News from Prudential

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Page 1OFFICE � Phone 02 4628 0033 � Fax 02 4628 4165� www.prudential.com.auWEB� 47 Queen Street, Campbelltown NSW 2560


August 2012

TECHNOLOGY HAS CHANGED all our lives, especially over the last 10 years. Now everyone seems to have a computer, an iPod, even an iPad. Many of the changes have bought great improvements to our l ives but there have also been a few problems.

Real estate is a service industry. We succeed or fail based on the service we provide to our many clients and customers. They expect us, for example, to stay in touch with them, especially at crucial p o i n t s i n t h e m a n a g e m e n t o f t h e i r property such as when vacancies occur, when arrears happen or when major repairs are required.

We have found many landlords, coming to us from other agencies, are frustrated because their property manager did not communicate vital information in the way they would like to receive it. And they are not alone!

Eighty three percent (83%) of proper ty investors (landlords) own just one property, and it's their single biggest asset apart from the family h o m e . M o s t r e p o r t a n e e d t o b e a b l e t o communicate freely about major issues with their property manager, but sadly many feel less than satis�ed with the quality of this communication and are unsure of what they can do to change the situation.

So often these days, inexperienced people in all walks of life say: 'Oh, I sent you an email' when faced with client frustration about the quality of the information or communication being provided. Emails have enabled companies of every shape and size to appear to communicate while avoiding the potential for confrontation that comes from speaking to clients in person or on the phone.

Inexperienced property managers are no exception. 'I sent you an email' seems to indicate that the job is done, but obviously, if the client is

unsatis�ed, this response is inadequate.Many inexperienced property managers seem

to be unaware of the need of most investors to have an almost personal relationship with their property manager, so that when anything of a major nature occurs with their investment, they can discuss it properly either on the phone or face-to-face with someone who has all the information at their �ngertips.

Of course email does have its place. It is ideal when sending routine information, for example. But it takes an experienced and conscientious property manager to know when a phone call is better than an email. Many shy or inexperienced property managers simply don't realise that bypassing the more immediate and personal phone call or face-to-face meeting frequently simply fails to meet their clients' real need for a thorough verbal analysis of an event or issue pertaining to their investment.

If you feel your property manager is hiding behind technology, you have every right to insist on a meeting or at least a phone call when issues concern you.

For more information about our property management service contact Nick Giles, our Business Development Manager on 4628 0033 for a con�dential chat.

Be the First to Find Out

Inside This IssueDid You Get My Email?

HAVE YOU ever had the unhappy experience of phoning about a property to buy only to be told it has already sold?

Have you ever wondered how other people seem to �nd out about great property bargains before you do? How can you be the �rst to know about a new property instead of the unlucky last?

We have been applying our best problem solvers to these questions for some time and we think we have come up with a new and innovative approach � one that will bene�t buyers just like you.

Here�s what we propose to do. If you are in the market to buy a property, whether it be a home for you and your family or perhaps an investment property to take advantage of the booming rental market, then the �rst step is to register your details

with Prudential Real Estate. You can register your details in about 30 seconds by visiting our website. Once you have registered your details we promise to email you the details of every new listing that comes our way before we advertise the property on the major internet sites like realestate.com.au or domain.com.au. (... continued on page 2)

Average NSW Agent, 130 days

Prudential Real Estate, 61.69 days

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Compare PrudentialCurrent industry performance statistics

How long does it takes to sell aresidential property in NSW?Average NSW agent - 130 days

Prudential Real Estate - 61.89 daysHow long does it takes to rent a

residential property in NSW?Average NSW agent - 32 days

Prudential Real Estate - 11 days

Information supplied from rpdata.com.au & rent�nd.com.au

Page 2:Changes to Negative Gearing?Our Sales Managers Best BuysMarket Statistics

Page 3:Meet a member of our teamTop tips on how to spot a bargain suburbTrump card for selling HousesReal Estate Terms

Page 4:Michael O'Sullivan has the Last SaySelling Houses AustraliaHistoric Leumeah


