Saturday 21 January 2012

Commonwealth Bank more than doubles money it makes on home loans

The CBA is offering to pay $1200 to home loan customers who desert rival NAB.
By Phil Jacob From: The Daily Telegraph
AUSTRALIA'S biggest bank has more than doubled the money it makes on home loans since the height of the global financial crisis.
And, while the Commonwealth Bank and its peers complain of having to pay depositors higher rates for the funds they lend out, Reserve Bank figures show the gap between deposit rates and the RBA cash rate is narrowing.
In fact, the gap is at the narrowest point in more than four years - evidence that bank lending is not entirely as expensive as they make out.
Of particular note, figures from the recent Commonwealth Bank profit announcement show net home loan incomes jumped more than 130 per cent since the height of the global financial crisis, to more than $2.6 billion, The Daily Telegraph reported.

Despite the income growth, the nation's top lenders have drawn widespread criticism for suggesting future Reserve Bank rate cuts may not be passed on in full due to "higher lending costs".
Speaking to reporters after Westpac's annual meeting last month, boss Gail Kelly warned global money markets, a key source of funding for Australian banks, had "effectively closed".
"As a direct result of the turmoil going on around the world, funding has become a more difficult issue," she said.
"And when they open up, our estimation is that the cost of raising money will actually be more than it was at any point during the global financial crisis."
The World Bank yesterday slashed its global growth forecasts, warning the world is on the edge of a new financial crisis, more damaging than the one that followed the collapse of Lehman Brothers in 2008.
Meanwhile, some analysts have suggested the impact of rising wholesale funding costs have been overstated by the banks, particularly as the sector can tap other sources for cheaper funding.
Deutsche Bank analyst James Freeman said he believed none of the major banks had yet to experience pressures on pricing. "While offshore wholesale funding costs have risen materially over recent months, the impact on banks margins and hence profit will be contained," he said.
Matt Levey, head of campaigns at consumer group Choice, is another cynic of banks "crying poor".
"We've seen from bank profits that they're obviously very profitable," Mr Levey said yesterday. 
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Home construction delay has buyers wanting out

By Housing Counsel
Q: My wife and I signed a purchase agreement in June with anticipated delivery of November/December. In September, we were advised that delivery would be delayed until March/April of 2012. When we asked the reason for the delay, we were eventually told that the developer did not have the finances in place yet to begin development of that phase. This is the first we had heard that there even were phases.
We initially stated what lot we wanted, and the sales agent said he had to get permission to release that particular lot. He never stated that, in fact, the lot we had purchased was in Phase 2. Can this be considered nondisclosure? Is there any way out of this contract?
Ten months versus five months is an unreasonable time for the seller to deliver a house, in our opinion. Any guidance you can provide would be greatly appreciated.
A: Yes, it is a long time to wait, and the delay could cause you to have problems getting a good loan.
However, I need more information. Is the home in a community association? If so, does your state have laws requiring the seller to provide you with the right to cancel the contract within so many days after receiving the information about the association (usually called a "public offering statement")? If so, was there any information about phasing?
Equally important is the real estate contract you signed. Does it spell out a time for settlement? The typical new-home sales contract is very friendly to the seller; usual language says "settlement will take place within one year from date of contract execution." However, there is also language regarding "force majeure." That means that if circumstances outside the control of the seller occur — such as bad weather or inability to get bricks from China, etc. — the settlement date can be postponed.
I would have to read your contract before giving you a legal opinion. If you really want to get out from under that contract (something that is not always easy), please consult a local real estate attorney.
Q: My wife and I own a condo that is subject to a mortgage. The mortgage document is an Illinois Single Family Fannie Mae/Freddie Mac Uniform Instrument Form 3014 1/01. It is my understanding that Fannie Mae and Freddie Mac are agencies regulated by HUD. How can I find out whether our mortgage document is regulated by HUD?
A: Great question, easy answer. You are correct that Fannie Mae and Freddie Mac are regulated by the Department of Housing and Urban Development. Both agencies are in deep trouble and debt, based on their activities with subprime mortgages and syndication, but that is a subject for another column.
Typically, when you borrow money to buy (or refinance) a home, you sign two important documents: a promissory note and a deed of trust (although some states still use mortgage documents).
Years ago, when mortgage brokers were making mortgage loans, they often used different legal forms. To get more money so as to make more loans, those loans were sold to such secondary lenders as Fannie Mae and Freddie Mac. The secondary lender would bundle these loans up and sell them to investors throughout the world. But these investors were troubled: The forms were different and thus could cause problems if and when the borrowers went into default.
As a result, Fannie and Freddie created uniform instruments, which all mortgage lenders and brokers had to use. However, the lending laws in the various states also differed, so a separate state form was also created. The state form tracks local law, where applicable, but in general is consistent with all other state forms.
So, long story short: Your loan is on an Illinois state uniform document. It is regulated by HUD, and you have all of the protections under Illinois law as well as federal loan lending laws.
benny@inman.com
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Housing is a need, owning a home is not

By Randall Denley, Ottawa Citizen
Want some free money? The city has $1 million to give away. All you have to do is buy a house with your share of the loot.
If that sounds like a good deal, that's because it is. Unless you're a taxpayer, of course.
The city has just received $25.8 million in federal and provincial affordable housing money. Now it has to figure out how to spend, sorry, invest the free money. Most of it will go toward building or acquiring new rental units, but there is a nod to home ownership, too.
Low-income working families bringing in about $45,000 a year could probably afford a mortgage, just, but often lack the savings for the down payment. No problem. Under the new program, the city will play the role of mom and dad, and advance up to 100 lucky families down payment loans of up to $15,000.
The term loan is a bit of a misnomer. One would think the two key elements of a loan would be interest and the need to pay it back.
Interest doesn't apply in this plan and the loan only has to be paid back if the home is sold or refinanced. Keep it for 20 years and the money is yours.
Unlike rent supplements, the home ownership plan is not contingent on your future income. Those qualifying for the down payment program only need to have a low income at the time of application.
What are the goals of this spending, and how will they be measured? An argument can be made that loaning a person $15,000 is cheaper and better than giving them open-ended rent supplements, but the program is not limited to that target group. This is simply broadening the circle of subsidy.
If the new homeowners move out of apartments, that frees them up, but doesn't make them more affordable to others. Where is the gain?
The down payment plan is not a new idea, but a bad idea making a comeback. The province offered such a program for about five years starting in 2005.
In Ottawa, the average annual income of those getting the free money was just over $44,000, although the province allowed loans to families making as much as $77,900. People could buy a house valued at up to $281,118. One would really have to question assisting people with that kind of income.
Across the province, 4,095 families benefited from the program, which has since been cancelled. One would have thought the lure of free money would have been irresistible, but the province actually had a hard time giving it away, despite the generous eligibility criteria.
In reviving its own version of the home ownership plan, the city hopes a builder will come forward to work with it on the program, taking over the administration and offering the elusive affordable housing.
The greatest flaw of the city program is that it selects a lucky few individuals when many more have needs that are just as great. That won't bother those who argue that social problems can be solved one tiny step at a time, even if it takes 100 years, but the broader problem of housing affordability will not be addressed. The predecessor provincial program had as one of its goals "encouraging developers to build affordable housing by fostering demand." There is no shortage of demand for cheap housing. The question is how to build a house that lower-income people can afford.
One of the fundamental reasons why housing costs as much as it does is the artificial shortage of land created by the city's efforts to constrain the urban boundary. It wouldn't be right to say that land is in scarce supply, but developers can't simply buy the next inexpensive farmer's field and start building. City development charges also add to a home's cost, comprising nearly $18,000 of the $210,000 cost of the suburban stacked townhouse the city thinks loan recipients might buy.
The city's policies are perfectly valid, but they do drive up the cost of housing.
Builders have little incentive to create cheap, basic and completely unadorned houses because they aren't attractive to home buyers who have the luxury of choice. Replicas of the tiny homes that were built for veterans after the Second World War would have little interest for buyers today.
Before councillors sign off on this million-dollar gift, they should remind themselves that housing is a need, but owning a home is not. There is no reason why taxpayers should help a select group make a housing investment, especially when those taxpayers include families that make no more than the people lucky enough to get the free down payments.
Randall Denley is a member of the Citizen's editorial board. He blogs at ottawacitizen.com/randalldenley and tweets at twitter.com/randall_denley. Phone: 613-596-3756. Email: rdenley@ottawacitizen.com
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Call to divert nursing home money

