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Bank of Mum and Dad: How much parents are gifting their children for first home deposit

A lot of Aussies are turning to the “Bank of Mum and Dad” to buy their first home, with parents willing to fork out exorbitant funds to help their kids. Parents with children aged under 12 are planning to gift their children $33,278, on average, to put towards their first home deposit, according to new research by Finder. That amount is just about a third of the average first-home-buyer deposit ($96,274), based on the average first-home-buyer loan of $481,368. Victorian parents were the most generous, with plans to gift their adult children $52,716, on average, followed by parents in South Australia ($44,656) and New South Wales ($40,191). Queensland parents were willing to cough up $36,497, while Western Australian parents said they would gift $31,076. However, not everyone is prepared to dig so deep into their pockets as half of parents (51 per cent) said they would give their children $1,000 or less. About 40 per cent of Australians aged 25-34 are expected to reach out to the “Bank of Mum and Dad” to help them buy a property, according to a recent report by the Australian Housing and Urban Research Institute. Finder money expert Sarah Megginson said, without the help of their parents, many young Australians will simply be priced out of the market. “Recent property price hikes, combined with interest rate rises, have made it extremely tough for young buyers to save a sufficient deposit, let alone qualify for a home loan,” she said. “Buying a home also comes with new responsibilities such as managing hefty council rates and strata fees, paying for ongoing repairs and managing your money.” Megginson said older Australians should make sure they “put their oxygen mask on first” before helping their kids, rather than risk damaging their own retirement fund. “It’s important to consider whether you are financially secure before helping family members, and look for ways to work towards a mutually beneficial outcome.” Megginson said. “For instance, you might pledge to match your kids’ home-deposit savings dollar-for-dollar, which gets them into the habit and discipline of saving, and means you don’t have to contribute as much.” Parents should also ask their children to prepare a household budget to help ensure they will b able to handle further rate rises, Megginson said. Image credit: Shutterstock

Real Estate

When your house has a (disturbing) history, what should buyers be told about its ‘past’?

<a href="https://theconversation.com/profiles/eileen-webb-95332">Eileen Webb</a>, <a href="https://theconversation.com/institutions/university-of-south-australia-1180">University of South Australia</a> Imagine you have just bought a home. You have moved in and, during a friendly chat with the neighbours, you find out the property had been the <a href="https://www.abc.net.au/news/2018-07-07/what-is-stigmatised-property-and-what-are-your-rights/9911608">scene of a serious crime</a> or <a href="https://www.aicnsw.com.au/our-dream-house-was-a-meth-lab/">used to manufacture</a> methamphetamine. How would you react? Is this something you would want to have known prior to the sale? If you had known, would this have affected you decision to buy the property? And was the real estate agent or vendor <a href="https://www.domain.com.au/news/what-do-agents-have-to-reveal-about-a-home8217s-history-20170810-gxcm5k/">under any obligation</a> to let you know? In most cases, the answer is (somewhat surprisingly to buyers) “no”. However, amendments to Victoria’s Sale of Land Act 1962 <a href="https://www.consumer.vic.gov.au/latest-news/sale-of-land-changes-in-effect-legislation-update">have now broadened the matters</a> that must be disclosed to buyers prior to a sale, including where a serious crime has occurred. Renters who find they have entered into a stigmatised property must resort to the consumer protection laws discussed below. <h2>Why were the laws required?</h2> The ancient doctrine of caveat emptor (let the buyer beware) still impacts on real estate transactions. It means the buyer bears the responsibility of making their own enquiries about the property. Property inspections are usually confined to the physical condition of the property. While it would be possible, at least theoretically, to arrange for a person to investigate its “background”, this can be a difficult process, especially if such information is concealed or hard to come by. As a result, each state and territory has introduced laws that provide for some level of disclosure to the buyer during the conveyancing process. The extent of disclosure required and the nature of matters that must be disclosed varies from jurisdiction to jurisdiction. Furthermore, section 18 of the Australian Consumer Law <a href="http://classic.austlii.edu.au/au/legis/cth/consol_act/caca2010265/sch2.html#_Toc32223214">considers conduct</a> as misleading or deceptive where a matter is not disclosed but, in the circumstances, there is a reasonable expectation it would be. The problem is that while disclosure may be required in matters involving, for example, a structural fault or a road-widening proposal, such information is confined to physical issues affecting the property. However, what happens when the matter involves not a physical defect but a psychological or stigmatising one, such as a murder, for example? Such information may be of considerable importance to potential buyers who, for personal or religious reasons, would find living in a property where such an event occurred intolerable. On a more mercenary note, the impact on resale value of the property <a href="http://journalarticle.ukm.my/7237/1/115-293-1-PB.pdf">could be significant</a>. <h2>The nature of ‘stigmatised’ property</h2> Concern about the effect of stigma on property is not a recent phenomenon. Courts in several jurisdictions, including Australia, <a href="https://api.research-repository.uwa.edu.au/portalfiles/portal/1218611/3632_3632.pdf">have had to grapple</a> with buyers who had discovered, after purchase, that the property had been the scene of a serious crime or criminal activity, a suicide had occurred, persons had been suffering from certain illnesses, or a sex offender lived nearby. In one case a young man had murdered his parents and sister in their Sydney home. The property was later sold to a young couple. After discovering the tragic events that had occurred in the home, they sought to withdraw from the sale on religious grounds. There was a <a href="https://www.theage.com.au/national/estate-agents-fined-over-triple-murder-house-20041220-gdz86g.html">significant amount of criticism</a> of the real estate agent for not informing the buyers about what had occurred there. After considerable public pressure and an investigation by the NSW Office of Fair Trading, the contract was set aside. On a more ethereal note, there have been a series of cases in the United States where buyers have sought, in some cases successfully, to have a sale rescinded <a href="http://zillow.mediaroom.com/2019-10-29-Selling-a-Haunted-House-Heres-What-You-Need-to-Know">because the house</a> was (allegedly) haunted or the subject of <a href="https://casetext.com/case/stambovsky-v-ackley">paranormal activity</a>. <h2>Disclosure laws regarding stigma</h2> The Victorian legislation clarifies obligations for estate agents and vendors regarding <a href="https://www.consumer.vic.gov.au/latest-news/sale-of-land-changes-in-effect-legislation-update">the disclosure of “material facts”</a>. In summary, an estate agent or vendor cannot knowingly conceal any material facts about a property when selling land. The legislation is supported by guidelines that clarify the nature of a material fact. This includes circumstances where, during the current or previous occupation, the property was the scene of a serious crime or an event that may create long-term potential risks to the health and safety of occupiers of the land. Specific examples include extreme violence such as a homicide, the use of the property for the manufacture of substances such as methylamphetamine, or a defence or fire brigade training site involving the use of hazardous materials. Relevant factors can include the reaction of other potential buyers to the fact, including their willingness to buy in light of the revelation. Significant penalties and even imprisonment await vendors and real estate agents who do not comply. <h2>Will the laws work?</h2> As with any new legislation, we will have to wait and see how this plays out. However, some preliminary comments can be made. First, it will be interesting to see how the term “knowingly” is interpreted. Could an agent or vendor avoid the provisions if they merely suspect an issue but do not look further into it? The term “wilful blindness” comes to mind. Second, a fact can be material in either a general or a specific sense. The general sense seems straightforward, as it refers to information most people would consider when deciding whether to buy a property. However, how serious must a crime be to be material? What if the situation involves cultivation of marijuana rather than a more egregious substance? More complex is where a material fact may be of importance to a specific buyer but not buyers generally. For example, in the case discussed above, the buyers’ religion made it impossible for them to live in a home where a violent murder had occurred. In this case, the onus seems to be on the prospective buyer to ask questions about matters of concern to them. <h2>What now?</h2> Although one suspects that buyers of an allegedly haunted house might not succeed under this legislation, the laws address a significant gap regarding disclosure of psychological considerations in the purchase of a property rather than the traditional physical ones.<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/132766/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/eileen-webb-95332">Eileen Webb</a>, Professor of Law and Ageing, School of Law, <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/when-your-house-has-a-disturbing-history-what-should-buyers-be-told-about-its-past-132766">original article</a>.

