australia-1180">University of South Australia</a>, and <a href="https://theconversation.com/profiles/saravana-kumar-181105">Saravana Kumar</a>, <a href="https://theconversation.com/institutions/university-of-south-australia-1180">University of South Australia</a> Ballet flat shoes – those thin-heeled lightweight slip-on shoes – are making a fashion <a href="https://www.vogue.com/slideshow/ballet-flats">comeback</a>. And it’s not hard to see why: they’re versatile, easy to wear, soft, flexible and often worn by celebrities. We have often been warned of the dangers of high-heeled shoes, so you might think ballet flats are problem-free. When you look at the research, however, a complicated picture emerges. There’s no definitive evidence to show ballet flats are generally harmful to foot health in the long-term. But ill-fitting ballet flats can be a problem. <h2>Make sure it fits, especially in the toe box</h2> An estimated <a href="https://pubmed.ncbi.nlm.nih.gov/30065787/">70%</a> of the population are wearing ill-fitting shoes. This mismatch between foot and shoe shape can increase foot pain, <a href="https://pubmed.ncbi.nlm.nih.gov/17507530/">reduce stability</a>, and can mean more blisters, corns and calluses. And habitual wearing of tight shoes has been <a href="https://www.sciencedirect.com/science/article/pii/S0958259207000533">associated</a> with bone changes in the toes and feet over time. Many flats feature a shallow and narrow toe box (the part of the shoe where the toes go). A too-small toe box often doesn’t align with the shape of a foot and ends up squishing the toes. It can also <a href="https://www.sciencedirect.com/science/article/pii/S0958259206000770">increase</a> pressure on top of and under the foot, and <a href="https://jfootankleres.biomedcentral.com/articles/10.1186/1757-1146-6-28">restrict</a> the movement of the forefoot during walking. But a too-big toe box is also a problem. Too much foot movement within the shoe can cause pressure and friction on the skin, which can also lead to calluses, corns, blisters, and wounds. A poorly fitting toe box can also cause micro trauma to toenails which, ultimately, can change <a href="https://www.researchgate.net/profile/Anuva-Bansal/publication/347522694_Traumatic_Nail_Disorders/links/60d6135592851ca94487df7e/Traumatic-Nail-Disorders.pdf">their look and thickness</a>. So if you’re wearing flats, make sure you choose a shoe with the right sized toe box. <h2>What about the heel?</h2> Health professionals often recommend a small heel over a completely flat shoe. Very flat shoes can <a href="https://pubmed.ncbi.nlm.nih.gov/27498844/">place</a> <a href="https://www.sciencedirect.com/science/article/pii/S0268003307002082">more</a> strain on the soft tissues that support the foot arch – specifically, the plantar fascia. <a href="https://pubmed.ncbi.nlm.nih.gov/27498844/">Research</a> has shown moving from a completely flat shoe to a small, raised heel reduces the tension force on the plantar fascia during standing activities. On the other hand, other <a href="https://journals.lww.com/jpojournal/Fulltext/2009/01000/Effects_of_Shoe_Heel_Height_on_the_Roll_Over.7.aspx#:%7E:text=The%20roll%2Dover%20shapes%20seem,without%20a%20change%20in%20alignment.&text=Photographs%20of%20the%20prosthetic%20feet,shapes%20of%20these%20feet%20superimposed">research</a> has shown most people will adapt their ankle and knee motion to accommodate shoes of different heel heights. <h2>What about support?</h2> Ballet flats tend to have very flexible, thin soles and heel counters (the part, coloured red in this picture, that hugs the heel and the back part of the foot). These thin and flexible structures mean flats are often accused of lacking support. But debate rages among foot and shoe experts about how important support is in the first place. <a href="https://pubmed.ncbi.nlm.nih.gov/27729290/">Research</a> on barefoot-style shoes has shown walking in these types of shoes significantly reduces some loads on the knee compared to more stable supportive shoes. Minimalist shoes have also been found to <a href="https://pubmed.ncbi.nlm.nih.gov/30102872/">increase strength</a> in certain foot muscles used when we push off during walking, running or jumping. However, other research found stable supportive shoes can <a href="https://pubmed.ncbi.nlm.nih.gov/33428439/">improve knee pain</a> when walking more than flat flexible shoes. The thin soles in flats mean there is little cushioning under the foot. While more cushioning can improve comfort, and reduce stress and strain on your foot sole <a href="https://www.sciencedirect.com/science/article/abs/pii/S0021929011001758?casa_token=gecXFCMi0LcAAAAA:TazyTd8TRaAl_bG0jprifYIUIlWRDwEH6bVeymBYTWups2iDGMuUjLs2gaNqsiNGHVJhHC3J9AdB">skin</a>, there is no evidence it reduces loads across the lower leg. In fact, walking in cushioned shoes has been shown to <a href="https://pubmed.ncbi.nlm.nih.gov/20191571/">increase</a> the load on the knee compared to flat, flexible shoes. <h2>So, what’s the verdict?</h2> The verdict is mixed. Yes, there’s evidence poorly fitting shoes and a flat heel can be detrimental, with consequences seen in the <a href="https://www.sciencedirect.com/science/article/pii/S0966636221000199">rearfoot</a> (around the ankle) and <a href="https://www.sciencedirect.com/science/article/pii/S0966636218300687">knee</a>. But there’s also no hard evidence ballet flats cause long-term foot health problems. What matters is choosing a well-fitted shoe to suit your foot shape and needs. If you’re shopping for ballet flats, try to: <ul> <li> choose a pair with a toe box that does not cramp your toes and has a sole at least as wide as your foot </li> <li> choose flats that offer at least some structure and support </li> <li> choose a pair with a small heel rather being than completely flat.<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/207806/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> </li> </ul> <a href="https://theconversation.com/profiles/kristin-graham-1427672">Kristin Graham</a>, Lecturer in Podiatry, <a href="https://theconversation.com/institutions/university-of-south-australia-1180">University of South Australia</a>; <a href="https://theconversation.com/profiles/helen-banwell-305575">Helen Banwell</a>, Lecturer in Podiatry, <a href="https://theconversation.com/institutions/university-of-south-australia-1180">University of South Australia</a>, and <a href="https://theconversation.com/profiles/saravana-kumar-181105">Saravana Kumar</a>, Professor in Allied Health and Health Services Research, <a href="https://theconversation.com/institutions/university-of-south-australia-1180">University of South Australia</a> Image credits: Shutterstock 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/ballet-flats-are-back-heres-what-the-research-says-about-how-they-affect-your-feet-207806">original article</a>.