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Page 3

Our Sales Manager�s

Best BuysBest BuysBest Buys

BEST FIRST HOME$299,999Bradbury

3 bedrooms with built-in wardrobe to the main

L-shape lounge & dining, a/c, renovated kitchen

M odern bathroom, pergola, double carport

More info at Prudential.com.au

BEST INVESTMENT PROPERTYCampbelltown $439,950

Central location, half kilometre from shops & station

Only 3yrs old, sparkling kitchen, tiled, open living area

4 bedrooms, ensuite & private balcony to main - rent from $430 - $470 p/w


BEST FAMILY HOMELeumeah $319,950

Three bedrooms and neat & tidy living areas

Sunroom with split system a/c, 2nd a/c in the lounge

Kitchen with meals area, large, level backyard


MARKET STATISTICS

The predominant age group in Bradbury is 20-29 years. Households in Bradbury are primarily couples with children and are likely to be repaying between $800 - $1000 per month on mortgage repayments. In 2006, 70.8% of the homes in Bradbury were owner-occupied.

Bradbury has 2771 residential homes and in the period 01/08/2011 to 31/07/2012 (12 months) there were 177 sales recorded (6.38%). Here’s a summary of those sales...

Highest Price

Lowest Price

Average Price

Median Price

$750,000

$0

$294,797

$305,000

(Continued from page 1...)

All you have to do is check your email inbox regularly for our property alert emails. You�ll then have about 48 hours to contact us to arrange a showing before the rest of the marketplace �nds out. You�ll be one of the �rst to view the new listing and, if the property suits you, you can be the �rst to submit an o�er to purchase. You will have beaten all the other buyers in the market and they will be the ones wondering how you did it. And it was easy. You simply registered your details and the next thing you know you had scored a fantastic property.

Another �rst from Prudential Real Estate


Changes to Negative Gearing?TREASURER WAYNE SWAN has ruled out any changes to negative gearing arrangements for property investment despite the NSW Labor leader John Robertson saying there should be a debate about its e�ects on the property market.

Robertson is concerned about the potential of negative gearing to push up property prices and make property una�ordable for the next

generation of home owners.A s p o k e s p e r s o n f o r S w a n s a y s t h e

government is committed to the current tax arrangements af ter rul ing out changes to negative gearing in the 2010 Henry Tax Review.

According to ATO �gures, about 1.7 million property owners used negative gearing to claim a net rental loss of $6.5 billion for the 2010/2011 �nancial year.

Negative gearing is considered a cornerstone of property investment, allowing property i n v e s t o r s t o c l a i m a n y l o s s m a d e o n a n investment property as a tax deduction and thus reduce their tax bill.

The McKell institute's Housing for All report says that �federal and state governments should favour tax policies which encourage housing supply over demand�.

The institute says consideration should be given to �phasing out of negative gearing over the long term in relation to existing properties but perhaps retained for new properties to stimulate supply�.

The repor t says that those opposed to removing negative gearing argue that such a move will increase rents or lead to less supply.

�There is little evidence for this argument. Our consultations with the banking industry suggest that housing will remain an asset class with or without negative gearing.�

ANZ head of property research Paul Braddick agrees on the need for supply-side reforms but says removing the ability for property investor to negatively gear both existing and new homes would be �very risky�.Treasurer Wayne Swan


Prudential Real Estate, 11days

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How Long Does it Take to Rent a Residential Property?

Compare Prudential

Information supplied from rpdata.com.au & rent�nd.com.au Information supplied from rpdata.com.au

Meet a MemberOf Our Team

EMMA JOINED the Prudential team in 2009 as our Sales Secretary. She�s the "behind the scenes" worker responsible for processing the paperwork and contracts correctly and swiftly for each property listing and sale.

Among her many other duties, Emma is also responsible for ensuring each property we have for sale is marketed correctly and given maximum exposure for a quick and successful sale. She regularly sends out an array of varying property information to all of our customers via email and mail and takes pride in the creation of our n e w s p a p e r a d v e r t i s e m e n t s s e e n i n t h e Macarthur Chronicle each week.