There are calls for the Federal Government to divert funding from traditional nursing home accommodation to at-home care.
A Tasmanian aged care provider says the Government is failing to recognise the growing trend for elderly people to stay in their own homes.
Rod Hunt from St Ann's Homes says the Government rejected its bid to swap 70 unused nursing home bed licences for community care packages to allow elderly people to stay at home.
"We had over 140 people come back to us and say we want an aged care package, we went back to the government but again they've rejected that application."
Community Services Minister Julie Collins says the need for more traditional nursing home beds can not be questioned.
"We know that the number of people aged over 80 will double in the next 20 years so we need to make sure that the facilities are available."
She says Tasmania has received many community care package allocations.
"The Federal Government has invested very heavily in terms of packages for people to stay in their own homes."
"We brought forward a whole range of packages in the past for Tasmania because there was a need, a large need for those at that time, so we did that to accommodate Tasmanians.
"We have our share of those now, proportionally, compared to the rest of the country and we'll have more to say in the future."
The Government will respond to a Productivity Commission report on aged care later in the year.
Source http://www.abc.net.au/
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From part exchange to deposit matching, are new build home offers worth it and can you still bag a bargain?

By Emma Lunn 
With the housing market at a standstill and first-time buyers struggling to qualify for mortgages, builders of new build homes are offering a range of incentives in order to shift their stock.
These include shared equity, deposit matching and part exchange. Some developers will even pay interest on money lent to you by your parents.
But are these perks any good and do you really want to buy a new build anyway? 

The new build sector has certainly suffered in recent years. The over-valuation of new builds in the heady pre-credit crunch days means many lenders now shy away from lending on this type of property.
However, some pundits are upbeat about buying this type property and say there are still some bargains to be had.
 ‘For new builds, there are undoubtedly some decent deals still available and as with anything it is about doing some research,’ says Andrew Montlake of mortgage broker Coreco, ‘In the right areas demand for property should keep prices level and whilst there is always a slight premium for new build do not be afraid to make an offer and haggle just as you would on any other property.’
Since the slump, help for the new build sector and first-time buyers has come in the form of Government schemes such as FirstBuy Direct, a shared equity scheme, which helps first-timers struggling to raise a decent deposit. There are also a number of similar shared equity schemes offered by home builders. 
What's on offer from the developers?
Higgins Homes’ Step Up scheme, Persimmon’s Helping Hand and Miller Homes’ Mi Way all offer 15 per cent equity loans which are rent or interest-free for a certain amount of time. The buyer generally needs to raise a 5 per cent deposit and obtain a mortgage for the other 80 per cent.
But before signing up for a shared equity scheme check that if property prices fall, the amount owed under any shared equity scheme falls with it. And bear in mind that if prices rise, the cost of buying back the unowned equity share will also increase.
House builders also have several schemes which help borrower out with deposits. Persimmon offers Parent Payback which allows parents or other close relatives to provide up to 20 per cent deposit towards a first time buyer’s home. The money earns 5 per cent interest per annum for two years.
Miller Homes offers a similar scheme Family Deposit incentive, also with 5 per cent interest on the money. It’s a pretty good rate of interest at the moment but parents should remember the money will be inaccessible until the property is remortgaged at an appropriate loan-to-value.
Miller also offers Miller Deposit Match whereby the home builder matches the amount a customer saves for their new home deposit, up to 5% of the purchase price, meaning the borrower will need a 90 per cent mortgage as opposed to 95 per cent.
Elsewhere Fairview New Homes offers a ‘Fresh Start’ package, seemingly aimed at divorcees, which offers a furniture package or help with child maintenance. Alternatively David Wilson Homes gives Armed Services personnel buying through FirstBuy a £500 ‘Choices’ voucher for every £25,000 they spend on their new home. The vouchers can be spent on fixtures and fittings. 
Mortgage lenders are still wary?
However, mortgage lenders are still nervous about new build properties due to the fact that they are notoriously hard to value correctly. Hence many lenders will limit the maximum loan-to-value (LTV, the percentage of a property’s value borrowed as a mortgage) they allow.
‘Whilst some will allow builders’ incentives they all have to be carefully explained up front and verified,’ explains Montlake, ‘They will all prefer to see the buyer putting in some of the deposit monies themselves rather than relying wholly on the builder’s incentive.’ 
Part exchange: no chain and a step up the ladder
For movers trading up the ladder, several home builders offer part exchange schemes which allow homeowners to trade in their existing property in part exchange for a new build property. Linden Homes, Bellway, Miller Homes, Persimmon, Bloor Homes and Barratt all offer this.
Although this saves money on estate agents’ fees and provides a guaranteed buyer straight away, the downside is that you probably won’t receive the full market value for your property.
However, with property not shifting quickly at the moment, a part exchange deal could mean the difference between moving and not moving.
Ray Boulger, senior technical manager at mortgage broker John Charcol says part exchange takes away a lot of the hassle of a private sale, especially if a private sale would probably be in a chain.
‘Different people will put a different value on that but I think part exchange can be particularly useful in a quiet market or if a quick sale is needed, perhaps to snap up a new property the developer is trying to sell at a good price because it is desperate for some more completions by its year end or half year end,’ he says.
One potential pitfall is that not all homes will be deemed suitable for home exchange. You will also need to be buying a significantly more expensive property with the one you’re trading in usually worth no more than 70 or 75 per cent of the new build’s value.  
Always negotiate and be careful what you sign up for
Even if a home builder is offering incentives, help with deposits, or part exchange, buyers should still negotiate on the price of any property they’re buying.
‘With any sales environment there are always high pressure tactics used to get people to commit and sign on the dotted line there and then,’ says Montlake, ‘I have always believed that the higher pressure exerted the more desperate a salesperson is and if you can hold firm, taking time to think about things logically, you will actually achieve a better deal and be more comfortable with it.’
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Friday 20 January 2012