Beauty & Style

How to declutter your home in 15 minutes flat

While most of us would love to live in a mess-free home, it’s hard to find enough time to dedicate to decluttering the entire house. A better way might be to break the big job into small 15-minute-or-less decluttering tasks like the ones below. Kitchen Use bins and baskets to organise similar items. Label them so the system is clear to everyone. If you’re living in with other people, buy a pantry bin for each member of the home. This will not only keep the space looking neat and tidy but will also reduce the risk of people “mistaking” your food for their own. Home office Make your home office user-friendly by reorganising the space in a way that makes sense to you and your family. For example, store homework equipment in an area where your children can easily access them and things that are used less can be kept up high. Julie Stuart, founder of online craft store and blog Clever Poppy, adopted this approach when she moved her home office into her open plan living and dining room. “All of my stationery is stored in a basket on my desk. For those things you don’t need on a day to day basis, store them out of sight in a cupboard or wardrobe.” Keep track of your mail and other paperwork that clogs up your desk by stacking it into three categories: bills, personal mail (e.g. wedding invitations) and then one for everything else. If you’re feeling particularly motivated, take the time to pay your bills now or just keep the piles stored neatly in a tray on your desk so it’s easier to tackle later on. Living room Keep on top of clutter throughout the week by identifying the biggest clutter culprit in the living room (e.g. kid’s toys, mail). Dedicate a few minutes every day, or every couple of days if you’re particularly time pressed, to dealing with that. Bathroom Pull all of your toiletries from the cabinet shelves and throw out anything that’s expired or unnecessary (do you really need four lipsticks in the same shade?) Follow this by giving the shelves a quick wipe-down and replace all of the remaining products, putting the items you use the most in easily accessible spots. Bedroom Take some time on a Sunday evening to pick out the clothes you plan on wearing for the rest of the week and hang them at the front of your wardrobe. This will minimise stress in the mornings and will stop you from tearing your closet apart (and making even more of a mess) to find a pair of piece of clothing. Another way to ease the morning rush is to organise your clothing by grouping like with like (e.g. all business shirts together) and adding garment tags to keep them together. Linen closet A simple way to quickly get you linen closet in order – and to stop sheet sets getting lost in the pile – is by tucking a complete sheet set inside one of its pillowcases. If you have a little extra time, stack the sets according to size (single, queen, king). Image credit: Shutterstock Written by Natalia Didovich. Republished with permission of <a href="http://www.stuff.co.nz">Stuff.co.nz.</a>

