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How to buy a home: 7 tips for negotiating like a pro

<a href="https://theconversation.com/profiles/park-thaichon-175182">Park Thaichon</a>, <a href="https://theconversation.com/institutions/university-of-southern-queensland-1069">University of Southern Queensland</a> The main purpose of negotiation is to find a mutually acceptable solution for buyers and sellers. Good negotiations greatly improve relationships between buyers, sellers and agents. They also help avoid future problems and conflicts. Negotiating skills become even more important for home buyers in a “seller’s market”, where demand from buyers exceeds supply from sellers. That’s <a href="https://propertyupdate.com.au/australian-property-market-predictions/">currently the case</a> in all Australian capital cities and major regional cities such as Gold Coast, Sunshine Coast and others. Many home buyers mistakenly believe negotiation only occurs during the signing of the sale contract. However, it involves distinct stages: pre-negotiation and during negotiation. So how can people maximise their chances of successfully negotiating a purchase in a seller’s market? I offer the following tips. <h2>Be someone the seller’s agent wants to do business with</h2> Buyers often communicate solely with the seller’s agent, rather than directly with the seller. It’s crucial to ensure the agent views the buyer positively. Ultimately, it’s the agent who presents offers to the seller for their decision. It’s important, then, to understand what might motivate the seller’s agent to choose your offer. The key performance indicator for the agent often revolves around closing a property sale at a reasonable price within a certain time. This means price is a crucial factor. However, other factors can influence the seller’s agent and seller. For example, having pre-approved finance can increase the agent’s confidence in the buyer. If the buyer appears serious, can make quick decisions and makes a good impression, the agent may be more motivated to push for them, even if their offer is slightly lower than others without pre-approved finance. <h2>Be a big fish (for the seller’s agent)</h2> The next strategy is to give the seller’s agent extra incentive to favour you and your offer. <a href="https://www.emerald.com/insight/content/doi/10.1108/MIP-09-2019-0489/full/html">Our research</a> in customer behaviour suggests businesses value customers who make frequent purchases or engage them for long-term services. For example, the agent would be pleased to learn that the buyer might be interested in buying another property in the near future or in using their rental service for the new property. You have an advantage if you can position yourself as someone who could provide them with extra business. <h2>Point to competing options</h2> In a positive manner, let the seller’s agent know you are considering two or three properties, and this specific property is among those you are inclined to make an offer on. In certain situations, it may stimulate competitive pricing when multiple properties of similar quality are available in the same area. Make it clear to the agent you will choose the property that offers you the best overall value. While this strategy might not necessarily lower the price in a seller’s market, it can prompt the agent to have a fuller discussion with you. <h2>Think beyond price</h2> The next set of tips focuses on the during negotiation stages. It can be challenging for buyers to negotiate a lower price in a market with low supply and high demand. You might have to “think outside the price box”. Buyers often have a specific price range or fixed budget in mind when they start discussions with a seller. However, other factors besides price can influence a property’s overall value. So if a seller won’t adjust the price, consider negotiating for other concessions that could reduce your expenses. These may include: Settlement period Consider the expenses associated with the settlement period. A shorter settlement period could enable buyers to move into the property sooner and save on rent. For example, if a buyer is paying $600 per week in rent, an early settlement could save them around $2,400 per month. Insurance costs after contract signing In many states, buyers’ <a href="https://www.finder.com.au/home-insurance/home-insurance-cost">home insurance cover</a> is required to begin from the date of contract signing. It’s reasonable for buyers to include a special condition requesting the seller to bear the insurance costs until settlement. On average, home insurance may amount to about $140 per month. Cleaning expenses Consider negotiating a condition stipulating that the seller must ensure the property is professionally cleaned by settlement. Failure to do so could result in a $500 adjustment in the buyer’s favour at settlement. In some states, like Queensland, sellers are not obligated to deliver a clean property. Based on typical end-of-lease cleaning charges, internal cleaning of a four-bedroom property could cost <a href="https://firstcallhomeservices.com.au/service-menu/bond-exit-end-lease-cleaning/">$455 to $590</a>. Building and pest inspection costs Buyers should always include a 14-day pre-purchase inspection clause for <a href="https://www.topdogpestcontrol.com.au/building-pest-inspections-gold-coast/">building and pest inspections</a> in their offer. Although they may cost $300 to $600, these inspections provide a clear report that could lead to negotiations after contract signing if they find any issues with the property. <h2>Be careful with your first offer</h2> Don’t present the first offer in writing. It can be challenging to negotiate down the price once it has been written in an offer document. Instead, the buyer should begin by testing the expected price of the property. As well as obtaining property reports from multiple banks, the buyer could talk with the seller’s agent in person about a price range that would be agreeable to the seller. You could include phrases like “a price that will make the seller happy” or “a price that will make the seller accept the offer”. While the agent might not provide a specific price, this talk can provide a guideline for the buyer. All properties up for auction or private sale should have an expected price set, which may or may not be discussed with potential buyers. It’s also advisable to consult a solicitor before submitting an offer or signing a contract. They can offer valuable suggestions to smooth the purchase process and identify any issues. <h2>Use the power of 900</h2> Buyers often submit offers with round numbers, such as $700,000 or $750,000. In a competitive seller’s market, aim to submit an offer with a number that stands out from the rest, yet remains within your budget. An example of such a number is $900. For instance, comparing $700,000 to $700,900, the extra $900 makes the offer feel closer to $710,000. <h2>Write a personalised letter</h2> It’s true the most important point of selling a house for many sellers is price. But they are human and have emotions. Finishing a purchasing offer with a personal letter to the seller can make a difference. Often that $3,000 to $20,000 could be a lot of money for a buyer, but it may not be as much for someone selling a house for $700,000 or $1,000,000. Write the letter to express your feelings about the property in a way that makes it clear you will care for it. Most people selling their home would prefer to have someone look after it well.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/226237/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/park-thaichon-175182">Park Thaichon</a>, Associate Professor of Marketing, <a href="https://theconversation.com/institutions/university-of-southern-queensland-1069">University of Southern Queensland</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/how-to-buy-a-home-7-tips-for-negotiating-like-a-pro-226237">original article</a>.