Real Estate

Buyer of conwoman Melissa Caddick’s home finally revealed

The mystery identity of the purchaser of missing fraudster Melissa Caddick’s luxury Dover Heights home – and the hefty purchase price – has now been revealed. Caddick’s cliffside Sydney mansion fetched a shade shy of $10 million, a figure that liquidators consider to be a very robust result amid currently declining property prices. The property – which famously had a policy of asking prospective buyers to cough up $10,000 <a href="https://www.oversixty.com.au/property/real-estate/ten-grand-to-even-take-a-look-inside-melissa-caddick-s-home" target="_blank" rel="noopener">just to take a tour</a> – was settled recently after a contract was exchanged late in 2022. Other major items owned by Caddick that have been sold by liquidators include jewellery, artworks and designer and luxury goods. An auction of Caddick’s jewellery included the $130,000 sale of a Canturi necklace with diamonds and 13 black sapphires and a matching ring for $1400. Caddick paid $370,000 for the necklace. Receivers recouped $262,000 from luxury fashion house Christian Dior, which the company had been holding on Caddick’s behalf. Justice Brigitte Markovic ordered Dior to hand over the funds in December, but receivers are still yet to sell another Caddick-owned property in Edgecliff, also in Sydney’s eastern suburbs. Investors will be updated in late February. Images: Sydney Sotheby’s International Realty

Real Estate

Cute-as-a-button mushroom house captivates buyers

A quirky “Mushroom House” has popped on the market in Michigan, USA. A home owner in the United States has taken their love for the humble vegetable to a whole new level, with the seven-bedroom property expected to sell for a cool $US4.5 million ($6.4 million). The unique abode covers 6,000 square-feet and is referred to as “The Thatch House” due to its signature roof. American architect Earl Young designed the original seven-bathroom home back in 1918. He was known to source stone for his multiple properties throughout Northern Michigan. However, the new owner dreamed up a new aesthetic, drawing a thatched roof onto a napkin. The design concept took nearly two years to come to fruition and saw thatch being imported in from Europe. The interiors reflect Young’s original aesthetic with stone fireplaces and staircases, along with the timber joinery and benchtops in the living areas, kitchen and bathrooms. The timber floorboards are a rich chocolate tone, along with the new owner’s choice of plush textiles in bold hues, provides a warm and inviting feel to the estate. Images: Domain