Home Hints & Tips

“Creepy” detail in rental listing goes viral

When it comes to shared accommodation, dividing your space can be cause for arguments and tension with your housemates. While having to share kitchens, bathrooms and laundries is a plus for splitting rental costs, it can also feel like an invasion of your personal space. One rental listing has taken this space invasion one step further, with a seemingly too-good-to-true listing hiding a major catch in the fine print. An apartment in Melbourne was listed for a measly $70 a week, with many wondering what has caused the low price. The listing for the one bedroom CBD apartment, which was posted on classifieds site Locanto under the “rooms for rent” section, boasts “nice views” in a prime location near Southern Cross Station. The description of the apartment states it would be ideal for someone coming home from an international flight, interstate, or a person living out in the suburbs who doesn’t want to deal with the “long trip home after work”. Better yet, the apartment is fully furnished, with the lister stating anyone wishing to stay would just need “you and your suitcase”. While this may sound ideal for just $10 a night for a short term stay, there is one major catch to the home: you have to share a bed with the owner. “The only catch is there is only one bed so we would need to share this,” the lister states. “I am a 36yr old Australian man, professional job, decent and respectful of others, fit body.” Anyone interested in this deal is encouraged by the lister to send him a message with a “brief introduction about you and your situation”. The classified site where the man advertised his Melbourne apartment is not a traditional rental website, and with the current rental crisis continuing to worsen, there has been an increase in outrageous listings popping up online. Image credits: Locanto

Real Estate

Tiny “furnished” flat asks for eye-watering rent

While many might consider sacrificing some extra space in their home for a cheaper price, the landlords renting out this studio flat in London have gone the opposite direction and raised eyebrows for the interesting interior design choices. The one-bedroom, one-bathroom flat in Streatham, London, has been <a href="https://www.openrent.co.uk/property-to-rent/london/studio-flat-knollys-road-sw16/1460779" target="_blank" rel="noopener">listed</a> on UK site OpenRent for a hefty £1147 ($1959) a month. Though it appears quite ordinary from the outside and the listing details, things become stranger as you look through the interior photos provided. The furnished flat comes with a double bed, which has been shoved against the window and just a few footsteps away from the kitchen, including an oven, sink, bar fridge, and cabinets. The bathroom is just as bizarre, with the toilet located beneath a cut-out section of the wall and thin, rectangular mirrors above it and the single sink in the adjoining room. Despite being advertised as furnished, potential renters will need to source everything else to go with the bed and wooden cabinet provided. The interiors also feature grey walls, timber floorboards, and a slanted roof in the bedroom and kitchen area. The property has been available to rent since early August, with a minimum tenancy of one year and a maximum of two tenants. Images: OpenRent