Money & Banking

5 negotiation tactics to grab crazy property deals in a slowing market

Rising interest rates have started to put the handbrakes on Australia’s runaway property market, and that’s good news for homebuyers who are now in a far stronger position to negotiate on a property than they have been over the last few years. One of the most apparent advantages for buyers in the current market is the reduced levels of competition. Fewer buyers mean that prices aren’t being driven higher, and if you’re a good negotiator, it’s possible to swoop in and find yourself a bargain. If you’re new to negotiating for property or unsure where to start, here are five tactics that will help you achieve a strong result at the negotiating table. <ol> <li>Know the market</li> </ol> You can’t succeed in a negotiation if you don’t know the value of the asset that you’re trying to buy in the first place. That’s why any good negotiator will always start by doing their research. You need to know the market better than your competition and don’t get caught up in any hype or opinions from a sales agent. Start by finding what comparable properties are selling for in the market. Look for the last three months of sales around your property. The sales should be of similar property types, sizes, ages, and land components. Another good way to get an idea of the price is to speak with local agents in the area. When you have a fair market value, you then know your “walk away price,” and you won’t find yourself getting emotional and overbidding. <ol start="2"> <li>Understand the vendor’s motivations</li> </ol> In any negotiation, there is a saying that whoever needs the deal least will likely be the one that comes out on top. When looking at potential properties to buy, you can be the world’s best negotiator, but if the vendor doesn’t need to sell, they will likely either wait for their price or walk away. Whenever you start looking at a property, try to ascertain as much information about the vendor as possible. That will give you an understanding of how motivated they are to sell, which will then impact how much you initially want to offer. <ol start="3"> <li>Be the strong bidder, not the highest</li> </ol> In a property transaction, price is just one piece of the puzzle. When a vendor weighs up an offer on their property, they are interested in the price, but the terms can also play a big part. For example, if you’re a cash buyer who can settle quickly, that might be far more appealing to a vendor than a higher offer that needs three months to settle. Similarly, a larger deposit could give a vendor more certainty that the transaction will occur. As a buyer, getting your finances in place ahead of time and then tailoring your terms to suit the vendor might give you an edge in a negotiation even if you’re not the highest bidder. Ultimately, the vendor wants their problem solved, and your job is to find out what it is and then make a strong offer that addresses those immediate needs. If you are ever tempted to make an unconditional offer, be sure you’ve done extensive due diligence and can secure finance, as there could be significant costs if you have to back out of the deal. <ol start="4"> <li>Unique offers</li> </ol> A great way to make your offer seem stronger than it might actually be is to come in with an odd-numbered amount. An offer price of $596,200 instead of $590,000 or $600,000 reflects that you’ve taken the time to do your due diligence, making your offer stand out. Another approach is to make a written offer with a deadline. That way, you can speed up the negotiation process, and it might prevent the sales agent from pitting your bid against another buyer to drive up the price. <ol start="5"> <li>Know the property</li> </ol> It’s critical to clearly understand what you’re buying before entering any negotiation. While you might have done your comparable sales analysis and have an excellent overall picture of what similar properties are selling for, you still need to investigate this particular property. Several things can impact the property’s value, which can help you negotiate. For example, if an awkward tenant occupies the property, it will be less appealing to many homebuyers, which you can use to your advantage. There may also be issues with the property, such as problematic zoning, service locations, or even large trees that can alter its value. The most obvious factor to consider is the state of the property and whether it needs renovation or repairs. In the current market, homebuyers are less interested in buying a property that needs work due to the cost of materials and difficulty finding tradespeople. That will give you a strong starting point to negotiate around the price. While getting a great deal is essential, it’s crucial not to compromise on the property’s quality. Quality is more important than a bargain, and a property’s performance will ultimately determine its value. A slowing real estate market presents an opportunity for buyers to negotiate and secure a great property deal. By understanding the local market, paying attention to the vendor’s motivations, and putting forward intelligent offers, you can potentially grab an excellent property deal in a slowing market. Rasti Vaibhav is the author of The Property Wealth Blueprint (RRP $39.95) and Founder of Get RARE Properties, a bespoke independent buyers' agency that has been helping hundreds of clients across Australia secure their financial freedom through property. For more information, visit <a href="https://getrare.com.au">https://getrare.com.au</a> Image credits: Getty Images

