Another fascinating Fudge–it which evoked more of a class war than anything else with the Australian Labor Party (ALP) continuing down that wobbly path of trying to re-unite with a disintegrating party base. Gone are the days of self promoting their initiative where the Henry Tax Review is now more a case Federal Budget 2012: Wayne Swan and Henry who?

It is abundantly clear that Budget 2012 was more about a cash splash to calm carbon fears which begs the question: If the Carbon Tax is going to have such an extreme impact on household finances, the Gillard Government has just confirmed it – in bold lights.

Just as interesting that at the previous Fudge–it, the deficit was forecast for this year at $23 billion and has now come in at $44 billion. This is somewhat extraordinary, given Wayne Swan expects to see tax receipts increase over the next twelve months. On the other hand, business owners will tell anyone who wants to listen that business today, is much harder than it was twelve months ago.

To add further starch to my recent comments, futures markets are strongly pricing in a cash rate of 2.5 percent for March quarter 2013. Bearing in mind at the bottoming of the Global Financial Crisis (GFC) Australia’s cash rate bottomed at 3.00 percent on April 8, 2009. Somewhat scary financial markets are already factoring a cash rate at 50 basis points below the GFC trough.

Property buyers should definitely be locking in variable rates.

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So we have Wayne Swan’s dangerous debt game which (not mentioned in the Budget papers) – If China’s economy stumbles, Australia’s deficit will soar.

In recent editions I have been harping on as to why our Reserve Bank of Australia (RBA) is the only G20 central bank that works from out of date data.

The reason, why?

Lack of funds leaves Reserve Bank relying on out – of – date data so why, did the “World’s Greatest Treasurer” Wayne Swan not address this in his Budget 2012 – hardly an ALP endorsement for its “working families”. In a 2010 submission to the 16th Series Review of the Consumer Price Index, the RBA said it was “strongly of the view” that a monthly CPI constituted “best practice” and more frequent data would help the bank make better assessments of inflation data.

So what would this cost the Gillard Government?

The Australian Bureau of Statistics estimates that it would cost $6 million to commence publication of monthly data, with another $15 million required to keep it going. Quick to pay Craig Thomson’s legal bills yet not interested in providing the RBA crucial data – try working that one out given again this was missing from the budget.

Everyone was no doubt amazed when yesterday, the jobless rate in surprise fall what an embarrassing fudge this is. If you work just one hour a week you are considered fully employed – another broken system within the Australian economy. For the record: the unemployment rates across the states was Tasmania 8.3 per cent, Victoria 5.3 percent, South Australia 5.2 percent, Queensland 5.1 percent, NSW 4.9 percent and Western Australia 3.8 percent. The real Australian unemployment rate would be fluctuating around 9.5 percent.

Lower North Shore prices revived slightly in March: Residex with the Lower North Shore recording a slight price revival during the March quarter with house prices rising 3.79 percent. No doubt Julia Gillard read this report when she announced this week, Tony Abbott should “get off” Sydney’s north shore and talk to some “real families” in the “real world”. In the “real world” Ms. Gillard, seventy three percent of Australians don’t support you and that percentage is getting higher!

Another fascinating scorecard for local real estate this week where the number of available properties actually keep falling (at this point in time). Vendors are recognising price discounting and buyers are engaging with limited competition. This is the first week, where we have seen the majority of suburb data identifying lesser stock levels than previously recorded last week.

MOSMAN – 2088

• Number of houses on the market last week– 111
• Number of houses on the market this week – 113
• Number of apartments on the market last week – 104
• Number of apartments on the market this week – 98

CREMORNE – 2090

• Number of houses on the market last week– 14
• Number of houses on the market this week – 11
• Number of apartments on the market last week – 35
• Number of apartments on the market this week – 32

NEUTRAL BAY – 2089

• Number of houses on the market last week – 19
• Number of houses on the market this week – 19
• Number of apartments on the market last week – 66
• Number of apartments on the market this week – 62

Source: Domain Property Monitors

For this week’s sales in Mosman real estate, Beauty Point real estate, Clifton Gardens real estate, Balmoral real estate, Cremorne real estate, Cremorne Point real estate, Neutral Bay real estate, Cammeray real estate
• Click Here

For this week’s open for inspections –
• Click Here

The grubby side of politics will dominate in coming weeks although it’s interesting to note that Wayne Swan’s (tough budget talk) actually ended up resembling that of a marsh mellow.