Real Estate

Red flags for property buyers considering buying off the plan

Property buyers have been warned of the hidden dangers that come with buying an apartment off the plan. Potential home seekers have been alerted to avoid buying cheap, cookie cutter units that are typically sold off the plan. Michelle May, the Principal of Michelle May Buyers Agents, said some cheaper units sold off the plan were risky purchases because too many corners may have been cut to keep costs down. Prospective buyers must remember that when buying off the plan, you are investing the future of the whole building, not just your chosen apartment. “Developers are in it to make money, pure and simple. Unfortunately, this can lead to cutting costs (and often corners) wherever possible to increase their return,” Ms May said. “You only have to look at two recent stories, Opal Tower in Olympic Park and the more recent Mascot Towers, to see how bad things can go for residents when the building hasn’t been built, inspected or appropriately certified.” Speaking to The Daily Telegraph, Ms May said buyers had less confidence as a result of rising interest rates and the ongoing election campaign taking away their attention from the property market. She went on to say that buyers of units off the plan would struggle to earn back their money if they had to sell in the future. “People buying apartments off the plan usually think it’s cheaper and go for the lowest price. The reality is that the quality build of these newer off-the-plan apartments just isn’t good.” “Visually it might look okay, but a lot of these new apartments aren’t built to stand the test of time. A lot of people who I’ve spoken with often complain about the noise they hear between the walls or the high turnover of other tenants.” “If you’re considering buying new or off the plan, make sure you work with a specialist property lawyer, not just your run-of-the-mill conveyancer. The lawyer will help you understand the many ins and outs of the contract, so you know exactly where you stand.” Image credits: Getty Images

Real Estate

Bette Midler finally finds buyer for multi-million-dollar penthouse

Bette Midler and her husband, Martin von Haselberg, have been able to offload their Manhattan penthouse after it was on the market for more than a year. While the agreed-upon price still remains a mystery – anything close to Ms. Midler’s ask would make it the largest closing price in Manhattan since COVID-19 began. The pre-war co-op at 1125 Fifth Avenue has been in possession of Midler and von Haselberg sine the 1990s. With views overlooking Central Park, the reservoir, and the Manhattan skyline – it is no wonder why the 14-room penthouse dominated the property industry. The home has six bedrooms and occupies three floors of the Carnegie Hill building, along with an enchanting, landscaped terrace. Not only does the future buyer get to come to an expansive home in the heart of NYC, but they get to do so with their own private elevator. Filled with 1920s charm, the home still takes on its traditional Neo-Renaissance style, while still keeping up with the modern-contemporary design with all the bells and whistles to match. A 70-foot-long entertaining space with a double-sized living room, a dining room and an eat-in kitchen are all magnificent features of the home.

Real Estate

Hamish Blake offloads home to mystery buyer for record price

Hamish Blake and Zoe Foster Blake’s Richmond pad has sold for an eye-watering price, breaking a major record for the suburb. The luxurious, modern three-bedroom home at 79a Rowena Parade, Richmond, went onThursday evening for $7.435m off a $5.9m-$6.3m price guide. Jellis Craig Stonnington agent Carla Fetter said the new buyer is not to be named, but denied that they had AFL ties. “It’s a really expensive one so I’m not in a position to say anything about the price … the buyer has asked us to be very discreet,” Ms Fetter said. She said the home’s location and lavish fit-out were the major features that caught the eyes of potential buyers. “It’s probably one of the best offerings in Richmond. It’s on Richmond Hill in a really prestigious area, but the house itself was spectacular.” The celebrity power couple moved to Sydney at the start of 2020, buying a home in the posh Vaucluse area.

Real Estate

Money for social housing over home buyers’ grants is the key to construction stimulus