Emma has completed a Certi�cate IV and Diploma in Business Marketing, as well as a number of Copy Writing and Digital Marketing courses so you can trust that the Marketing of your property will be in good hands.

A C C E L E R AT I O N C L A U S E - A c l a u s e i n a mortgage document which requires the immediate repayment of the entire balance due under the mortgage at any given time should there be a breach of the conditions of the mortgage e.g. repayment default.

B A S I S P O I N T - O n e p e r c e n t ( 1 % ) i s t h e equivalent of 100 basis points.

CAPITAL GAIN - The amount by which the net proceeds from resale of a capital item exceed the book value of the asset.

DRY ROT - Decay of seasoned wood caused by fungus.

EASEMENT - A right to use the land of another (not involving the taking of any part of the natural produce of that land, or any part of its soil) or a right to prevent the owner of that land from using that land in a particular m a n n e r. M o s t c o m m o n l y u s e d w h e re Government authorities have the right to run, for example, electrical mains or drainage through private property. Some form of compensation may be payable.

Real Estate TermsReal Estate TermsReal Estate Terms

Top Tips On How To Spot A Bargain Suburb

PRESTIGE-PROPERTY owners struggling to sell their multi-million-dollar homes might like to consider Donald Trump's advice: don't �re your agent; �re them up.

The top 20 per cent of homes on the market have su�ered price drops nationally of 5.7 per cent, according to RP Data, leading many vendors to squeeze agent commissions to try to make up the shor tfal l . But the bi l l ionaire proper ty developer and star of The Apprentice regularly pays his agents 2 or 3 per cent above the market rate.

"Over the years, I have done every conceivable thing to agents, including a time when I decided to cut the agents out on a beautiful building I was

marketing to try and save on the commissions,'' Mr Trump said, via video, to an audience of 2528 on the Gold Coast for the Australasian Real Estate Agents conference.

"But did I learn the hard way that was a bad idea. The sales I had started to dry up. I found out the agents were telling people the building was no good. They weren't stupid.

"Now I pay 7 or 8 per cent commission and go (to) the other extreme because it means people br ing buyers to me because I pay a better commission. It works.''

According to �gures from IBISWorld, 5000 people have lost their jobs over the past �ve years in the Australian real estate industry, which has been hit by annual revenue declines of 1.1 per cent since 2007.

"When I'm looking for an agent, I look at their past success and their reputation. I want to see their record: are they honourable people, are they well liked and what is their success rate like? And if I like what I hear, I make a deal.''

R e a l e s t a t e h a s b e e n a g e n e r o u s a n d occasionally �ckle mistress to Mr Trump. He has made and lost hundreds of millions and is now even more famous for his catch cry "You're �red" - which reportedly earns him $3 million an episode - as he is for his signature sky scrapers, resorts and casinos.

Trump Card For Selling Houses

JUST BECAUSE a suburb has cheap property doesn't mean it's the next real estate hotspot. There are simple steps you can take to �nd a property hotspot and one of the most obvious indicators for future capital gain is whether people with money are moving into cheaper areas.

Are people spending large amounts of money on renovating/extending their homes? Browse the menus of the local cafes/restaurants. If their prices are relatively high, it often means that the local population has a relatively high income and can a�ord to dine here. Do the pubs have boutique beer on tap? Look through the window of the butcher shop. Are they selling premium cuts of meat or are they budget buys? Are there small black BMWs and Audis parked in the driveways or are they old Ford Falcons and Holden utes?

Often suburbs are at a low price for a reason; there might be many factories located there, predominantly low quality housing or they are along way from the city or the sea. A bargain suburb is one that is relatively cheap now but has the potential for capital growth in the future. The major drivers of capital growth are; proximity to the city, proximity to the sea, adjacent to a prime suburb, gentri�cation of the area, redeeming features such as proximity to a train station, large shopping centre, within the zone of a highly sought after public high school or suburbs that contain period style homes.

