Linda Margaret

Business in Cambodia

2008-10-08T19:43:00.000+11:00

I am currently in Cambodia working in a provincial not for profit organization with a friend. With this in mind I felt an international taste this month was in order.

My friend, Melina Chan, is a fellow RMIT Business graduate. She started working with the Cambodian organization SABORAS in February 2008 as a participant in the annual Australian Youth Ambassadors for Development (AYAD) program. Her main role here is to ‘capacity build’ the organizations managers and develop their professional English, business procedures and proposal writing.

Cambodia is certainly in development mode with over 500 international and national not for profit organizations at work, including the highly publicized ‘Maddox Jolie-Pitt Foundation’ which works at improving the areas of environment and children. A lot of the hardships these organizations are working on addressing have taken place after the 1975 Communist Khmer Rouge regime which systematically executed over 1.5 million of the countries most educated and influential people.

Despite these startling obstacles the Cambodian people are extremely beautiful and gracious. Their history has left a cautiously resilient and young population to rebuild a new culture, education and industries. Recent elections sustained the slow reintroduction of democracy to the country. International delegates, including Australian parliamentarians oversaw the Cambodian People’s Party (who has been in power for 25 years), get reelected for another five years.

The countries average economic growth of 5% has been largely driven by expansion within the garment and tourism sectors. Clothing exports were fostered by the 1999 United States of America and Cambodian Bilateral Textile Agreement guaranteeing Cambodia a quota of US textile imports. Currently, the US receives approximately 50% of Cambodia’s total exports. The agreement also offered a bonus if Cambodia could improve working conditions to meet international labor standards. Cambodia also exports to Germany, the United Kingdom, Vietnam and Canada.

SABORAS is a small local not for profit organization hoping to take advantage of such international opportunities. Established in provincial Battambang they are funded mainly by various international donors. Strains on the international economy have hurt funding for one of the organizations most successful initiatives, the ‘Apprentices for Youth’ Program (AYP).

The AYP has received only 40% of necessary funding this financial year and may be forced to drop the number of apprentices from 30 to 12. The US$16,000 of funds not received would have been used to educated and train 18 potential mechanics, electricians, IT professionals, beauticians, dressmakers and bakers. Previous years has seen intakes achieve a 90% success rate of graduation and future employment.

As the Cambodian population lacks education and new skills (particularly in the above jobs) programs like the AYP are essential for the countries development for two important reasons:

1) To assist build regional areas who suffer a drastic lack of infrastructure

2) To skill the emerging labor forces of 1million young people

The handicrafts project I am assisting with as apart of the SABORAS AYAD program offers vocational training and accommodation for disabled women. The students learn how to design and sew kromars (traditional scarves), shirts, hand bags and more. Products are currently sold at local hotels, markets and shops in Battambang and Phnom Penh. The mission of SABORAS Handicraft is to build a handicraft centre in Battambang to fair trade standards while delivering a sustainable livelihood to its students and community.

This month the organization will sell their first products overseas and pursue growth opportunities in the Australian market. My hope is to secure these channels in time for the busy Christmas period and create a sustainable future for this great project. The organization aspires to sell their innovative products via their website, mail order and Australian community markets.

If you are interested in supporting the ‘Apprenticeships for Youth’ or handicraft projects by purchasing some of their products or donating money please go to www.saboras.org or contact me directly at lindamargaretscott21@gmail.com for more information. You’re support is greatly appreciated.

Cambodian Facts and Figures

2008-08-25T19:32:00.004+10:00

Interesting Cultural Facts

The Days
The Cambodian business day is based around the hot afternoons and history in agriculture. Most Cambodian people get up every morning at 5am for morning stretches and exercises and begin work at 7am. Everywhere from banks, to temples, to offices and tourist attractions have a two hour lunch break from approximately 11am to 1pm. Most people spend go home and spend these two hours sleeping and eating. The afternoon is spent at work from approximately 1pm to 5pm. Most Cambodian’s, particularly women, do not feel safe traveling after 8pm and prefer to be in bed by 9pm.

The Weather
There are two seasons in Cambodia, the wet and the dry. As the climate changes there is a lot of discussion about when exactly these seasons begin and end. But generally November to May is the dry season (more popular tourist season) and June to October is the wet season. During the wet season the rain is usually very regular and will rain heavily from 1pm-4pm every day. The whole country stops while it rains as people prefer not to travel for fear of flooding and poor visibility.

Number Crunch

Cambodia 2006 figures
Population
Approx 14million

Gross Domestic Product
Approx $27billion (Less then the Beijing Olympics)

Real Growth Rate
Approx 5.5%

Employment
Labor in agriculture 75%
Unemployed 2.5%
Below poverty line 40%

Aid Donations
Approx $500million

Religion
95% Buddhist

Age
Medium age approx 20 years
Only 3% over 65 years

SABORAS
Handicraft Wage
US $40 a month

Commissions per item
US $1

Item retail prices
$4 - $8

Handicraft Students
6

Funding met
40%

Further required funding
US $16,000

"Eat, Pray, Love" - Book Review

2008-08-25T19:23:00.004+10:00

Extract from page 23

I was actually feeling kind of delighted about all the compartments of time and space that were appearing in my days, during which I could ask myself the radical new question: “What do you want to do, Liz?”

Most of the time I didn’t even dare to answer the question, but just thrilled privately to its existence. And when I finally started to answer, I did so cautiously. I would only allow myself to express little baby-step wants. Like:

‘I want to go to a Yoga class.’
‘I want to leave this party early, so I can go home and read a novel.’
‘I want to buy myself a new pencil box.’
Then there would always be that one weird answer, same every time:
‘I want to learn how to speak Italian.’

Eat Pray Love

This month I had three good friends recommend me a book, the same book, at the same time! An omen that even I could not ignore. Suddenly the four of us were calling each other as we read and found ourselves holding impromptu book club meetings that involved whiteboard markers and excel spreadsheets!

‘Eat Pray Love’ is a brilliant snap shot of Elizabeth Gilbert’s year of self discovery that every female can relate to. Gilbert shares her methods and ideas for improving one’s life. Her honesty is so contagious that I too found myself wanting to write a pledge, meditate and eat pasta! The book itself has been translated into 30 languages, has sold 5 million copies worldwide and is about to star Julia Roberts in a blockbuster movie. So, you know, it’s doing ok.

About the Author

Elizabeth Gilbert was born in Connecticut in 1969. Her older sister, Catherine Murdock is also an author (‘Dairy Queen’ and ‘The Off Season’). Gilbert’s writings have appeared in popular magazines and were the basis of Disney’s ‘Coyote Ugly’. This year she was voted by Time Magazine as one of the ‘100 Most Influential People in the World’. Wow!

Her books include:

‘Pilgrims’ - New York Times Notable Book, Pushcart Prize Winner, PEN/Hemingway Award Finalist

‘Stern Men’ - New York Times Notable book

‘The Last American Man’ - 2002 The National Book Award Finalist, The National Book Critic’s Circle Award Finalist

Frankie’s Top 5 Favorite Leanings

1. Grow four legs

One of Gilbert’s first insights is a story of meeting an Indonesian medicine man. She expresses her desire to have a ‘lasting experience with god’ and he procedures to draw a beautiful picture of a women. The woman in the picture stands with hands ready to pray and four legs. Where the head should be there are wildflowers and ferns and over the heart is a smiling face.

I love this image of a woman with her feet firmly placed on the ground but watching the world through her heart. I get excited thinking about women embracing this confident yet faithful way of living!

2. Write a petition

In amongst the humor and story telling is Gilbert’s own pain and tough times. She has a moment of clarity on a long drive with a friend. Gilbert is encouraged to ask for what she wants. Not a new idea but one that many women often don’t do.

Gilbert writes a petition to the universe asking for her husband to sign the divorce papers. She then lists everyone she thinks would agree to sign this petition.

My fellow book club members and I now have lists of petitions and found its amazing how many people want to see you happy. It’s more then you can imagine, literally.

3. Standing still

I often feel I am in a race to ‘get happy’, filling my time with hundreds of pursuits that will supposedly make me feel more deserving, more fulfilled, useful etc. but often make me tired or angry. Gilbert travels across continents to find peace and self acceptance and in India she stays in an Ashram to learn meditation.

My favorite Zen master quote she ponders during her stay is, ‘You can not see your reflection in running water, only in still water.’ I know we can’t all disappear to India but for a few minute every day we can practice being still.

4. Be Your Own Best Friend

Throughout the book Gilbert talks and writes to herself, lending to a lot of the books charm as readers are allowed to hear her personal dialogue. She begs, laments, sooks and screams at herself but also cares for herself and learns to be more loving.

My favorite line in the book is when an exasperated Gilbert tells herself to simply, ‘Go back to bed Liz’. A sensible suggestion a kind friend would advise.

5. Four Brothers

For the times you need more then one best friend the book recommends you solicit the help of your four brothers, your guardian angels of sorts. Gilbert learns that Indonesians believe that we are born with family spirits whom we can ask for help.

Whether you interpret these spirits to be real or metaphoric, I like the idea that even when you can’t see anyone around you, you’re not alone.

Hopefully these tasters have inspired you to read more of ‘Eat, Pray, Love’ and begin, complete or continue on your own journey. And if you do, it might be nice to get a girlfriend in on it to, who knows, you might need someone to sign your petition any day now.

Written by ‘Frankie’ Linda Scott

Dear Frankie: The chicken or the egg?

2008-08-25T19:16:00.003+10:00

Question

I'm in a bit of a weird situation. I am in my final year of university following which I will be moving home for a year as I am contracted to a graduate job there for one year. My boyfriend does not want to move to my hometown and I do not want to do long distance especially seeing as he is likely to head to Australia. We have painfully admitted to each other that while we love each other we cannot see ourselves being together in the long-term so there is no point trying to negotiate a way of working our relationship into the next year’s changes.

My predicament is therefore what do we do in the meantime? Currently we have decided to stay together till then as we live only houses apart and share the same group of friends therefore would be miserable seeing each other but not being together. My best friend thinks that I should start moving on and break-up with him now however I think that the break-up would be easier when we are living apart and will not be seeing each other constantly.

I’m 22 almost 23 and am worried that I shouldn't be wasting my time when I could be out there finding someone who is my future. What do you think? Are we stupid for just delaying the inevitable?

Thanks,
Anonymously torn

Answer

Dear anonymously torn,

Your name sums the situation up perfectly. ‘Anonymously Torn’ you must become ‘Accountably Decisive’. To do this you need to:

- MAKE decisions based on facts, not assumptions

- STICK to your decisions

You haven’t pleaded your case that you love him, only that you will miss him from a front row seat. Causing me to think you have two options.

Option One – You feel moving cities is a comfortable way to leave him, but not the real reason. You are confident this is not a lasting relationship. You are looking for a way out that won’t hurt people’s feelings. If this is the case, don’t waste another second and end it now!

Option Two – You feel you are in a good relationship and the change of location is the real reason you want to break up. If so, try and enjoy your time together and diplomatically separate when you leave. This will be the easiest way to move forward.

It sounds like you have based current relationship decisions on a lot of assumptions.

- You assume now that you do not want to be together in the long-term.

- You assume he will move to Australia.

- You assume he will not go to your home town.

- And, you assume that your graduate role will work out and you will stay there.

If a single assumption changes the decision you make now will be useless, and on the table for constant change, opening this emotional wound again and again.

Therefore, it is important to trust your instincts and stick to them. I know I’m being hard but you are still young and you must protect your heart as best you can. Whether that be from leaving a boy you love, or staying with a boy you don’t. It’s your decision.

Good luck,
Frankie

Frankie's 5 Men You'll Meet Before Mr. Right

2008-06-14T10:12:00.004+10:00

If you've ever felt a sneaky suspicion he's not quite right for you, then you need to read our guide to the five boys that aren't forever material...