There’s no doubt Australia’s construction industry is facing tough times. COVID-19 has caused migration to slow to a trickle. Some 2.6 million Australians have either <a href="https://blog.grattan.edu.au/2020/05/the-modest-rise-in-unemployment-hides-a-much-grimmer-picture/">lost their jobs</a> or had their hours cut in the past two months. Many economists <a href="https://www.smh.com.au/politics/federal/banks-warn-house-prices-could-fall-up-to-30-per-cent-as-rental-vacancies-surge-20200513-p54sgy.html">expect</a> property prices to fall. It all adds up to fewer homes being built in the coming months. That means fewer jobs in the construction industry, which employs nearly one in 10 Australians. The sector has already lost <a href="https://www.abs.gov.au/AUSSTATS/abs@.nsf/Latestproducts/6160.0.55.001Main%20Features5Week%20ending%202%20May%202020?opendocument&tabname=Summary&prodno=6160.0.55.001&issue=Week%20ending%202%20May%202020&num=&view=">nearly 7%</a> of its workforce since March. The Morrison Government is <a href="https://www.afr.com/policy/economy/new-home-buyers-to-get-cash-grants-20200531-p54y3g">set to anounce</a> a stimulus package for the construction sector as soon as this week. But what should it include? More home-buyer grants on the way The federal government has signalled it will offer cash grants of at least A$20,000 to buyers of newly built homes. Unlike <a href="https://www.smh.com.au/business/rudd-unveils-104b-stimulus-plan-20081014-50a6.html">past</a> schemes that have targeted first home buyers, it seems these new grants will be available to everyone including upsizers and investors. Grants may also be <a href="https://www.theaustralian.com.au/nation/coronavirus-renovation-rescue-for-tradies-jobs/news-story/bece00028670b6e7b7281f3bacc84ce7">extended</a> to renovations. Large handouts would prompt some more residential construction by encouraging some people to bring forward their home purchases. It’s why in 2008 the Rudd government <a href="https://www.smh.com.au/business/rudd-unveils-104b-stimulus-plan-20081014-50a6.html">tripled</a> the first home buyer grant to A$21,000 for new homes in response to the Global Financial Crisis. But under such schemes, governments also end up giving grants to people who would have bought a home anyway. Even the more pessimistic industry forecasts <a href="https://www.businessnewsaus.com.au/articles/hia-forecasts-new-home-building-to-fall-in-half.html">expect</a> 110,000 homes to be built in Australia next year. Giving A$20,000 to all of these home buyers would cost A$2.2 billion without adding a single construction job. Grants of A$40,000 would double the bill. That’s a lot of spending for little economic gain. Nor do grants to home buyers actually make housing more affordable. They are typically passed through <a href="https://grattan.edu.au/wp-content/uploads/2018/03/901-Housing-affordability.pdf">into higher house prices</a>, which benefits sellers more than buyers. In this case, that is likely to include developers eager to clear their existing stock of both newly and nearly built homes. Cash grants for renovations would likely hit the economy quicker since they don’t necessarily require building approvals. But they bring their own problems. Grants will likely see in-demand tradies raise their prices, especially if the government is effectively paying for most of the work done. It will be also be harder for officials administering the scheme to determine if the work has been done before paying out the money. Nor is it clear the renovation sector needs further stimulus: reports suggest COVID-19 is driving a <a href="https://www.smh.com.au/national/nsw/we-ve-never-had-it-this-busy-home-isolation-drives-renovation-boom-20200416-p54khh.html">renovation boom</a> across many parts of Australia. Research by credit bureau Illion and economic consultancy AlphaBeta shows spending on home improvements is <a href="https://www.alphabeta.com/illiontracking/">already 33% higher</a> than pre-COVID levels. There’s a better option There’s a better way to support residential construction without providing such big windfalls to developers: fund the building of more social housing. Social housing – where rents are <a href="https://www.pc.gov.au/research/ongoing/report-on-government-services/2018/housing-and-homelessness/housing/rogs-2018-partg-chapter18.pdf">typically capped</a> at no more than 30% of household income – provides a safety net to vulnerable Australians. In particular, the Morrison government should repeat another GFC-era policy, the <a href="http://www.nwhn.net.au/admin/file/content101/c6/social_housing_initiative_review.pdf">Social Housing Initiative</a>, under which 19,500 social housing units were built and another 80,000 refurbished over two years, at a cost of A$5.2 billion. Under the initiative the federal government funded the states to build social housing units directly or <a href="https://www.ahuri.edu.au/__data/assets/pdf_file/0018/2772/AHURI_Positioning_Paper_No155_Design-innovations-delivered-under-the-Nation-Building-Economic-Stimulus-Plan-Social-Housing-Initiative.pdf">contract</a> community housing providers to act as housing developers Public residential construction approvals <a href="https://blog.grattan.edu.au/2019/09/learning-from-past-mistakes-lessons-from-the-national-rental-affordability-scheme/">spiked</a> within months of the announcement. Building 30,000 new social housing units today would cost between <a href="https://www.afr.com/politics/federal/enemies-unite-in-call-for-10b-housing-fund-20200429-p54oej">A$10 billion an A$15 billion</a>. Because state governments and community housing providers won’t have to worry about finance, marketing and sales, they’ll be able to get to work building homes much quicker than the private sector. The boost to the economy would be pretty immediate. Just as important, building social housing would also help tackle the growing scourge of homelessness. At the most recent Census (2016), <a href="https://blog.grattan.edu.au/2019/06/who-is-homeless-in-australia/">more than 116,000 people</a> were homeless, up from 90,000 a decade earlier. COVID-19 has shown us that if we let people live in unhealthy conditions it can help spread disease – affecting everybody’s health. The drivers of homelessness are complex. Nonetheless the best Australian <a href="https://theconversation.com/social-housing-protects-against-homelessness-but-other-benefits-are-less-clear-97446">evidence</a> and international <a href="https://insidestory.org.au/you-dont-see-people-sleeping-on-the-streets/">experience</a> shows social housing substantially reduces tenants’ risk of homelessness. But Australia’s stagnating social housing stock means there is little “flow” of social housing available for people whose lives take a big turn for the worse. Funding social housing won’t boost house prices or provide windfalls for developers. It will do more to keep construction workers on the job, while also helping some of our most vulnerable Australians. Written by Brendan Coates. Republished with permission of <a href="https://theconversation.com/money-for-social-housing-not-home-buyers-grants-is-the-key-to-construction-stimulus-139743">The Conversation. </a>

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When your house has a disturbing history, what should buyers be told about its ‘past’?