Real Estate

6 tips to negotiate your way to what you want

Whether you’re haggling at the markets, dealing with a sales person or trying to buy a car, we negotiate all the time in our lives. Knowing how to get what you want is one of those skills worth learning so here are six ways to help your next negotiation go your way. 1. Do your homework Learn as much as you can before your negotiation. When you have information it gives you a stronger chance in a negotiation as well as knowing how to deal with any objections. Even in the case of wanting to return some clothes or shoes to a store, a sales person might refuse you but if you have researched the policy beforehand you would know you’re not being treated fairly. 2. Listen more than you talk It might seem like you should talk more as you need to convince the other side of what you need but in fact, you’ll make more ground if you listen. You will not only be able to learn more about what the other person needs or wants but most importantly it builds trust - the other party now feels respected and understood. It will lead you both to want to find a mutually satisfying agreement. 3. Look for shared interests You want to establish a rapport with the person so look for things you have a shared interest in. When you find common ground with someone it builds familiarity and a trust that will help you in a negotiation. If you’ve ever haggled at the markets you’ll know striking up a friendly conversation with the seller might persuade them to be a tad more generous in their pricing. 4. Address objections We’ve all been stopped at the shopping centres with people trying to sell us creams or raffles. When you try and walk away they are just too persuasive. Why? They address any objection you have and respond with empathy and understanding. It will just take a “quick minute” or “it’s very cheap” so you feel obliged to stick around. If they use it in sales, you can use it in your negotiations. 5. Seek a win-win outcome Don’t just focus on what you want and need. It’s a negotiation so the other party needs to leave with their interests met as well. If you’re thinking “win-win” you’ll already be considering the other person so most outcomes will be beneficial to both. It doesn’t mean “giving in” but simply finding that solution where both sides can walk away satisfied. For example if you’re selling anything, you might offer a discount if someone purchases multiple item rather than just one. In this situation, you sell more items and the other side gets a reduced price. 6. Aim high Don’t be afraid to ask for what you want. You don’t get what you don’t ask. And if you don’t get it, you’ll be closer. Just say you’re buying some classic furniture, you would start well below your rock bottom because you know the seller is going to aim high.

