Managing director of Ebono Institute and major sponsor of The Generator, Geoff Ebbs, is running against Kevin Rudd in the seat of Griffith at the next Federal election. By the expression on their faces in this candid shot it looks like a pretty dull campaign. Read on
Marcia’s on Montague has spread its wings beyond the wide and wonderful range of homewares, kitchen appliances and decorations for which it is famous. Marcia’s Organics is well established in groceries, herbs, spices and organic fresh food but the cafe that joins the two stores has expanded its coffee and cake offering to serve salads, snacks and meals.
Fresh food and dry goods are the cornerstone of Marcia’s organics
With the care and attention that is paid to the selection of the other goods you can bet the food will be great.
This little gem has been hidden behind the roadworks on the corner of Beesely St for some time and is just re-emerging into the sunlight.
Source: Responible Investing Association Australasia. Benchmarking Report
According to a recent industry benchmark report, responsible Australian equities funds have outperformed the ASX 300 index over the last 10 years. They’ve also outperformed the average Australian equities fund in the same period.
The same is true for international share funds and multi-sector growth funds. This proves once again that you don’t have to sacrifice returns if you want to invest in line with your values.
You don’t have to sacrifice returns to invest responsibly
The table at the right shows the 10 year per annum returns to 31 December 2013. Past performance is not necessarily an indicator of future performance.
In fact, more and more Australians are demanding responsible investment choices for their money. This growing public interest has been spurred on by groups like 350.org who are asking Australians to reconsider the financial risks of investing in fossil fuels over the long term. They have taken this a step further by asking Australians to change bank accounts if their financial institution is financing fossil fuel projects.
No longer are Australians happy to just sign petitions and attend rallies. They are now making their money accountable too. Certainly this makes good sense as there is little point petitioning against climate change or environmental pollution when you are investing (say via your superannuation fund or directly) in the very companies that are funding or doing the actions you are protesting against.
Get your money working for you, and the planet
Australian investors want to focus on companies and investments that are bringing about positive change to the world – medical technologies, renewable energy advancements, better education, waste management, and water technologies, for instance.
It’s easier than ever before for investors to get the right investments in their superannuation fund or personal investment portfolio. The Ethical Advisers’ Co-operative is a group of Financial Advisers that are accredited by the peak industry body, the Responsible Investment Association Australasia. Atwww.ethicaladviserscoop.org you can locate an adviser that can help you.
Karen McLeod CFP®, is the Chairperson of the Ethical Advisers Co-operative, a board member of the Responsible Investment Association Australasia and an Authorised Representative (242000) of Ethical Investment Advisers (AFSL 276544).
The “thinking woman’s crumpet” heads Yellow Brick Road
MARK BOURIS
There’s something of a home loan ‘rate war’ going on at the moment, which can be great for borrowers. However, it can also creates pitfalls for the unwary.
Take some mortgage advertising I saw this week: it promoted a variable mortgage rate of 4.65 per cent, but beside it was a ‘5.21% comparison rate’.
Look at the difference: on a $300,000 25-year mortgage at 4.65 per cent your total interest bill is $207,941. But if you pay 5.21 per cent, your costs total $237,198. The difference between what’s calculated from the headline offer and the actual costs over the long term is around $30,000.
This type of advertising is a common marketing device. The low interest rate is merely an ‘introductory rate’ which in this case lasts three years. And after three years the home loan reverts to a much higher rate.
When comparing various mortgages, it is the ‘comparison rate’ you should be focusing on. As it shows you what the full mortgage will cost you, which is the total interest cost of$237,198.
Comparing apples with oranges
SInce it is the key to understanding the cost of your loan it is worth taking the time to understand the comparison rate.
The ‘comparison rate’ is a legislated requirement brought in by the federal government. It was introduced in 2003 at a time when ‘honeymoon rates’ were popular and advertised interest rates were not informing borrowers about the true long term cost of their home loan.
It’s quite difficult for average borrowers to calculate what they really pay over the long term if they pay one rate for, say, two years and then revert to a ‘true’ rate for the next 23 years.
So to resolve the confusion the government mandated a formula that all mortgage lenders must use in their advertising. It includes unavoidable fees and charges, and interest rates over a set period, which creates the comparison interest rate.
Because all lenders have to use the same formula, the result gives a borrower the means to compare the true cost of a loan before they commit to it, and it gives some reality to the headline interest rate.
This regulation set by the government is important, but it only goes so far. The law says that a comparison rate must be co-located with the promotional rate, and with the same prominence. A comparison rate is useless unless borrowers are looking at it and registering what it means.
In talking to people, I often find that consumers misinterpret the comparison rate as “X” lenders best rate compared to “Y” lenders best rate. This is what is implied by some advertisers by the wording they use to compare their introductory rate to the comparison rate. The fact are, though, that this is not at all the case.
The comparison rate on your loan, is the rate you should use to compare with other competing loans. And when you do that some interesting patterns emerge.
When you look up the most affordable variable rate loans (4.6%-4.8%) at a site such as RateCity, you see that those lenders with the best ranking have comparison rates almost identical to their advertised rates – that is, the rate they advertise is basically what the borrower will pay. But other loans only start at 4.6 per cent, before reverting to something much higher.
The advertisements imply that start up rate that is lower than the comparison rate is a big advantage, but the facts are the opposite.
