Location, location, location

A very big real estate cliche is “location, location, location”. This is right for many reasons.

For us, the decision for locating our home came from many features and constraints that we have placed. Firstly, our budget. The best we can afford is $350,000 for both the land and house. May be a bit more, but we need to see how it goes. Second, we wanted a house on a decent sized block of land. No units, apartments and small house with no open places. Third, we were ready to travel upto 1 hr one way to work. Fourth, decent surroundings and facilities.

Before I go further, it is important to explain how Adelaide is structured. As you can see from the map on the left, Adelaide has some constraints. On the west, Adelaide is bounded by the ocean and on the right by the hills. The major growth areas are the North and South.

Considering our constraints and features, as explained above, the only possible areas are located in North 2, South 3 and Hills 2 as suggested in the map.

Australia is going through two types of lifestyle living. Beach side is called - Sea change and Hills, country side is called Tree change.

North has not fascinated us for a variety of reasons. It is still a good growth area due to industrial activity, a new express way to Adelaide and all the mining is happening North of Adelaide. Much further, but all north based. South provides a great beach side living. And the Hills have a great environment attraction and a cool climate.

After comparing the alternatives of living in the south and the beach or the Hills and trees, the decision was tilted in favour of a tree change. This has happened mainly due to the location of the excellent Waldorf School in Mt. Barker. In the future, when we have kids, we would like them to experience the great education provided in a Waldorf school. I know, its a bit far in the future when we still do not have kids; but we believe in planning for the future.

In the end, we have decided to build a house in the beautiful hill town of Mt. Barker. It is about 35 km from Adelaide CBD and has the South Eastern freeway connecting the town to the city. A good bus service from Adelaide Metro and all the facilities required for modern living are available. Peak time journey is about 1 hour. With a population over 12,000 people and the main town for the entire Adelaide Hills it a nice and cosy town.

Mt. Barker has been growing a lot in the past years and this has created demand for new housing. A new estate called the Bluestone estate is coming up near the Waldorf School in Mt. Barker. This is a 95 hectare development with 835 blocks of land. This is the first stage and the entire project can take anywhere between 5-10 yrs. The developer is promising some good stuff.

The 835 lot development, named Bluestone, has a major focus on the environment and quality lifestyle, with extensive parklands and landscaping in keeping with the Adelaide Hills.

Walker Corporation’s project development manager Humfrey Whitaker said about 16 hectares of the 95 hectare development will be devoted to parkland and green space, and there will be four kilometres of walking trails.

“We’ve been working with Mount Barker District Council and its officers to ensure that Bluestone is of the highest quality and delivers significant benefit to the local community,” Mr Whitaker said.

“In planning this development we’ve looked at sustainability, parkland and open space, extensive landscaping, the very latest communications technology for internet connectivity and design guidelines for all housing to ensure a high standard of construction and complementary building styles.

“We’re offering a taste of hills living but with all the benefits of a modern cosmopolitan lifestyle.”

That is where we are now. I will discuss about Mt. Barker’s capital growth opportunities and the financing options available to us. Then we will come to the green design options and our exploration.

Khosla ventures invests in Eco motors

EcoMotors plans to build high-tech engine center - Crain’s Detroit Business
The EcoMotors engine is called an “opposed piston opposed cylinder” engine, or OPOC. The OPOC engine features two horizontally opposed cylinders powering a crankshaft in the center. The unique design eliminates traditional valves and cylinder heads, simplifying the engine.

EcoMotors will work to develop the engine to be used in passenger cars and trucks.

“It’s clean, it’s green,” Coletti said. “We’re talking about potentially upwards of 50 percent improved efficiency versus current turbo diesels.”

He said a 2.5 liter engine of this design delivers 350 horsepower, and it could be more affordable than conventional turbo diesels because it has half the moving parts.

Feed in Tariff in Victoria

The Australian states are working hard to compete against each other to come up with more restrictive solar options.

The South Australia government came up with a “net metering feed-in-tariff” which does not provide much incentive compared to a gross metering system.

Now, it is the turn of the Victorian government. Peter Campbell writes about the reasons why this legislation does not make sense. And below, a rally against the tariff.

After visiting the Bali convention on climate change and using their generous travel allowances to see how a good feed in tariff can promote emission reductions and jobs from solar power in countries like Germany, our Victorian Government has delivered a feed in tariff that is crippled and worthless.

My concerns are:

1. The Feed in Tariff is only paid on net metering.

The total electricity generated by panels should be subject to the tariff, as all the clean electricity generated has zero emissions which directly substitutes for coal-fired power and therefore reduces emissions accordingly.

In Germany and other locations where they pay the tariff on gross metering, there has been a dramatic rise in installation of solar power. Germany now has 400 times the solar output of Australia despite having about half our sunshine.