Mind

Bride called out for list of “non-negotiables” at wedding

A Queensland woman has been dubbed a bridezilla for her “non-negotiable” list at her wedding. Kara Hansen took to TikTok announcing that she has been engaged for a year and is organising her wedding. A part of her and her fiancé’s special day includes a list of things that are non-negotiable which Ms Hansen says “may p*** people off”. First on her list was no children under the age of 16 because it is simply “not the right place for them”. “There is loud music, they don’t eat the food, they don’t drink the alcohol, they don’t party, their parents have to leave too, it just feels like it’s not the right place for them,” she says in the video. The second non-negotiable on Ms Hansen’s list is not having dessert when there is cake. “I am not paying for a third course when I have already paid $400 for a wedding cake, I don’t care about keeping the top tier of my wedding cake, you guys can just eat it all,” she says. Other things included in her list are keeping speeches short and sweet and that she will wear a short dress for the reception because she “hates to wear long dresses”. Ms Hansen also said her husband can see her dress before the big day as long as she’s not wearing it, and finally wanting to have coffee with her husband on the morning of the wedding. Several people called out Ms Hansen for her harsh rules saying that everyone will be able to enjoy the day no matter their age. “Sorry, but I am having kids at my wedding, I don’t care if they don’t like the food or they drink just as long as everyone has a good time,” one wrote. “We are having kids at our wedding. We have two flower girls and two ring boys so we feel we can’t have them and not others. It feels wrong to us,” another person commented. Others however agreed with Ms Hansen, calling her list “freaking genius” and that they will be adopting some of her non-negotiables for their weddings. Watch the video <a href="https://www.tiktok.com/@karaaaashley/video/7147551332994403586?embed_source=null_null_null&is_copy_url=1&is_from_webapp=v1&refer=embed&referer_url=www.news.com.au%2Flifestyle%2Frelationships%2Fmarriage%2Fbridezilla-reveals-wedding-nonnegotiables%2Fnews-story%2F1724eae5a63c8627526ae78c2916f7b6&referer_video_id=7147551332994403586" target="_blank" rel="noopener">here</a>. Images: TikTok

Relationships

No more negotiating: New rules could finally force Google and Facebook to pay for news