Generation Y dating habits swing between chronic impatience and the need to ‘try before we buy’. We all want to find Mr. Right NOW but don’t believe in settling for the first guy that comes our way. What? Basically, we are our own worst enemies. Most of us try on many partners to learn about ourselves, what we like and confirm our final choice is the absolute best available.

But for how long do we window shop? I often worry that if I wait until I am 30 to settle down all the good bargains will have been snapped up! OK, enough with the shopping metaphor but you see what I’m getting at. So, I have devised a ‘top 5 boys’ list of guys you should date before you settle down with the one.

The bad boy
Think Tyler Durden from Fight Club or ‘Mad’ Max. He’ is intense, rough around the edges, a leader but also a bit of a loner, detached and a hard arse (hopefully has hard abs too!)

What’s attractive?
Bad is hot. Big muscles, car grease, devil may care attitudes – yum yum! They ooze confidence and you love them paying attention to you. Everything they do is exciting, spontaneous and risky.
What’s not so attractive?
His spontaneous behavior will also apply to you, he’ll stand you up, treat you mean and even embarrass you. His unreliable nature will wear thin pretty quickly as you begin to feel used and ignored. Intimacy is not a strength of his and the more you want it, the less he gives.
What he’ll teach you?
Once you’ve seen the other side of the grass is not greener, you will be more content to stay on straight side of the wild side. You will appreciate the steadiness and loyalty of your final partner and truly understand that you cannot change people.

The passionate lover
Think Leo in Romeo and Juliet. The passionate lover is absolutely besotted with you, and you with him. You will want to spend every minute together and fulfill each other’s every need. A very intense emotional relationship with amazing highs and soul crushing lows.

What’s attractive?
You feel like a goddess! You feel loved, worshipped and your estrogen levels are going crazy. Your world is filled with sunshine and lollipops.
What’s not so attractive?
Suddenly the attentiveness becomes needy, overbearing and you feel suffocated. This kind of love is unsustainable and unhealthy. Many women will feel that they loose their sense of self and isolate loved ones.
What he’ll teach you?
You will tackle the question ‘is love enough?’ and discover what else is important to you. Things such as compatibility, unconditionally support, truth and reality will lead you away from the fragile Disney picture of happily ever after.

The box ticker
Think Aidan Shaw in Sex in the City. The box ticker is the kind of guy your mother would pick, and your family will love him at Christmas dinners. He has a respectable stable job, is good with cars, can kill spiders and will always tell you your bum looks great in that skirt!

What’s attractive?
It’s easy, everyone will love him and on paper, so do you. He treats you with respect and you can map out the rest of your blissful life together in a committed adult relationship.
What’s not so attractive?
Predictable can be boring, life is too short not to reach for the stars. Your heart does not always agree with your head, and you may feel repressed and resentful in the future.
What he’ll teach you?
This time the question, ‘is sensible enough?’ will plague you. Suddenly new things you hadn’t thought of before are important to you - like being challenged, learning and having passion.

The Chloe Handbag
Think Hollywood’s A list - Jude Law, Orlando Bloom or Jesse Metcalfe. He usually dresses like a model, is swarve, charismatic, charming and everyone will be so jealous of you!
What’s attractive?
He is! And so are you when you are showing him off. Your photo album never looked better! You feel the need to introduce him to everyone you’ve ever met referring to him as ‘your boyfriend’ every opportunity you get!
What’s not so attractive?
You know you deserve the finest in the world but you are secretly worried. Worried he’s going to cheat, you’re not attractive enough, why he is he with me at all and that it won't last. This leads to an insecure foundation and eventual heartbreak.
What he’ll teach you?
Once you’ve proven to yourself you can get the stud you can focus on a 'good personality'. Personal priorities appear, ‘am I willing to spend that much time maintaining the outside appearance?' Your grandmother told you, but now you believe her ‘looks aren’t everything.'

The diamond in the rough
Think poor Albert Brennaman in Hitch or Harry Goldenblatt in Sex and the City. The diamond in the rough is an old-fashioned fixer upper. He is endearing, makes a good friend, is a tad socially awkward and usually has some random specialty.
What’s attractive?
His comfortable and loving nature puts you at ease. You find his little flaws, that only you understand, charming. You value each other and smile when you think about him.
What’s not so attractive?
It may be difficult for your friends and family to understand the attraction and to accept him straight away. His faults will become too hard to look past making you frustrated, and the rough may mean you are not as attracted to him as you want.
What he’ll teach you?
He will teach you the value in getting to know the genuine individual within and that nobody is perfect, even you.

Once you have been with these five you will have experienced a variety of the highs and lows that love offers. You will have learnt what’s truly important to you and the strengths you can offer to your Mr. Forever. Don’t forget, he’s out there trying to find you too!

Good Luck!

Frankie

Frankie's Oprah Career Makeover

2008-06-14T10:10:00.004+10:00

Taking this month’s theme to heart, our girl Frankie called in Oprah for a little help to find her career G spot! This month she talks us through how you too can utilize your individual strengths to shine in all facets of your life, including your career!

What’s the deal?
I, like many young women, am searching for a meaningful career where I enjoy getting up in the morning. I want to contribute to society, earn good money and be happy. When I heard about the free online eight part workshop I thought, ‘This is it! A way to pinpoint my strengths and work towards my perfect job, now!’

Each session runs for approximately 20 minutes and helps you identify your individual strengths and weaknesses. It then teaches you how to utilize them to love your job. Each session can be listened to via iTunes or streamed as a webcast.

Oprah’s involved?
Of course! We know I love Oprah and now I love her friend Marcus Buckingham, a well known career expert too! As well as being a gorgeous English graduate from Cambridge, he has revolutionized the world of employee productivity and leadership; spending two decades helping people find their own strengths and long-lasting personal success.

What’s in it for me?
Most workers spend 90% of their day on things they don’t like doing! Buckingham aims at reducing that to only the essential 25%, and then tries to make those things fun too! His biggest catch cry is, ‘Stop trying to improve your weaknesses!’, as most people do not change; they simply become more intense versions of themselves. Buckingham looks at making sure we work at intensifying our strengths!

What should I tell my boss so she’ll help me?
Managers should be rejoicing your interest in identifying your strengths, so tell your boss “Buckingham says, ‘companies that focus on cultivating employees' strengths rather than simply improving their weaknesses stand to dramatically increase efficiency while allowing for maximum personal growth and success.” She will definitely be impressed!

Sounds great! How do I get started?
1: Click here to visit Oprah's site and download the homework sheets. Yes, there are questions to be answered between sessions.

2: The first session asks you to keep a list of things throughout a week that you love (feel strong doing) and loath (feel weak doing) e.g. ‘I felt strong when I was being spontaneous and taking a risk’ and ‘I felt weak when I was wasting time’.

3: Watch the classes in order and listen to Buckingham’s great ideas and activities. He discussed, ‘strength statements’, the Peter principle, goal setting, myth busting and much much more.

What are my favourite lessons?

I learnt a lot from this course which I have been able to use straight away in my work and home life. The idea that, ‘just because you are good at something does not mean it’s a strength!’ opened my eyes to the guilt I felt from not enjoying things others think I am good at. Use the table below to find out if the activities you undertake are hobbies, strengths or weaknesses. We are aiming for all yes.

Then, once we have understood what a strength is we can use these strategies to improve it.

Strength Strategy – ‘FREE’

Focus: Identify your strengths in your current job, how can we do more of these?

Release: Identify missed strength opportunities and deliberately try to incorporate them in your daily role

Educate: Is there a skill you could learn to improve a strength?

Expand: Push your job towards your strengths, highly successful people don’t ‘find’ their perfect jobs, they build them

I’ve found my G spot, now I’m hungry for more job satisfaction…
The Oprah website has lots of information on Buckingham and his work, but if you decide to buy the most recent Gallup book, ‘Strength Finder 2.0’ you can use the code from there and log onto StrengthsFinder.com to take the ‘strength finder quiz’.

Oprah has interviewed lots of interesting business people and employment specialists. Click here to visit Oprah's site to get career advice from 'The Donald' (Donald Trump, including his controversial answers to ‘Should women use sex appeal to get ahead?’ and ‘Do you think it's a sign of weakness if a woman cries at the workplace?’

Whatever you do, do it regularly and do it with conviction. The only person who can best assess opportunities for you, is you! I found taking the course helped me believe I have individual strengths and that these strengths should be maximized in my work for the greatest results. Once you know who you are, shine.

Love Frankie xxx

Dear Frankie: Is he just a rebound?

2008-06-14T10:06:00.002+10:00

Q: Dear Frankie,
I recently got out of a very unhealthy relationship with a guy I thought was 'the one', and who I would spend the rest of my life with. I am now in a new relationship, seven months later, and I'm not sure whether or not this is a rebound. My heart is telling me that I have true feelings for this new guy, although my mind seems to be second guessing my decision.

I really think I have feelings for this guy, but some of my thoughts keep strolling back to my old significant other. I'm confused about what to do, without seeming desperate to my new guy.

I believe that my new man is starting to catch on to my insecurity. How do I figure out whether or not this new relationship is meant to be, or if it's just a rebound?

Confused Heart

A: Dear Confused Heart,

I can hear the true angst you are feeling and I’ve spent the week pondering what the essence of the problem really is. Maybe you are:
1) Secretly missing the ex?

2) Trying to find an excuse not to stay with the new ‘rebound’ guy?

3) Genuinely worried about settling, worried you’ll miss out on something better?

If you’re missing the ex – snap out of it! Easier said then done I hear you say, but he sounds like the jerk of jerks, a waste of unhealthy time. If you do find your mind wandering back to him spend the time thinking about the lessons he taught you; ‘He taught me to always respect myself and expect others to do the same’ or ‘He taught me next time not to rush into intimacy so quickly.’ Be grateful that something positive came out of that relationship, then think good riddance!

Second option is more subconscious. I have never understood the term ‘rebound’. Does this mean every boyfriend after your first boyfriend is a rebound? It seems ridiculous! Another silly social faux par made up so people can judge you - get with a guy too quickly and you’re on the rebound – too slowly and you’re destined to be Bridget Jones? Don’t let others dictate your behavior, you are the only one that knows how long your heart takes to heal and how long during the last relationship you were hurting.

Finally, you seem to be like many women waiting for the ‘meant to be’ guy. We believe in the magic of ‘the right place and right time’ but then restrict it to after a period of being single? Nice guys are hard to find on a good day with a compass! Don’t risk losing this new one over nothing. If you’re still not sure maybe tell him you want to have some fun with it! Slow down, the guy probably doesn’t want to commit too heavily yet either.

So Confused Heart I would recommend you listen to your instincts. What is the real problem here? Basically, we want to avoid ‘throwing the baby out with the bathwater!’ If you decide he’s just a rebound and you would rather wait for ‘the one’, get rid of him and wait. Or, if the problem is your own perception and expectations (the bathwater) work them out while you work on your relationship too (the baby).

Good luck!!

Read the further articles and questions at www.nzgirl.co.nz! And while you're there sign up and check out their great fashion, travel and useful girl power advice!

BUSINESS PERSON OF THE MONTH

2008-06-10T10:01:00.001+10:00

Steve Vizard

Mr. Vizard has been receiving a lot of press in the past few years and probably a lot of us are still confused as to what he really did. Basically he didn’t listen to his own advice on insider trading he gave to the Sunday program in July 2000.

"You have to inform every board you are on of the business you are involved with ... you have to tell them you are involved with that business, declare your position, not be involved in any decision-making process that the company you are involved with makes."

This isn’t just good advice, this is the commonwealth law of any board of directors.