Before you go home hunting list all the suburbs that are near to the city or on the coast. Near in Sydney means within a 12km radius of the CBD. Then highlight the suburbs that have median p r i c e s t h a t a r e m a r k e d l y c h e a p e r t h a n surrounding suburbs. Find out what the highest prices paid in these cheaper suburbs are and �nd pairs of properties built around the same time, of similar size, on similar sized blocks of land. If the

property in the cheaper suburb sells for less than the identical property in the more expensive suburb, you should go to the area and check it out.

To help secure your chances of buying in an up and coming area, there needs to be low/no factories, streetscape should be similar in nature to the neighbouring expensive suburbs, low number of shops for lease and evidence of a low crime rate eg lack of gra�ti, vandalism, tyre burn out marks on the streets.

Talk to the locals and try and �nd out what is happening to the area. If the butcher says that they used to sell mainly chops and sausages ten years ago but now it is �llet steak, that�s a sign that a wealthier demographic is moving in. Speak to the police and ask them if they have seen signs of the area improving and visit the local council o�ce and ask what plans they have for the upgrading of the area.

Many of the above indicators are signs of gentri�cation. This is where a down and out suburb morphs into a suburb that is in demand. Suburbs such as Paddington and Balmain in Sydney have already gone through this process.


Page 2


Page 3

Our Sales Manager�s

Best BuysBest BuysBest Buys

BEST FIRST HOME$299,999Bradbury

3 bedrooms with built-in wardrobe to the main

L-shape lounge & dining, a/c, renovated kitchen

M odern bathroom, pergola, double carport


BEST INVESTMENT PROPERTYCampbelltown $439,950

Central location, half kilometre from shops & station

Only 3yrs old, sparkling kitchen, tiled, open living area

4 bedrooms, ensuite & private balcony to main - rent from $430 - $470 p/w


BEST FAMILY HOMELeumeah $319,950

Three bedrooms and neat & tidy living areas

Sunroom with split system a/c, 2nd a/c in the lounge

Kitchen with meals area, large, level backyard


MARKET STATISTICS

The predominant age group in Bradbury is 20-29 years. Households in Bradbury are primarily couples with children and are likely to be repaying between $800 - $1000 per month on mortgage repayments. In 2006, 70.8% of the homes in Bradbury were owner-occupied.

Bradbury has 2771 residential homes and in the period 01/08/2011 to 31/07/2012 (12 months) there were 177 sales recorded (6.38%). Here’s a summary of those sales...

Highest Price

Lowest Price

Average Price

Median Price

$750,000

$0

$294,797

$305,000

(Continued from page 1...)

All you have to do is check your email inbox regularly for our property alert emails. You�ll then have about 48 hours to contact us to arrange a showing before the rest of the marketplace �nds out. You�ll be one of the �rst to view the new listing and, if the property suits you, you can be the �rst to submit an o�er to purchase. You will have beaten all the other buyers in the market and they will be the ones wondering how you did it. And it was easy. You simply registered your details and the next thing you know you had scored a fantastic property.

Another �rst from Prudential Real Estate


Changes to Negative Gearing?TREASURER WAYNE SWAN has ruled out any changes to negative gearing arrangements for property investment despite the NSW Labor leader John Robertson saying there should be a debate about its e�ects on the property market.

Robertson is concerned about the potential of negative gearing to push up property prices and make property una�ordable for the next

generation of home owners.A s p o k e s p e r s o n f o r S w a n s a y s t h e

government is committed to the current tax arrangements af ter rul ing out changes to negative gearing in the 2010 Henry Tax Review.

According to ATO �gures, about 1.7 million property owners used negative gearing to claim a net rental loss of $6.5 billion for the 2010/2011 �nancial year.

Negative gearing is considered a cornerstone of property investment, allowing property i n v e s t o r s t o c l a i m a n y l o s s m a d e o n a n investment property as a tax deduction and thus reduce their tax bill.

The McKell institute's Housing for All report says that �federal and state governments should favour tax policies which encourage housing supply over demand�.

The institute says consideration should be given to �phasing out of negative gearing over the long term in relation to existing properties but perhaps retained for new properties to stimulate supply�.

The repor t says that those opposed to removing negative gearing argue that such a move will increase rents or lead to less supply.