Digital platforms such as Google and Facebook will be forced to compensate news media companies for using their content, under a <a href="https://theconversation.com/government-orders-mandatory-code-of-conduct-for-google-facebook-136694">new mandatory code</a> to be drawn up by Australia’s competition watchdog. The announcement, <a href="https://ministers.treasury.gov.au/ministers/josh-frydenberg-2018/media-releases/accc-mandatory-code-conduct-govern-commercial">made by Treasurer Josh Frydenberg today</a>, follows last year’s <a href="https://www.accc.gov.au/publications/digital-platforms-inquiry-final-report">landmark report</a> by the Australian Competition and Consumer Commission (ACCC), which found that news media businesses lack bargaining power in their negotiations with digital giants. News media businesses have complained for years that the loss of advertising revenue to Google and Facebook threatens their survival. The economic crash caused by the COVID-19 pandemic has turned that crisis into an emergency. Frydenberg <a href="https://www.abc.net.au/news/2020-04-20/facebook-and-google-to-face-mandatory-code-of-conduct/12163300">pledged</a> that the latest move will “level the playing field”, adding: “It’s only fair that those that generate content get paid for it.” Power imbalance and tumbling profits A mandatory code of conduct was not the original plan. When the ACCC released its report last year, it suggested that Google and Facebook should each negotiate with news media businesses to agree on how they should fairly share revenues generated when “the digital platform obtains value, directly or indirectly, from content produced by news media businesses”. The report concluded that tech giants are currently enjoying the benefit of news businesses’ content without paying for the privilege. For example, Google’s search results feature “news snippets” including content from news websites. Both Google and Facebook have quick-loading versions of news businesses’ articles that don’t display the full range of paid advertising that appears on the news websites’ own pages. These tactics make it less likely users will click through to the actual news website, thus depriving media businesses of the ensuing subscription and advertising revenue. Meanwhile, as the ACCC report showed, media companies’ share of advertising revenue has itself been slashed over the past decade, as advertisers flock to Google and Facebook. Platforms giveth, platforms taketh away Why don’t news businesses negotiate compensation payments with the platforms themselves, rather than asking the government to step in? The answer is the vast mismatch in bargaining power between Australian media companies and global digital giants. The ACCC report found that digital platforms such as Google and Facebook are “an essential gateway for news for many consumers”, meaning the news businesses rely on them for “referral traffic”. Put simply, much of news companies’ web traffic comes via readers clicking on links from Google and Facebook. But at the same time, these digital giants are dominating advertising revenues and using news companies’ content in competition with them. The pandemic effect The COVID-19 crisis has <a href="https://www.reuters.com/article/us-health-coronavirus-news-corp-idUSKCN21V24H">dealt a further blow</a> to media companies’ advertising revenue, as potential advertisers are forced into economic hibernation or simply go out of business. Content licensing payments from Google and Facebook could provide crucial alternative revenue. But if the payments are structured as a share of advertising income, the publishers will share in Google and Facebook’s own advertising downturn. The ACCC will not unveil the draft code until July, so it is still unclear how the obligations will be implemented or enforced. ACCC chief Rod Sims has <a href="https://www.afr.com/companies/media-and-marketing/big-tech-penalties-will-be-large-enough-to-matter-20200420-p54lce">pledged</a> that Australia’s mandatory code of conduct will feature “heavy penalties” for Facebook and Google if they fail to comply, involving fines that are “large enough to matter”. How might Google and Facebook react? The platforms could conceivably attempt to sidestep the compensation rules by no longer providing users with quick-loading versions of news articles. Google could also cease publishing news snippets at the top of its search results, as it did in Spain when faced with similar obligations. But there is <a href="http://www.newsmediaalliance.org/wp-content/uploads/2019/10/Final-Revised-Spain-Report_11-7-19.pdf">evidence</a>, albeit from <a href="https://www.newsmediaalliance.org/google-news-shutdown-in-spain-not-as-bad-as-google-would-have-you-believe/">news publishers themselves</a>, that this would merely drive readers directly to publishers’ websites. Australia’s decision to abandon negotiations in favour of mandatory rules stands in contrast to the situation in France, the European state most advanced in the implementation of a similar policy flowing from the European Union’s 2019 <a href="https://ec.europa.eu/digital-single-market/en/modernisation-eu-copyright-rules">Copyright Directive</a>. Earlier this month, France’s competition regulator <a href="https://www.autoritedelaconcurrence.fr/en/press-release/neighbouring-rights-autorite-has-granted-requests-urgent-interim-measures-presented">ordered Google</a> to negotiate in good faith with publishers on remuneration for use of content. Any agreed compensation will be backdated to October 24, 2019, when the Copyright Directive became law in France. Google’s previous solution had been to require that publishers license the use of snippets of their content to Google at no charge. But France’s watchdog argued this was an abuse of Google’s dominant position. Google and Facebook are likely to continue to resist these developments in Australia, knowing they could be copied in other jurisdictions. Even if they do cooperate, it’s not yet clear that “levelling the playing field” with the tech giants will make any difference to the collapse of media advertising revenue driven by the coronavirus. Written by Katharine Kemp and Rob Nicholls. Republished with permission of <a href="https://theconversation.com/no-more-negotiating-new-rules-could-finally-force-google-and-facebook-to-pay-for-news-136718">The Conversation.</a>