Consumers are easily confused by the terminology and practices of the financial services industry. So if you’re searching for something as important as a mortgage, and a comparison rate gives you a chance to level the playing field, you really must pay attention.
The recall this week of thousands of kilometres of dodgy electrical cable across Australia underines the absolute madness of buying cheap products to save money. Local electrician, business owner and Westender columnist had just written a piece for us called Total Recall, which was rolling off the presses when the recall was announced.
As tradesmen and electrical retailers argue with government about who will foot the bill for the testing of cables in the thousands of affected homes and retail premises, everyone tut tuts knowingly about the shonky Chinese importer who foisted the heat affected cable on us.
We all know that quality is cost effective but we are all guilty of buying on price. As Big Mal wrote in last month’s Westender, “We get angry when we purchase a ridiculously cheap product from a ‘Mega Store’, only to find when home, a part is missing, its already broken or it lasts for only two weeks.
“Did we actually want quality but didn’t want to pay for it? In our hearts I think we know it’s rubbish, but we buy it because it’s cheap. Unfortunately it wasn’t really all that cheap in the end, hey?
“Perhaps we should ask doctors and surgeons to offer a discount and see where that leads.”
You can read the full text of Mal’s prescient pontification right here.
It is a timely reminder that there is no joy in knowing the price of everything and the value of nothing. That a disposable culture cannot last and that the worship of money is indeed a root cause of evil consequences.
Cliches are cliches because they encapsulate the truth. A stitch in time saves nine and as the guillotined man said, I’m getting out of here while I’m still a head.
Commissioner for Fair Trading in NSW Rod Stowe today announced a voluntary recall on faulty cables used for household electrical wiring. The recall is for three batches of ‘Infinity’ brand insulated electrical cables. The cables are Thermoplastic Sheathed electric cable – commonly known as ‘TPS’. The batch numbers being recalled are INFH 190311, INFH 210912 and INFMEL 081112. The cables that are being recalled have recently been subjected to laboratory testing and they failed that test. Testing found the plastic-coated insulation could become brittle when exposed to high temperatures over time. This can occur through exposure to heat generated by the copper wire itself or through exposure to external heat – such as in the roofs of homes in hotter parts of Australia. Mr Stowe emphasised there had not been any reports of incidents or injuries to people or property resulting from the cable. “While the cables pose no immediate threat to safety, the deterioration of the insulation on the cables over time could cause wires to make contact and short, potentially resulting in electrical shock or fire,” he said. Mr Stowe advised homeowners they should not check wiring themselves. “Any work on wiring or cable in your home should only be done by a licensed electrician,” he said. “If you have recently had building work done that included wiring being changed or installed in your home, contact your builder or electrician and ask what cable they used. If it is this cable, you should talk to the builder or electrician about inspecting and replacing the cable.” Mr Stowe said it was important all electricians checked their records to see whether they have undertaken work using the recalled cables. “Electricians must always ensure they install electrical cabling that meets Australian standards on consumer safety,” he said. The recalled cabling is clearly branded ‘Infinity’ and has been imported from China by NSWbased company Infinity Cable Co Pty Ltd. The company has initiated this voluntary recall in co-operation with NSW Fair Trading. The company is publishing recall notices in newspapers and writing to everyone it has sold the cable to, requesting them to return the recalled batches of cable to the place of sale. The company has agreed to provide information to Fair Trading concerning the importation and sale of the recalled batches of cable and to provide ongoing reports to Fair Trading about the recall and disposal of the affected cables. Fair Trading understands the cable has been on sale Australia-wide from 1 April 2012 to the present. “Unused Infinity cables should be returned to the place of purchase by electricians, where they will be entitled to a refund,” Mr Stowe said.
Recently I read an article in one of my electrical trade magazines and was shocked by a new trend developing called Recall Insurance.
It seems tradesmen are now responsible for the dodgy products available on the market. I accept the logic. If I purchase products online from overseas and they are not approved for the Australian market, as a tradesperson, I should be liable if they break down or cause damage.
Products purchased in good faith in Australia, though, should be covered by the manufacturer for recalls or faults. But if a manufacturer goes belly-up then I am left holding the can for the costs to replace/repair the product with no means of recompense. How can that be fair? This supposedly is what this new insurance will cover.
We need to heed the advice ‘Buy from Reputed Suppliers’ and ask questions regarding warranty and replacement. There are good manufacturers and suppliers out there, just look a little bit harder and pay a little bit more.
Did you know that Recall Insurance is a major growth area for insurance companies? Crikey! Don’t worry about fixing the problem of faulty electrical products coming into Australia — hell no! Lets make folks pay for another insurance policy instead. This means we will have to keep putting up our prices to cover extra costs.
This doesn’t just affect us trade folk, but also retail and wholesalers will be forced to take out Recall Insurance if this madness keeps on spiralling out of control.
Be warned, electrical fittings purchased cheaply on the net will unlikely be installed by your electrician if the fitting isn’t approved for the Australian market, because the electrician will be liable.
By the way, I Googled Recall Insurance just to check that I wasn’t panicking about nothing — I nearly fell off my chair. I am off to investigate how much this insurance will cost, then I’ll need a walk I think, just to make sure I’m still living on planet earth.