Stephan William Vizard was born 6 March 1956 (1956-03-06) in Richmond Victoria and is an old Carey Grammar boy. He is married with five children. Originally a corporate lawyer after graduating from Melbourne University Law he moved to television in 1989. He produced the comedy show, ‘The Eleventh Hour’ and won a Golden Logie in 1991 for his work in ‘Fast Forward’.

Other awards include his 1997 Order of Australia, for service to the community, through his established Vizard Foundation, and to the arts. Earlier this year he returned this award after the insider trading scandal. In 2002, he received the Australian Father Of The Year award.

He retired from television in the mid 1990’s and went back into business and philanthropy. In 1996 he became one of the directors of Telstra for four years. During the final year of his term at Telstra claims of $3 million of accountancy fraud and insider trading arose between Vizard and a college. In 2005 he was fined and sentenced to 10 years disqualification.

Moral of the story: Stick to what you’re good at and don’t get too greedy.

MAY NZ GIRL Second Sneak Peak!

2008-05-13T11:12:00.004+10:00

Q: Dear Frankie,
My groomsman won’t talk to my head bridesmaid! Just to paint the picture, the groomsman is my fiancés brother, and the head bridesmaid is my best friend. They used to date for three years, and the wedding is going to be awkward for them. Head bridesmaid has been like a sister to me since we first met at the age of eight.

We have tried to arrange minimal contact for my sake. However, he continues to ignore her, gets grumpy when she rings and constantly bitches about her to me.

What should I do? A very Stressed Bride!

A: Dear Stressed Bride,
Ok, so this is a tricky one because there are multiple peoples’ feelings involved and you have to live with these people basically until death do you part, right? Unfortunately, you probably don’t want to pull a Donald Trump and say, ‘You’re fired!’ and walk away.

First question is: I understand these two people are important to you, but are they as important as yourself and your fiancé? I would hope the answer to this is no, of course not. This guy and you are about to do something pretty scary! Probably not much else is as important as this. Whether it is a wedding or a casual dinner party, you wouldn’t allow a guests’ negativity or problems to bring you down after you.

Second question is: And what is the purpose of a big wedding in general? I would hazard a guess that the reason you didn’t just run off and elope with your hubbie is because you wanted to share the special day with your friends and family? Yes? I don’t think their behaviour is allowing you to do this. You’re not having this big expensive party so your friends can have a free meal and carefree day while you stress and minimize awkwardness!

Third question: What is their fundamental role as head bridesmaid and groomsman? I would imagine the role of your two sidekicks was to handle any problems that may occur for the special day, not to create problems of their own! I’m worried maybe you think their job it to look good in the outfits you picked out and make up the numbers in the group photos. If this is the case any old friends would probably do!

Finally, I’m interested in why they declined to stand down but continue to act like small children? Maybe you could swap them with the page boys and flower girls so you had a more mature groomsman and maid of honour? If they were real friends, and as close and important as you think they are, they would put their differences aside and focus on you. You shouldn’t be made to feel guilty as you’ve done nothing wrong, but if they refuse to grow up and shape up maybe you should replace the guilt with a bit of strength and tell them to ship out!

Read the further articles and questions at www.nzgirl.co.nz! And while you're there sign up and check out their great fashion, travel and useful girl power advice!

Tax Return Time

2008-05-12T14:40:00.002+10:00

Ok kiddies, its tax return time, yeah!! I must confess that even I, a business nerd do not enjoy doing my tax return. But it must be done and hopefully you will get a bit of money out of it!

A financial year is from July 1^st to June 30^th the following year. This is the period of which your income is totaled and your tax is calculated from the tax you have already paid and that which you should have paid.

By the end of the financial year your employers should send you a group certificate as a total of your income and tax. You then have from July 1^st to October 31^st to lodge your tax return. Remember, the earlier you get it done the earlier you get any returns.

To carry out a tax return you must have a tax file number and group certificates from all of your employers over the past 12 months. If you don’t know if you need to lodge one go to http://calculators.ato.gov.au/scripts/axos/AXOS.asp and answer the questionnaire there to find out.

If you do have to complete one there are lots of ways to do so. You can go to www.ato.gov.au and complete the online e-tax section or over the phone. You can also pick up a hard copy of the TaxPack 2008 at newsagents and some book shops. Some registered tax agents offer student discounts to help do your tax returns. It can be a good idea to use a professional for this as they know the ins and outs of what can be deducted and get you your return quickly.

After you lodge your return they may say you owe the government tax. If this is the case the earliest you will have to pay it is November 21^st, regardless of when you lodge your tax return.

Frequently asked questions around tax returns are about what work related expenses can you tax deduct? This is when a professional is handy. Basic things to think about are:

- Work uniforms with logos or embroidery on them are generally tax deductible

- Laundry and dry cleaning of these uniforms are also generally tax deductible

- Every industry and role will vary from what they will be allow to tax deduct. For instance, the modeling business will allow you to tax deduct haircuts and pedicures where as some sales role will include home internet and phone.

- Tax deductible car and public transport use is only considered between work hours. The use of your car or transport to get to and from work is not included.
- A percentage of educational expenses such as pencils, textbooks can be deducted if the studies are in direct connection with your employment.

Good luck and I hope it is as painless as possible!

Student Budgets

2008-05-12T11:49:00.003+10:00

This month I want to write about the importance of understanding finances and budgeting. BORING I hear some of you groan, but it’s YOU who should read on! Unfortunately, whether you like it or not the world runs on money, economists call it the oil of the world. So best to keep your piece of the pie as yummy as possible!

What is the importance of budgeting?

What’s the point doing something if you don’t know why? When you begin budgeting you can have many reasons and great results. Some of these include:

- To know the truth about your financial state so you don’t get a scare or live beyond your means

- To use your money wisely so it better reflects your priorities and wants

- To save for something you really want maybe a ticket overseas, computer, car

- So you’re not getting ripped off by banks, other big institutions

Ok, so budgeting is important but how do I do it?

Keep a record of what you spend. There’s lots of ways of doing this, I keep a spreadsheet on my laptop but I use to write spending into the back of my diary. Some people keep all their receipts, others only use cards so they have a record online. However you do it you have to keep a record of where your money is going for budgeting and also in the future for tax.

I always start a budget by breaking down the cost of basic living weekly, fortnightly or monthly, whichever period works best for you. Refer to the useful links to get a downloadable or printable template to start budgeting with!

Firstly ask yourself what do you need, and how much do these cost. I have found some general ‘rules of thumbs’ for these. Rent or housing costs should equal about one third of your gross income (before tax). Utilities bills such as gas, water, electricity average about $2 to $3 a day in usage costs only, plus the annoying charges they seem to add on for no apparent reason, usually between $20-$30 a quarter. Transport is a real killer that lots of people forget. Tram tickets for students average to be about $3 a day, whilst cars can average $10 to $18 a day after insurance, servicing and petrol. Mobile phones and internet connections are always big killers for students’ hip pockets considered the number one cause of student debt. Generally you should not spend more then 10% of your net income (after tax) on these. Groceries are another big expense which can be difficult to calculate. I try to aim to spend no more then 20% of my net income on them. As students this probably doesn’t leave you with much! But if we can budget right we should have enough for the suggested 10% to 20% in savings.

The next thing is to look at what do you want to do? How much would you like to spend on going out, presents, clothes? What is necessary to keep you sane? Maybe you want to go to the movies once a week for $12 or out to dinner for $20, see a gig or get a few drinks at the local pub. Add these costs onto your budget too and see how realistic you’re expectations are.

An example of a typical student fortnightly budget might look like this:

Income - $680 net a fortnight
Work	$450	Net
Centrelink	$230	Net
Outgoings - $610 a fortnight
Rent	$290	Approx. one third of gross income
Bills	$30	Between $2 - $3 a day
Public Transport	$40	Between $2 - $3 a day
Phones & Internet	$35	Less then 10% of gross income
Groceries / Food	$155	Less then 20% of gross income
Going out	$60	Approx. $30 a week
Savings - $70 a fortnight		Between 10% and 20% of gross income

Not much room to move is there? This is why savings is important. If you lived on a knife edge like this and didn’t save you would have a very fragile lifestyle. Any little problem like an employer paying late, getting an infringement notice or going over on your phone bill will mean you won’t be able to make ends meet.

After you’ve done you’re budgets some ways of improving it should become clearer. In terms of spending maybe you need to change your mobile phone arrangements, find cheaper rent, eat in more or get rid of the car. Or maybe you find that you’re living comfortably within your basic needs and you are wasting lots of money on unnecessary things such as daily red bulls and trashy magazines? Maybe this money can be spent on bigger and better things instead.

On the other side of the coin maybe you need to earn more. This doesn’t necessarily mean you need to work more. Changing your pay structure can help, for instance, if you are a casual employer and on Centrelink re-structuring your contract to a part time basis can even out your pay over holidays and sick days so you can claim more from Centrelink fortnightly. Or instead of working Saturdays try and work Sundays on a higher hourly rate. Or refer to last month’s magazine and ask for a pay rise!

Never the less, a budget should highlight that once daily needs are met you must prepare yourself for larger one off costs such as car insurance, a special friends birthday present, tickets to an expensive concert or a new piece of furniture etc. These things must therefore be saved for in advance, not via the credit card approach.

How to save

To save successfully it is important to have a goal. Ask yourself, how much do I want to save and by when i.e. ‘I want to have $1,200 by Christmas’, then work backwards. Ok, if Christmas is 26 weeks away I will have to save $46 a week,

26 x $46 = $1196.

But this is EVERY week, if you are likely to miss a few weeks over the next 6 months allow for this and factor it into your weekly amount say an extra $10. Therefore,

26 x $56 - $224 (4 missed weeks) = $1232.

If you currently have debt this should be your number one priority to save for and pay off. As a young person I often hear old people say, ‘In my day we didn’t live beyond our means and only bought things when we had the money in the bank.’ Well this is good in theory but our generation realizes that life is short and we take opportunities when they arise. This doesn’t mean you will never pay it back, it just means you have chosen to enjoy it now and pay for it later. When the ‘later’ comes be sure to pay your debts off from the one with the highest interest first. Many people make the mistake of paying the largest amount off first. The interest you save by paying off a higher interest card first will enable to you pay the lower one of faster later.

Tips on how to save

2008-05-11T11:00:00.000+10:00

- Have multiple bank accounts, one for spending, and one for long term saving and one for medium term saving. This will stop you from spending it all at once.

- Look for account with high interest rates and low minimum amounts and charges.

- As soon as you receive income put the planned savings amount away. Do not wait until the end of the month to put it away because you will have spent it.

- Give yourself your planned spending amount in cash at the beginning of the week so you can see exactly how much you have left.

- If you are not good with cash buy things ahead of time so you’re not put in the situation of buying something on the spot where you are tempted to overspend.

- Consolidate multiple debts into one low interest loan, even if this means your parents pay your debts and you owe them the total amount.

- Avoid expensive supermarkets such as Safeway and Coles. Do your grocery shopping at markets such as Box Hill, Queen Victoria or Prahran for the vegetable, fruit and meat and get the other stuff from Aldi or BigW.

- Re-fill water bottles instead of buying new ones daily

- Buy your Metcards in bulk, 10 trips or monthly can save up to 20%

- Ask if you are eligible for discounts at bookshops, utilities, ticketing places etc.

- Structure your pay to include monthly bonuses and save the lump sum.

- Save any windfall or unexpected money such as tax returns, presents etc.

- Speak to your phone, internet, and utility providers regularly to see if any new cheaper plans are available.

- Plan your days spending as you start the day, don’t wait until you’re starving to think about how much you want to spend on lunch.

- Spend as regularly but spend less. Instead of getting the large meal, get the medium. Buy one CD instead of three.