Real Estate

Tips and traps when moving in with your children

The Australian Bureau of Statistics tells us that 6.9% of people aged 65+ already live with their children. No doubt many more are actively considering it as an option, but before making the move it’s important to consider the pros and cons. The reasons for moving in with children may vary widely. It could be a financially based decision, helping one or both parties to consolidate their cost of living. For others it may be due to the adult children deciding to offer care for a parent with a physical impairment or illness. On the other side of the coin, it may be driven by the adult children needing the assistance of retired parents in taking care of grandchildren. Think back to the hilarious movie (pictured), Parental Guidance. While there are some obvious benefits to sharing living costs and improving family connections, there are some issues and difficulties that may not be so apparent at the outset. Here are some handy hints on what you need to consider to help make it a success. The danger of making assumptions The concept of moving in with your children may happen in a number of ways. You might offer to use your own money to build a granny flat on their property or to make renovations or extensions onto their home to accommodate you. Another scenario is for both parties to sell their homes and buy a new property together, which is better suited to shared living. While these arrangements may seem fair and practical for both parties it is vital that great care is taken to protect your financial stake in the venture. While things may start out rosy, the reality is that there can be conflicts, misunderstandings, divorce or other family disruptions that can put your financial contribution at risk if things are not spelled out clearly at the outset. Imagine if the child you move in with ends up in an acrimonious divorce. The property settlement may involve the need to sell the home and if there is no documented evidence of your stake in the ownership, there could be a risk of you losing your money or having to go through legal action to reclaim it. Make sure there is an agreement in writing Any arrangement that involves a large amount of money or the exchange of property needs to have a written agreement drawn up. It doesn’t matter how good the family relationship is or how much trust exists, it is simply a matter of practicality. A written agreement does not indicate a lack of trust, but simply makes it clear to both parties what the expectations are. It brings clarity and prompts both sides to more fully consider all future possibilities. Putting things in writing will naturally help everyone to look at things objectively. Once it is in writing and signed by both parties then there is a basis for impartially sorting out future eventualities and a clear reference for any possible legal claims. Obtain your own legal advice Getting legal advice on the written agreement can help uncover issues you may not have considered and will help to express the spirit of the agreement in concrete and unambiguous terms. In doing this, however, don’t simply rely only on one side making the legal arrangements. You should enlist your own legal adviser who you consult separately and privately to ensure your needs and wishes are properly reflected in the agreement. This may seem pedantic at the time, but can prevent a lot of heartache down the track if the unexpected happens. Some of the major areas that an agreement should cover: <ul> <li>What will happen if relationships change, such as you or your children going through divorce or starting new relationships?</li> <li>What is the nature of your financial contribution? Is it a gift or a loan? Should the property title be changed to recognise your shared ownership?</li> <li>How will you be compensated if you change your mind and want to move out? How will financial interests be calculated? </li> <li>What will be done financially and practically if your health deteriorates and you need extra care to stay in your shared accommodation or if you need to move to residential aged care?</li> <li>If there are other children outside of the agreement, how will their inheritance be affected by the agreement? Is there a need to adjust wills to reflect the desired outcomes?</li> <li>Is there an expectation of personal care being supplied by the child as part of the agreement? How will this be dealt with if your personal needs change or increase in the future? </li> </ul> Your pension may be impacted too If you are receiving a pension, the written agreement may also be important for the purposes of calculating your pension entitlements. Centrelink have specific rules on granny flat arrangements that need to be taken into account. More information on this can be found at their <a href="http://www.humanservices.gov.au/customer/enablers/assets/granny-flats">website</a>. What should you do if disputes do occur? It is important to get prompt legal advice as soon as any disagreement arises. Any delay may reduce your ability to protect your legal interests. Sharing accommodation with children can have many mutual benefits, but planning is essential to make it a successful move. *Australian Bureau of Statistics Report - Reflecting a Nation: Stories from the 2011 Census, 2012–2013 Republished with permission of <a href="https://www.wyza.com.au/articles/lifestyle/relationships/tips-and-traps-when-moving-in-with-your-children.aspx">Wyza.com.au. </a>