Federal parliament is fast becoming untenable – don’t rule out a visit to the polls in 2012.

Cheers ^__^

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11.05.12Robert Simeon6 Comments »

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For the last two months, I have been calling on the Reserve Bank of Australia (RBA) to slash the official cash rate by 50 basis points – yes, we were one of a select few who got this call right. I find it somewhat frustrating to keep hearing about the banks’ higher exposure to borrowed funds. The “Big Four” now find themselves caught between a rock and a hard place – the rock being higher funding and the hard place being a property crash which would leave them with huge losses. These losses are much more severe on the property side than on the funding side.

The real reason (as I keep pointing out) is that the RBA ‘playing catch – up ‘due to CPI data deficit – this is really embarrassing for such an authority where its very economic monitoring has been blind folded.”HSBC Australia chief economist Paul Bloxham has called for the consumer price index – a measure of the change in price of a standard basket of goods – to be published on a monthly basis rather than every three months, so the RBA can stay abreast of inflation and better adjust rates to changing circumstances.”

Quite unbelievable that in 2012, the RBA can’t organise the Australian Bureau of Statistics (ABS) to provide monthly updates over quarterly CPI data updates. For the record, Australia and New Zealand remain the only countries in the Organisation for Economic Co – operation and Development that rely on quarterly updates.

To put last Tuesday’s 50 basis point reduction into perspective, it was an emergency decision, as the Australian economy is becoming toxic from an economic perspective.

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When the RBA cash rate was announced, the ASX rallied + 33 points with the market hitting the highest level in 8 months. I expect the cash rate to be at around 3.00 or 3.25 by December 2012.

Enter the ‘fool on the hill in Canberra’ – otherwise known as the “World’s Greatest Treasurer” who declared to everyone that the RBA rate cut was made possible by (his) government’s fiscal discipline. “Today’s interest rate cut and the two before have been made possible by disciplined fiscal policy delivered by this government.” Only a fool would make such a statement. When the cash rate is reduced, it is because the RBA realises that the economy is toxic and requires stimulation. DOH!

It is abundantly clear that the RBA rate cuts in November and December resulted in a next to nothing result, considering that house prices across Australia have continued to fall. Just as interesting, is that the ABS was the only data aggregator to get this statistic correct – which sends a message that the others could be self-serving. This brings me to the next graph which highlights the “rock and hard place scenario”.

The “Big Four” presently have a 92.5 percent exposure with the non-banks sitting at 7.5 percent. So let me ask, is higher funding exposure the concern or maintaining equilibrium of property values? I know it is the latter – so in the meantime we can expect to see the “Big Four” off-load mortgages to the non – banks. This is clearly evident by the deliberations over this week’s cash rate reduction.

Wayne Swan delivers his fifth “fudge–it” next week, which is amazing considering that in his four previous “fudge – its”, the estimates have been much higher than previously predicted. The “real” figure will come in at closer to $50 billion so only an idiot would suggest that in the current economic climate a government would deduct this amount from an obviously struggling economy.

MOSMAN – 2088

• Number of houses on the market last week– 106
• Number of houses on the market this week – 111
• Number of apartments on the market last week – 100
• Number of apartments on the market this week – 104

CREMORNE – 2090

• Number of houses on the market last week– 13
• Number of houses on the market this week – 14
• Number of apartments on the market last week – 34
• Number of apartments on the market this week – 35

NEUTRAL BAY – 2089

• Number of houses on the market last week – 14
• Number of houses on the market this week – 19
• Number of apartments on the market last week – 61
• Number of apartments on the market this week – 66

Source: Domain Property Monitors

For this week’s sales in Mosman real estate, Beauty Point real estate, Clifton Gardens real estate, Balmoral real estate, Cremorne real estate, Cremorne Point real estate, Neutral Bay real estate, Cammeray real estate
• Click Here

For this week’s open for inspections –
• Click Here

With school holidays now over, a somewhat minute increase in stock levels which is actually a positive indication of where Mosman property prices are headed. Our market is consolidating and tightening.
When you have the cash rate significantly dropping and property markets consolidating, it means that real estate prices have bottomed. Our markets won’t be doing hand stands, nor booming, for that matter.