BUSINESS BOOK OF THE MONTH

2008-05-10T11:44:00.000+10:00

‘Free Prize Inside’ By Seth Godin

All marketing students will know the prolific author Seth Godin, and probably have read his books ‘Purple Cow’ or ‘Permission Marketing’ (if you haven’t you should do so quickly before anyone realizes you haven’t!) His next read, ‘Free Prize Inside’ endeavors to offer ‘the next big marketing idea’.

Published in 2004 this bite size book is packaged in a cereal box with the book acting as the ‘free prize’. It can be read in a day or two and will get you itching to put its’ ideas into practice. Although pitched as a marketing man, Godin’s books, blogs, web presentations are interesting for anyone in business, which is everyone! He is a modern thinker and understands the modern consumer intimately, essential for us young movers and shakers in any industry.

‘Free Prize Inside’ is short and snappy in writing style, making it an easy read. It offers great practical advice in ‘cut out and carry with you’ form such as, ‘You can’t buy attention’ and ‘The harder you try to play it safe the more likely you are to fail’. He uses examples ranging from Redbull to David Letterman’s teeth to Yahoo! And demonstrates ideas in really simple graphs for visual people like myself!

In true marketing form he spends the first few chapters pumping up the book and how great it is that you’re reading it, someone bought it for you, you should buy it for other people etc. He includes a bit of business jargon some of which he has coined himself over the years such as, ‘champion’, ‘purple cow’, ‘edges’ but all in all very easy to understand.

My advice to best enjoy the Godin theology is to grab a copy of ‘Free Prize Inside’, skim over the headings, read the bits that sound interesting and sign up to his blog or watch some YouTube clips. However you do it, I hope you enjoy!

A Good Home Life with Housemates

2008-05-09T14:38:00.002+10:00

After two years working in Real Estate I have heard a lot of bad housemate stories. Many tenants have had to leave houses due to messiness, inconsiderate noise, not paying rent on time and privacy issues. Apart from the odd unreasonable freak many of these household issues can be sorted out with a bit of ‘living’ preparation. Sit down and think about what is really important to you at home. Do you enjoy things being clean or would you rather live life and worry about the mess later? Discuss these things with your housemates at the beginning of the lease so everyone is very clear on everyone else’s expectations. Pin up these expectations somewhere communal so all housemates and their guests are reminded regularly. I have outlined some of the things I think are important to include.

Consider Other People and Their Belongings

§ Keep other housemate current with major life changes such as change of jobs, university courses, selling a car etc. as this may impact the whole house

§ When making decisions on or changing shared spaces such as where couches and TV’s are, or financial things such as internet you must consult with others and agree

§ Always ask to borrow clothes and personal items in person or via txt message

Guests are to be Respectful of Everyone

§ Guests are to be attended to by their host who is responsible for the guests behaviour

§ When returning home check if housemates are sleeping. If so, act quietly & SMS if anyone is staying over

§ Only people known/introduced to all housemates are allowed to stay over night

§ Guests may eat shared household and hosts personal food in moderation

§ If more then 5-6 people including host come over for a long period of time, a days notice to all housemates is required

§ If guests stay more then 3 - 4 nights a fortnight proportional contribution to household expenses is payable as agreed by housemates

Keep House and Housemates Safe at All Times

§ Locked and deadlocked front door when leaving the house empty

§ Front door is to be snipped locked so you can leave easy in case of emergency while people are sleeping

§ No spare keys are to be handed out to guests or hidden outside unless agreed to by all housemates

§ Do not discuss with others if the house is vacant or when a housemate is home alone for periods of time

All Bills to be Paid on Time

§ Rent paid weekly to main tenant

§ Water and Electricity and Gas to be paid quarterly by main tenant and reimbursed by each tenant pro-rata, according to period since commencement of lease

§ Use of utilities are to be used in reasonable amounts i.e. heaters, water, lights turned off when not in use

§ Gardening, shopping, shared household expenses to be recorded on household calendar and reimbursed monthly so each housemate has paid their share.

Household cleaning tasks to be shared among housemates

To be done fortnightly

Bathroom - Shower, Toilet, Sink, Floors

Vacuuming - All shared areas, and quickly in each bedroom

Outside – Watering, Mow lawns, Recycle bin out/in

Dusting - Surfaces, spider webs, books shelves

Moping – Tiled areas

To be done weekly

Outside – Garbage bin out/in

Lounge - Tidy and put personal items away when finished

Office - Tidy and put personal items away regularly

To be done daily

Kitchen

- Clean all dishes left in and around sink

- Stack dishwasher as you go and turn on when full

- Keep bench and table clear and clean each night

Top Ten Things Oprah Taught Me

2008-05-01T23:54:00.007+10:00

Years of Oprah viewing has taught me many life lessons. From how to live my best life to improving relationships to staying fit, I am never short of an Oprah-ism for any occasion. So to save all you valuable time I have plucked out the top ten things Oprah has taught me from the hundreds of hours of Oprah gold. Enjoy.

1) Live your best life

The overriding message of the Oprah philosophy is based on the idea, ‘If you want the best the world has to offer, offer the world your best.’

Based on the Reverend Jesse Jackson quote and Sidney Poitier philosophy, ‘Excellence is the best deterrent to racism. Therefore, be excellent.’ I agree with Oprah when she says that, ‘this is the most fulfilling path to personal freedom.’

2) Believe Peoples’ Character Ideas

If someone tells you who they believe them! They know themselves better then you do.

When people make comments such as 'I'm selfish' or 'I'm mean', you can save yourself time and effort by believing them as they already know their own history and relationships.

3) Have Aha! Moments

The greatest enlightenment you can have as we learn about life is when you hear something and think, 'I never thought of it that way'.

If you can think of things in a different way it means you are growing and challenging your own ideas and removing prejudices.

4) Love Doesn't Hurt

Relationships should not physically hurt. Any guy who says he loves you but displays threatening or abusing behavior, is lying about the love.

Over 10% of females are said to have been abused by a male in a relationship. Many girls depend emotionally on men and stay in these relationships. Stand up for yourself, complete yourself and end the abuse.

5) You Teach Others How to Treat You

Eleanor Roosevelt famously said, ‘Nobody can make you feel inferior without your consent.’ Dr. Phil regularly asks his guests, ‘Where did they get the idea they could treat you so badly? From you! You let them do it.’

6) Be Grateful Everyday

Oprah believes the, ‘magic of gratitude’ is the more grateful you are, the more you have to be grateful for.

Hard core’s like myself keep daily gratitude journals and look for five things a day to be grateful for. Getting up in the morning is different when you are looking for grateful acts.

7) Eat Breakfast!

Eating breakfast is like starting the car engine in the morning, it gets the metabolism working.

Oprah’s buddies Dr. Oz and personal trainer Bob Greene insist we eat breakfast and exercise everyday to get the heart pumping and body running well.

8) Make Wildest Dreams Come True
A simple act of kindness or time can go a long way, making others and yourself feel like a million bucks!
The 20^th season of Oprah was all about Wildest Dreams and my favorite guest was Bernadette, an amazing Starbucks employee whom was supporting a family of twelve. Oprah swung in and helped her and her children, nieces and nephew and mother. I tear up remembering how overwhelmed with joy Bernadette was.

9) Surround Yourself with Beauty
Take time and care to make your home nice no matter what your budget is. Showing pride in your external world then allows you to look after your inner being.

Oprah talks about when she was younger and living in hardship she would find flowers to display or pin pictures up on the walls, anyway to show beauty around her.

10) Pay Debts Fast
Structure your repayments so you are repaying the loan with the highest interest rate off first.

Finance expert Suze Orman reminds us that many people make the mistake of repaying the loan with the largest amount owing first, forgetting the extra interest could be saved and help you pay off your debts faster!

Read the further articles and questions at www.nzgirl.co.nz! And while you're there sign up and check out their great fashion, travel and useful girl power advice!

MAY NZ GIRL Sneak Peak!

2008-05-01T23:46:00.004+10:00

Q: Dear Frankie,

I have a rather strange and random ex boyfriend. We broke up at the start of the year and even though he lives overseas (which is why we broke up) we still keep in touch. After not hearing from him in two weeks, he randomly emailed me asking if I wanted to go on a ‘free no-strings attached, fun holiday’ with him! He said he’d fly me overseas and pay for everything! I still really care about him, but I have moved on, and I know it would never work between us (we tried long distance and it didn’t work). By the way he kept repeating the words ‘no-strings attached’ and ‘just fun’, I don’t think he wants to get back either (but it does sound like he wants some easy sex!).

It would be cool to hang out with him again and I would love a free holiday (who wouldn’t?!) but I’m worried that it might open up a whole can of worms… I’m scared I might fall back in love or want to try again… I really, really want to say yes (even though I realise it’s an international booty call!) but I’m not sure.

How would I explain it to my friends and family? And if I did go, how should we act? Like friends or ‘lovers’? Should I even go at all?! And what the heck is he even thinking offering?! Help a confused girl out!

A: Dear Confused,

An international booty call, how exotic?! WRONG! You didn’t say how long you were with him but to have moved on in five months is a fantastic feat! I wouldn’t jeopardize that for anything. I understand that lots of girls want to remain friends with their ex’s, but I have no idea why! But even if a regular friend invited you on a holiday you wouldn’t go if you knew there was a chance they would treat you badly, or heaven forbid use you for sex!

Why did he ask? Boys will always ask for two reasons; one, they want to make sure all possible options and doors are open as they are indecisive buggers and two, they don’t understand ‘getting over people’. It’s all very grey for them, they don’t label relationships like we do - ‘boyfriend’ ‘friend’ ‘ex boyfriend’, and conduct our behavior in accordance to the rules associated with that label.

But back to you! Yes, it might be cool to hang out with him again but it would probably be cool to have your mum make you a colorful birthday cake again, but we don’t do these things anymore, we’ve moved on! Follow your instincts; Oprah reminds us that a ‘maybe’ is as good as a ‘no’. Don’t fill your life with half experiences! If you think your family and friends would disapprove ask yourself why. Maybe they recognize he’s a bad influence on you? Or realise it will probably end in tears rather then a nice suntan?

I worry that for a holiday it would be more games then relaxing. If you did go the only way to act would be distant and detached so he knows you’re not interested in getting back together and shield yourself from getting hurt again. But where’s the fun in that holiday? Sounds like work to me! I’d rather wait until I could go on a holiday I paid for that fitted all my wants. Allow me to quote Destiny’s Child when I say, ‘The shoes on my feet, I’ve bought it, the clothes I’m wearing, I’ve bought it, ‘Cause I depend on me.’

Life is short and you are young. Don’t waste another second working on a jigsaw puzzle that you know is missing half the pieces!

Read the further articles and questions at www.nzgirl.co.nz! And while you're there sign up and check out their great fashion, travel and useful girl power advice!

Asking for a Pay Rise

2008-04-01T13:38:00.000+11:00

Asking for a pay rise can often be daunting yet VERY IMPORTNANT. I often throw my hands up after the third parking ticket of the month and exclaim, ‘I wish I was rich…that would solve all my life problems!’ Usually a nearby slightly scared friend or family member will point out that parking in the right places might also help. Annoyingly I do agree with them, sometimes you must DECREASE your spending to save money, and sometimes you must also INCREASE your earning capacity.

As a student it is often hard to do either. Living on the ‘student knife edge’ where opulence and poverty can mean the difference between walking to uni and catching a tram. Demanding a higher wage can also be hard as you may be inflexible to your employers needs due to university commitments.

Student jobs can range from flipping burgers and making coffees to part time assistant roles and office jobs but no matter what industry or position you are in all jobs work on a basic supply and demand structure. It has been said that dirty, dangerous and demeaning jobs often pay best. Cleaning windows downtown pays well, but cleaning very dirty windows on the 80th floor pays better.