�There is little evidence for this argument. Our consultations with the banking industry suggest that housing will remain an asset class with or without negative gearing.�

ANZ head of property research Paul Braddick agrees on the need for supply-side reforms but says removing the ability for property investor to negatively gear both existing and new homes would be �very risky�.Treasurer Wayne Swan


Prudential Real Estate, 11days

0

5

10

15

20

25

30

35

Tim

e Ta

ken

(In D

ays)

How Long Does it Take to Rent a Residential Property?

Compare Prudential

Information supplied from rpdata.com.au & rent�nd.com.au Information supplied from rpdata.com.au

Meet a MemberOf Our Team

EMMA JOINED the Prudential team in 2009 as our Sales Secretary. She�s the "behind the scenes" worker responsible for processing the paperwork and contracts correctly and swiftly for each property listing and sale.

Among her many other duties, Emma is also responsible for ensuring each property we have for sale is marketed correctly and given maximum exposure for a quick and successful sale. She regularly sends out an array of varying property information to all of our customers via email and mail and takes pride in the creation of our n e w s p a p e r a d v e r t i s e m e n t s s e e n i n t h e Macarthur Chronicle each week.

Emma has completed a Certi�cate IV and Diploma in Business Marketing, as well as a number of Copy Writing and Digital Marketing courses so you can trust that the Marketing of your property will be in good hands.

A C C E L E R AT I O N C L A U S E - A c l a u s e i n a mortgage document which requires the immediate repayment of the entire balance due under the mortgage at any given time should there be a breach of the conditions of the mortgage e.g. repayment default.

B A S I S P O I N T - O n e p e r c e n t ( 1 % ) i s t h e equivalent of 100 basis points.

CAPITAL GAIN - The amount by which the net proceeds from resale of a capital item exceed the book value of the asset.

DRY ROT - Decay of seasoned wood caused by fungus.

EASEMENT - A right to use the land of another (not involving the taking of any part of the natural produce of that land, or any part of its soil) or a right to prevent the owner of that land from using that land in a particular m a n n e r. M o s t c o m m o n l y u s e d w h e re Government authorities have the right to run, for example, electrical mains or drainage through private property. Some form of compensation may be payable.

Real Estate TermsReal Estate TermsReal Estate Terms

Top Tips On How To Spot A Bargain Suburb

PRESTIGE-PROPERTY owners struggling to sell their multi-million-dollar homes might like to consider Donald Trump's advice: don't �re your agent; �re them up.

The top 20 per cent of homes on the market have su�ered price drops nationally of 5.7 per cent, according to RP Data, leading many vendors to squeeze agent commissions to try to make up the shor tfal l . But the bi l l ionaire proper ty developer and star of The Apprentice regularly pays his agents 2 or 3 per cent above the market rate.

"Over the years, I have done every conceivable thing to agents, including a time when I decided to cut the agents out on a beautiful building I was

marketing to try and save on the commissions,'' Mr Trump said, via video, to an audience of 2528 on the Gold Coast for the Australasian Real Estate Agents conference.

"But did I learn the hard way that was a bad idea. The sales I had started to dry up. I found out the agents were telling people the building was no good. They weren't stupid.

"Now I pay 7 or 8 per cent commission and go (to) the other extreme because it means people br ing buyers to me because I pay a better commission. It works.''

According to �gures from IBISWorld, 5000 people have lost their jobs over the past �ve years in the Australian real estate industry, which has been hit by annual revenue declines of 1.1 per cent since 2007.

"When I'm looking for an agent, I look at their past success and their reputation. I want to see their record: are they honourable people, are they well liked and what is their success rate like? And if I like what I hear, I make a deal.''

R e a l e s t a t e h a s b e e n a g e n e r o u s a n d occasionally �ckle mistress to Mr Trump. He has made and lost hundreds of millions and is now even more famous for his catch cry "You're �red" - which reportedly earns him $3 million an episode - as he is for his signature sky scrapers, resorts and casinos.

Trump Card For Selling Houses

JUST BECAUSE a suburb has cheap property doesn't mean it's the next real estate hotspot. There are simple steps you can take to �nd a property hotspot and one of the most obvious indicators for future capital gain is whether people with money are moving into cheaper areas.

