It doesn’t matter which way you look at it. We are in a global financial crisis and now it is time to simply take care of business – which is exactly what many businesses have done in recent years. The International Monetary Fund (IMF) announced this week that Australia was unlikely to slip into recession although we all know that sadly, there will be casualties along the way. Continue reading »
What a tumultuous week! World financial markets experienced an absolute hiding and at the end of the day as the debris is removed, the message that resonates most strongly is that, “cash is still King”. Superannuation is not exactly as bankable as most were led to believe despite that in the June quarter of 2007, superannuation funds received record net inflows of $A49 billion. It should also be noted that during this same period, household debt had a record increase too, as investors borrowed against the home to participate in this “once in a lifetime opportunity”. Fifteen months later, their investment has halved (it will strengthen – but it could take a while). When compulsory superannuation took effect in 1992 many argued that older superannuants were at a disadvantage hence the “super – duper” tax free inducement last year by the Howard government. Continue reading »
I caught up with a client/subscriber on Wednesday morning (not mourning) at Bathers Pavilion for a coffee, to discuss the Mosman market. The economic doom and gloom was certainly not reflected by the number of local residents doing exactly the same. Despite the rumour that Mosman is about to witness a tsunami of mortgagee- in- possession sales, we decided that this simply would not happen and we have definitely not seen any distressed sales. This may well have something to do with the reality that when banks take possession, they are then faced with huge GST bills on the sales. What we are seeing today is plenty of “old” Mosman money ready to pounce on the “new” money should it stumble and fall. Continue reading »
The economies of scale in NSW paint a precarious economic picture and with the global economic crisis the bank, otherwise known as the NSW government, is stone motherless broke. I wrote last week that our economy is in transition mode (moving from economic growth to economic consolidation) and should the NSW government decide to increase taxes in an attempt to correct this void then stage three being economic recession, is all but assured. Businesses in Australia are doing well – our governments are in economic “Struggle Street”. Continue reading »
It is true that currently, we have fewer properties available for sale at the top end of the market. Does this scarcity of available properties mean that consumers have lost their insatiable appetite and prices are on a significant decline? Definitely not! However it is true, that in many markets, merchant bankers have had their pocket money reduced and this has led to the market price consolidation in our economy today. Continue reading »
The stage is set, but we can’t perform while our economy remains convoluted with excessive and indulgent taxation restraints. Today, the “lucky country” is failing miserably as far as the property industry is concerned. Continue reading »
As each week goes by it becomes more and more obvious that our economy is slowing (weakening for that matter) and the obvious remedy will be interest rate reductions (and not before time). Just that when the Reserve Bank of Australia (RBA) addresses monetary policy next Tuesday, the banks are not certain to follow suit. With the National Australia Bank and ANZ already rubber stamping a rate reduction based on speculation of a 0.25 per cent reduction it appears (for the moment) that the CBA and Westpac will do the same. Continue reading »
What we have observed in recent times is that the Reserve Bank of Australia (RBA) does not hold all the aces and therefore, it is highly unlikely that banks will pass on the full amount of next month’s rate cut. Since last August the RBA has moved the cash rate up one per cent. The banks added an additional 0.55 per cent given that the cost of funds to banks was actually much higher than the RBA official cash rate (hence the 0.55 per cent market fine). Continue reading »
Not since the early nineties has the Mosman residential market been under such close scrutiny. Divided perceptions simply add to the intrigue and the coming months will reveal all. Quite simple really – property prices will either
A – Fall
B – Rise
C – Remain Constant
D – All of the above
Well it is now official! Sydney has the world’s most unaffordable housing market and because (we believe) house prices will show strong gains through to Christmas and beyond, the situation will get worse, before it gets better. Now before you jump to the conclusion that I may be suffering the effects of too much sun (following my recent break) there are some amazing statistics that have recently emerged that more than support this prediction. Continue reading »
In last week’s newsletter, Steve talked about how the current market is seen as a buyers’ market.
But what about the poor vendor!
I thought I would take my opportunity to talk about the last few months and how vendors can still achieve great prices in what is being reported as a buyers’ market. Continue reading »
Address: 646 Military Road, Mosman
NSW 2088 Australia
Phone: +61 2 9969 7622
Fax: +61 2 9969 7859