Retirement Life

5 questions to ask before moving into a granny flat

If managed correctly, a granny flat arrangement can turn into a win-win scenario for all parties. It can also turn sour fast. If you’ve toyed with the idea of entering into this sort of arrangement, it’s important to make sure you’re aware of the implications. Here are five questions to ask before moving into a granny flat. 1. Am I really ready to live in a granny flat? While often in these situations you still have plenty of your own personal space, there is going to be a loss of independence to a degree. It’s important to ask yourself if you are really willing to give up this space when moving in with your family. 2. Is my family really ready to live with me? It’s not pleasant thing to think about, but the harsh reality is there may be some parties who are not altogether pleased with the situation (even if it seems like they are on the surface). It’s always worth having a frank discussion with all the parties that are affected, and asking them if this is arrangement is indeed willing to go into. 3. Is my pension going to be affected? Depending on the arrangement you enter into, moving into a granny flat can affect your pension entitlements. It’s important to check with the Department of Human Services<a rel="noopener" href="https://www.humanservices.gov.au/" target="_blank"></a> and a financial professional about the ramifications of making this move, and ultimately whether or not you’re willing to live with them. 4. Have I formalised the agreement? This may seem like adding unnecessary red tape to the arrangement (especially when you’re dealing with family), but formalising the agreement can go some way to avoiding conflicting. Getting the rights and responsibilities of each party down on paper is the best way to manage expectations and ensure no one is given the short end of the stick. 5. Do I have a backup plan? If things do go awry you don’t want to be left high and dry. It’s important to have a backup plan up your sleeve just in case the worst does happen, and you can be sure you’re in the best position possible to recoup and ultimately recover. Have you moved into a granny flat? Or perhaps you know someone who has? What do you think about the arrangement? Let us know in the comments below.

Retirement Income

Can you spot the mistakes this driver makes when changing a flat tyre?

An irate motorist has captured the moment a Perth driver pulls over to change a flat tyre, putting himself in the path of oncoming traffic. The dashcam footage shows the driver changing the front right tyre of his car in the middle of an 80km per hour road which is also just before an intersection. The passing driver can be heard yelling profanities as he drives pasts the blue car, yelling, “That's as dumb as it gets.” Watch the video here. Warning: Language <iframe width="560" height="315" src="https://www.youtube.com/embed/5TxoDvp_itw" frameborder="0" allowfullscreen=""></iframe> The driver fails to adhere to standard rules when changing flat tyres. He doesn’t find a safe location to pull over nor does he turn on his hazard lights. He also places himself in danger as he is directly in the path of oncoming traffic. What’s the most dangerous thing you’ve seen on the roads?

Insurance

5 ways to customise your granny flat

A backyard studio can be a tranquil escape from your house to immerse yourself in your favourite hobbies. It is better than converting an old bedroom and gives you greater space and privacy to do whatever activity you love most. Here are five ideas what you could use your granny flat for. 1. A gardener’s studio If you have a green thumb it makes sense to create a gardening shed in your backyard granny flat. Build a workbench and add hooks to hold your small tools on the wall. You can be creative in the design of your gardening studio and even get a window box and create a mini-greenhouse. 2. A yoga retreat Don’t spend money going to yoga classes if you have the space (and expertise) to do it in your own house. Leave the floor clear for your yoga mat and if you have spare space, invite a friend to come and exercise with you as well. To make your yoga retreat comfortable all year long, add bits and pieces that make you feel relaxed and peaceful. 3. An office If you are working from home, then your granny flat is the perfect location for your office. Not only will it give you peace and quiet, your mind will associate the granny flat with work instead of your house. This will allow you to walk into your house and immediately be able to unwind. 4. A workshop Trade your garage for a granny flat workshop if you’re a builder and fixer of things. Unlike working in your garage, the granny flat won’t be as cluttered and allow you to use up all the space you need. A cement slab would be your best floor option. 5. An art studio If your granny flat has great natural light, then it will be the perfect space to let your creative mind roam free. Paint the walls with your preferred colour and then decorate the space with items that can inspire your art. This space will not only be like a little getaway but you can stop worrying about getting your art supplies on any furniture. You also won’t have to pack up after yourself.