Sports Relief: Stars race to be first nation home

By Maureen Coleman
A host of Irish celebrities will take part in the ultimate Home Nations showdown in March to raise money for Sport Relief.
Craig Doyle, Amanda Byram, Paddy Johns and Diarmuid Gavin will join six other well-known faces to represent Ireland in the 1,000 mile race from March 10 to 17 in a bid to be the 'First Nation Home'.
Members of the public are being offered the chance to join their celebrity team for the final stage of the challenge, a six mile run to the finish in Belfast on Sunday, March 25.
Representatives of Team Ireland were in Belfast yesterday to kick-start the First Nation Home event. The four Home Nation teams will begin the race simultaneously from their homes cities of Cardiff, Dublin, Edinburgh and London as they run, race, cycle and sail their way over 1,000 miles around the UK and Ireland.
Total Wipeout presenter Amanda Byram said her competitive streak meant she was determined to win.
"I know it's all about fun and raising money for Sport Relief but I'm competitive by nature and there's our pride at stake too," she said. "I've hired a personal trainer though I'd like to think I'm pretty fit anyway. I run a lot and am fine about that part of it, but I've never sailed before and I'm a bit worried about the rowing too.
"But then I look around me at the big hurly burly men on the team and I feel in safe hands."
Television and radio host Craig Doyle said Team Ireland was prepared to pull out all the stops to win on the day.
"People will want to see blood, they'll want to sweat, we have to look like we're making a sacrifice or they won't put their hands in their pockets," he said.
"Training's going well and we're all getting on great. There's not a belly in sight, so I think we'll do ok. The England team worries me slightly and the Welsh look tough too, but we'll certainly give them a run for their money.
"At the end of the day it's a fun event and we want people to come out and suppoprt us on the final six miles of the race. It's a great chance for the public to get involved with Team Ireland and to get us to the finsih line."
Cool FM's PeteSnodden will be running the last leg with Team Ireland. He said: "I'm delighted to be involved in raising money for Sports Relief. It's an honour to be wearing the Team Ireland shirt, but the bottom line is, we have to raise the money."
Meanwhile Sport Relief is, once again, setting aside a £50,000 Community Cash Fund for local groups across Belfast.
Grants ranging from £500 to £1,000 will be made available to grassroots organisations in Northern Ireland that are doing good work to help communities living tough lives. For the second consecutive year the Belfast Telegraph will be on board to encourage small organisations to apply for a Sport Relief Community Cash grant. The Sainsbury's Sport Relief Mile will take place on Sunday, March 25 and members of the public are being urged to sign up for the event. The money raised will then be spent by Comic Relief to transform lives in Belfast, across the UK and in the world's poorest countries.
Sue Wicks, UK Grants Manager, Comic Relief, said: "Comic Relief is delighted to be working with the Belfast Telegraph and offering Sport Relief Community Cash again to local groups in Northern Ireland. We funded some truly fantastic projects in the greater Belfast area last time and are looking forward to seeing some new groups applying this time.
"Thanks to the hard work of these groups, money raised through Sport Relief can get right to the heart of the local community and make a real difference where it is most needed. I urge as many groups as possible to get their applications in now for their chance to get a grant from the £50,000 on offer.”
How To Take Part in the Team Ireland Final Race or the Sainsbury's Sport Relief Mile.
Up to 1,000 spaces are up for grabs for the final six miles of the First Nation Home race. Entry costs £60. First Nation Home is just one way to take part in Sport Relief 2012. The Sainsbury’s Sport Relief Mile returns to Belfast and entries are open to the public now – just go to www.sportrelief.com to take part in either First Nation Home or the Sainsbury’s Sport Relief Mile and get sponsored. Join thousands of people in Custom House Square before heading down the historic High Street and past the City Hall.
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Money Morals: Is it OK to steal firewood from the woods?

By This Is Money  
Money Morals is our popular new feature, where we provoke online debate with a modern money dilemma from. Send your questions to editor@thisismoney.co.uk
The dilemma
I heat my home and cook my meals using a combination of solar panels and a biomass (wood burning) boiler.
I benefit from the full feed-in rebate - the Government subsidy for the energy I generate and sell to the National Grid - and my wood has been provided free of charge for more than 10 years from a local business.
My energy bill is roughly £15 - a year.
I used the bulk of my savings when I retired to pay for the new heating system and more recently the installation of solar panels as a way of insulating myself against future rises in the cost of electricity and gas. 
The problem is that my wood supplier shut down last year and my reserves are dwindling.
But there's woods at the back of my house and I've started foraging and stockpiling, which is technically illegal. 
I know my actions make me a thief but it's only a bit of wood and no one need ever know. The bankers and advisers who stole my pension still walk the earth unchallenged but I am a little concerned about the scale of my operation. It takes a lot of wood to keep an old man warm. 
May I ask your readers for their views on whether I can continue to forage with a clear conscience or must I now buy what I cannot afford for legal reasons?    
The solution
Please post your replies in the comments box below. Try to be as helpful as possible and bear in mind that we may use your replies in the print edition of Money Mail

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Cougars come home after long gap

By The Spokesman-Review 
PULLMAN – Every dribble, every corner, every square inch of the Beasley Coliseum hardwood feels like home to Washington State senior Charlie Enquist.
“I’ve been practicing on this court for five years,” the 6-foot-10 forward said. “I pretty much know every dribble that I take, how it’s going to bounce.
“We need to get back to Beasley.”
The Cougars (9-8, 1-4 Pac-12) will, finally, with a 7:05 game tonight against Pac-12 co-leader Stanford, after a 31-day span that saw WSU play a nonconference game in Seattle and its first two conference games in Spokane before hitting the road for three straight games.
It’s the longest WSU has gone between games in Pullman since the 2004-05 season, when similar scheduling – “home” games in Spokane to begin Pac-10 play – had WSU away from Beasley for 36 days from Dec. 7 though Jan. 13.
And considering the Cougars’ efforts away from here – they’re 2-4 away from Beasley since a Dec. 18 win over Western Oregon – the timing is as good as any, even with Stanford (15-3, 5-1) and California (15-4, 5-1), tied atop the Pac-12 standings, coming to town.
Coach Ken Bone said he understood the reasoning behind playing Oregon and Oregon State in Spokane on Dec. 29 and 31. With WSU students gone for Christmas break, the best way for the Cougars to maximize their attendance was to move the games elsewhere.
“That’s just the way it’s set up and that’s a good situation,” Bone said. “On the flip side, anybody would rather play their games on their home court every night if we could.”
Much grousing occurred during football season when the Cougars played just one game in Pullman in a seven-week span, because of the scheduling of a “home” game against Oregon in Seattle.
And while athletic director Bill Moos said he received much positive feedback regarding the basketball team’s Spokane appearances – the Cougars drew more than 18,000 fans total that weekend – he also conceded that he’d like to ensure WSU isn’t away from Pullman this long in the future.
“We should probably look at nonconference scheduling to hopefully assure that we’ve got a home game right before they (students) head home for break,” Moos said via telephone on Wednesday, “and that wouldn’t make it such a gap.”
Part of the issue this season, Moos points out, is simply the conference’s scheduling. The no-Pullman gap wouldn’t have been as long if the Cougars had been able to play Washington at home last week instead of in Seattle. That’s something Moos said he’ll pass along to the conference and its television partners.
“We’ll make that known, and kind of look at where the conference scheduling is going here in the future,” Moos said. “However, as we found out in football, the TV partners have far more input than in previous years.”
The players are just glad to be home, though they’ll be tasked with stopping Stanford’s steady trio of Josh Owens (12.7 ppg), Aaron Bright (12.3) and Chasson Randle (12.2).
“Mr. Moos does a good job of going out and understanding what’s going to make money for our program in a real good way,” senior guard Abe Lodwick said. “And these bigger venues sometimes will do that. So I definitely can see that and understand that, so I’m in support of it.
“But it’s definitely always great to come back and have games back in Pullman.”
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Williams-Sonoma must jump hurdles to return home