Having said that, it still remains a buyer’s market however, if history repeats itself (we see no reason why, this won’t happen again) we can see this returning to a vendors’ market in the coming winter months.

Looking ahead – Australia is presently being run by the most incompetent government in its history. Labor would lose both chambers if an election were held now where the cross benches are some way from passing the budget – which faces a strong possibility of being rejected.

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Having said that, ‘rejected’ is a familiar word that constantly confronts Australia’s most ever popular leader.

Cheers ^__^

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4.05.12Robert Simeon2 Comments »

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In a recent edition of Virtual Realty News I referred to an article which appeared in Property Observer – Monthly inflation measure would have seen earlier rate cut: Paul Bloxham. The introduction of a monthly inflation measure “as used by almost all other OECD countries” would have seen a cautious Reserve Bank of Australia (RBA) cut this month (last meeting) says a former RBA economist and current HSBC chief economist for Australia, Paul Bloxham. Suffice to say nearly every OECD country works from monthly CPI data and Australia works from quarterly data where the March quarter CPI is determined at the May 1, RBA board meeting. How backward is that?

Coincidently, in the week before the April RBA board meeting, I argued that the cash rate should immediately be reduced by 0.50 basis points. One month later we read interest rates to fall – and keep falling on the back of CPI climbed by 0.1 percent for the March quarter. So for the year to March, CPI is at 1.6 percent which happens to be well below the RBA’s target band rate of between 2.00 and 3.00 per cent. To further highlight this embarrassing collection of CPI data, RBA ‘head teller’ Glenn Stevens announced after the March RBA board meeting that if the March quarter inflation numbers were benign, the bank would be inclined to cut official interest rates. Now, two meetings after the end of the March quarter, the RBA will cut the cash rate in May?

Why, does the RBA not insist on best practice by demanding monthly inflation data? Alan Kohler wrote inProperty Observer –  The RBA has egg on its face and needs to cut rates by 50 basis points.” The RBA’s economics department had a bad year in 2011, and as a result the board is now high and dry with an official cash rate that is obviously wrong. It needs to come down by 0.50 percent, to 3.75 percent, next week.”  Embarrassing? You bet! Is the RBA operating system Windows 95?

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There is no denying that the real estate industry has been on Struggle Street so it came as little surprise to read Mark Bouris and John Symond slam Treasurer Wayne Swan for allowing major banks to dominate mortgage market. These non – bank pioneers attacked the treasurer for hindering competition by allowing the major banks to increase their dominance of the home lending markets. I must admit I was most surprised when I observed this graph, which identifies our major banks controlling 92.5 percent of the home loan market although the Building Societies and Non – Banks control just 7.5 percent. I’m unsure of the norm however; I would think that in a fair market it is strange that the major banks market share has jumped from around 80 percent to over 90 percent since the onset of the GFC. Yet the “World’s Greatest Treasurer” Wayne Swan keeps harping on television that mortgage owners should shop around.

Now for my conspiracy theory: No, NSW you can’t have more GST cash where the NSW proposal that the GST allocation should be allocated based on population would have delivered $750 million to state coffers.Property tax intake hits record highs despite housing slump with property related taxes rose 4.6 percent last financial year to a massive $33 billion, despite a slump in the residential housing market. A probable answer number of foreign investment residential approvals more than doubles as government scrutinises more transactions.

We have an anomaly here, given the Foreign Investment Revenue Review Board (FIRB) Annual Report 2010 – 11, “As of 24 April 2010, temporary residents residing in Australia are no longer exempted from notification of proposed acquisitions of established residential real estate. “ The FIRB now requires that in 2010 – 11, temporary residents must apply to the FIRB so that records can be kept. This means that acquisitions by temporary residents from 2008 to 2010, will never be known – or recorded!