Home & Garden

The joys of living in a tiny home

Nerrida, proudly born in 1948, has principally worked in education and the building industry. Despite this, at 50 she completed a Masters in Horticulture. Currently she is dealing with an unexpected lifestyle change caused by divorce after a 43 year marriage. I've just started to unpack after six weeks in London and Provence. Suitcase open on my bed and new scarf from Arles still on my neck. A favourite vintage scarf adorns my wall, clipped onto coat hangers. I have a mirrored wardrobe with drawers and just enough room to stand next to my bed. My room is tinier than the cabin on the barge I enjoyed on the Rhone and quarter the size of the room with futon on the floor of my son's London home. But at least it's my own room. A box on the top shelf holds my collection of over 100 silk scarves. It's a luxury I still have space to collect. This is the story of downsizing big time. More than four years ago I moved into a flat I bought off-the-plan in 2009. It was supposed to be an investment but fortunately the property was completed just as my 43-year marriage came to an abrupt end in 2012. My home is one of 15 on my floor, there are 30 levels and 500 apartments. About 10 per cent is owner occupied. It is 13 paces long and 6 paces wide, with a balcony adding 20 per cent onto the internal space. I have come to love where I live, but I would move to a 2-bedroom flat in this building if the court ever rule on my divorce property settlement. A four-year legal process is taking up a big chunk of my planned retirement years. I would like to create a support group for retirees in limbo, as divorce at this age comes with a substantial drop in standard of living and clear lateral thinking is needed. But I have a checklist of what my needs are, and this wee little home ticks those boxes. I have a son sleeping on the fold-out couch next to my bedroom. He's wonderful company and watches my calorie intake. Light floods in from full height windows and my bedroom has an opaque glass wall so it's never dark. One reverse cycle is all the climate control I need, and is rarely needed. There is only one shower, basin and toilet to clean. If it's urgent, there are spares in the gym and pool area. My only table is on the balcony. A fold-out-table and two chairs are used as needed. The kitchen, four paces long against one wall, is next to the "European laundry" a further pace along that wall. Kitchen and laundry basins are huge. Dishwasher, gas hotplates, oven and lots of drawers built in above and below. Big W and Woolworths are downstairs and supply my other needs. I thank Ikea for all the remaining shelves on that wall. They hold kitchen appliances, telly, linen, fish, shoes and son's wardrobe. I have a secure car space and a storage cage for seasonal wardrobes, books, bikes. There is even a friendly concierge to attend to the occasional visitor damage, disruption or lost key. Living like this could be very hard if the property was far from urban facilities. It's the location that makes my life so enjoyable every day. I am close to a busy train station, two tram lines, attractive Yarra walks, a good library, busy shopping strips, a cinema complex next door and a unique shopping mall downstairs in my own building. Rubbish goes down a chute, my friends come to swim in a huge indoor pool with spa and saunas, and my doctor, chemist, hairdresser, nail salon, newsagent, supermarket, baker and fruiterer are all downstairs and accessed by my private internal lift. This lift also takes me to my favourite restaurant and coffee shop with free newspapers, Chinese cafe and other food outlets. In summer my guests enjoy barbecues and tennis, and the cost of maintaining all this is shared by 500 other apartment owners, so it's great value. I no longer worry about stairs, cleaning takes just minutes, and I feel safe. I am now used to a bubbly international atmosphere in the lifts and public open spaces and love that other occupants are young, smart and friendly. It's a mystery to me why some people choose retirement homes when towers like mine offer so much more. But each to his own. It makes me sad that "middle suburbia" fight developments like mine. I say: "Come on in – the water's just fine.” If you have a story to share please get in touch at <a href="mailto:melody@oversixty.com.au">melody@oversixty.com.au</a> Related links: <a href="/lifestyle/retirement-life/2016/05/3-questions-to-ask-before-coming-out-of-retirement/">3 questions to ask before coming out of retirement</a> <a href="/lifestyle/retirement-life/2016/08/tips-for-a-happy-and-healthy-retirement-on-a-budget/">Tips for a happy and healthy retirement on a budget</a> <a href="/lifestyle/retirement-life/2016/07/moving-from-spain-to-australia/">Why I moved from Spain to Australia</a>