By BETH DUFF-BROWN
SONOMA, Calif. (AP) — It's not easy going home. Particularly if you're a behemoth commercial enterprise and home is a quaint, historic town.
The first store of the upscale cookware giant Williams-Sonoma was here in the heart of wine country. But only for two years, as founder Chuck Williams quickly realized what a money-maker he had and moved the store to the bigger market of San Francisco.
Today, the $3 billion chain with some 250 stores nationwide wants to come home. It hopes to open a smaller, boutique version of the typical Williams-Sonoma outlet at the original site that first opened at 601 Broadway in 1956.
"Sonoma was Chuck's beloved home for many years, and the location of the first Williams-Sonoma store," said Rebecca Weill, a spokeswoman for Williams-Sonoma. "When we learned of this real estate opportunity, we thought what better way to honor Chuck than to bring his journey full circle."
But those plans are in flux as the city grapples with maintaining its local charm while growing its economy.
The City Council was prepared to vote on a temporary moratorium Wednesday that would have banned all chain stores from its historic downtown plaza. Though three of the five councilmembers were in favor of the temporary ban, they needed at least four to pass the interim edict, so they shelved it without a vote.
"There will be no moratorium of any kind on formula businesses in Sonoma," declared Mayor Joanna Sanders.
The City Council will now turn its focus to drafting a zoning ordinance that will establish a use-permit and possible ban on large-scale "formula" stores from what remains today the largest public square in California.
The city councilmembers insisted they had no intention of snubbing Williams-Sonoma. They simply want to maintain the city's historic charm and avoid the Starbucks, Applebee's and McDonalds from taking over their historic plaza, since there currently is no legislation in place to prevent just that.
"Williams-Sonoma is a special case and they deserve special treatment," Councilmember Ken Brown said in an interview before the City Council meeting. "It doesn't mean that every other formula store and chain gets the same pass. So in my opinion, the dialogue is far from over. If I were Williams-Sonoma, I would encourage them to pursue their dreams of coming home."
Not everyone is as welcoming.
Stuart Teitelbaum, owner of the Homegrown Baking Co., had urged the City Council to pass the temporary moratorium.
"I too would be proud to say that I'm from a town that refused the onslaught of large business and maintained its character, steadfast in the face of possible economic consequences," he said.
Sanders hopes the zoning kerfuffle won't scare off the kitchenware giant that has become a household name.
She is opposed to any chain-store regulations in the city that was once the capital of the California Republic in the 1800s, and believes there is room for growth while conserving the charm of the rural community nestled in the Sonoma Valley.
"It's a business that has become somewhat of a household name," she said of Williams-Sonoma. "And with that, it has tugged us along behind in the little red wagon. Sonoma is on the map as a tourist destination, a premier wine-country venue, a historic town — partly because of that name recognition."
Sonoma City Manager Linda Kelly said that Williams-Sonoma planners met with city officials last week. She said they want to open a smaller version of its typical mall outlet, one that would honor its origins.
The store would not be on the main historic plaza, but would still have to meet new criteria if the draft ordinance is passed, namely that it promotes diversity, is compatible with the town's historic character and adds to the economic vitality of Sonoma.
City planners said Williams-Sonoma currently is negotiating the contract on the property where Chuck Williams, 97, first started selling his high-end cookware imported from France.
"They want to make it more of a destination store," Kelly said. "They want to go back to their roots and showcase their history."
Kelly said they intend to use old photos and some of the original appliances that Williams himself first sold; there would be guest chefs and cooking demonstrations. And a small retail outlet.
The owners of the most popular kitchenware store in town are torn about the possible return of the retail giant responsible for revolutionizing the way many Americans cook by bringing a European sensibility into their kitchens.
"It's a tremendous question mark," said Laura Havlek, when asked whether Williams-Sonoma would hurt her business. She has owned the Sign of the Bear Kitchenware store with her husband, Stephen, since 1991. It overlooks the landmark stone City Hall and meandering duck pond in the heart of the plaza where the grizzly bear once graced the California Republic flag.
"It's an issue where you really can see both sides," she said. "Williams-Sonoma has done so much to advance the industry; I think about how much innovation that store created."
On the other hand, said the Sonoma native, "This is a town I've loved my whole life. I'm struck by how beautiful it is and how fortunate we are and when you look around the square, what makes it so special are all of the local merchants."
Several doors down from Sign of the Bear is the Charles Creek Vineyard wine store. Manager Alan Wastell, another Sonoma native, said rumors are rampant about the possible return of Williams-Sonoma.
"The fact that there is no Williams-Sonoma in the county of Sonoma — that's a kind of interesting irony," he said. "Change is not all good or bad. Change is change. But I would not like to see change become fast-food and strip malls."
While there is a Chico's clothing store and a Ben & Jerry's on the plaza, there are no Starbucks and most of the stores, boutiques and restaurants, pottery, artisan cheese and wine stores are locally owned. Some have been there for decades.
The debate was sparked when a Staples store was allowed to open last year on the outskirts of town. Some locals worried it was the slippery slope toward looking like every other bland California town peppered with Targets and Trader Joe's.
Sanders notes that while there was a hue and cry over Whole Foods coming to town several years ago and putting the local Sonoma Market out of business, the two have gone on to thrive.
"Sonoma Market is still wildly successful and the city is better off for it; there's competition and we get better service," she said.
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Commonwealth Bank more than doubles money it makes on home loans

By Phil Jacob The Daily Telegraph 
AUSTRALIA'S biggest bank has more than doubled the money it makes on home loans since the height of the global financial crisis. 
And, while the Commonwealth Bank and its peers complain of having to pay depositors higher rates for the funds they lend out, Reserve Bank figures show the gap between deposit rates and the RBA cash rate is narrowing.
In fact, the gap is at the narrowest point in more than four years - evidence that bank lending is not entirely as expensive as they make out.
Of particular note, figures from the recent Commonwealth Bank profit announcement show net home loan incomes jumped more than 130 per cent since the height of the global financial crisis, to more than $2.6 billion, The Daily Telegraph reported.

Despite the income growth, the nation's top lenders have drawn widespread criticism for suggesting future Reserve Bank rate cuts may not be passed on in full due to "higher lending costs".
Speaking to reporters after Westpac's annual meeting last month, boss Gail Kelly warned global money markets, a key source of funding for Australian banks, had "effectively closed".
"As a direct result of the turmoil going on around the world, funding has become a more difficult issue," she said.
"And when they open up, our estimation is that the cost of raising money will actually be more than it was at any point during the global financial crisis."
The World Bank yesterday slashed its global growth forecasts, warning the world is on the edge of a new financial crisis, more damaging than the one that followed the collapse of Lehman Brothers in 2008.
Meanwhile, some analysts have suggested the impact of rising wholesale funding costs have been overstated by the banks, particularly as the sector can tap other sources for cheaper funding.
Deutsche Bank analyst James Freeman said he believed none of the major banks had yet to experience pressures on pricing. "While offshore wholesale funding costs have risen materially over recent months, the impact on banks margins and hence profit will be contained," he said.
Matt Levey, head of campaigns at consumer group Choice, is another cynic of banks "crying poor".
"We've seen from bank profits that they're obviously very profitable," Mr Levey said yesterday. 
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Thursday 19 January 2012

Make Home Moving Simple and Easy

Tampa, FL -- (SBWIRE) -- 01/17/2012 -- Moving home can be less bothersome and torturous if you entrust everything to professional movers. The professional moving company will spare you the most laborious and complicated aspects which are packing, actual removal and storage. Transporting your home or office to a new place may be the easier part.
What makes packing so difficult is that you have to decide what items to pack when you move home. It takes special training and experience to know what household or office items need to be packed carefully to avoid damage or spoilage. There are household items that can be moved safely without packing, thus saving you time and money in the process.
If you move home or office on your own, you wouldn't know the right packing materials, how to prepare a carton, packing fragile goods, packing the kitchen, packing lounge furniture, packing items in the garden and garage.
If you want to do your home move on your own, All in a Box Movers in Tampa provide some tips on how to make your task lighter.
First, conduct an inventory of the items to be moved. Then arrange for the disconnection of your gas, electricity and other utilities as well as their reconnection at your intended new address. Having done these, you can now contact a trucking company for the home move. You will also do well if you book your move way ahead of your preferred moving date so you will have more time to prepare. Preparations include arranging boxes and packing materials for the items to be moved. Be sure to use industry-standard moving boxes that can withstand the stresses from the move. Also, label each box or package when you're done.
But if you want your home move to be worry-free and easy, professional mover is just a phone call away. All in a Box Movers provides a highly professionalized and complete end to end moving and storage service. For home moves, All in a Box Movers offers customized quotes, professional work, packing and unpacking services, boxes and packing materials that are delivered to customers. For office moves, we make sure that you can get to business in your new office immediately through efficient warehousing services, business to business moves, crating, delivery and shipping of specialty items.
All in a Box Moving and Storage has facilities to accommodate all imaginable storage requirements at competitive rates. You can store items for a month at a time with no contract required. We can move anything from single item to entire households. Our storage solutions are guaranteed clean and secure.
At All in a Box Moving and Storage, we want your furniture removals and home moves to be simple and easy. Their Professional Movers have been expertly trained in Residential and Commercial Moving, with a minimum of ten years moving experience and certification by the American Movers and Storage Association.
They value their customers and employees and their reputation is their most valuable asset. They approach every move with a professional and respectful attitude, knowing that their future customers are based on customer satisfaction.