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MOSMAN – 2088

• Number of houses on the market last week– 101
• Number of houses on the market this week – 106
• Number of apartments on the market last week – 103
• Number of apartments on the market this week – 100

CREMORNE – 2090

• Number of houses on the market last week– 11
• Number of houses on the market this week – 13
• Number of apartments on the market last week – 32
• Number of apartments on the market this week – 34

NEUTRAL BAY – 2089

• Number of houses on the market last week – 12
• Number of houses on the market this week – 14
• Number of apartments on the market last week – 59
• Number of apartments on the market this week – 61

Source: Domain Property Monitors

For this week’s sales in Mosman real estate, Beauty Point real estate, Clifton Gardens real estate, Balmoral real estate, Cremorne real estate, Cremorne Point real estate, Neutral Bay real estate, Cammeray real estate
• Click Here

For this week’s open for inspections –
• Click Here

Property listings remain in a holding pattern (as we predicted) and we expect to remain the status quo all the way through to spring /summer. Should this happen and we can’t see any reason why it won’t the spring/summer real estate market could very well have plenty of heat in it.

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I will leave the federal politics out this week except to say that the ALP will be absolutely smashed at the next federal election (which may happen this year). The Independents are finally jockeying for voter approvals – so don’t be surprised if the budget is voted down in the House of Representatives.

Cheers ^__^

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27.04.12Robert Simeon2 Comments »

I was reading an economics blog this week when one bloggers comment resonated in my mind – “politicians treat us like mushrooms, they keep us in the dark and feed us bulls&)$.” Since the global financial crisis (GFC) we have learnt how badly the Rudd/Gillard governments manage other people’s monies. The greatest problem for the Gillard government has been the botched Treasury estimations on company tax revenues. Finance department figures estimated that the 2011 – 12 budget deficits would be $37.100 billion now this figure is blowing out to about $40.000 billion.

You don’t have to be Einstein (unless you are a public servant living in Canberra) to see that businesses not related to mining are contracting. Governments perform very well when economies are swimming along the river of economic growth – otherwise known as the hope factor. This is now looking hopelessly impossible given in the budget last year Wayne “the world’s greatest treasurer” Swan expected company profits would rise from $57.300 billion to $74.600 billion. Today, they are factoring in $70.000 billion although I would suggest it would be closer to $60.000 billion or less. The Mushroom Factor of economic management is alive and well.

Somewhat confusing that the IMF warns resource prices on the way down yet then announce that Australia has the strongest economy in the developed world where it is expected to outperform all other countries for the next two years. The mushrooms are blooming given company tax receipts will be significantly down. The result of this force feeding mushroom diet is that politicians are hoping they turn into magic mushrooms and Australians enter an economic hallucination.

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The big problem in the lucky mushroom country is faced by the polls where it’s a matter of trust for Julia Gillard as Labor support flatlines in Newspoll. The lack of confidence by Australia’s little button mushrooms plays a major part with property market price machinations. This was evidenced this week when Julia Gillard established her Labor election campaign committee based on the wipe – out and destruction of Queensland Labor. At the next federal election it is almost guaranteed that the Greens might possibly be the number two party in Australia. I don’t concur with that given leader Bob Brown deserted the ship given he well knows his carbon tax (oops it’s called carbon price now) will be an electoral Armageddon.

Over to the real estate market where Title Deeds published the 2012 Top 20 house sales and Mosman was a star performer.

Mosman grabbed positions 2, 3, 4 and 14 which is a first where Mosman has posted three of the top five sales. No doubt the Eastern Suburbs agents will be choking on their cucumber sandwiches. The present property market is as tough as the markets in the early 1990’s – the “recession we had to have.” So it came as a shock that Australian Prime Minister politicises the RBA – again: Christopher Joye. The Australian Financial Review reported yesterday “Prime Minister Julia Gillard will aggressively link her budget – surplus goal directly to lower interest rates, saying that the Reserve Bank of Australia has “plenty of room” to cut its 4.25% cash rate … Even more interesting that Julia Gillard can instruct the RBA on independent monetary policy yet she could not instruct Fair Work Australia over the Craig Thomson matter – magic mushrooms?