Movies

13 things you should know about negotiating

Follow these tips to get the most out of yourself and your bottom line. 1. Learn to improvise <div id="page1" class="slide-show"> <div id="test" class="slide"> <div class="slide-description"> Pay close attention to what your negotiating partner is expressing and be willing to step outside your comfort zone. 2. If someone offers a good deal If someone offers a good deal, be sure it’s worth the risk to ask for more. As Harvard Business School professor Michael Wheeler writes in 2013’s The Art of Negotiation, “When someone hands you a tasty piece of cake, with rich frosting to boot, think twice about asking for sprinkles on top.” 3. Jot down what you want beforehand <div id="page3" class="slide-show"> <div id="test" class="slide"> <div class="slide-description"> Written plans help you focus on achieving your goals, instead of getting flustered, says Marty Latz, founder of the training and consulting firm Latz Negotiation Institute. <div class="at-below-post addthis_tool" data-url="https://www.readersdigest.com.au/money/13-things-you-should-know-about-negotiating">4. Know your triggers</div> <div class="at-below-post addthis_tool" data-url="https://www.readersdigest.com.au/money/13-things-you-should-know-about-negotiating"> <div id="page4" class="slide-show"> <div id="test" class="slide"> <div class="slide-description"> Gail Levitt, a facilitator at York University’s Schulich School of Business in Toronto, says understanding what affects you emotionally makes it easier to avoid taking things personally and concentrate instead on solving the conflict. <div class="at-below-post addthis_tool" data-url="https://www.readersdigest.com.au/money/13-things-you-should-know-about-negotiating">5. Be a copycat</div> <div class="at-below-post addthis_tool" data-url="https://www.readersdigest.com.au/money/13-things-you-should-know-about-negotiating"> <div id="page5" class="slide-show"> <div id="test" class="slide"> <div class="slide-description"> A 2007 study of the effects of mimicry on negotiation found that ten out of 15 buyers who subtly copied their partners’ mannerisms during the process achieved a deal. Only two out of 16 buyers who didn’t mirror succeeded. <div class="at-below-post addthis_tool" data-url="https://www.readersdigest.com.au/money/13-things-you-should-know-about-negotiating">6. When negotiating for money</div> <div class="at-below-post addthis_tool" data-url="https://www.readersdigest.com.au/money/13-things-you-should-know-about-negotiating"> <div id="page6" class="slide-show"> <div id="test" class="slide"> <div class="slide-description"> When selling your car or asking for a raise, for example – ask for a range, not a fixed number. This approach may make it harder for your partner to counter with a lower sum. <div class="at-below-post addthis_tool" data-url="https://www.readersdigest.com.au/money/13-things-you-should-know-about-negotiating">7. Small talk goes a long way</div> <div class="at-below-post addthis_tool" data-url="https://www.readersdigest.com.au/money/13-things-you-should-know-about-negotiating"> Researchers from Stanford, Columbia and Northwestern universities followed people participating in email-based negotiations. One group went straight to business; members of the second began by telling their partners about themselves. Chatty negotiators reached an agreement 59 per cent of the time, while business-centred participants succeeded only 39 per cent of the time. 8. Demonstrate potential You need to demonstrate potential rather than listing accomplishments. A 2012 US study measured how participants felt about a hypothetical job candidate. Respondents felt a person who lacked experience but had potential would be more successful than one with experience but fewer prospects for improvement. 9. Beware the gender disparity <div id="page9" class="slide-show"> <div id="test" class="slide"> <div class="slide-description"> According to Linda Babcock and Sara Laschever, authors of Women Don’t Ask, 20 percent of women admit they don’t negotiate at all – and those who do negotiate ask for 30 percent less than men on average. 10. Don't fall prey to "negotiation myopia" <div id="page10" class="slide-show"> <div id="test" class="slide"> <div class="slide-description"> “Negotiation myopia” is a strategic mistake in which one party fails to see a solution that’s mutually beneficial. Look for a resolution with which both sides can be happy. <div class="at-below-post addthis_tool" data-url="https://www.readersdigest.com.au/money/13-things-you-should-know-about-negotiating">11. Update your boss regularly</div> <div class="at-below-post addthis_tool" data-url="https://www.readersdigest.com.au/money/13-things-you-should-know-about-negotiating"> Update your boss regularly on your accomplishments. If you save them all for one session, you’re in danger of coming across as needy. 12. Have a fallback position “If you’ve got a great Plan B, you’ll have a more powerful negotiation,” Latz says. “The easier it is to walk, the more likely you are to achieve your goals.” 13. Be soft on the person and hard on the problem <div id="page13" class="slide-show"> <div id="test" class="slide"> <div class="slide-description"> Levitt says, “Ask yourself, ‘What do I want the other party to say or do at the end of the conversation?’ If the answer is, ‘Change into somebody else,’ that’s not an appropriate outcome.” Written by Lara Zarum. This article first appeared in <a rel="noopener" href="https://www.readersdigest.com.au/money/13-things-you-should-know-about-negotiating" target="_blank">Reader’s Digest</a>. For more of what you love from the world’s best-loved magazine, <a href="http://readersdigest.innovations.co.nz/c/readersdigestemailsubscribe?utm_source=over60&utm_medium=articles&utm_campaign=RDSUB&keycode=WRN93V">here’s our best subscription offer</a>. </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div>

Money & Banking

What are your non-negotiables in retirement?