Source All In A Box Moving and Storage in Tampa
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MANCHESTER: Village may make medical marijuana home-based businesses permitted use, not conditional use

By David Veselenak
dveselenak@heritage.com
 The Manchester Village Council is still looking to approve a medical marijuana ordinance months after a key court of appeals case banned dispensaries.
The village has sought to approve an ordinance for several months. An ordinance recommended by the village planning commission was sent to the council in April.
But with more confusion, and the ruling from the court of appeals that dispensaries be banned altogether, the village council is still without an ordinance.
“We don’t want to be on the tip of the arrow when it comes to people that want to sue for particular reasons,” Village Manager Jeff Wallace said. “You get the right person … and they move here and do that, there’s a lot of money out there they’ll take their law case on.”
Wallace said he would rather see the village proceed with caution, as opposed to becoming a statewide news story involving a lawsuit. Federal law still criminalizes the possession of marijuana.
“I don’t think Manchester needs to be the point that’s driving law that’s determined by the state attorney general through the courts,” he said.
Privacy issues became a major talking point Monday night, with debate over whether or not caregivers and medical marijuana cardholders should have their identities revealed through a public hearing process.
A public hearing would be required to set up a home-based business under conditional use in the village. Under a permitted use, something Wallace suggested as alternative, no public hearing would be needed.
“Under permitted use, they’d still have to come into the village, they’d have to go through everything that’s in that ordinance … they’d still have to go through that process legally,” he said. “But it would be done through an application, and through the village office.”
Village President Pat Vailliencourt questioned why a home-based business involving marijuana would not require a public notice to surrounding neighbors the same way a business such at the new family recreation center on Main Street would. Continued...
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Minister warns elderly must release home equity or buy separate annuities to pay for care

By Daniel Martin
The elderly may have to raid their pension pots and free up equity in their homes to fund their care needs in old age, a minister warned yesterday.
Paul Burstow said those approaching retirement needed to ‘plan and prepare earlier’ how they will raise money to pay for residential care and services such as home helps.
This could mean using tens of thousands of pounds worth of the value of their homes, or taking out special annuity schemes under which part of their pensions savings would be diverted towards any future care costs.
The minister said this would allow the system to ‘access various sources of wealth’ that currently were not being used to pay for care.
Critics said it was disgraceful that pensioners will be left to raid funds they had thriftily saved, despite having paid taxes all their lives. Meanwhile, those who had squandered their money or lived off the State will get free care.
Mr Burstow spoke to the Commons health select committee, on the day cross-party talks began on the future of long-term care in England.
Campaigners are demanding the three parties end the scandal which sees at least 20,000 pensioners sell their homes every year to pay for residential care.
In July, economist Andrew Dilnot called for a cap of about £35,000 on how much people have to contribute to their care. Mr Burstow said a cap, at whatever level, would allow the financial services industry to come forward with new products, including insurance.
Other ideas could be products where pensioners could free up some of the equity in their home. They could also take out ‘disability-linked’ pension schemes under which some of their pot is used to pay for care.
If they end up with no care needs, they would get less money than under a normal pension, but more money would be released if they turn out to have substantial needs.
But Neil Duncan-Jordan, of the National Pensioners’ Convention, warned: ‘There is a limit to the amount we can squeeze out of people’s pension income. If you’re having to use the money not only to keep alive, but also to pay for care, you’ve got serious problems.
‘And if we start using the value of people’s homes to pay for care, we are going to lower the amount of inheritance and make it even harder for sons and daughters to get on the property ladder. We believe the new funding system in the future should be fairer; funded out of general taxation like the NHS.’
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City sells first Neighborhood Stabilization program home

By Mike Danahey mdanahey@stmedianetwork.com
ELGIN — Elizabeth Femal recently became a first-time home buyer, and the first person to purchase one of the properties the city of Elgin bought and rehabbed with federal Department of Housing and Urban Development Neighborhood Stabilization Program money.
In a process that began more than three years ago, the city received $2.16 million in federal NSP funds to buy, renovate and sell properties in the distressed housing market. Any money made on such sales is required to be put back into the program until that money runs dry.
Elgin took a “worst of the worst” approach and worked with neighborhood groups, with a special focus on a dilapidated places that had been converted into multiple-unit dwellings the city wanted to see become single-family homes again.
Four properties were turned over to Habitat For Humanity of the Northern Fox Valley. Through Habitat last summer, 511 Washburn St. became a home for a single person, while a husband and wife and their four children moved into 485 E. Chicago St.
In December, a family of five got the keys to 108-110 S. Channing St., while an owner has been lined up for the house at 355 Moseley St., which should be finished by March, Habitat development director Bill Klaves said.
With the federal money, Elgin also bought and demolished the home at 209 Franklin St. And it still owns homes at 315 Jewett St. and 218 Franklin St., which won’t be rehabbed until money comes in from the sale of the all four fixer-uppers the city renovated. Those addresses are 457 and 463 E. Chicago St., 318 South St. and 162 Summit St.
Femal moved into the home at 162 Summit St. on Dec. 29. She had been living in Arlington Heights and is a human resources generalist for the Housing Authority of the County of Cook in Chicago.
Femal said she had been looking for houses online. She typed in “ ‘vintage homes in Elgin, Illinois’ and — poof! — the house appeared.”
“I was thrilled that the house was a historical house. It was beautifully restored, with special care being taken to make sure its charming features were preserved. Additionally, the house was in the Northeast Neighborhood, close to the wonderful library, cultural activities in the downtown and the train,” Femal said.
“Securing financing wasn’t too difficult. However, I had been planning and preparing to move for the past two years,” she said.
The program has income requirements. A single person can’t make more than $63,000 a year — and a couple no more than $72,000 per year — to qualify to buy one of the homes.
As such, taking free classes in home ownership through the Neighborhood Housing Services of the Fox Valley was a condition of the purchase. Femal said the sessions taught her “how to manage my money so that I can be prepared for all the expenses that go along with owning a home.”
Femal bought the home for $110,000 through Tom Kresbach of Vintage Home Realty. The city bought that home for $64,00, put $178,925 in renovations into it, and in January 2011 it was appraised a $125,000.
In June, the city awarded Kresbach’s firm the listings for the South and Summit Street properties, while Mike Simpson at Realty World Fox Valley is listing the two homes on Chicago Street. Both Realtors are working for a 5 percent commission on the final sale price.
Kresbach noted that the housing market “is still slow, with the majority of sales being short sales and foreclosures. However, the number of homes for sale in December ’11 was the lowest in many months. And sales are gradually increasing. Hopefully, that continues.”
Kresbach said the selling points of the NSP homes are “that everything has been updated including electric, plumbing, heating, air conditioning, roof, kitchen, baths and alarm systems. but they still get charm of a vintage home at a great price.”
Elgin Senior Planner Sarosh Saher is overseeing the city’s side of the project. He assumed those duties last fall after historical preservation planner Jennifer Fritz-Williams and management analyst RuthAnne Hall resigned their posts with the city. Saher agreed with Kresbach, noting that “the housing market is not conducive to the quick sale of homes at this time. The city hopes that more qualified buyers interested in purchasing the homes show interest so that the homes are sold rather than standing vacant.”
“I do like the neighborhood,” Femal said. “I’ve met a few of my neighbors. I went to the Northeast Neighborhood Association holiday house walk before I closed on my house, and everyone was so warm and welcoming that I felt this is the right neighborhood for me.”
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Wednesday 18 January 2012