So, when thinking about approaching your manager or boss one good way to prepare yourself is to do your research. Ask yourself the following questions, have I demonstrated that I am competent in my role? Have I signed any sort of agreement that would limit my earning capacity? Is my direct manager the correct person to discuss this with? Or is the human resources department or store manager more appropriate? Be very careful with this questions as going above a mangers head can often damage your relationship with them and hard your chances of getting what you want.

The next thing to do is arm yourself with industry standards of pay, speak to the institution or association in the field you work in and ask them how the pay scale works. Find out where the industry skill shortages are, how you can fulfil them? Maybe you need to get another qualification, move interstate, change your pay structure from part time to casual or maybe you already have the skills and are working in the right place! Use this information to give yourself confidence when you approach your boss or maybe to realise that its time to find a new job!

When asking for a pay rise it is always good use inclusive word such as ‘we’, ‘us’ and ‘I’ a lot, ‘I feel I contribute a lot and we have achieved great results’ rather then, ‘Don’t you think I contribute a lot?’ Keep in mind THEY the employer must benefit from this rise as well. NEVER justify a pay rise by telling them how your personal expenses have gone up, ‘I’m paying back my HECS’ or ‘I’ve bought a car and need more money for petrol’. You must show them how they will benefit from you remaining with them or taking on additional responsibilities and tasks, ‘I have shown through my six months of work here that I am reliable and trustworthy and can therefore close the shop or help train the new workers.’

In terms of when to ask for a pay rise, timing is everything. When approaching your manager make it clear what you want, how to get it and a time frame. Ask your manager, ‘I wanted to map out my key performance indicators required to receive a $3 an hour pay rise at my next review.’ Then stay quiet. Let them talk themselves into helping you. My father always says, ‘the first one to speak in a negotiation looses.’ As an employee it can be tempting to settle for less then you want to avoid confrontation or discomfort.

To Feature in April RMIT Catalyst Magazine

BUSINESS BOOK OF THE MONTH

2008-04-01T12:43:00.000+11:00

“BASIC BLACK: The Essential Guide for Getting Ahead at Work (and in Life)” By Cathie Black President Hearst Magazines

A friend recently passed on the book, ‘Basic Black’ to me touting it was a great and easy read and rare to find a female business women at the top of her game actually stand up and tell people about herself. I agree, most business books are written by men and many business autobiographies are about these men. It seems that once one achieves success of any sort they rush out and print a million hardbacks. Richard Branson has done it, Donald Trump seems to do it every year. But where are the women?

Cathie Black has released her business book with female style and is not ashamed to show it. She tackles female issues head on with a matter of fact manner that is liberating. These issues include how to compete in a male dominated field, how to use your female advantage, feelings of being intimidated, and managing personal pressures at home etc.

This considered it is certainly not for a female only audience. Black draws on her astounding four decades in the media business and has been described by the Financial Times as “one of the leading figures in American publishing over the past two decades” as the head of Hearst Magazines, one of the worlds largest publishers of monthly magazines.

The book itself has been translated into twelve languages and has seen great success in book charts around the world. Black breaks the chapters into practical case studies, tips and personal anecdotes with cameos of people such as Rupert Murdoch, Oprah Winfrey, Gloria Steinem, Francis Ford Coppola, Harvey Weinstein, and Al Neuharth.

A testament to her credentials, Black is one of very few who has appeared on Fortune magazine’s “50 Most Powerful Women in American Business" list every year since its 1998 début. What more do you need? Get out and read it!

Useful Relevent Links

2008-04-01T12:42:00.001+11:00

Industry Based Learning
http://www.swinburne.edu.au/ict/ibl
http://www.anzgraduates.com.au
http://www.youthcentral.vic.gov.au
http://careers.deloitte.com/studentgrad.aspx

Industry Pay Levels
http://www.linkrecruitment.com.au (Salary Survey Snapshots)
http://au.hudson.com (Salary Guides)

Pay Rise Advice
http://www.seek.com.au (Winning salary negotiations)
http://www.careerone.com.au/jobs (Payrise, Video)

Industry Associations
http://www.graduateopportunities.com/industry_info
http://www.skillsinfo.gov.au

Reader Questions & Answers

2008-04-01T10:00:00.001+11:00

Question

Hi Linda-Margaret,
My understanding of the Reserve Bank hiking interest rates up is that they are trying to curb inflation, which due to our booming economy (thanks to full employment among other things), is growing at too fast a rate. Therefore, the Reserve Bank uses interest rates to clamp on spending, to slow inflation down. Is this what is really happening? Do you think that people will turn to credit to make up the difference in spending, or curb their spending, as the RB want?
Also, it annoys me that the government doesn't do anything to support the RB like making an announcement to explain to the people about why interest rates are going up. Most people don't understand, and they think it’s just the RB trying to get more money. What do you think?
Juliet from Surrey Hills

Answer

Hi Juliet,
Great questions! Your right, the RB puts up interest rates to curb inflation and growth in consumer spending, by increasing mortgage repayments. The problem is the effect isn’t instant. This is the lesson learnt from the 1980's 'recession we had to have.' They jacked interest rates up then, when nobody changed they did it again, and again, and again. Interest rate rises can take 6-12 months to take effect. People struggle for a while, use their credit cards to get by then, as a last resort stop spending. We will probably see it get worse before it gets better I think.
It is true lots of people think the government controls interest rates. The government does very little to dispel this rumour while the rates are low and the economy is good. Reasons for interest rate changes are released by the RB after their monthly meetings on the first Tuesday of the month http://www.rba.gov.au/MediaReleases/2008/mr_08_03.html.
Cheers, Linda-Margaret

APRIL NZ GIRL Sneak Peak!

2008-03-21T23:38:00.002+11:00

New Zealand Girl Magazine are re-launching their 'Super Kitty' advice column! Sneak peak here for some of the questions and answers before they are launched at http://www.nzgirl.co.nz/

Q: SuperKitty, it's all gone horribly wrong!I have been dating this guy since 2000 exclusively, or so I thought. As it turns out he's been seeing me and another girl the whole time. I just want things to go back the way they were and I think it's crazy for me to even want to be with him. What is wrong with me?

A: Okay hon, lets start with the most important thing…THERE IS NOTHING WRONG WITH YOU! Nothing, zip, ziltch….yet. Unfortunately, we girls are, as you say, very forgiving, often to our own detriment. Allow me to evoke the famous George W Bush-ism last words before he invaded Iraq, “Fool me once shame on you, fool me twice shame on me.” This guy, to put it mildly, sounds like a creep. You wouldn’t let your best friend or little sister date someone like this, so why let yourself?
Think about it, you’ve said you can’t get over him but you will have to eventually. Why wait to do it later when you can do it now and possibly meet a fantastic doctor, working with underprivileged children, whom can cook, with a huge trust fund, great body and whom WON’T cheat?
Good luck! And remember. You deserve to be happy, rip that bandaid off quickly, not slowly and don’t dip your foot slowly into the pool, JUMP!

Q: My problem is that I wish I was rich SuperKitty, but I'm not. The job I have at the moment is great. The people are awesome, the job itself is fine, everything's great- except the pay. I need to find a way of bringing in some more money, but I'm not sure how?

A: I hear you sister, I often throw my hands up after the third parking ticket of the month and exclaim, ‘I wish I was rich…that would solve all my life problems!’
All jobs work on a basic supply and demand system with the added hassle of personal agendas, egos and hierarchies. Surprise surprise, the business world was established by men and therefore to get ahead you often need to be a man or behave a bit like one. So for us NZ girls, we can get the best education, be a great team worker, be great at our jobs, flirt a bit but we also need to know how to negotiate and stare down the barrel of a scary testosterone driven money game.
One good way to prepare yourself is to do your research. Arm yourself with industry standards of pay, speak to the institution or association in the field you work in and ask them how the pay scale works. Find out where the industry skill shortages are, how you can fulfil them? Maybe you need to get another qualification, move interstate or maybe you already have the skills and working in the high demand sector! Use this information to give yourself confidence when you approach your boss or to realise it’s time to find a new job!

Read the full articles and questions at www.nzgirl.co.nz SOON! And while you're there sign up and check out their great fashion, travel and useful girl power advice!

NUMBER CRUNCH

2008-03-13T17:33:00.000+11:00

How will all this affect you?

Your rent

New tenancy agreements will be more expensive

Ongoing tenancy agreements are restricted under law regarding often they can increase and by how much

Your mortgage

National cash interest rates at 7.25%, the highest since December 1994

Victorian house prices remaining the same or increasing (depending on location)

A tough time to enter the property market

Job opportunities

Domestic consumer services roles may decrease e.g. hospitality, retails

Exportable skills may be under greater demand e.g. niche manufacturing, financial services

Unions and employees campaign for pay increases to meet increased cost of living

Traveling

Australian $0.90 (and over) = American $1.00

Great time to go overseas!

Cost of living

Petrol prices continue to rise, $1.50 to $3.00 a liter in the next 12 months

Basic goods will increase as transport and other costs increase

Stock Market

Funds move away from

America

and into emerging markets or the more ‘secure’ minerals oil and gold

Australian Recession?

2008-03-13T17:31:00.000+11:00

The buzz word of this month is ‘recession’. But what does it mean? How do we know when we are in one and how will it change your life?

What is a recession?

In the purist of economics lingo a recession is either, a decline in a country's total gross domestic product (The total amount of value produced by the country in traded goods and services) or a negative real economic growth. These trends must continue for two or more consecutive quarters of a year.

The colloquial understanding is that the economy slows and consumers feel they have less money to spend on increasingly expensive things.

There are many reasons people are scared of recessions. A recession could mean interest rates go up as the reserve bank tries to control consumer spending, people are spending less money therefore businesses make less money, leading to a reduction in staff and job loses. House prices may drop as less people are buying houses causing an over supply and people may be less likely to invest funds in shares or business to grow for fear of an uncertain market.

BUT I prefer to look at a recession as we do the current drought.

The amount of water in the world remains constant. Whether it is in the form of ice, rain, sea or clouds there is always the same amount. If you follow the analogy that money is like water the value of money may change from assets to cash to options etc. but it can still be found. Therefore, just because Australia is going through a drought or a recession does not mean it is not raining somewhere and someone is getting rich. Do you like my little analogy? Yes? So let’s continue with it.

If there is less money coming into or being produced by our economy, businesses and individuals tend to be more conservative with the money they do have. If people are worried about the value of their house and security of their jobs they are less likely in invest in risky shares or buy the newest biggest LCD TV screen they picked out at Dick Smiths. Most will say, ‘Honey, let’s wait until next year to get that swimming pool installed’. Times this by 20 million people and we have ‘low consumer confidence’ and a further weakening of the economy.

Is Australia heading to a recession?

Most economists are waiting to see which will affect Australia more, Americas’ economic cold or Chinas’ economic growth steroids! Traditionally, America would have won but our location to China and other rapidly growing Asian and emerging countries such as Thailand, Vietnam and India could mean our business and services sectors will continue to grow supporting our economy during this period.

Some experts have reminded us that it will probably still FEEL like a recession even if we don’t meet the textbook definitions BECAUSE Australian consumers/individuals are currently in HUGE personal debt. The mortgage ‘stress’ felt by this months twelfth consecutive interest rate rise has delivered the lowest consumer confidence figures in fourteen years demonstrating the everyday persons’ concerns!

But maybe the conservative tightening of the proverbial ‘consumer spending belt’ will actually be the painful step we have to take to whip our personal debt into shape. The treadmill work out that will prevent the recession heart attack? Australians have been buying up LCD screens, holidays, new cars at an amazing rate for decades – like candy! The halcyon spending spree must slow or come to an end before Australia can build a foundation of sound, across the board economic security.

BUSINESS BOOK OF THE MONTH!