Are people spending large amounts of money on renovating/extending their homes? Browse the menus of the local cafes/restaurants. If their prices are relatively high, it often means that the local population has a relatively high income and can a�ord to dine here. Do the pubs have boutique beer on tap? Look through the window of the butcher shop. Are they selling premium cuts of meat or are they budget buys? Are there small black BMWs and Audis parked in the driveways or are they old Ford Falcons and Holden utes?

Often suburbs are at a low price for a reason; there might be many factories located there, predominantly low quality housing or they are along way from the city or the sea. A bargain suburb is one that is relatively cheap now but has the potential for capital growth in the future. The major drivers of capital growth are; proximity to the city, proximity to the sea, adjacent to a prime suburb, gentri�cation of the area, redeeming features such as proximity to a train station, large shopping centre, within the zone of a highly sought after public high school or suburbs that contain period style homes.

Before you go home hunting list all the suburbs that are near to the city or on the coast. Near in Sydney means within a 12km radius of the CBD. Then highlight the suburbs that have median p r i c e s t h a t a r e m a r k e d l y c h e a p e r t h a n surrounding suburbs. Find out what the highest prices paid in these cheaper suburbs are and �nd pairs of properties built around the same time, of similar size, on similar sized blocks of land. If the

property in the cheaper suburb sells for less than the identical property in the more expensive suburb, you should go to the area and check it out.

To help secure your chances of buying in an up and coming area, there needs to be low/no factories, streetscape should be similar in nature to the neighbouring expensive suburbs, low number of shops for lease and evidence of a low crime rate eg lack of gra�ti, vandalism, tyre burn out marks on the streets.

Talk to the locals and try and �nd out what is happening to the area. If the butcher says that they used to sell mainly chops and sausages ten years ago but now it is �llet steak, that�s a sign that a wealthier demographic is moving in. Speak to the police and ask them if they have seen signs of the area improving and visit the local council o�ce and ask what plans they have for the upgrading of the area.

Many of the above indicators are signs of gentri�cation. This is where a down and out suburb morphs into a suburb that is in demand. Suburbs such as Paddington and Balmain in Sydney have already gone through this process.


Page 4


Page 3

Historic Leumeah ...

Selling HousesAustralia

ADD THOUSANDS to the value of your home this weekend � It's easy!

One of the oldest sayings in real estate is �You'll never get a second chance to make a first impression�

Any real estate professional will tell you a well-cared for home, a home that looks bright, clean and fresh will not only sell faster but it will usually sell for more money than it's competition.

And it's not hard to add a few extra thousand dollars to your eventual sale price � simply begin with a checklist such as the one you will find in our FREE REPORT, �73 Quick & Easy Fix-Ups To Sell Your Home Faster & For More Money�. Here's a quick sample;

1. Walk up to your own house and take a critical look. What would a buyer see? What would they think? Would the outside appearance of your house excite a buyer? If not, ask yourself now, while you're standing out the front, what can you do to improve the "kerb appeal" of your property. Take a note of everything you come up with so that you can start a list of things to do.

2. First thing - Mow the grass, rake the leaves and weed the garden beds. Then have trees and bushes trimmed, cut back excess overgrowth, edge the driveways to give your home that manicured look, replace dead plants and trees and finally fertilise the lawn.

3. Paint or wash the exterior ( including window casings, shutters and doors) - check for peeling paint.

If you would like a copy of the full report, it's yours for free. Simply email [email protected] and follow the instructions.

THE NAME LEUMEAH recognises both early settler John Warby, who called his farm Leumeah, and the Tharawal people who originally inhabited the area. It means "Here I rest" and comes from the Tharawal language. Clans of the Tharawal roamed o ve r a w i d e a re a f ro m B o t a ny B ay t o t h e Shoalhaven River and inland to Campbelltown. They lived a nomadic hunter-gatherer lifestyle, eating local foods (bush tucker) such as kangaroo, �sh, yams and berries. They made primitive tools out of stones, bones and shells to help them build bark shelters, canoes and possum-skin clothing.