<a href="http://www.megangiles.com/" target="_blank">Megan Giles</a>, Retirement Transition Consultant, supports those approaching retirement to successfully transition and create a retirement they will love to live! The wonderful thing about retirement is that the Baby Boomers finally have the opportunity to become the ‘Me-Timers’. After balancing a busy career, family and social commitments for so many years, they finally get to focus on the things that light them up. That might mean learning to play the saxophone (I’ve only had the darn thing 20 years!), selling up and making that tree change, or trekking through Patagonia. I am a strong advocate for possibility thinking, living one’s dreams and creating a full and exciting retirement, but I also want to ensure that people approaching retirement are set up for success. I want to ensure that their dreams and goals are achievable. And so the question I want to pose is what will be the ‘non-negotiables’ in your retirement? It might be things such as caring for an elderly parent or grandchildren, participating in an annual event or your budget. These are the events or persons that you need to be present and available for or decisions that are fixed. Can you clearly articulate what these will be for you? As an example, the last thing you want to do is starting planning for a retirement of travelling or relocating to a hinterland village, only to be disappointed when you decide that caring for your mother with dementia is not going to allow it. That said, I am not for a moment suggesting that you should cancel your round-the-world trip or put your life on hold. Quite the contrary. Instead, what I would encourage you to do is acknowledge this non-negotiable during your planning. To enable an extended holiday you may need a slightly longer lead-in time but this will allow you to organise respite care, increased day care or arrange other family members to step up in your absence. What other non-negotiables might there be in retirement? A husband (or wife) who doesn’t want to leave the family property In some couples there will be one person for whom living on the land is in their blood and there is no-where else they can imagine being. Rather than simply accepting this fate and maintaining a stiff upper lip (whilst feeling suffocated and isolated on the inside), it is critical to plan for a retirement that lights each person up whilst acknowledging this non-negotiable. How might you plan around this? One option might be to book regular weeks away at the beach so that the other person’s needs are met in terms of a change of scenery and also so that they have something to look forward to. Take it one step further and making a recurring booking at the same place in order to create a ‘home away from home’ and a sense of belonging there. Your retirement budget If you’ve done your sums you will know how long you can expect your superannuation and investments to last. In line with this, your monthly budget may be your non-negotiable. Whilst you may dream of taking a first class cruise each year, this may not be financially possible and as such I encourage you to consider what it is about traveling that excites you. Is it meeting new people, trying new foods or learning about different cultures? Identify what it is and then determine how you can incorporate that into your daily life. For example if it’s the food why not try a new cuisine or restaurant each month? If it is visiting new destinations, why not get out and discover more of your own backyard – we live in one of the best countries in the world, after all! “The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails” – William Arthur Ward Don’t ignore the non-negotiables in your retirement – they’re not going anywhere! Instead, acknowledge them and respond positively to create a retirement you will love to live. The key to success for the people who work with Megan is structured planning, looking beyond the finances, harnessing opportunities, informed decision making and tailored action. For more information visit, <a href="http://www.megangiles.com/" target="_blank">www.megangiles.com</a>.

Retirement Life

Cruise ship negotiates challenging hairpin turn

When we’re relaxing on a deckchair or pigging out at the buffet it can be easy to forget how much skill and work is required to navigate a cruise ship safety. In this video we’re given a rare insight into the control room of the Azamara Journey, which must navigate tight turns and strong currents to reach Ho Chi Minh City. The manoeuvrers are complicated so the captain hands over controls to a local pilot. Isn’t it interesting to see how they successfully navigate the turn! Video credit: YouTube / Smithsonian Related links: <a href="/travel/cruising/2016/03/how-to-make-cruise-ship-towel-animals/">How to make cruise ship towel animals</a> <a href="/travel/cruising/2016/03/inside-worlds-biggest-cruise-ship/">Inside one of the world’s biggest cruise ships</a> <a href="/travel/cruising/2016/02/can-the-historic-queen-elizabeth-2-cruise-ship-be-saved/">Can the historic Queen Elizabeth 2 cruise ship be saved?</a>

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