Imagine you have just bought a home. You have moved in and, during a friendly chat with the neighbours, you find out the property had been the <a href="https://www.abc.net.au/news/2018-07-07/what-is-stigmatised-property-and-what-are-your-rights/9911608">scene of a serious crime</a> or <a href="https://www.aicnsw.com.au/our-dream-house-was-a-meth-lab/">used to manufacture</a> methamphetamine. How would you react? Is this something you would want to have known prior to the sale? If you had known, would this have affected you decision to buy the property? And was the real estate agent or vendor <a href="https://www.domain.com.au/news/what-do-agents-have-to-reveal-about-a-home8217s-history-20170810-gxcm5k/">under any obligation</a> to let you know? In most cases, the answer is (somewhat surprisingly to buyers) “no”. However, amendments to Victoria’s Sale of Land Act 1962 <a href="https://www.consumer.vic.gov.au/latest-news/sale-of-land-changes-in-effect-legislation-update">have now broadened the matters</a> that must be disclosed to buyers prior to a sale, including where a serious crime has occurred. Renters who find they have entered into a stigmatised property must resort to the consumer protection laws discussed below. Why were the laws required? The ancient doctrine of caveat emptor (let the buyer beware) still impacts on real estate transactions. It means the buyer bears the responsibility of making their own enquiries about the property. Property inspections are usually confined to the physical condition of the property. While it would be possible, at least theoretically, to arrange for a person to investigate its “background”, this can be a difficult process, especially if such information is concealed or hard to come by. As a result, each state and territory has introduced laws that provide for some level of disclosure to the buyer during the conveyancing process. The extent of disclosure required and the nature of matters that must be disclosed varies from jurisdiction to jurisdiction. Furthermore, section 18 of the Australian Consumer Law <a href="http://classic.austlii.edu.au/au/legis/cth/consol_act/caca2010265/sch2.html#_Toc32223214">considers conduct</a> as misleading or deceptive where a matter is not disclosed but, in the circumstances, there is a reasonable expectation it would be. The problem is that while disclosure may be required in matters involving, for example, a structural fault or a road-widening proposal, such information is confined to physical issues affecting the property. However, what happens when the matter involves not a physical defect but a psychological or stigmatising one, such as a murder, for example? Such information may be of considerable importance to potential buyers who, for personal or religious reasons, would find living in a property where such an event occurred intolerable. On a more mercenary note, the impact on resale value of the property <a href="http://journalarticle.ukm.my/7237/1/115-293-1-PB.pdf">could be significant</a>. The nature of ‘stigmatised’ property Concern about the effect of stigma on property is not a recent phenomenon. Courts in several jurisdictions, including Australia, <a href="https://api.research-repository.uwa.edu.au/portalfiles/portal/1218611/3632_3632.pdf">have had to grapple</a> with buyers who had discovered, after purchase, that the property had been the scene of a serious crime or criminal activity, a suicide had occurred, persons had been suffering from certain illnesses, or a sex offender lived nearby. In one case a young man had murdered his parents and sister in their Sydney home. The property was later sold to a young couple. After discovering the tragic events that had occurred in the home, they sought to withdraw from the sale on religious grounds. There was a <a href="https://www.theage.com.au/national/estate-agents-fined-over-triple-murder-house-20041220-gdz86g.html">significant amount of criticism</a> of the real estate agent for not informing the buyers about what had occurred there. After considerable public pressure and an investigation by the NSW Office of Fair Trading, the contract was set aside. On a more ethereal note, there have been a series of cases in the United States where buyers have sought, in some cases successfully, to have a sale rescinded <a href="http://zillow.mediaroom.com/2019-10-29-Selling-a-Haunted-House-Heres-What-You-Need-to-Know">because the house</a> was (allegedly) haunted or the subject of <a href="https://casetext.com/case/stambovsky-v-ackley">paranormal activity</a>. Disclosure laws regarding stigma The Victorian legislation clarifies obligations for estate agents and vendors regarding <a href="https://www.consumer.vic.gov.au/latest-news/sale-of-land-changes-in-effect-legislation-update">the disclosure of “material facts”</a>. In summary, an estate agent or vendor cannot knowingly conceal any material facts about a property when selling land. The legislation is supported by guidelines that clarify the nature of a material fact. This includes circumstances where, during the current or previous occupation, the property was the scene of a serious crime or an event that may create long-term potential risks to the health and safety of occupiers of the land. Specific examples include extreme violence such as a homicide, the use of the property for the manufacture of substances such as methylamphetamine, or a defence or fire brigade training site involving the use of hazardous materials. Relevant factors can include the reaction of other potential buyers to the fact, including their willingness to buy in light of the revelation. Significant penalties and even imprisonment await vendors and real estate agents who do not comply. Will the laws work? As with any new legislation, we will have to wait and see how this plays out. However, some preliminary comments can be made. First, it will be interesting to see how the term “knowingly” is interpreted. Could an agent or vendor avoid the provisions if they merely suspect an issue but do not look further into it? The term “wilful blindness” comes to mind. Second, a fact can be material in either a general or a specific sense. The general sense seems straightforward, as it refers to information most people would consider when deciding whether to buy a property. However, how serious must a crime be to be material? What if the situation involves cultivation of marijuana rather than a more egregious substance? More complex is where a material fact may be of importance to a specific buyer but not buyers generally. For example, in the case discussed above, the buyers’ religion made it impossible for them to live in a home where a violent murder had occurred. In this case, the onus seems to be on the prospective buyer to ask questions about matters of concern to them. What now? Although one suspects that buyers of an allegedly haunted house might not succeed under this legislation, the laws address a significant gap regarding disclosure of psychological considerations in the purchase of a property rather than the traditional physical ones.<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/132766/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/eileen-webb-95332">Eileen Webb</a>, Professor of Law and Ageing, School of Law, <a href="https://theconversation.com/institutions/university-of-south-australia-1180">University of South Australia</a> 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/when-your-house-has-a-disturbing-history-what-should-buyers-be-told-about-its-past-132766">original article</a>.