2008-03-13T11:30:00.000+11:00

‘The Goal: A Process of Ongoing Improvement’, by Eliyahu M. Goldratt published in 1984.

A business book that is easy to read! AND extremely useful! Goldratt writes many of his books as a piece of fiction with main characters, stories and love stories while explaining interesting business ideas.

This book delves into Goldratt’s ‘Theory of Constraints’, a model to manage business processes he developed as a business consultant.

The main protagonist, Alex Rogo, the manager of a failing metalwork plant, learns how to manage bottlenecks (constraints) in a manufacturing process, project management and the art of negotiation.

Set in America the concepts can be easily transferred into any business whether it is small, large, in manufacturing or service orientated. If you want to run your own business or get a promotion this book is a MUST READ. Other books in the series include ‘It’s not luck’ (I’m onto this one now!) and ‘The Haystack Syndrome’.

Starting a New Tenancy in the New Year!

2008-02-13T14:35:00.000+11:00

December through to March are said to be the busiest times of the year for starting new tenancies. Particularly for students whom are preparing to commence a year of study. This can lead to high demands for available properties and strong competition between applicants!

Once you have chosen your desired location, picked a price range and number of bedrooms you require etc. follow these tips to help you secure your desired property.

Be sure to send in a great application!
To be good it must be COMPLETE with all names, phone numbers and 100 points of identification (eg. A passport, current visa, Medicare card, drivers licence and a bill equals 100 points) also, make sure you sign where necessary and include important details of lease commencement dates and tenancy length.

Make sure you can afford the property
If you have a healthy salary show it with pay slips, (Rule of thumb should be, your after tax weekly earnings are double the weekly rent.) If you are a student without such an income try to show a healthy bank statement (eg minimum of 3- 6 months rent in savings) and look at having a parent join you on the lease. Overseas students may even be able to have parents sign parental rental guarantees for them.

Present yourself well
Be polite and well dressed when you go to see properties and talk on the phone. Often receptionists will be the ones checking your application and recommending you to the property managers. Landlords will be looking for responsible/neat people, so don’t stand around smoking or be late to an inspection! Most agencies when you borrow keys to inspect properties require a $50 cash deposit and photo ID.

Know the availability
Ring the agent and ask when the property is available to inspect and when they want someone moved in by. Ask if it you can apply before inspecting the property. Often if your application is then not successful the agent may find you another property. Most landlords will not be flexible on the move in date by more then 1-2 weeks and require a 12 month lease at the beginning of the year.

Overseas Students Visas
Be sure to include copies of current visas that remain valid though out the length of the lease (e.g. if you are signing a lease until January 2009, make sure your visa does not expire in 2008!)

For further advice and information you can download the Victorian Consumer Affairs booklet which is really easy to understand and very helpful from http://www.consumer.vic.gov.au/. Read the Business Person review of the Minister for Consumer Affairs.

Good luck!

Business Nerd of the Month! MP Robinson

2008-02-13T14:34:00.000+11:00

Born 9th May 1962 in Melbourne, Robinson is the Mitcham member of the Australian Labor Party in the Legislative Assembly. As well as looking after the portfolio of Consumer Affairs he also manages the Gaming portfolio and holds the position as Assistant to the Premier on Veterans' Affairs! This busy guy is also married with two children and has been serving Victoria for over 10 years.

Having carried out his schooling first at St Leo’s Box Hill and then a Bachelor and Masters in Business Administration at Monash University. Robinson lists his interests as including Horse racing, fishing, home brewing and blood donor. What a nice guy?

Robinson describes his role as Minister for Consumer Affairs as being ‘Committed to protecting and promoting the interests of consumers, particularly those who are vulnerable and disadvantaged. I am also committed to helping make markets work better for consumers.’

One of Robinson’s larger contributions to the Fair Trading Act includes the introduction of 'Lemon Laws' for motor vehicles and other major purchases.

Any suggestions or queries about this portfolio? Contact him directly, that’s what they’re there for! tony.robinson@parliament.vic.gov.au

Number Crunch!

2008-02-13T14:32:00.000+11:00

Calculating Monthly Rentals
Take advertised weekly rent e.g. $350 per week.
Multiply by 52 (Weeks per year) e.g. $350 x 52 = $18,200
Divide by 12 (Months per year) e.g. $18,200 ÷ 12 = $1516.66
$1516.66 is rental per calendar month

Bonds
If rent if under $350 a week bond is usually 4 weeks rent
If rent if over $350 a week bond is usually 6 weeks rent

Average Rental Price Range
Rental per week in Melbourne inner city

Bed-Sitter
Fully Furnished $200-350
Un-Furnished $150-300

One Bedroom
Fully Furnished $310-450
Un-Furnished $280-390

Two Bedrooms
Fully Furnished $400-$600
Un-Furnished $350-$500

Three Bedrooms
Fully Furnished $550-750
Un-Furnished $500-$680

Car Park $30-80

Business Nerd of the Month! David ‘Kochie’

2007-02-11T12:24:00.000+11:00

Business Nerd of the Month! David ‘Kochie’ Koch, is best known as an Australian television personality, and financial commentator. He currently presents 7's Sunrise morning program each weekday and Where Are They Now. Koch hosts Australia's top-rated small business show, My Business, which airs on Sunday mornings on 7.Koch founded Personal Investment magazine and My Business magazine, the largest-circulation small business magazine in Australia. He also provides business and financial commentary for several publications, including Pacific Magazines and AFR Investor. Koch was a director of the NSW Small Business Development Corporation for eight years and as the current director of Pinstripe Media Pty Ltd, he speaks regularly at corporate events about small business, finance and investment issues.He was nominated for a Silver Logie in 2004 and 2005 for Best TV Presenter. The Money Management newspaper recognised Koch as one of the 10 most influential people of all time in the financial services industry and he has written several practical books on family and business financial management. Reader's Digest listed him in the top 50 Most Trusted Australians and he was recently named 2007 Australian Father of The Year by the Australian Father's Day Council. Yeah, we love successful nerds!

Housing Affordability

2007-02-11T12:23:00.000+11:00

Hello fine readers! As promised last month I am going to delve into the world of ‘housing affordability’ come on this crazy journey with me as I try to understand the complex world that is….economics.

Unless you are literally living in a cave or under a rock, housing affordability is going to matter to you, hence why the current ‘crisis’ is getting such considerable media coverage.

The topic is complex as it is influenced by many economic factors. Any combination of such factors can create varying outcomes on individuals and community. Economists, banks, politicians and business people all monitor certain statistics to map trends and anticipate moves in the market. These factors and statistics include:
- The number of new housing approvals
- The reserve banks’ interest rates
- Credit and debt and international markets
- The number of approved home loans
- The housing costs to purchase, rent, build and renovate
- Individual income rates of pay
- Consumer confidence and employment growth
- Inflation rates
- Growth in population

To try and understand what is contributing to Victoria’s low housing affordability I will look at each of the above basic factors and discuss the influence they may be having. As you read you will see that each factor relies on and influences each other.

New Housing Approvals
Housing approvals are important as they can forecast what will be built in the coming months and years. In July housing approvals increased by 15.3 per cent from the previous month to 3,625, but they were still down 5 per cent on the same time last year. Housing approvals peaked in August 2002 and five years on there is still no recovery despite Government first homebuyer and rebate incentives. 2006/07 figures show there would have been approximately 39,000 new dwellings built in Victoria, which is 3,000 fewer than the required 42,400 to fill the need. As fewer homes are being built and more people move to Melbourne supply decreases and demand increases. This will lead to an increase in cost.

Housing Costs
The average house price in Melbourne is now $420,000, up more than 10 per cent over the past 12 months. In Sydney, this figure is closer to $520,000. Both cities are now among the English-speaking world's least affordable housing markets. Research has shown that in Melbourne a 605sq m allotment in Tarneit, 27km southwest of the CBD, costs $249,600. 2km further west at Manor Lakes, prices are starting at $255,600. In Sydney a house and land package on a smaller block in St Helen's Park, 48km south of the CBD, is $400,000.

Affordability is affecting the whole country. In Brisbane, outer suburban housing starts at $320,000 in Jimboomba. On the Gold Coast places like Yatala and Pimpama, halfway to Brisbane are starting at $320,000. In comparison suburban affordability in Melbourne is quiet attractive to many Australians. This has lead to an increase in Victoria’s population which places a greater demand on the market.

Other housing costs have also increased contributing the low housing affordability. Renovation costs have jumped almost 6 per cent in the past 12 months dramatically increasing the price for those hoping to enter the property market by purchasing a ‘do-er up-er’. Rental prices have also increased with the decrease in available rental properties due to the number of owner occupiers purchasing.

Home Loans
Australians took out fewer home loans in July then June 2007. Some believe the fall was a correction after a strong rise in June as a result of this years’ superannuation opportunity to put up to $1 million in and receive a tax discount. More than 63,500 people took out home loans in July, down 4.1 per cent. Economists had expected only a 2 per cent fall. The number of loans for new dwellings dropped 3.3 per cent. In general, fewer home loans reflect the restraint on purchasers to enter the housing market and poor value available. Less homeowners can also lead to more renters as people choose to rent or stay in the family home longer before they purchase, thus putting pressure on the rental markets.

The reserve banks’ interest rates
It must be made clear that the Reserve Bank is independent of the government and the forthcoming election, despite general opinion, will have no bearing on their decisions to change rates.

On Tuesday 7th of August 2007 the Reserve Bank of Australia announced it had lifted official interest rates by a quarter of a percentage point to 6.50 percent, an 11-year high and the first rise in rates since last November 2006. The rise in interest rates will add around $50 a month to repayments on the average $250,000 mortgage. Many believe that rates may rise again this year if a return of stability to the money market does not occur and international economic pressures are not contained and spill over into Australia.

The fall in home ownership is expected to worsen in coming months as the effects of the interest rate rise takes hold. An interest rate rise can often taken 6-18months for its full effect to be felt. The possibility of a November rate rise is currently at 50 per cent at best.
Many believe the deciding factor would be an abnormally high October inflation figure.
This speculation of another interest rate rise may be the reason behind the slowing demand for home loans discussed above. Any interest rate rises will affect anyone with a mortgage particularly those first homebuyers whom may have already extended themselves to meet their current home loan.

Growth in Population
Melbourne attracted 61,000 new residents in the year to June 2006, while Sydney attracted only 35,000. For the first100 years after Federation, Sydney achieved a greater annual population growth than Melbourne every year. But this is no longer the case as Australians choose which city and which living environment they prefer. Of the new population a considerable amount are nuclear structured families. Research shows that over 5 year Sydney attracted 5,000 net extra traditional nuclear families where as Melbourne attracted 11,000. This population growth coupled with the shortage of new housing approvals would lead to a rise in housing costs in the year ahead.

Individual income rates of pay
As the gap widens between the rich and the poor, even people in ‘good jobs’ are finding themselves unable to live near their place of employment. A large proportion of these people are spending up to 50 percent of their income on their homes. With such a large percentage of income being spent on rent or house payments tremendous burden has now been placed on finances for food, utilities and transportation.
The deterioration of housing affordability has been worsened by salaries that haven't risen nearly as fast as house prices.
Studies have shown that the median house price in Melbourne is between six and seven times median household income and in Sydney housing costs measured between eight and nine times earnings. This unbalanced relationship between housing costs and income is a major contributing factor to the low affordability being experienced across Australia.

So, I hope this whirlwind tour of economics and housing factors has been beneficial! Despite sounding quiet doom and gloom for the future it must be remembered that all markets work in cycles and everything therefore is relative. So stay positive and continue to look for the bargains and opportunities that can be found in all sorts of markets.

Look forward to next months issue where I tackle the most frequently asked Real Estate questions.

