Consumer pressure attracts customers to Gumtree

Intensifying pressures on the household budget coming from the mounting cost of living and stagnant wages growth are helping to drive turnover in the second-hand economy, now valued at $43.5 billion.

Fuelling this buy, swap and sell binge is also the proliferation of e-commerce sites, traditional players such as eBay and Amazon, as well as new platforms springing up on social media, with more than 100 million used goods changing hands over the past 12 months.

Data collected by leading online trading site Gumtree, which was acquired by eBay’s classified group in May 2005, reveals that every Australian household is sitting on just more than $5400 worth of unwanted items spread over, on average, 25 unwanted or unused items under their own roof.

The spread of smartphones, the popularity of online shopping and online connectivity is helping fuel the buying and selling spree, but the steady rise in the cost of living for the average Australian household in an era of stagnant wages is also nudging shoppers into the second-hand economy.

In its latest report on the sector, Gumtree says Australians are recognising that buying second-hand items for the home can potentially free up money for use in other areas, including extra cash to combat increasing living costs, to service debt, to pay rent, to go towards a deposit for a house or to go on a holiday.

This is helping to normalise the idea of buying second-hand goods, rather than always reaching for the brand new item. Gumtree reports that 86 per cent of Australians say they prefer buying second-hand over brand new, with the main reasons being that they can save cash and reduce waste by recycling useful items.

“I think Australians are very good at being resourceful and are looking for the best value, and I think that we are seeing that there is a little bit of uncertainty going forward economically and thinking about how you can be more resourceful and that $5400 worth of items that you could potentially sell that are in your household sitting there collecting dust,’’ said Gumtree Australia local manager Martin Herbst. “Why not collect some dollars?’’

It’s something the highly resourceful Kerrigan family, in the hit Australian movie The Castle, knew very well. But while their second-hand bible, The Trading Post, stopped publishing its highly popular weekly newspaper in 2009 to move exclusively online, consumers are now flooded with online trading platforms.

“The second-hand economy is something that has been around for a long time and what has driven a lot of that is technology, that essentially enables accessibility, and then it’s a virtuous cycle that enables easy buying and selling between neighbours, and among communities,’’ said Mr Herbst.

“When you are getting cash in your pocket and you have the experience of actually being quite positive, you are going to tell more people about it and so that’s what we have been seeing over the past few years.’’

The average buyer estimates they’ve saved about $2000 by buying second hand, representing a saving of about $26.6 billion across Australia in the past 12 months.

According to the Gumtree report the most popular items sold online are housewares and furniture (24 per cent), clothing, shoes and accessories (20 per cent), electronic goods (18 per cent) and games and toys (16 per cent).

It’s Generation Y — those aged in their late-20s — who are most engaged in buying and selling online, with 69 per cent of Gen Y reporting they sold something online in the past year. More than three-quarters of new parents bought second-hand when having a baby.

Resource :http://www.theaustralian.com.au/business/technology/consumer-pressure-attracts-customers-to-gumtree/news-story/e8469ed7799f4b345d978af61c764481

Buying a Home? The Real Cost of Homeownership

We talk a lot about the advantages of home ownership. You get to have your own space in the world. As opposed to paying a landlord, your mortgage payment is an investment in yourself because you’re gaining equity in the home with each mortgage payment.

That being said, what’s the real cost of owning your own home? Sure, there’s the mortgage and the down payment, but there’s a lot more involved. Let’s go over some of the math involved to see if you’re really ready to buy your own place.
Housing Costs

One big factor to consider when it comes to whether you should get a mortgage is the cost compared to renting. Cost of living definitely varies depending on where you live, but in most places, you will find it makes more sense to buy.

According to the latest data from Zillow, the average cost of a two-bedroom home across all major areas in the United States was $157,400. Although costs vary depending on what state you’re in, that equates to a mortgage payment of about $774.31 if we assume a 4.25% interest rate.

You can check out our amortization calculator to plug in your own numbers based on your situation.

By comparison, the average monthly rental cost for a two-bedroom home is $1,575. By renting you just about double your housing cost.

As a percentage of income, Americans spend about 15.9% of their income on monthly mortgage payments as compared to 29.1% of income spent on rent. Rent also tends to go up every year. On the other hand, even if you have a mortgage with an adjustable rate, the mortgage payment will only change after an initial fixed period of between five and 10 years.

Couple this with minimum down payments that are anywhere from 1%*– 3.5% and buying a home can be a very good deal. However, there’s more than just the mortgage. Let’s talk about some of the other stuff.
Costs Beyond the Mortgage

After the mortgage and down payment, there are other costs associated with becoming a homeowner. We’ll go over what these costs are as well as the factors that might help offset some of them.
Property Taxes

One thing to keep in mind when purchasing your home is that you will have to pay property taxes. Tax rates and any exemptions you qualify for vary across the country, so it’s a good idea to take local taxes into consideration when selecting a location for your home.