Retirement Income

NO REFUNDS! Woolworths' genius new policy for panic-buyers

Supermarket giant Woolworths is hitting back at shoppers who participate in the coronavirus panic-buying hysteria by changing their refund policy on particular items. Customers who purchased mass goods amid the present panic surrounding COVID-19 will now need a better excuse to return their purchases ahead of the new policy Woolworths has just announced. The panic around purchasing necessities has seen the shelves once carrying hundreds of rolls of toilet paper, canned goods and hand sanitiser go empty. Woolworths today confirmed it is refusing to refund any shopper who may have mass-bought certain items and then regretted the purchase after the transaction. <img style="width: 500px; height:281.25px;" src="https://oversixtydev.blob.core.windows.net/media/7835072/woolies.jpg" alt="" data-udi="umb://media/c8a8837ac4674da0860984ff77247d73" /> "From Wednesday 11 March 2020 until further notice, we will not provide a refund where you have simply changed your mind about products purchased from Woolworths in the following categories," Woolworths said in a statement to customers, which has also been posted in stores. "Toilet paper, paper towel, tissues and serviettes, medicinal (pain relief), cleaning (anti-bacterial wipes, sprays and cleaners, disposable gloves), feminine hygiene and incontinence, baby wipes. "Pasta and pasta sauce, canned food (fish, vegetables, soup, fruit and canned meals), flour and bread mixes, cooking oils, rice." Typically, Woolworths’ refund policy allows for shoppers to get their money back if they change their mind on items they bought, as long as the product is unopened in its original packaging, within the best before date and with a receipt. All Australian supermarkets have been forced to react as a result of the panic-buying across the nation that has left shelves desolate. Coles took out a full page newspaper ad where they begged consumers to only buy as much toilet paper as they need. "The sudden and unprecedented demand for toilet paper has created a problem. But the problem isn't a shortage of toilet paper," the ad, which ran in The Australian, reads. "The problem is that some people are buying a lot more toilet paper than they normally do and more than they need to. "At Coles, we have a responsibility to ensure every Australian can access their fair share of the things they need every day. And right now, not every Australian can; including the elderly and most vulnerable. “We can't allow that to continue." Woolworths also placed a four-pack limit of toilet paper on consumers in the same week that a fight broke out in a Sydney supermarket over mass-buying of toilet rolls. The new measures come as major supermarkets are undertaking extra cleaning precautions in a bid to stop the spread of coronavirus through infrastructure such as self-serve checkouts.

News

ALDI takes a swipe at coronavirus panic buyers

ALDI is just one of many supermarkets to introduce tough new limits as panic buying toilet paper has gripped Australia. Just like Woolworths and Coles, ALDI has dropped its toilet paper limits to one pack per customer instead of the previous limit of four. A new sign was spotted by a customer, saying “We apologise if this act of courtesy is a disruption to your shop”. “The sign is across all stores and reflects the current sentiment of the brand,” an Aldi spokesperson told <a rel="noopener noreferrer" href="https://www.news.com.au/lifestyle/health/health-problems/coronavirus-australia-aldi-sign-takes-swipe-at-toilet-paper-crisis/news-story/4da15f872ede00a245b2e95f3889a9e0" target="_blank">news.com.au</a>. <div class="post_body_wrapper"> <div class="post_body"> <div class="body_text "> Customers were fans of the sign. <img style="width: 500px; height:281.25px;" src="https://oversixtydev.blob.core.windows.net/media/7835041/aldi-sign.jpg" alt="" data-udi="umb://media/24e2b2faa23845249b9b0e49cd8eef53" /> “Love the little dig at the end to the uncourteous shoppers,” one person wrote on Facebook. “Exactly what EVERY supermarket chain should be doing,” another said. ALDI has also put a post on its Facebook page explaining the changes. “To help improve access to toilet paper for our customers, we have limited the purchase of all toilet paper lines to one pack per customer,” it reads. “We ask our customers to remember to show kindness, empathy and calmness when shopping with us.” <div id="fb-root"></div> <div class="fb-post" data-href="https://www.facebook.com/ALDI.Australia/photos/a.637019469688891/3179491655441647/?type=3&theater" data-width="auto"> <blockquote class="fb-xfbml-parse-ignore"> To help improve access to toilet paper for our customers, we have limited the purchase of all toilet paper lines to one... Posted by <a href="https://www.facebook.com/ALDI.Australia/">ALDI Australia</a> on <a href="https://www.facebook.com/ALDI.Australia/posts/3179491655441647:0">Sunday, March 8, 2020</a></blockquote> </div> Customers are on board with the new limits, saying that it’s a welcome change. “Thank you for helping reduce the insanity and greed and helping those with limited funds and access,” one person wrote. “Thank goodness. All stores need to do this … stop the madness!!” someone else added. </div> </div> </div>