Frequently Asked Financial Questions

2007-02-10T12:18:00.000+11:00

Hello fellow readers. Welcome back for this months’ Real Estate column. Exciting isn’t it? Ok, so not everyone is a Business nerd such as me. Although, I have found many people have lots of interesting questions. It does seem that many people are secret or budding Real Estate nerds! Yeah! This month I hope to embrace this community of question askers by answering the three most frequently asked questions! Enjoy….

p.s. be aware that these answers are Victorian based, every state has their own lot of rules.

What is and how much is stamp duty?
Stamp duty is a general revenue tax which is imposed on transfers e.g. agreements to sell property, policies of insurance and motor vehicle licence transfers. Interestingly stamp duty is used for public services such as education, health, law and order, and public safety.
The purchaser pf the property is usually expected to pay the duty as a percentage of the agreed purchase price. The name ‘Stamp Duty’ comes from the purchaser’s requirement to ensure that the document has been correctly stamped.

The percentage of stamp duty required to pay increases as the purchase price increases. The structure is similar to increases in personal income tax scheme. So the richer you are the more you pay. I’ve tried to outline it in this little table.

Examples of cost structure:

If you pay $20,000 for your house. Stamp duty is approximately $280.00

If you pay $115,000 for your house. Stamp duty on the first $20,000 is $280.00. Stamp duty on the next $95,000 is $2,280.00. Total Duty to pay is $2,560.00

If you pay $870,000 for your house. Stamp duty on the first $20,000 is $280.00. Stamp duty on the next $95,000 is $2,280.00. Stamp duty on the last $755,000 is $45,300.00. Total Duty to pay is $47,860.00

If you pay $1,000,000 for your house. Stamp duty on the first $20,000 is $280.00. Stamp duty on the next $95,000 is $2,280.00. Stamp duty on the next $755,000 is $45,300.00. Stamp duty on the last $130,000 is $7,140.00. Total Duty to pay is $55,000.00

Why is stamp duty important to me?
You have to be aware of the extra costs associated with purchasing a property. Many Real Estate agents will only discuss the sale price and not mention the extra costs such as Stamp Duty and legal fees. It is quiet a large amount to pay in one lump sum. Some people therefore choose to also borrow the Stamp Duty from their banks, potentially borrowing a total of 105% of the purchase price.

If you’re really excited about all of this you can sign up for the ‘Stamp Duty Bulletin’ at www.bdw.com/subscriptions/ oh dear….

What is a Section 32 Vendors Statement?

A ‘Vendor Statement’ or ‘Section 32’ is a document containing lots of information about the property being sold, and is provided by the owner (Real Estate people call them ‘vendors’ once an owner has decided to sell).

The name ‘Section 32’ comes from the Sale of Land Act, in which the 32nd Section outlines what information must be given, and also sets out specific warnings that must be made clear to the purchaser, such as the cooling off periods and exceptions.
Purchasers should get a copy of the Section 32 and check it thoroughly with legal council. The most important things to look for are usually things NOT included. Why haven’t they been included? Is there something to hide?
It is important that the Section 32 is correct and complete, as a sale can be terminated or the vendor fined if it has not been properly prepared. It is strongly recommended that a vendor employs a legal representative such as a conveyance, solicitor or lawyer to prepare the document.

The Section 32 must be provided to an intending purchaser BEFORE the contract is signed. Real Estate agent will often have the purchaser sign a contract first, and include a special condition in the contract stating that the sale is subject to the vendor providing the purchaser with a copy of the Section 32. This can be a good way to quicken up the process of purchasing a property and getting your offer in first, but only do it when you truly understand what you are doing and the legal ramifications.

Common things to be included in a Section 32 are:
Statutory warnings to the purchaser.
Vendor’s details.
Title details.
Information regarding building permits issued in the past 7 years.
Particulars of owner-builder warranty insurance.
Particulars of any mortgages or “charges” over the.
Information regarding covenants, easements and any other restrictions on title.
Planning information, particularly where zoning restricts land use.
Information regarding outgoings payable by the owner of the property.
Disclosure of any notices or orders issued by the authorities, regarding such matters as fencing, road-widening, sewerage etc.
Information as to services connected to the property.

Why are vendor statements important to me?
Real Estate agents are there to sell properties. Although they are highly regulated to tell the truth it is important for you to do your own homework and double check the facts. Vendor statements allow you to do this in a legal setting ensuring you ‘get what you paid for’ with no nasty surprises down the track. These could include large body corporate fees or zoning which means you can’t run your business there as planned!
What is the difference between a private treaty sale and an auction?

There are two main ways to buy a house – by private sale or by auction. Owners (or Vendors) get to choose which method they will use to sell.

Private Treaty Sale
Buying by private sale means you buy the property at the advertised price or at a negotiated price with the vendor, usually through the vendor’s estate agent. Buying this way allows both parties to negotiate an acceptable price in private.

Features of a private sale include:
Often less dramatic than an auction
Time to consider offers
The ability for extended sale periods
Offers for the property are made 'blind', without knowing what other offers are
Savings on the expenses of an auction campaign
Offers are often made below the asking price with negotiations expected

Auction
Approximately 30 percent of residential sales occur by auction in Melbourne and are most popular in inner Melbourne. The auction method is pitched as the way to test the property market against buyer demand. Auctions are often emotional and fast-moving and require both parties to keep a cool head for a successful and fare result. If the highest bid is acceptable to the vendor (above the ‘reserved price’) a sale occurs on the fall of the hammer.

Features of an auction include:
Everyone is aware of other offers being made
All legal documents relating to the sale of the property are available for inspection before the auction
Contracts are signed and exchanged on the day of the auction
The purchaser is required pay the deposit as stated in the contract (usually 10% of the purchase price) at the conclusion of the auction
There is no ‘cooling off’ period at an auction
Properties often outsell their advertised price
It is possible to make an offer before the auction.

Why is the difference between a private sale and auction important to me?
You must be aware of the method of sale as it can make a huge difference to how you make an offer or if you want to make an offer at all. Auctions require you to be more prepared for the day of the auction with your finances in order to pay the deposit and your legal due diligence done on the property. Learn the ins and outs of both methods to ensure you know how to secure a bargain.

Tips for successful investing in property

2007-02-09T15:34:00.000+11:00

So it seems that while we have been on our mid semester break the housing market has becoming a hot topic, with suggestions that housing affordability, both for rent and sale, may become an ‘election decider’. As a Real Estate industry member I am of course a little bit excited by this as housing is something close to my heart and I believe everyone should be have access to affordable and acceptable housing as a foundation to lead their best lives. So next month, I will try to answer the questions raised in the media, look at what the government is doing, what they could be doing and what you should do to combat the increase in housing.

This month will complete my three part ‘first home buyer’ series by looking at simple tricks of the trade for how to better your rental and capital return on your investment.

Ways to increase your investment return

Talk to serviced and short stay businesses
This is a very difficult type of investment for the first homebuyer and it is often not recommended by institutions but it is an interesting cash positive option. Make sure you check these points if you’re thinking about entering this niche market.
1) Research the history and success of who is managing the services and see if there are any takeovers in the future
2) Look at guaranteed rentals, lease terms and incremental rent increases. These can be great as you don’t have to worry about having the apartment rented all the time and can structure your repayment.
3) Have the apartment independently valued as some guaranteed rentals are paid for by you after inflated purchase prices. Banks will insist on a valuation.

A story of furniture increasing your rental return
Ben bought a vacant 2 bedroom apartment for $400,000. He advertised to rent it out at $400per week unfurnished on a 12 month lease. It cost $1,000 in advertising and he found a tenant within a week. After his total outgoings he began receiving $300 per week to put towards his mortgage. Ben understood that if his outgoings didn’t change he would have $300 per week continually with no change. His friend mentioned that he should furnish it as she had done this herself and found a large company to rent the apartment to put their staff in during interstate projects. When it came time for Ben to re rent the apartment he went to IKEA and bought 2 bedrooms worth of furniture including mattresses, sheets, forks, plates and electrical goods at a cost of $15,000. It cost $1,375 in advertising and took 3 weeks to find a tenant Ben but was able to secure a professional couple from overseas as tenants at $550 per week. He figured that if he depreciated the furniture at $290 per week the furniture will have paid for itself within 12 months and after outgoings he would still receive $165 per week. Ben was happy to chip in the extra money himself towards his mortgage for the first year because once the furniture was paid off, he would receive $455 per week continually and be in a position to pay off his mortgage years earlier! Yeah for BEN!

Try and purchase with land under you
Although purchasing apartments on strata titles (basically high rise buildings) can be attractive as they are affordable vehicles to enter the market you purchase very little land. Effectively if you are purchasing a very small percentage of the land the entire building takes up. As the old saying goes, Real Estate is all about Location Location Location. The price of land is more likely to increase then the building on it, so the more land you have, the better!

Think outside the square
Have you thought about other ways of entering the property market rather then residential? You can purchase commercial property such as office space, shops, warehouses, hotels and even car spaces. This can be a good way to diversify your portfolio and create tax benefits. These properties often show higher net incomes then residential properties with rent often covering total outgoings. Commercial leases of years rather then months typically offer more security and can business success can enhance your property value. Make sure you monitor the costs of maintenance and choose a continually desirable location. Corporate tenants such as government departments are less likely to stop paying rent.

How to secure a mortgage and first homebuyers grant

2007-02-06T12:06:00.000+11:00

(Click image to enlarge)

Last month we started looking at the many young Australians entering the real estate market. Last month we discussed what to look for in a property, this month we will look at how to secure a mortgage and how the first homebuyers grant works. This is a very large area to cover for a short article but I will give you websites that you can use to follow up where I leave off.

How much can I borrow?
Each bank or lending institution uses slightly different lending criteria. The two main requirements however are:
• Your annual income and monthly repayment capacity
• Deposit to loan ratio. How much of the purchase price you are borrowing

The lender will calculate an approximate amount of how much you can borrow. For your own budget though, most people aim to spend no more then one third of their gross monthly income on mortgage repayments.

http://www.echoice.com.au/ has a good basic loan calculator.

What is a mortgage broker?
A mortgage broker arranges financing for borrowers with a variety of lenders. They often help locate the best loan for you and arrange the paperwork and contact required for the chosen loan. A mortgage broker does not make the loan, but receives payments for his or her services, often payment is paid by the bank as a percentage of the loan. It is best to check each broker’s commission schedule to ensure advice is impartial. A mortgage broker is probably a very good idea for the first home buyer as they can explain things better then most lenders, they often come to your place of business or home and can have access to special deals and rates.

Example of mortgage brokers are:
http://www.eaussie.com.au/
http://www.choicehomeloans.com.au/
http://www.mortgagechoice.com.au/
www.refundhomeloans.com.au

Loan Facilities and Definitions for a Good Loan

AAPR - The average annual percentage rate (AAPR) or true rate or mortgage comparison rate. Summaries interest payments, fees and expresses in one rate. It is designed to reflect the total annual cost to a borrower of a loan.

Accelerated Payment - The option to make repayments higher then the minimum required to pay off the home loan faster.

Amortisation Period or Home Loan Term– Regular monthly loan repayments of the principal and interest based on a schedule that will allow you to own your home at the end of a specific time period such as 15 or 30 years.

Basic Rate - Applied to loans commonly called 'No Frills Loans' which are generally cheaper than Standard Variable Rate Loans but do not have features such as a redraw facility or mortgage offset.

Standard Variable Rate - The rate for a 'premium' home loan product with features such as redraw.

Redraw Facility – The ability to make additional repayments on your mortgage, and then have access to the additional repayments if you need to. Know the conditions attached to the redraw facility such as minimum amounts and fees for using it.

Establishment Fees –Fees which may or may not be charged to set up a loan.

Exit Fee - Fee imposed by lenders when the loan is paid off before the end of it's term.