It’s especially important to be aware of property taxes now. The key reason for this is that property values are rising in most areas of the country at the moment. This can be a double-edged sword.

On one hand, you’re gaining equity faster, meaning you can convert more of it into cash for renovations, investments or even a new car you need. You’ll also get more out of the property in a sale.

On the flip side of the coin, when your property value rises, your taxes tend to go up along with it. If you have an increase in any kind of valuable assets, the government is going to want its cut.

When you’re shopping for a home, be aware of your effective property tax rate after any exemptions you would get. It can definitely make a difference in the cost of housing in the area.

While you will get taxed on the value of your property, there are also a number of tax deductions you can take that are associated with both your mortgage and the property itself.
Homeowners Insurance

Another key consideration is the cost of homeowners insurance. This helps protect your possessions in your home as well as paying for any damage to the home caused by a number of different events.

All of the major mortgage investors – including Fannie Mae, Freddie Mac, the FHA and VA – will require that you have homeowners insurance in order to protect their investment in your loan. This is a cost you have to consider.

Your premiums may also be different depending on where you live. One thing homeowners insurance doesn’t cover is flooding caused by a natural event. If you live in a flood zone or in states that may be regularly impacted by hurricanes, you may be required to buy additional flood coverage. If you live near a forest area, you might need additional hazard insurance to deal with the impact of potential wildfires.

With all of this said, you can think of homeowners insurance as an analog for renters insurance. It’s not really an additional cost compared to rental. It’s just a different one.
Homeowners Association Fees

Depending on where you live, you may end up as part of a homeowners association. Sometimes you have the option of whether to join. Often, you don’t.

Living in a homeowners association can have its advantages. Snow removal and yard maintenance are two things that are commonly taken care of by associations. They may also do things like host neighborhood events.

If you do look at a house that’s part of an association, be sure to get a full breakdown of what the association fees cover. Once you buy the house, the fees aren’t optional and the association can often put a lien on your house for unpaid dues. Make sure the services provided are worth it to you.
Appliances and Furniture

Another thing you’ll want to take into account are any appliances and furniture you need. You’ll definitely want an oven with a stove, a refrigerator-freezer and a microwave, at minimum. Having a dishwasher isn’t necessary, but it’s nice.

A washer and dryer is a must if you want to avoid trudging to the laundromat.

New homes may or may not include appliances. If you’re purchasing an existing home, you can take a look at possibly buying from these goods from the seller if they don’t want to move certain appliances.

The nice thing is that appliances tend to last a while and you can even move them between houses if you want. Incidentally, moving is one of those tax-deductible, so long as your relocation is work-related (moving for a new employer or being transferred by your current one).

With furniture, if you’ve ever lived in your own place, odds are you already have some of your own pieces and design aesthetic you can bring to your new space. You can supplement that with a couple of new items if you want.
Repair and Maintenance

When you do you have your own house, you definitely have to deal with your own maintenance and repair. Some of this is basic stuff that you do regularly, like replacing furnace filters, cleaning the gutters and mowing the lawn. On the other hand, you only have big expenses like replacing the furnace and getting new siding every decade or so.

The only thing to be aware of is that everything doesn’t fail at once. Once a year, it helps to redo the floors. Two years down the line, it might be time to get new windows. You should always be putting something aside for maintenance.
Taking Care of Outside Maintenance

There’s lawn care, as well as driveway and sidewalk maintenance issues, to think about. You’ll need a lawn mower or a lawn service. If you’re not into landscaping and planting, there are companies you can hire that do that as well.

If you’re living in a snowy climate, you need to clear the driveway and sidewalk to make sure everyone stays safe. You can shovel and salt. You can also hire someone to do that.

If you don’t want to put a lot of effort into your lawn, it helps to budget to bring someone in to do it for you.

In some areas, you may be susceptible to certain pests. It’s important to be prepared for bug mitigation if you live in an area where there are commonly termites, cockroaches or other creepy crawlers.
Utilities and Services

Depending on what’s included in your monthly rent, it may be the first time you pay for utilities like electricity, water and gas when you get your house. It’s important to take these things into consideration in your monthly budget.

You should also look at internet and cable services. What service you can get is sometimes tied to where you live. Garbage pickup is sometimes included in your city taxes and sometimes it isn’t.
The Bottom Line

Even when taking into consideration all of the factors mentioned above, if you can afford it, in the majority of cases, it makes more sense to buy your home. You can spend so much more money on rent and it goes up every year. Buying a home also gives you the ability to make it yours.

Are you looking to buy a home soon? You can get a safe, secure, online preapproval through Rocket Mortgage® by Quicken Loans®. If you’d rather get started over the phone, one of our Home Loan Experts will be happy to speak with you at (888) 980-6716. If you have any questions, let us know in the comments.