2. The Feed in Tariff has a maximum ceiling of 2kW

This is nonsense. The more solar zero emissions power we generate as a nation the better. This is a critical measure for reducing our emissions to combat climate change. The 2kW array size limit for getting the Feed in Tariff is simply crippling the financial motivation for people to install solar panels, and crippling their payback if they choose to install a bigger array.

3. No certainty for investment is provided

The complexities and restrictions of your feed in tariff resulting from net metering combined with the 2kW ceiling provide no certainty or guarantee for investment in a solar array, unlike gross metering with no ceiling which does. This is evident in countries like Germany where there has been significant investment in solar power - now the equivalent of two coal fired power stations, but with zero emissions.

The Victoria government has stipulated the price at 60c per KwH higher than South Australia’s 44c per KwH.

Peter provides an alternative solution.

I strongly urge the government to modify the tariff to a proven effective and equitable model , which is:

* 60 cents per kWh
* paid for at least 15 years
* paid on the entire output of a system via gross production metering
* no caps on array size and/or outputs.

Water Trading anyone?

Green business: Carbon works, why not water? | Citywire
Under a cap and trade system, water polluters could have the option to reduce pollution in their own operations or buy water pollution-control or water quality credits from another source at a lower cost than if they undertook the pollution control themselves.

In theory a cap and trade system would achieve the same overall water-quality improvement at a lower overall cost. It would also allow water treatment technology transfer if integrated into a larger global market system.

And such programmes don’t have to be limited to water-quality problems, either. Industries, farmers or cities could also conceivably buy and sell credits for water use, driving down the cost of water conservation and efficiency programmes.
[...]
The holistic effect is to add to the sustainability of the commodity. The general trend in the price of water rights to abstract also has seen some incremental growth. A record was recently achieved in the US of close to $30,000 for an acre foot per year (325,851 US gallons or 1,233.5 kl (or m³) per year) – not bad considering similar rights were trading at $500 five years ago.

Rann suggests green cars as the future

Fuel-efficient vehicles the future: Rann

The future of South Australia’s car manufacturing industry lies in the development of new low-carbon, fuel-efficient vehicles, Premier Mike Rann says.The SA (Edit:South Australia) submission called for the federal government’s $500 million Green Car Innovation Fund to be used for researching and developing new low-carbon technology for wider application across the industry.

“Clearly, car buyers in markets across the world, including Australia, are now looking to purchase more fuel-efficient, environmentally friendly vehicles,” Mr Rann said.

Holden Commodore VE SS V

With Holden, the largest Australian car manufacturer and the subsidiary of GM, suggesting that they make a hybrid-electric of the popular Commodore model (nice looking car I should say) by 2010; Australian car companies and politicians are coming on to the new trend in the market. About time too, since Toyota just sold its 1 millionth Prius.

Update: A good article from Business Week on the greening of GM.

A personal journey - a green home

After having finished my MBA and living in Australia for 3 years now, we have gained our permanent residency through the Skilled migration program of the Australian government.

This has prompted us to make some decisions. One such decision is about the city where we would live. We have been living in Adelaide for the past 3 years. Adelaide is a relatively smaller city with a population of just over a million people. In terms of job opportunities, it is relatively less compared to say Sydney and Melbourne or the booming cities of Brisbane and Perth.

Even in this environment we both (my wife and myself) have had a decent life and some good career opportunities. Considering the cost of living, the size of the city, our connections and friends made here; we have decided to stay on in Adelaide for the time being. Unless some fantastic opportunity comes along for us, we would not think of moving.

In some ways, Adelaide can provide us with more opportunities. For example: green drinks. Green Drinks is a worldwide networking event happening in various cities across the country. I wanted to attend one in Adelaide and guess what, it was not here. This prompted me to explore the opportunity of setting up one here. I am in the course of doing this with another enthusiastic friend of mine. More details will be coming soon. The point is that Adelaide will provide some opportunities which the other cities may not. Just need to keep your eyes and mind open.

The next decision for us has been to move into the real estate industry. Looking from only a financial perspective, at one time I did not believe in the idea of buying my own house however, that has changed for now. If you add in the emotional and other aspects of living in your own house, it surely trumps for me now.

The Australian real estate market has been doing very well for the past 7+ years. Adelaide is continuing to do well (20% growth in the last year) and with the big mining boom expected in the near future; it will continue to do well.

In all consideration, we have decided to build our own home. With the limitations in our budget and meeting our needs we are going ahead for now. One consideration is the design and building of a green home.

Since this is a big decision for me and the biggest financial outlay till date; I will be planning this real well. Considering the possible green aspects of the house, I will be blogging about this under the Green Home category of this blog. I hope this will be of interest to some of the readers.

Suggestions, advise, experiences and anything else will be appreciated. Read on!

Solar PV industry and govt. subsidy

The Age reports on solar PV cancellations from households

Solar businesses, in a national phone hook-up on Friday, reported that at least five people had already lost their jobs and more were expected to go this week as cancelled orders surge.