Ten ways to make your home more efficient for 2012

By Reporter
Home efficiency has become a major concern recently, with the UK wasting an estimated £1billion worth of energy each year simply be leaving devices turned on but not in use1. With 2012 just underway, now is therefore the perfect time for homeowners to make their properties more efficient – saving both energy and money.
1. Unplug devices
As stated above, leaving devices plugged in when not in use is one of the biggest causes of energy wastage. According to Planet Green, a TV will use 10Ws whilst in standby and phone chargers are said to consume 1W every hour when left plugged in2. According to Generous.org.uk, this means that 95% of the energy used by mobile phone chargers is actually wasted with only 5% being used in the actual charging of phones3.
2. Turn off lights
According to Eartheasy.co.uk, 25% of the average household’s energy bill is generated through lighting4. BBC News claimed that this leads UK households to spend £1.9billion on electricity for this each year5. Of course, a large proportion of this energy and money is wasted by leaving lights switched on when the room is not in use.
3. Use energy efficient products
Regardless of how good your practices are when it comes to energy consumption, some devices will use more energy than others. All appliances are now rated in terms of their efficiency, helping consumers to make the best decision. These can lead to impressive savings, with energy efficient light-bulbs helping homes save as much as £55 a year6, whilst lasting ten to fifteen times longer7, and an energy efficient boiler saving as much as 30p in every £1 spent on heating8.
4. Keep everything well maintained
Maintaining your devices and appliances is just as important as upgrading them when it comes to making your home efficient – in fact, a well maintained boiler can shave 10% off your energy bills, according to the Carbon Trust9.
5. Upgrade your boiler
Boilers can also be upgraded to more energy efficient models, with modern condensing boilers said to be the best options, offering a 90% efficiency rating10. The Guardian claimed switching to a high-efficiency condensing boiler could save households money – amount to as much as £200 a year11.
6. Turn your heating down
Turning your heating down by just a single degree can save 10% on your heating bills by reducing your consumption levels – equating to a £40 annual saving12.
7. Wash clothes at lower temperatures
When using your washing machine at 30°C instead of 40°C energy consumption can be lowered by as much as 41%, amounting to significant financial savings13.
8. Don’t overfill the kettle
Boiling a full kettle when making a cup a tea will waste large amounts of energy. Don’t overfill the kettle and only heat the water you will need.
9. Insulate your home
One of the best ways to improve your homes efficiency, insulation has a number of great benefits. Double glazing will cut heat loss by £80-£10014 a year whilst loft and wall cavity insulation will offer a combined saving of approximately £220 a year15.
10. Monitor your consumption
According to The Telegraph, the use of a simple energy monitor within the home can reduce bills by as much as 5%16. These monitors are offered free by some providers but can also be purchased at a small cost, making them the perfect way to improve home efficiency.
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A pilot scheme for end-of-life support in the comforts of home

By The Guardian
An innovative project on Tyneside is helping terminally ill social housing tenants to have a 'good' death
Lynda Rand in her home in Jarrow. Home Group has provided equipment for her to stay as long as possible. Photograph: Chris Owens

From her eighth-floor corner-flat above Jarrow town centre, Lynda Rand has a stunning river vista from North Shields to Byker. Fireworks night is always spectacular, says Rand, who has also enjoyed a ringside view of the construction of the second Tyne Tunnel, which opened at the end of last year. "You'll never see the like of that happen again," she says.
The 54-year-old, who has the incurable lung disease bronchiectasis, is keen to remain in her rented one-bedroom home within this 11-storey block for as long as possible. To that end, she will soon take delivery of a new bed and receive help finishing off the redecoration of her bathroom. But she has also been promised a Dictaphone, to record some final messages for her daughter, and even tickets to see one of her favourite bands, Boyz II Men, next month in Gateshead.
The help and treats are all part of a pilot scheme run by Home Group, the north‑east-based social housing and care group founded three-quarters of a century ago in response to the 1936 "Jarrow Crusade" against unemployment and extreme poverty. The aim of the scheme, called A Good Death, is to support clients who are coming to the end of their lives, or who have been diagnosed with a terminal illness, to make practical arrangements and choices to enable them to remain in their own homes for as long as possible.
National survey
Better end-of-life provision is an increasingly prioritised agenda item within the NHS. There is growing recognition that, where possible, the dying should spend their final days or hours at home. Some of the impetus may come from budget cuts. Spending by health trusts on end‑of‑life care can be as much as £6,000 per patient. But last summer's palliative care funding review revealed that 65% of adults would prefer to die at home. At present, fewer than 20% do so, with more than half of all deaths happening in hospital and the rest in hospices or care homes. Only half of health trusts offer on-call nursing care at night to patients at home.
Tom Hughes-Hallett, chief executive of Marie Curie Cancer Care, who led the review, said too many patients were "simply yo-yoing in and out of hospital at the end of their lives" and recommended that hospitals and trusts be paid according to a reformed set of tariffs which encourage the establishment of community-based services, including 24-hour nursing, to enable people to die at home.
In Darlington, St Teresa's Hospice and Marie Curie Cancer Care have already developed a community "rapid response team" to offer such nursing care for patients, to help support families and prevent unnecessary hospital admissions as part of end-of-life care. And NHS North East conducted the UK's first regional public consultation on death and dying in 2009, followed by a "good death charter" a year later.
But the Home Group's nine-month scheme is an experiment in whether social landlords have a role to play in offering vulnerable tenants end-of-life care. The organisation manages 51,000 homes and provides care and support services, through its Stonham subsidiary, to more than 20,000 people around the country. Executive director for care and support, Rachael Byrne, says the good-death scheme is an example of how Home Group tries to mesh its core activities.
"We're not just about the bricks and mortar, but about improving outcomes for individuals," she says. "Fundamentally this pilot is about the importance of your home and how being there makes you feel at the end of your life. I know I'd want to die at home if at all possible, but if your home isn't sound or you don't have the right support there, that could make it difficult. Offering this kind of end-of-life care and support just makes sense to us, and so far the clients in our homes seem very positive."
The pilot, which began last September, is funded to the tune of £84,000 – £35,000 from the North East Health Innovation Cluster, which brings together NHS agencies, higher education and industry, and £49,000 from the Newcastle University-based Science City, which is evaluating the project. So far a dozen social housing clients have joined the pilot, each with a different terminal diagnosis, of differing ages and from a variety of family and support circumstances. It is currently administered by a single support worker, Jeannie Penman, but the aim is to extend it to 40 clients by the end of the nine-month trial.
At the outset, Byrne says the focus was on offering home aids and adaptations, but the scope has become broader as clients are given the opportunity to explain what would really help them. For example, one client with stage four breast cancer needs to sterilise equipment 15 times a day, but didn't have a dishwasher, so Home Group has helped her source one.
For others, the offer of laptops or training with social media such as Facebook and Skype means the chance to communicate with friends and relatives they can no longer visit. Some have requested practical help with gardening and cleaning, sorting out their paperwork, applying for benefits or planning their funerals. Another client has asked simply for someone to walk his dog from time to time.
Marie Curie, which has long campaigned for people to be looked after in the place of their choice, is contributing to the pilot by training volunteers to help with household chores and shopping, or to simply stop by for a chat.
"We don't profess to be experts in medical care, so we are working in more of a co‑ordination role with a range of partners," says Byrne. "However we are applying the skills we already have within Stonham to find out how we can really personalise this service. Our staff know how to work with individuals and are open to anything, if it delivers the right outcome." Some of the developing GP commissioning groups have already expressed an interest in how they might contribute to such end-of-life care, she adds.
In control
Back in Jarrow, Rand says the scheme is making "a big difference" to her. "It doesn't belong to me, but my flat is my home. And it's just nice to know someone cares and that people are interested in making your life more comfortable nearer the end. When I was first told that there was nothing more the doctors could do, I was devastated. But being focused on making plans, such as arranging my own funeral, has stopped me from becoming maudlin. It means I'm still in control."
She is far from maudlin, having expressed a wish to be cremated in a vodka-bottle shaped coffin before having her ashes scattered on the island of Lindisfarne, off the north-east coast. "Some community matrons do a lot of this kind of work, but they have enough to do meeting your palliative needs," Rand says. "More people should know about this kind of  service."
Stuart Gray, a 74-year-old who has inoperable prostrate cancer, is looking forward to receiving a tablet device that he can use when resting in bed. But Gray, who lives in one of Home Group's supported flats in Sandyford, Newcastle, says the real value of the service lies in having someone to talk to. "Jeannie [Penman] has been here to see me four times. She found me a cancer support group at the hospital and has helped me apply for an allowance to pay for taxis home should I need one.
"But I see Jeannie now as a friend, so if she asked me pertinent questions like, 'have you made a will?' or 'do you understand about power of attorney?' I wouldn't get upset, because there's a friendship there. And I know that if I really had a bad day, I'm sure I could contact Jeannie and she'd come here, to help lift me out of that mood. It's not just about the money. It's as much about the relationship."
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Video: Are Cambridge people unfriendly?