For example, the payment on a $200,000 30-year fixed-rate loan at 4.625% (5.012% APR) with an LTV of 97% is $1,028.28, which includes a mortgage insurance payment of $61.67. Taxes and homeowners insurance are not included. Rates shown valid as of 09/21/2017. Restrictions may apply.

Resource :https://www.quickenloans.com/blog/buying-home-real-cost-homeownership

There’s a gaping hole and I could see my furniture sliding in'; Sinkhole swallows Nova Scotia family's 'dream home'

FALMOUTH, N.S. — The ground fell out from under Heather Strickey’s feet this weekend when her family’s “dream home” in a well-kept Nova Scotia neighbourhood started being swallowed by a sinkhole.

Municipal authorities in Falmouth, about 70 kilometres from Halifax, said the family of four will not be able to retrieve their remaining possessions before the two-storey house is demolished, taking 10 years of memories with it.

Strickey, who works at a local private school, and her 16-year-old daughter were inside the house early Sunday morning when they awoke to the sounds of what they believed to be an intruder. Here is her account of the incident, as told to reporter Adina Bresge of The Canadian Press.

Note: This transcript has been edited and condensed for clarity.

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The sounds were like someone pulling something along the floor, or maybe taking things off the walls.

(Before) I called 911, I paused for a few moments or minutes to see if I could possibly be wrong. But it was too loud.

I was speaking very quietly, because if it was an intruder, I didn’t want to alert them that we were here. My daughter, Julia, came into the room and said, “Mom, I think there’s someone downstairs.”

The power goes off very quickly, followed by the crashing and some breaking of glass. Julia and I grab the best weapons we can come up with and go into the (bathroom) closet and shut the door.

I had a nail file, which I was going to use to pluck eyes if I had to. Julia actually did a little more thinking and grabbed a very heavy magnifying mirror, so I think she was going to wield that.

We basically went shoulder-to-shoulder and we waited. I looked down at my phone and it’s about 17 minutes in. (The emergency dispatcher) tells me it should be about five more minutes. These are the longest minutes of your life.

As soon as I heard footsteps, I was going to shove Julia into the attic and try to hold off until the RCMP got there.

(The dispatcher) says there’s an officer on scene, and almost immediately, she says, “Not an invasion.”

Our house wasn’t being broken into. It was being broken down into a hole.

The idea that humans could be trying to hurt us was so much more scary than something that happened by nature, or whatever this is. It’s still relief that I don’t have to worry about someone jumping at me with a knife or a gun.

What I didn’t realize is that (three or four metres) from where we’re going down the staircase, there’s no floor anymore. There’s a gaping hole and I could see my furniture sliding in.

It’s definitely a Hollywood experience. You have the Titanic going over on its side.

(The dispatcher) tells us, “You need to get out of your house now, and grab some stuff.”

My beloved 16-year-old loves basketball, so she grabbed her basketball speakers and her McDonald’s uniform, thinking that perhaps she could still work her shift at 8 a.m.

I didn’t grab passports, or money, or my wedding rings — nothing.

I was going to work out, so no word of a lie, I grabbed my workout bag.

The rest of our family was (away) in the city because they were greeting the new students coming to our school.

(My husband) had a hard time trying to understand what had happened. Julia and I had lived it, so we got it, but he had to see it.

It looks like someone pressed down with a very mighty hand into the middle of your house and pushed it into the ground.

If you look closer, you can see there’s a giant hole. You can see my rose garden holding on saying, “No, we don’t want to go!”

(The firefighters) went in an grabbed our passports, our jewellery. He’s literally coming out with things like photo albums and pictures from the wall that were irreplaceable. I wasn’t thinking that way, but he was.

At no point did I think we’ll never get in the house again.

(Municipal officials) want the structure — they would call it a structure, we refer to it as our home — torn down, so that the possibility of someone being harmed by it coming down (on its own) disappears.

They’re being respectful, but we don’t want anything to happen until we hear from the insurance. Our ideal scenario is that we’d be able to salvage some things from the house.

The security officer said that the traffic (near the property) is similar to what he sees when the exhibition is in town. People are getting out of their cars and taking pictures.

I understand people’s interest, but I don’t think they get that it’s a complete tragedy for our family. I can’t complain, we’re all safe, but we’ve literally lost pretty well everything.

My (13-year-old) is super-duper sad. Basically, every memory that she has is based on our lives in that home.

It truly was our dream home. There wasn’t anything I wanted to change about this house. I loved it just the way it was.

We are blessed. We’ve had at least 30 people offer us a place to live.

I may as well work today and get things some things done. I can’t get the keys to my Volkswagen because they’re at a bottom of a sink hole. So I have a car, but I can’t drive it.

I don’t have a house to clean. I don’t have laundry to do. So, let’s press on.

Our (family’s) mantra is, “It was things, not people.” We’ll have things again.

Resource : http://www.torontosun.com/2017/09/04/theres-a-gaping-hole-and-i-could-see-my-furniture-sliding-in-sinkhole-swallows-nova-scotia-familys-dream-home