Retirement Life

Lie-flat seats are finally coming to economy class

There’s nothing that makes you dread flying economy more than walking past those plush, spacious seats in first class. However, we have great news; there will now be a seat that will turn every row of the economy cabin into a flat bed, allowing all your dreams to come true. These "Sky Couches" can already be found on Air New Zealand’s Boeing 787 Dreamliner and 777 wide body jets, and at $150, are about half the price of an upgrade to premium economy. A new design from seat manufacturer Geven indicates it's a trend that's soon to catch on. On flights featuring their new “Piuma sofas”, passengers can upgrade their booking (in advance or on board) to an entire row wide enough for two to sleep. Depending on the airline, the cost of the upgrade is estimated to be about $200 per person. For airline, this is an opportunity to turn half-empty flights into profitable ones. With that in mind, it’s not surprising to see that several airlines, including South African Airways and Air AsiaX, have already signed letters of intent to purchase the so-called Piuma Sofas. Watch the video above to see how the new chairs will work. Would you use something like this? Let us know in the comments below. Related links: <a href="http://www.oversixty.co.nz/travel/travel-tips/2016/04/10-usa-destinations-with-spectacular-scenery/">10 USA destinations with spectacular scenery</a> <a href="http://www.oversixty.co.nz/travel/travel-tips/2016/04/12-packing-tips-to-travel-with-one-suitcase/">12 packing tips to travel with one suitcase</a> <a href="http://www.oversixty.co.nz/%20http:/www.oversixty.com.au/travel/travel-tips/2016/04/how-to-carry-important-travel-documents/">The best way to carry travel documents</a>

International Travel

11 vintage photos of kitschy Berlin flat

<a href="https://www.airbnb.com/rooms/175554?af=14383374&c=tw_us_gen_brand" target="_blank">This quaint listing on Airbnb</a> is offering you the chance to give those boring old hotel options the flick. Stopped in its paces in the early 1960s, the vintage flat in Berlin is quite amazing. The kitschy design captures the essence of old East Germany and is set upon UNESCO world heritage site, “Stalin Allee”. Situated on the fourth floor, the flat is complete with bright coloured furniture in pop “DDR” style, which expresses fascination for the days of socialism and the Berlin wall. It comes complete with a 1960s television set and typewriter, but don’t worry, the bathrooms are as modern as a five-star hotel. Many discerning travellers these days are turning aways from the “sterile chic” hotel style in favour of something with more a little more character. We can see why. Scroll through the gallery above to see the kooky photographs of this home-sized life capsule. Warning: It may make you want to pack your bags. Whether you want to make money by renting your place or to find affordable accommodation options and stretch your travel budget further, <a href="https://www.airbnb.com/?af=61160407&c=apac_au_over60_guest" target="_blank">head over to Airbnb now and have a look around.</a> Related links: <a href="/travel/international-travel/2015/12/10-best-cities-to-visit/">10 best cities to visit in 2016</a> <a href="/travel/international-travel/2015/12/largest-flower-garden-in-the-world/">14 images from the world’s largest flower garden</a> <a href="/travel/international-travel/2015/12/16-countries-to-visit-in-2016/">16 best countries for travel in 2016</a>

Accommodation

Hidden benefits of living in a granny flat

In recent times Granny flats have grown in popularity considerably, and it’s easy to see why. Not only is it a way of cutting down on overheads at home, granny flats allows parents and adult children to share financial, emotional and practical support in all aspects of life. In NSW, Australia for example, over the past year there was a 75 per cent increase in people building on their blocks of land compared to five years ago, as people respond to a tight housing market. Figures from the Australian Bureau of Statistics show that despite a declining birth rate, the average number of people per household has actually grown steadily, and the increasing popularity of granny flats doesn’t necessarily have to represent young adults moving to take care of their parents. Many of the inhabitants of granny flats are taking care of the younger children who are in their house. Social researcher Mark McCrindle told News.com, “Most young people with children are very busy and one of the biggest financial costs is paid child care. If they can get the parents to move in they can help share the costs, and they have childcare at the same time. It has good social and economic benefits. I think it is a positive thing in a lot of ways and we will see more of it into the future.” That being said, if you are thinking of getting into a granny flat with your children, it’s important to document the changes to your living conditions. Centrelink general manager Hank Jongen says, “Although we may accept you have a granny flat interest, even if it is not in writing, we recommend that you have a legal document drawn up by a solicitor to give evidence of the arrangement.” The reason for this is that living in a granny flat may affect age pension payments. Mr Jorgen adds, “We do not use market value to assess the worth of a granny flat interest. Instead, we need to know what you transferred to the property owner in exchange for the granny flat right or interest.” Related links: <a href="http://www.oversixty.co.nz/finance/money-banking/2016/01/10-important-quotes-about-money/">10 quotes that show money isn’t everything</a> <a href="http://www.oversixty.co.nz/finance/money-banking/2016/01/facing-up-to-why-we-fail-with-money/">Facing up to why we fail with money</a> <a href="http://www.oversixty.co.nz/finance/money-banking/2016/01/new-zealanders-lose-millions-to-online-scams/">New Zealanders lose $12m to online scams</a>