Smile – there’s a £1,000 cash prize up for grabs if you can help to make people in Cambridge friendlier.
Cambridge Rotary Club Cambridge member and local vet John Grieve is leading a campaign to encourage people in the city to smile more and say hello to others.
He has invited Cambridge students and residents to design a logo for the campaign, which is called MESSHing – Make Eye contact, Smile and Say Hello.
What do you think? Should people be more friendly in the street? Post a comment at the bottom of this article.
Mr Grieve, managing partner of Cambridge Veterinary Group, said: “As a vet I know when you walk down the road with a dog people stop and talk to you. Other people I know say it’s the same when you have a baby in a pushchair. And friends who use wheelchairs say people often stop and have a chat with them too.
“It’s not the fact that people are unfriendly but many need such a trigger to interact.”
The logo design competition, which is sponsored by Cambridge Rotary Club,  Scotsdales Garden Centre,   Cambridge Veterinary Group and the builders’ merchant Ridgeons, will run until  February 21.
The winner will be announced on March 27 at Cambridge Rotary Club’s Guest Evening when the campaign will be officially launched.
But unofficially, the club has already started the campaign with a video survey in the city’s market square.
One man who took part said: “You can’t generalise about the population of an entire city, so we get a bit of everything, but I wouldn’t say that compared with some places we’re any ruder or any friendlier.”
Another said: “I think it’s great – I use shops where the people smile. It makes you feel more at home.”
The MESSHing logo will be used on posters and as a lapel badge.
Mr Grieve said: “It needs to be distinctive, a design that anyone would wear, and be recognisable from a distance of at least five yards so people can see it and have a few seconds to smile and say hello.
“The competition is open to all ages but college students and undergraduates are particularly being encouraged to design the logo. People who take part in the competition are allowed to put forward multiple designs.”
Badges will be sold for £2 each and the money will go to charities in the Cambridge area. To get an entry form, go to www.messhing.org.uk.
Source http://www.cambridge-news.co.uk
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Ottawa man home after detention in DR Congo

By Robert Sibley, Postmedia News
Fabien Shambuyi Kalala arrived at Ottawa International Airport Monday evening and was greeted by an overly excieted group of friends and family when he arrived. Kalala, who was in Congo working as a security guard for presidential challenger Etienne Tshisekedi, was jailed following that country's contentious election. 
Photograph by: Ashley Fraser, The Ottawa Citizen
OTTAWA — Standing six-foot-three and weighing 240 pounds, Fabien Shambuyi Kalala doesn't scare easily.
Still, there were times in the past month, when Kalala was a prisoner of henchmen for Joseph Kabala, president of the Democratic Republic of Congo, neither he nor his family were sure he'd make it back home to Canada.
"He couldn't say what was going on, but we could hear it in his voice: He'd lost all hope," Kalala's sister, Deo-Gratias Mundadi, said Monday, recalling the phone calls his jailers occasionally allowed him to make. "We were terrified . . . He might have said he was fine, but he could still have disappeared."
She and about a dozen other family members and friends were on hand Monday night when Kalala arrived at the Ottawa International Airport.
Kalala volunteered in late October to go to the DRC to serve as a security guard for Etienne Tshisekedi, who challenged Kabala for the country's presidency during elections in November. On Nov. 26, two days before the vote, the 24-year-old was detained by Congolese security forces in the capital, Kinshasa. They took his passport, airline tickets, money — about $3,800 — and even his shoes.
It was days before his family found out he had been jailed along with dozens of others who had been caught up in a wave of politically motivated arrests intended to intimidate Kabala's opponents.
Kalala was reluctant to talk about his ordeal Monday evening, merely acknowledging with a cryptic "yes" that there had been moments when he feared for his life.
Family members, however, weren't so reticent. Kalala's brother, Eric, remembered one of their phone exchanges. "He said he was really scared for the first time in his life. He thought he was going to die."
For his part, Kalala said he was happy to be back safe in Canada, surrounded by family and friends. In a prepared statement written in French, he explained how he had been "kidnapped" and jailed by officers of the Special Services branch of the Congolese police shortly before he was to catch a plane back to Canada. He said he never received an "official reason" for his detention, although informally he was told variously that he had insulted a police officer or that he was guilty of working as a security guard without obtaining a special visa allowing him to do so.
After being arrested, Kalala ended up in one of the DRC's more notorious prisons — the Makala penitentiary — although no formal charges ever laid against him. Canadian Foreign Affairs officials in the DRC were able to secure Kalala's release on Dec. 31, but it was only last week that Congolese authorities provided consular officials with his passport.
In his statement, Kalala thanked the Canadian government for its help in securing his release, as well as members of his family and the Congolese community in Ottawa for galvanizing public attention about his situation.
"I want to tell you how I feel relieved and happy I am to be here right now and at this time," he said in reading his statement. "You cannot imagine the value of the respect for human rights that we enjoy here in Canada."
The young man, who turns 25 later this month, will also be able to enjoy Christmas, albeit a month delayed. His sister said the family postponed Christmas while awaiting word on Kalala's fate. "Now that he's here, we'll be able to have Christmas. We still have the tree up. We were keeping it up until he came home."
Ottawa Citizen
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Let's make some money