Food & Wine

How to avoid buyer's remorse in retirement

We have all heard a story about someone who moved to a retirement community and then suffered buyers regret. Another kind of ‘buyer regret’ is not making the move sooner. So, what do you need to know before making such a big decision? Realising this is an issue, two industry insiders, Rachel Lane and Noel Whittaker teamed up to write <a rel="noopener" href="http://t.dgm-au.com/c/185116/71095/1880?u=http%3A%2F%2Fwww.booktopia.com.au%2Fretirement-living-handbook-rachel-whittaker-noel-lane%2Fprod9780987440464.html" target="_blank">The Retirement Living Handbook.</a> Both Noel and Rachel have heard these stories again and again. Rachel says, “The biggest problem with both types of regret is that it is too late to do anything about it. You can’t wind back the clock and move into the village sooner and if you are at the point of leaving the village it is too late to negotiate a different financial arrangement.” Noel adds, “What they needed was someone to help identify the village or villages that would meet their lifestyle needs and explain the legal and financial aspects to them well before they chose a village.” Of course, that’s easier said than done as many of the legal and financial arrangements are complicated. How does it work? Retirement communities can be broadly grouped into Retirement Villages and Over 55 Communities (sometimes called Manufactured Home Parks). Retirement Villages operate under the relevant state or territory legislation, often The Retirement Villages Act, which set age requirements and deal with some but not all financial arrangements, while a small number operate under residential tenancy laws. Over 55’s on the other hand operate under caravan park or residential tenancies arrangements or a combination of the two. Legal issues The legal contract for a retirement village unit can take a number of forms, from strata title to more common leasehold and licence arrangements through to company share and unit trust arrangements where the right to occupy a unit is granted in exchange for the purchase of shares in a company or units in a trust. The biggest difference between a retirement village and an over 55’s community is that the contract is over the land rather than a unit - the purchaser buys the unit and has a leasehold or lease over the land. Of course there is a very big difference between having a 12 month lease and having a 99 year leasehold arrangement. It also creates the very interesting situation of being a homeowner and a tenant at exactly the same time. The form of legal ownership the person has will dictate their rights and responsibilities in relation to their unit and the costs associated with it while they live in the community and after they leave, so it is important to understand. Be aware of extra costs The costs associated with retirement communities can be summarised as the ingoing, the ongoing and the outgoing. The ingoing is the amount the person pays for their right to occupy their unit together with other costs such as contract preparation fees or stamp duty. The ongoing costs of living in a retirement community will relate to the costs associated with the facilities and management of the community, in a retirement village these are often called general service charges or recurrent charges and in over 55 communities they are known as site fees. Of course you still have your own personal expenses too. In many retirement communities the operator delivers (or engages with external providers to deliver) extra services, such a domestic help, meals and in some cases care. These services are normally offered on a user pays basis and are in addition to the standard charges. Doing a budget that incorporates all of the costs together with your pension entitlement, rent assistance and other income is a good idea. The cost of leaving a retirement community is the aspect that normally causes the greatest confusion. There are many different exit fee models, most are based on either the purchase price or the sale price and are for a percentage multiplied by the number of years you stay in the village. A common model historically has been 3 per cent per year for 10 years based on the sale price. In more recent times, exit fee models have tended to be higher - anywhere between 35 per cent and 50 per cent is not uncommon. What many people fail to appreciate is that there is more to the exit fee calculation than just the percentage based cost, often referred to as the Deferred Management Fee or DMF. There can be sales commissions to the village or to an agent that the resident appoints and refurbishment costs to bring the unit up to the current standard within the village. Understanding all of the fees and charges and putting them into dollar terms is important, although it often involves the imperfect science of predicting how long you will live in the village and what your unit will be worth when it sells. Expert tips To help people navigate the maze and avoid some of the traps, Noel and Rachel wrote The Retirement Living Handbook which covers all of the important aspects of moving to a retirement community, from finding the right retirement community to the different forms of legal contract and financial arrangements through to the impacts on pension entitlement and eligibility for rent assistance. There’s more than a dozen case studies from real Australian retirement communities so you can see how the concepts play out in practice, and at the back of the book is a directory of over 1,000 retirement communities broken down by lifestyle with a lexicon of key features to help readers identify the retirement communities that may best suit you. What are the biggest concerns you have about retirement? Join the conversation below. Republished with permission of <a href="https://www.wyza.com.au/articles/property/insider-tips-for-buying-into-an-aged-care-facility.aspx">Wyza.com.au</a>.