Money & Banking

4 ways to add body to flat hair

As we age, our hair sadly can thin out and became lifeless. The good news is that you can employ some simple tips and tricks to give you hair that others will be envious of. The right produtsDon't just settle for any old shampoo and conditioner - look for ones that are volumizing as they won't weigh your strands down.The root of the matterWhen looking to up the ante of your hair volume, you need to first concentrate on the roots. Get yourself a "root riser" type product - look for a volumising spray of lightweight mousse. Apply a small amount (usualy the size of 20c coin, but look to the instructions) and comb through before you style. Tools of the tradeEver wondered what was the ideal size brush for acheiving a volumnious blow-dry? Look for a round brush that is on the large side. And don't stop there. Think about your blow-drying technique too. Make sure you blow-dry your hair by lifting the brush up and away from your head. <a href="/lifestyle/beauty-style/2014/12/haircut-to-look-younger/" target="_blank">Related link: The haircut that take years off your look</a>All about the finaleDon't forget to add a little, lightweight hairspray to hold your hair in place - it will help to keep the volume for longer.Related links:<a href="/lifestyle/beauty-style/2014/10/how-to-wear-lipstick-as-you-age/" target="_blank">The dos and don’ts of daring lip colour</a><a href="/lifestyle/beauty-style/2014/06/look-younger-instantly-with-these-beauty-hacks/" target="_blank">Look younger instantly with these beauty hacks</a><a href="/lifestyle/beauty-style/2014/10/new-doco-proves-over-60s-are-the-real-style-setters/" target="_blank">Over-60s are the new stylesetters!</a>

Beauty & Style

Why a granny flat could be the best investment youve ever made

If you’ve got enough spare turf in the back yard, a granny flat or secondary dwelling could represent a clever property investment. And with more and more granny flats popping up across the country, homeowners and investors are beginning to realise their money-making potential.It’s a great way to generate additional cash flow through rental income as well as increase your property’s value if and when you decide to sell. They can generally be built quite quickly and can offer a positively geared investment in most cases. Furthermore, another benefit of granny flats is that they can be used for a variety of purposes including additional accommodation for extended family, a home office, hobby space or rental income.People are discovering that granny flats are no longer just tiny bedsits or rumpus rooms, instead they can represent good quality, separate dwellings on the same block without the need to subdivide.The New South Wales government defines a granny flat as a self-contained extension of a home that is within, attached or separate from the home but on the same lot of land, and not in a strata plan or community title scheme. The granny flat must be self-contained, meaning it has its own entrance, as well as a separate bathroom, kitchen, bedroom, laundry and living area.If you’re considering a granny flat, here are a few things to keep in mind:<ul><li>They can only be built on a Residential Zone property</li><li>The owner of the granny flat must also be the owner of the primary dwelling</li><li>They can’t be built on strata title, subdivided or community title property</li><li>The block must be at least 450m2</li><li>There is a limit of one granny flat for each residential property</li><li>The granny flat can have no more than 60m2 of living space. However, patios, verandas or carports can be attached in addition to that allowance</li><li>They must have clear, separate and unobstructed pedestrian access</li></ul>Make sure you do your homework in deciding whether a granny flat is the right investment for you, including checking the following:<ul><li>Local council – check what you can and can’t do in terms of zoning and local restrictions</li><li>Demand – talk to local real estate agents on levels of demand in your area</li><li>Costs – get quotes from builders as well as a market appraisal on rent and value from your real estate agent to decide on viability</li></ul>Before you make a decision, it’s also important to weigh up the cash flow benefits as well as resale considerations. Also ensure you consider potential issues around sharing utilities, maintenance and noise, and the rental implications for each property.

Money & Banking

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