J o h n W a r b y w a s a c o n v i c t e x p l o r e r transported to Sydney on the Pitt in February 1792. In 1802, he was given the job of protecting the cattle roaming free in the Cowpastures area, as the area south west of Sydney was then known. He befriended the Tharawals and learnt some of their language. In 1816, he was granted 260 acres (1.1 km2) at what is now Leumeah where he built his house, a barn and stables. The barn still stands as part of the Colonial Motor Inn.

In 1887, a railway station was built in the area. Originally, it was named Holly Lea after the

property of a local politician but local opposition swiftly got the name changed to Leumeah. In 1926, a substantial amount of land was released as a sub-division although the Great Depression deferred substantial growth in the area until after World War II. Subdivision continued throughout the 1950s and 1960s and in 1969, the suburb was f o r m a l l y n a m e d L e u m e a h . T h e �r s t Campbelltown North Post O�ce opened on 16 September 1960 and was renamed Leumeah from 1961. The streets of Leumeah are named after famous dams, lakes of NSW, explorers and pioneer farmers. Continuing the theme from the suburb's own naming, Campbelltown Stadium, home of the Wests Tigers rugby league team, was originally called Orana Park after an aboriginal word for "welcome"

Did you know?There are 4046.856 sq. metres in an acres.

This would mean the often-quoted Australian quarter acre block was a massive 1011.714 metres - how many of us have a block this large today?

Michael O�Sullivan has ...

The Last SayLATELY, I have been spending my nights watching the Olympic Games being held in London from the comfort, security and warmth of my lounge room. I'll bet you have too.

When I start to nod o� I know it's time to climb into bed, curl up and sleep soundly until I wake the next morning.

Unfortunately, not everyone who lives in Macarthur gets to spend their nights like this. As a result of poor (or completely absent) government planning over the last 20 years the number of homeless has grown steadily to the point where hundreds of otherwise �normal� people are reduced to the indignity of sleeping rough each night. No Olympics, no warm bed, no breakfast the next morning.

Ever y day our team members work with people applying for rental properties. Often there are more than 10 applications for each property that becomes available. But only one can be accepted; so, what happens to the other nine applicants? The lucky ones bunk in with friends or relatives, the less lucky ones sleep in

their car. Some seek out shelter in refuges, under bridges, in parks and anywhere else protected from the elements.

What can you do to help? The �rst Macarthur Winter Sleepout is being

conducted on the night of August 10/11 to raise much needed funds to raise awareness of homelessness in Macarthur and money needed for local projects to tackle homelessness. Visit sectorconnect.org.au to sponsor a �sleeper� like me, to donate or to �nd more information about this very worthy project.

Where are you sleeping tonight?

THE CONSENSUS IS that there are two types of debt: good debt (used to buy assets that will increase in value, such as your house or a share portfolio) and bad debt (used to fund your decadent consumer lifestyle). The fact is, though, that good debt can turn bad if you paid too much for the asset in the �rst place, and bad debt can lead to good outcomes if used in moderation. So irrespective of whether the extra debt you're looking to take on is good or bad, three questions to ask are:

1. Can I still pay it back on half my pay? Not that you're likely to be handed a 50 per cent pay cut, but shhh it happens, sometimes. Interest rates might

skyrocket, you might decide to start a family or take some unpaid leave to study or travel. Make sure any debt you take on won't leave you sailing too close to the wind.

2. How much will it cost me? Total cost is purchase price plus interest. For example, using current interest rates, a $10,000 personal loan over 10 years will cost about $17,000 all up. And a $300,000 mortgage over 30 years will cost about $750,000. Knowing how much it really costs will help you decide if it's worth it.

3. What's the opportunity cost of the money? All debt comes with an opportunity cost (that is, what else you could be doing with that money). Will that credit card-funded holiday stop you from a�ording that university course? Will the investment loan prevent you from buying a house? Before you take

o n a ny d e b t , m a k e s u re to we i g h u p t h e alternatives.

And, of course, always shop around for a good rate.

Good Debt or Bad Debt?

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