Retirement Income

One-in-three second-hand car owners are sold faulty cars

It is estimated that each year $39 billion worth of second-hand cars are sold but many of these cars are lemons. A survey of over 1000 people commissioned by online car finance company ApprovalBuddy, found one-in-three second-hand buyers had bought a car with problems they felt sellers should have warned them about. Of those who experienced problems with their second-hand car, over half of the buyers noticed the problems with their car within the first month of purchase. Less than one-in-five second-hand car buyers told the survey they felt capable to spot mechanical issues when inspecting a second-hand car. Half of those surveyed said they had no idea what they were supposed to be looking at when inspecting a car and 7 per cent admitted to “faking it” at an inspection so they wouldn’t embarrass themselves. Fixing these problems doesn’t come cheap with just over half of respondents with problems spending over $1000 on issues they felt the seller had been hiding. Founder of ApprovalBuddy, Anthony Simon, explained that very few people are able to check mechanics themselves which is why so many are buying lemons. "If you don't know how to properly inspect a second-hand car, make sure you have it checked by a qualified mechanic before you purchase," he told Sydney Morning Herald. Simon suggests looking for the classic signs of problems such as oil leaks, which can be caused from degraded engine gaskets. They are a fire hazard and can also cause the engine to fail without warning. Other signs include having panels with differing colour tones, which shows the car has been in an accident and has been poorly resprayed. It is also important to check engine noise and transmission noise for any problems. "And there's the false kilometre reading. If a car shows a lot of wear and tear but has a low reading, it could be that the odometer has been tampered with," he said.

Insurance

Are you an impulse buyer? Here’s how to stop!

If you’ve been drawn into the online shopping vortex, lured by countdown sales and urgent clearance specials, chances are you’ve made an impulse purchase. You’ve probably experienced “the guilts” after giving the credit card a belting at the local shopping centre, but at what point does the odd impulse buy become a serious problem? Let us take a closer look.Why do we do it? In the fast-paced world of internet shopping and same-day delivery, 24-hour sales and one-off offers, Paypass and Paypal, our needs and wants can be instantly gratified. The increasing need for instant gratification is the main contributing factor to making an impulse purchase, along with an inability to control emotion. This lack of impulse control seems to disrupt normal decision-making processes in consumers’ brains.There are also targeted marketing campaigns: those sneaky ads that aim for those who easily succumb to making quick and uninformed decisions. Marketers cleverly utilise tools with a lot of hype and sizzle to entice an emotional rather than a rational response to the purchase. Not surprisingly, sale events are also designed to cause a frenzy of impulse buying. The chaotic environment of a sale can lead to a lack of personal control, which can result in a wardrobe full of unworn clothes. Sound familiar?<a href="/Related%20link:%205%20things%20money-wise%20people%20never%20do" target="_blank">Related link: 5 things money-wise people never do</a>What happens when it becomes a serious problem? While it’s easy to joke about impulse buying, it can become addictive, causing serious problems. Impulse buyers can run up huge debts and compromise relationships with others. Their behaviour can lead to lowered levels of confidence and self-control and heightened levels of depression and anxiety.So, how does one put a lid on it? Luckily, there are steps that can be taken to curb the urge to buy impulsively. These include:<ul><li>Setting a budget before you shop.</li><li>Leaving credit cards at home and only taking a certain amount of cash with you to the shops.</li><li>Learning to slow down and take time to consider purchases.</li><li>Seeing a psychologist to develop a set of behavioural and attitudinal techniques involving a) awareness, b) acceptance and c) action. This involves gaining awareness into why you buy impulsively, accepting this is a problem and then taking action to develop good impulse control strategies.</li></ul>Whether it’s a real problem or just an occasional brain snap, there’s no harm in learning a little self-control, especially leading into the many seasonal sales there are each year. Your wallet will thank you for it.If you have impulse-happy shopping buddies, it can be easy to let them convince you that all the outfits you just tried on look great, and you should definitely buy them. If you want to shop socially, do it with people who also have frugal spending habits.You should also keep a list of things you justifiably want or need. That way, if you do see them on sale, you can buy them with confidence.Related links:<a href="/finance/money/2015/02/best-things-to-spend-money-on/" target="_blank">The best ways to make $200 go as far as possible</a><a href="/finance/money/2014/11/tips-for-smarter-shopping-online/" target="_blank">Tips for smarter online shopping</a><a href="/finance/money/2014/12/money-mistakes-to-avoid/" target="_blank">5 money lies we all tell ourselves that are bleeding us dry</a>

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NO REFUNDS! Woolworths' genius new policy for panic-buyers

ALDI takes a swipe at coronavirus panic buyers

How to avoid buyer's remorse in retirement

One-in-three second-hand car owners are sold faulty cars

Are you an impulse buyer? Here’s how to stop!

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