As you may well be aware, Robert is having a well-earned break for two weeks in the sun, re-charging his batteries and finessing his writing skills. It is impossible to compete with Robert’s passion and commitment to his newsletter. Suffice to say, he spends hours and hours every week researching and analysing the real estate market to pass valuable information on to our clients. It truly is a mammoth effort and we should know – we empty his office every week of all the articles and reports he studies. Continue reading »

25.07.08Stephen PatrickNo Comments »

One has to simply hand it to our politicians ! If they don’t know the correct answer they just make one up. With the major banks raising interest rates, Federal Treasure “Wayne’s World” Swan responded with the suggestion, that if customers were unhappy they should simply change lenders. Unfortunately for “Wayne’s World” it is not that simple as the banks are actually well justified to keep raising their rates as I found out when I looked a little deeper, he however obviously has little idea as to the reasons why? Continue reading »

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18.07.08Robert Simeon2 Comments »

It has been some considerable time since businesses had to closely scrutinise their respective market positioning. Despite all the doom and gloom, many hi-tech real estate agencies view the current landscape with excitement given the strong possibilities that previous marketing initiatives may require modification if consumer spending continues to decline. The Westpac – Melbourne Institute consumer sentiment index dropped again to 6.7 per cent this week, which is the lowest level recorded since January 1992. Continue reading »

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11.07.08Robert SimeonNo Comments »

I am totally mystified as to why our stock market reflects the previous night’s results on Wall Street, which represent completely different markets.

Falling property prices in Bellaire have no effect on Mosman, any more than the Beverly Hills market dictates the Double Bay market, or Malibu determines market sentiment in Palm Beach. In the share market melt-down, the biggest falls in 26 years have been recorded and in 2007-08, nearly $400 billion has been wiped from investor funds. Some suggest that as a direct result of these capitulations, we are headed for recession. What many forget is that the smart investors sold out last year and today, remain cashed up. In the current market environment if you carry debt you are not exactly a safe bet and there are always casualties. Continue reading »

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4.07.08Robert SimeonNo Comments »

SYDNEY PROPERTY MARKETS – ROCKING, ROLLING AND STILL TO THE BEAT!
Well some anyway! Last week’s release of The Dyson Austen top 10 residential survey for the March Quarter 2008 identified a staggering market trend. With world property markets in 2008 affected by the subprime and share market speed bumps the highest prices ever recorded, were posted in the March Quarter 2008. Continue reading »

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27.06.08Robert SimeonNo Comments »

It is official! Recent data revealed that in the March quarter, new home construction was just 38,811 – down 3.3 per cent on the December quarter. Property market commentators rang alarm bells, announcing that the housing market was well and truly in the doldrums. The current shortfall is now projected at 30,000 per annum and growing, yet property prices keep falling. A direct result of high interest rates, where private ‘new house starts’ also fell 6.3 per cent in the March quarter. New apartment construction did rise by 3 per cent which is hardly a great yardstick. For new housing starts, ACT was down 16.9 per cent, Tasmania posted a 13.3 per cent decline, Queensland down 9 per cent, Western Australia 7.3 per cent and Victoria down 4.8 per cent. South Australia posted a 24.7 per cent increase, NSW up 9.3 per cent and the Northern Territory up 14.9 per cent. Continue reading »

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20.06.08Robert SimeonNo Comments »

Without a shadow of a doubt this week identified itself as the worst “Bad News Week” since negativity crept then swept world markets in August 2007. Culminating yesterday with the share market falling 2.53 per cent based on economic uncertainty and high oil prices shadowing stocks. No doubt there will be many eyeballs glued to the share market today trying to fathom investment strategies, given the collective sentiments that suggest we have worse to come. With interest rates at twelve year highs, the records that our markets keep identifying are records for all the wrong reasons which today resonate throughout the financial markets. Consumers are feeling the brunt of record high costs of fuel, food and rents which begs the (unanswered) question, how much ‘slow’ do we need before we start to grow again? Continue reading »

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13.06.08Robert SimeonNo Comments »

The most important fact that resonated with me when the NSW Fudge-it was announced this week, is that we are simply paying way too much tax. Last December the treasurer, “Cost – ya” plenty, announced that by his calculations, the budget surplus for the current financial year would come in around $506 million. More than his previous calculations in June 2007 (that the surplus was likely to come in at $376 million) the budget surplus for 2007/08 is now revised up to $700 million. Quite amazing that previously “Cost-ya” thought (hoped) that in 2009/10 the surplus would climb to $730 million. We obviously have a treasurer who either can’t count or has no idea what is actually happening with the NSW economy. Leaving GST aside (the tax supposed to reduce taxes – yeah right) the NSW government has done beautifully out of “P’s” – that being property and payroll tax. In property the “P’s” refer to position – position – position, while payroll tax is a bonanza when the economy runs at record low unemployment figures. Continue reading »

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6.06.08Robert SimeonNo Comments »

The fuel debate continues to raise many interesting forms of debate and a recent article that appeared in The Weekend Australian Financial Review on May 24 – 25 2008 by Deirdre Macken titled “HOW CARS DRIVE PROPERTY PRICES”, certainly raised more than a few eyebrows. “If the car were to encounter the perfect storm, it would be a confluence of record petrol prices, threats of oil shortages, congested roads, ageing infrastructure, and warnings about the link between car use and obesity.” Continue reading »

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30.05.08Robert SimeonNo Comments »

How can we make sense of the Federal government’s latest immigration plan to bring almost 300,000 into the country in the next twelve months ? (You don’t have to answer that one). For some inexplicable reason this frightening statistic failed to crack a mention in recent media reports. We now have the lowest ever vacancy rates creating a chronic housing shortage. This is now the twentieth month in a row that the vacancy rate has remained at below 2% – the benchmark figure. To put this into greater perspective, in August 2007 the figure was 1.5% in Sydney. Nine months later, the news is getting worse with household rents now at record highs and climbing even higher. Continue reading »

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23.05.08Robert SimeonNo Comments »

Before we jump to conclusions – RIP. Reactive, Inactive? Preferably being Proactive?

The three most powerful words in the universal business community today were sadly missed in Budget 2008. The strongest financial industry leaders today are very much proactive. Those following suit adopt the secondary position of reactive. As for third place, (and no dividend paid) that would be the inactive. These are those once dominant participants who’s successes today remain as a somewhat distant memories, based on their respective expired business models. Continue reading »

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16.05.08Robert SimeonNo Comments »