By Nilesh Shah
Let’s begin the new year with a tip on how to make money. There are just two ways - be very lucky, or be disciplined. I cannot help you with luck, but discipline is what one can work on.
Money saved is money earned. This proverb applies perfectly on the discipline to make money. There are a number of bills we pay every month - multiple mobile bills, electricity bill, petrol or diesel bills, restaurant bills, shopping bills, newspaper bills, equated monthly instalments on car and house, school or tuition fees, insurance, etc. These are part of our regular monthly expenses.Then, there is that occasional lump sum expense —purchase of consumer durables, gold or other precious metals; domestic or foreign travel expenditure (fare, hotel and other leisure activity), etc.
We generally withdraw cash to pay for these expenses. Some of us may make some payments by cheque. Some of us may settle some payments by direct debit facility. Some of us pay in advance to save on defaults or penalties. Most pay well ahead of due date to avoid any inconvenience. Many of us maintain multiple bank accounts for direct debit instructions in different accounts. In essence, we don't stretch our money to the maximum extent possible.
On the other hand, inflation goes up and down on a reported basis. The experience of common man is of one-way street on the household budget. It makes sense to stretch money from being spent. There is a considerable loss of interest, as people draw cash to make payments. Generally, all of us draw cash on a lump sum basis towards the beginning of a month to make payments. Cash remains at home, yielding no return. We make payments in advance rather than on the due date, thus losing potential interest income. We do this in the age of online payment and ATM. The mind is yet to forget the experience of long queues and physical payments. There is a simple way to stretch this spending.
Route all the payments through direct debit from your credit card. All the spending mentioned above and more can be settled through credit cards. The advantages of such arrangements are many.
First, your payments will be streamlined from one source. No need to maintain multiple bank accounts. You will be able to deploy money stuck in multiple bank accounts in a higher yielding manner.
Second, your payments will be made on the due date or during the grace period, avoiding potential loss of interest. Your money will be with you till the maximum possible time, helping you earn more.
Third, you have to make credit card payment after a gap of about 15 to 45 days after the actual spend. This is a credit given to you for free. You can earn extra interest on that float.
Fourth, most credit card companies reward you for spending done through credit cards. These reward points are bonus and turn out to be a decent number.
Fifth, spending through credit cards will streamline your expenses and maintain good record for reference. Most credit card companies send annual statements, summarising expenditure across major heads and raising red flag for unnecessary spending.
Care should be taken while paying credit card bills on due date, as interest on credit card dues are higher than normal. To summarise, routing all payments through credit card results in better record, gets credit from card companies, earns reward points and earns float income.
Most credit cards are issued free with sufficient limits to implement this strategy. Obviously, this is not a large saving, but remember, an ocean is made with little drops of water. Wish all of you a very joyous 2012. Happy saving.
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TennCare wants home-based care for more seniors

By Tom Wilemon The Tennessean
Change could save Tennessee millions
A change that Tennessee made to its Medicaid program two years ago that helps families care for elderly and disabled relatives has proved so successful that the state is making it available to more people.
TennCare wants to expand the number of slots. Between 11,000 and 15,000 TennCare beneficiaries could be receiving care outside of a nursing home after July 1 — significantly more than the currently approved range of 8,500 to 11,000. Families who sign up get coverage for wheelchair ramps, adult day care, home visits from personal attendants and other assistance.
The expansion of the program is expected to save the state money. Home-based care costs about $19,000 a year on average compared with the $55,000 yearly expense of a skilled nursing facility.Besides saving money, the voluntary program has been embraced by families.“Statewide, we have moved from 17 percent of people receiving home-based care to 31 percent of our people receiving home-based care,” said Patti Killingsworth, an assistant commissioner of TennCare.
The state has notified the Centers for Medicare and Medicaid Services of the expansion plans, which require approval from that federal agency.
“We have every expectation that they will approve this,” Killingsworth said. “They are very supportive of states’ efforts for home and community-based services and to rebalance the system. We absolutely believe that approval will be forthcoming.”

Millions saved

The plans call for increasing the upper limit for enrollees by 1,500 this fiscal year, which ends June 30 — a move that would save TennCare, the state’s Medicaid plan, up to $2.28 million.
Raising the upper limit by another 2,500 the following year, which begins July 1, is anticipated to save $4.05 million.
“We need to make this change in order to continue to afford people choice,” Killingsworth said. “That’s really the name of the program, Choices.”
The yearly cap for the home-based and other services is the cost of a year’s stay in a nursing home.
This program is open only to people eligible for Medicaid who are older than 65 or are disabled and require the level of assistance provided by a nursing home. Current TennCare enrollees can learn more about the program by calling the number for the managed care organization printed on the back of their insurance card.
People who are not on TennCare but think they may qualify for the program can call 1-866-836-6678 or reach their local Area Agency on Aging and Disability.
The General Assembly created the incentives for home-based care in 2008 with the approval of the Long-Term Community Choices Act. CMS signed off on the plan the following year, and Tennessee rolled it out in 2010.
Before the change, TennCare spent 98 percent of its long-term-care funds on institutional care. The state had only a limited number of waivers for families to get coverage for the expenses of home-based care or in a community setting, such as an adult day care.
Contact Tom Wilemon at twilemon@tennessean.com or 615-726-5961, or follow him on Twitter @TomWilemon.
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Tuesday 17 January 2012

Wary home buyers lock in fixed-rates

By Peter Martin
FINANCIAL markets are banking on at least three more rate cuts over the next six months, but an increasing proportion of home borrowers appears not to care.
The latest borrowing figures for November - compiled just after the first of the two end-of-year rate cuts - show a jump in the proportion of borrowers locking in their repayments at fixed rates for two or more years.
Fixed loans climbed from 10.6 per cent of new housing loans before the November cut to 11.1 per cent, the highest proportion since the financial crisis in 2008. A separate count by mortgage broker AFG backs up the Bureau of Statistics finding and suggests the trend continued beyond November.
In December 19.2 per cent of AFG loans were issued at fixed rates, up from 8.2 per cent six months before.
UBS interest rate strategist Scott Haslem says the uptake of fixed loans is not as pessimistic as it might seem.
''It doesn't mean people think rates will rise and it doesn't even mean they don't expect them to fall again,'' he told BusinessDay. ''It's just that fixed rates have become better value - it's becoming cheaper to grab the bird in the hand.''
As recently as June last year a typical fixed three-year mortgage charged 7.35 per cent. By November the rate had fallen to 6.4 per cent.
''The decision facing a borrower in November was whether to go for a fixed loan at 6.4 per cent or take out a variable loan that had just fallen from 7.55 to 7.3 per cent and might fall further.
''You would have to expect four more rate cuts over three years to make the variable rate look better than fixed, and even then you would have to expect the lower variable rates to hold for three years.''
Mr Haslem said the low fixed rates were not particularly expensive for banks to fund. The three-year bond yield has fallen to 3.1 per cent.
''Everybody seems to be cutting global interest rates because the global economy is going through problems. Banks are able to cut their two to three-year loans because the cost of two to three-year money has gone down.''
The number of new home loans to owner occupiers jumped 1.4 per cent in November. Excluding loans for refinancing, new loans climbed 2.5 per cent. But the number of new loans for home construction fell for the third successive month, sliding a further 0.4 per cent.
''Real estate agents will love the fact that more people are interested in established properties,'' said Commonwealth Securities chief economist Craig James. ''But builders, tradespeople, building material suppliers and homemaker stores will be more concerned about the absence of those wishing to build.
''Home buyers are actually pretty cautious. The proportion of loans approved but not taken up has climbed 11 per cent over the past year. Buyers are getting their finance in place, then waiting.''
Much of the November bounce was in New South Wales, spurred by the stamp duty concession for first home buyers that expired last month.
First home buyers made up 24 per cent of new NSW loan approvals compared with 20 per cent nationally.
Other figures released yesterday built the case for further rate cuts. The TD Securities inflation gauge climbed 0.5 per cent in December but recorded the weakest quarterly growth in three years.
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