Fixed-rate mortgage - The interest rate and loan repayments are fixed for an agreed term, regardless of any market interest rate variations.

Official Cash Rate - The interest rate set by the Reserve Bank of Australia on the first Tuesday of each month is used to influence general market interest rates.

Principal – The amount borrowed from a lender on which interest is.

Further definitions can be found at www.realestateguide.com.au/xinc/definitions.cfm

First Home Buyer Loans
Federal
The Federal Government's First Home Owner Grant scheme (FHOG) was introduced in July, 2000. The tax free payment of up to $7000 was established to encourage home ownership and is on-going with no end date yet specified. The grant is not means-tested or restricted by a properties purchase price.
To be eligible to receive the FHOG you must meet the following criteria at the time of settlement, or completion of construction of the home:
- Applicants must be a natural person over 18 years old and not a Company
- At least one applicant must be a permanent resident or Australian citizen
- You must not have received a FHOG in any State or Territory of Australia
- You must not have owned residential property, including investment, either jointly, separately.
- At least one owner must occupy the home as their principal place of residence for at least 6 months continuously within the first 12 months

The grant is paid by electronic funds transfer to a nominated account when the buyer becomes entitled to possession of the home under a contract to purchase (usually on settlement), or after construction and when the building is ready to live in. Many lenders are authorised to administer the scheme and can organise earlier payment.

State
The Victorian First Home Bonus was introduced in 2004 and is in addition to the $7,000 FHOG.
New contracts entered before June 2007 receives a $3,000 bonus.

To be eligible to receive the First Home Bonus, applicants must satisfy all FHOG eligibility criteria as well as ensuring the amount payable under the contract is less then $500,000.

Applying
You can apply for the FHOG and the First Home Bonus at either the State Revenue Office (SRO) or an approved financial institution or through a mortgage broker. Only one application form is required and can be obtained from either the SRO or a financial institution. Applications forms and the supporting documentation are then lodged when applying for a loan.

Further Useful Websites

http://www.consumer.vic.gov.au/ – Advice, simple steps, Victorian regulations
http://www.yourmortgage.com.au/ – Calculators, advice, mortgage broker locators
http://www.sro.vic.gov.au/ – Details of the Federal Governments FHOG

Join us next month for the final chapter of entering the investment market with simple tricks of the trade of how to better your rental and capital return.

Good Luck!

Simple Tips for purchasing your first home or investment property in Melbourne

2007-02-05T12:02:00.000+11:00

Many young Australians are quickly feeling the pinch of renting and the pressure to invest in real estate. Starting the hunt into the daunting and great property market can take time and headaches. Over the next few issues we will cover what to look for in a property, how to secure a mortgage and first homebuyers grant and finally how to add value to your property once you have purchased it.

This month we look at small ways to help you locate a property that will keep you smiling all the way to the bank.

Things the banks may want
Many banks will place basic requirements on loans they believe to minimize their risk.
Don’t forget the banks are the ones essentially purchasing the property; they like to make sure that if you fail to repay the loan they won’t loose!
Common requirements include:
- Size, the property should be over 50sqm internally
- Location, a 10% deposit for suburbs such as Melbourne CBD and South Melbourne usually apply and 20% in Southbank and the Docklands.
- Usage, many banks prefer not to lend to apartments in a partially serviced block

Things to ask the sales consultant
When talking to the sales agent ask lots of questions. It’s a good idea to make note of their answers and check them yourself if possible. Check with councils, neighbors, solicitors and in the vendor’s statement. Some useful things to ask about include:
- Car park location, particularly in apartments and the accessibility of street parking for your guests
- If the property will be sold via private sale or auction
- If the previous occupants were owners or tenants, generally a property will be in better condition if it had an owner living in it
- Comparative sales in the area to compare price
- Which direction it is facing, generally north and east are preferred for light
- How long the property has been on the market for, generally if it’s taken a long time to sell there’s a good reason why. If a property sells quickly today, more then likely it will sell even quicker next time!
- For a copy of the section 32 or vendors statement
- What are the property outgoings such as council/water rates, body corporate
- What appliances etc. will remain with the property

Things to look for in a property in general
The above lists of questions will hopefully give you a good overall idea of the quality of the property. When inspecting the property it is good to take note of some things yourself, such as:
- The properties overall condition by checking carpets and walls for marks, and bathrooms and ceilings for water damage etc.
- Storage, check there is enough storage available in bedrooms and kitchens particularly, does the current occupant look like they have enough storage for their belongings?
- Inspect the property at different times of the day, this can help reveal the brightness of the property through out the day and if traffic noise increases in certain periods
- Surrounding construction, is there plans for large infrastructure development or buildings planned near the property? If so, will it affect the properties charm or value?

Things to look for in an investment property specifically
When looking for an investment property the number one thing to remember is that you’re NOT looking to live in it yourself. Most owners purchase properties with great views or in great condition etc. because they would prefer such luxuries. A good investor realizes that tenants will pay good rent without these expenses. Key elements include:
- Rental return, make money in the short term with a return of 5%-7% eg. Simple rule of thumb is, if you purchase a property for $450k you should rent it for at least $450pw. Remember to include all outgoings in this equation.
- Capital appreciation, longer term returns come in 3< years for houses and 6-10< years for apartments when you sell them at the hopefully higher market rate
- Lease terms, if the property already has a tenant how long have they committed to and for how long? Will this contribute enough to repaying your mortgage?
- Lease type, look into the returns possible through leasing the property residentially, commercially, fully furnished or serviced etc. each have their own pros and cons depending on your time line and strategy
- Location, many investors try to position their properties near institutions such as universities, hospitals and army barracks for the people whom study and work there. Also near public transport and in areas where there is strong capital appreciation.

Costs to remember
Many people thinking about purchasing a property can omit many costs that may make or break the deal. Sit down and do your numbers carefully and decide are you comfortable with this level of financial commitment continuously for the next few years. Cost include:
- Interest repayments, fixed and variable interest rates which may increase quarterly or annually,
- Mortgage fees, such as withdrawal, set up, late and management fees
- Stamp duty, in Victoria Stamp duty is paid on most used properties, check how much is owing for properties in the price bracket you are looking at
- Legal and solicitors fees to go through documents and managing the purchase and to assist with a will if one is often required when you purchase a property
- Annual outgoings such as body corporate, water and council rates
- Maintenance, maintaining and improving the property for yourself or tenants including the occasional unexpected and often expensive large issues

A lot of stuff hey? How can we young people possibly make the right choice? This is the risk that everyone in the property market faces. Unfortunately real estate is not a guaranteed way to make money but money can certainly be made if you try, are diligent in your research, act quickly and have a little bit of luck! First homebuyer’s grants from the state and federal government are available to eligible youths but be careful not to use this to purchase a lemon! Make the right choice today and leave the others to making their lemonade the hard way.

Beginning and Ending a Tenancy

2007-02-04T12:00:00.000+11:00

Renting a home can be a mind field of lessons and red tape, the most cautious times however tend to be at the beginning and end of your lease. Last month we talked about how to best go about applying for a property. This month is all about how to secure the tenancy from beginning to end and being aware of your rights.

Paying the Bond
Once a date has been set to ‘sign leases’ you will be required to pay the bond amount and first months rent upfront. Many real estate agents will require the payments be made in two separate bank cheques or cash rather then credit or eftpos cards. Bonds are calculated on rent per weeks. For properties with rent under $350 per week the bond may be up to four weeks. Properties over $350 per week may be asked to pay up to six weeks rent.

Lease Names
It is important that everyone living in the flat put their name on the lease. This ensures that each tenant has equal rights for basic things such as collecting keys and receiving access to the property to larger issues such as abandoned goods and rental references.

Completing a Condition Report
Completing a condition report is one of the only formal opportunities for tenants to record any damage or wear on the property. You must fill in two copies of the report for each room noting any issues such as marks on the walls, stains on the carpets etc. to ensure that when you vacate you are not held responsible for them. You must hand in the landlord copy to your property manager and HOLD ONTO their own copy incase any disputes arise.

Maintence and Keys
The beginning of the lease is the best opportunity to have any maintenance requests followed out by the landlord. Bring attention to the issues noted on the condition report and make sure they are followed up. Once you have been in a property for a while it can become more difficult to draw attention to smaller non essential maintenance issues. Also make sure you are happy with the amount and quality of keys you are given. Make sure all remotes and security passes work well as later in the lease you will be required to pay for them yourself.

Ways of Ending your Lease
There are a few general opportunities to vacate the property. You may:
- complete the fixed term of your tenancy and give 28 days notice in writing to the landlord before your lease completion date
- stay on in the property after your fixed term and give 28 days notice in writing to your landlord once you are on a periodic lease
- transfer the rest of the fixed lease or periodic lease to someone else
- break your lease by notifying the landlord in writing and allowing the landlord to find new tenants
As long as the correct amount of notice is given in the first two scenarios no cost is incurred.

Transferring a lease can be tricky as the property manager must approve the new applicant and draw up new lease amendments, some property managers can take a long time to do this possibly causing you to pay two rents while you wait. Tenant transfers also become difficult in practice as the new tenant must pay the outgoing tenant their share of the bond and put their name on the bond form. Often we find disputes then arise at the end of the tenancy if bond money is not received.

Breaking a lease is the most expensive way of choosing to end your lease. Some agencies will require you conduct inspections at the property until a new tenant is found or pay for advertising costs. You may need to pay rent until a new tenant is found which could potentially be until the end of the original lease agreement. And finally, breaking a lease does not look too good on your rental history.

Claiming Your Bond
When you vacate you must leave the house in a clean state, effectively in better condition then you began the lease. This will ensure your full bond is received. Most real estate agents will require you steam clean the properties carpets and supply them with a receipt when you hand back all keys and remotes. You must leave on the day you say you will or you may be required to pay for the extra days.

When completing a bond claim for everyone on the original bond lodgment or those whom have transferred onto it must sign the claim form. Be careful to sign exactly as you did on the original lodgment form (refer to your copy to check signature) as they are processed by a computer that demands very high similarities. Do not fill in the bond claim amount until AFTER your property manger or landlord has done the final inspection and tells you how much you will receive.

I hope all of the above is helpful as it important not only to know your rights as a tenant but to make your time in each property easy and ensure you receive a glowing rental reference for your next property.

Good luck

And happy renting!

New Tenancy Applications

2007-02-03T11:58:00.000+11:00

Welcome to 2007. This year I hope to give helpful advice on how to rent and buy property in Melbourne today for younger people. From what the first homebuyers grant is all about to your rights as a tenant.

This month is busy for starting new leases. As students leave and graduate January through to March sees a large ‘swap’ in tenancies. This can be good for new tenants as there can be a lot of properties available but bad at the same time as there are also a lot of people trying to rent them! To help you get the property you want follow these four tips:

Send in a good application:
To be good it must be COMPLETE with all names, phone numbers and 100 points of identification (eg. A passport, current visa, medicare card, drivers licence and a bill equals 100 points) also, make sure you sign where necessary.

Afford the property:
Make it look like you can afford the property. If you have a healthy salary show it with pay slips, (eg After tax weekly earnings of at least double the weekly rent.),
if not show a healthy bank statement (eg minimum of 3- 6 months rent). If you don’t have either put a parent as a guarantor or on the lease with you.

Look good/Be prepared:
Be polite and well dressed when you go to see properties and talk on the phone. Often receptionists will be the ones checking your application and recommending you to the property managers. Most agencies when you borrow keys to inspect properties require a $50 cash deposit and photo id, be prepared and have them on you before you get there.

Know the availability:
Ring the agent and ask when the property is available to inspect and when they want someone moved in by. Most landlords will not be flexible on the move in date by more then 1-2 weeks. If you put in a good application some agencies will let you view the property up to 14 days before the advertised availability date.

Good luck!