From midnight on Tuesday, a family that earns more than $100,000 a year could no longer claim the rebate of up to $8000 on a solar photovoltaic system for their home.

The Clean Energy Council told The Sunday Age that one company had 98% of orders abandoned. The biggest impact has been in cities, where 50-70% of orders were being ditched, leaving companies with millions of dollars of lost business.

As previously noted, this clearly shows the effect of public policy and subsidy for the solar industry. As feed-in-tarriff’s, a mechanism which has produced good results in Europe, is not being aggressively pursued in Australia, this rebate is the only meaningful subsidy for the solar PV industry.

However, all is not lost. The Rudd labour government has announced a Green Loan program.

Around 200,000 households on up to $250,000 a year will be able to take advantage of the program which will offer loans of up to $10,000, with interest capped at the inflation rate, for green products aimed at making established homes more energy and water efficient.

The program would come into effect in January 2009 and run until 2012-13 but Mr Rudd flagged Labor would consider expanding it if it proved successful
[...]
“(This is so) working families can install solar panels or rainwater tanks or roof insulation or solar hot water systems or high efficiency gas hot water heaters … or awnings or grey water recycling systems and energy efficient lighting,” he said.

We need to see how this industry will perform in the coming months and whether there will be a change in policy.

Energy and the Auastralian Federal Budget - Where did it go wrong?

John Connor, CEO of the Climate Institute, writes in Crikey of the negative consequences of the budget for the energy and environmental industry.

The most important in our view was the failure to allocate any funding to the Renewable Energy Fund in the coming financial year, particularly as a number of drilling projects important to the development of the geothermal clean energy option were relying on funding this year. This has sent share prices tumbling and the Government scrambling to assure this industry they’ll be supported through the other “green energy fund”, the Energy Innovation Fund, or assurances for the following financial year. The only explanation for this blooper is that the efforts to hoover up as big a surplus as possible led to this hoovering of credibility.

That the main public heat has surrounded the means testing for the solar rebate demonstrates both the public backing for solar initiatives, and the precarious nature of rebates (and subsidies) as policy solutions. The visiting German Environment Minister observed that if you want to encourage solar PV rollout, a better policy instrument for unlocking longer term opportunities is guaranteed feed-in tariffs for electricity generation post installation. It’s clear that the rebate system has fed a boom. It is also clear that restricting the rebate to $100,000 pa households is causing something of a bust, especially for those businesses relying solely on the rebate program for their income. There are separate and relatively substantial pots of money for solar cities and solar schools initiatives that may allow a softer landing for the existing industry but the real spotlight should be on developing a consistent national feed-in tariff strategy for solar and other low emission sources that will not be captured by the Renewable Energy Target to make sure Australia has a diverse portfolio of clean energy options in 2020.

Dr. Nelson’s petrol policy for Australia

Mungo MacCallum writes on Crikey about Dr. Nelson, the leader of the Liberal party in Australia on his budget reply speech suggestion of a decrease in excise duty of 5c per litre of petrol.

There are some policy proposals which are so bad that they are unforgivable, and this is one of them. At the most superficial level it is meaningless populism: a five cent cut now would save the average family less than $5 a week and would be quickly absorbed by future price movements anyway. But at a deeper level it contradicts the entire thrust of sensible fiscal and energy policy.

Petrol in Australia is still relatively cheap compared to most of the world, especially Europe, and we still use far too much of it. Because it is a non-renewable and increasingly scarce resource, and a major contributor to climate change as well, we should be trying to wean people off it. By announcing that if punters whinge loudly enough the government can and will bring the price down, Nelson is sending all the wrong signals.

And it isn’t even an original idea: John Howard did it when he was in trouble at the beginning of 2001, but wisely resisted pleas for an encore for the next seven years. Nelson’s move, against all advice, is appalling policy and is now turning into bad politics as well. And by making it, he may well have added himself to the budget’s short but vocal list of losers

Even though we can understand the need for Dr. Nelson to propose a election style stunt in his budget reply speech, this is outright scandalous regarding his economic credentials and provides a glimpse of the climate change policy that can be expected if the Liberal party is elected again.

Rice production soars

How the World Works - Salon.com

According to the FAO, “Average world rice consumption per person is set to increase by 0.5 percent to 57.3 kilo per year, up from 57 kilo in 2007.”

Whether that means going from one meal a day to two or three, or a Western-style epidemic of ballooning portion-sizes, the FAO doesn’t say. But it should give some pause to those who would blame the spread of biofuels for everything that is suddenly awry in grain markets. While it is true that competition from other crops (corn, soy) is depressing rice production in the United States, almost everywhere else in the world, rice harvests are booming — including Africa, where the FAO reports that “large expansions” are “anticipated in Ivory Coast, Egypt, Ghana, Guinea, Mali and Nigeria.”

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