Again the property offerings in Mosman are holding steady where I expect these volumes will range from 100 to 125 listings over the next five months – it will be almost guaranteed a case of slim pickings.

.MOSMAN – 2088

• Number of houses on the market last week– 98
• Number of houses on the market this week – 101
• Number of apartments on the market last week – 105
• Number of apartments on the market this week – 103

CREMORNE – 2090

• Number of houses on the market last week– 11
• Number of houses on the market this week – 11
• Number of apartments on the market last week – 30
• Number of apartments on the market this week – 32

NEUTRAL BAY – 2089

• Number of houses on the market last week – 14
• Number of houses on the market this week – 12
• Number of apartments on the market last week – 51
• Number of apartments on the market this week – 59

Source: Domain Property Monitors

For this week’s sales in Mosman real estate, Beauty Point real estate, Clifton Gardens real estate, Balmoral real estate, Cremorne real estate, Cremorne Point real estate, Neutral Bay real estate, Cammeray real estate

• Click Here

For this week’s open for inspections –

• Click Here

Whilst the property markets meander the punters will be mindful of picking the troughs and positioning for the boom which would in my opinion be some time off given the present environment. When the anecdotal evidence (if not already) that the Gillard government will be decimated at the next election we will start to see property prices spiking given the market has bottomed. Real estate markets (these days) perform much better under Conservative government economic policy.

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The government is focussed on ‘much room’ for improvement whilst the public are tiring of mushroom politics. Two and half months until the introduction of the carbon tax aka carbon price and that would be the final nail in the coffin.

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Finally Sydney has something to be excited about $1 billion makeover: Sydney Entertainment Centre to be knocked down as apartments, shops and restaurants to be built in a new Darling Harbour plan.I will make a prediction that Darling Harbour will become the next Mosman in terms of popularity given it provides a walk to everything – which is exactly how the new world want to live.

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Cheers ^__^

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20.04.12Robert Simeon4 Comments »

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The one consistency we are seeing economically is soft announcements – yet for some very strange reason this week markets celebrated the March unemployment rate remaining steady at 5.2 percent. If the truth be known the true figure would be closer to 10 per cent given the system of calculating the rate is embarrassingly flawed.

Unemployment rate steady in March according to data released by the Australian Bureau of Statistics (ABS) the total number of jobs rose in Australia by 44,000, or 0.4 percent, to 11,491,200 in the month. To show how flawed this method of calculation is in March we have +44,000 where the previous four months recorded -15,400, +48,100, -36,600 and -3,700. The Australian construction industry has been contracting monthly for the last 22 months. Roy Morgan reported in January that unemployment had spiked 1.7 percent in January to take the rate to 10.3 percent – the ABS reported that the rate by their calculation was 5.1 percent.

The problems when applying the ABS methodology of counting is actually quite embarrassing given you are considered employed as long as you qualify by working just the one hour each week. So if you are an unemployed banker working part time delivering pizzas a few nights each week you are deemed employed even though you may be attending job interviews during the day. So by pure definition the system is somewhat narrow should you be unemployed yet broad and misleading if you are employed. The Reserve Bank of Australia (RBA) works from the ABS unemployment statistics when assessing the cash rate – little wonder as to why, consumer confidence is in serious decline.

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Mr. Mooney you never cease to amaze me with your prying eye in the skies – when I first saw this picture I thought this is a very special moment that the majority of city – slickers would never have seen before.

Monthly inflation measure would have seen earlier rate cut: Paul Bloxham so here we go again with another flawed furphy. The introduction of a monthly inflation measure “as used by almost all other OECD countries” would have seen a cautious RBA cut interest rates this month, says a former RBA economist and current HSBC chief economist for Australia.

So you’re actively employed in Australia if you work just one hour a week and nearly every OECD country and most developing countries have access to monthly CPI data yet, Australia still relies on quarterly data. Somewhat amazed that in this day and age that Australian economists and politicians have never asked: why are we still in the dark ages of a third world economy? Maybe the “World’s Greatest Treasurer” has an answer?

It is quite amazing just how dysfunctional our economic reporting is in Australia today which raises some serious questions as to why we are so embarrassingly late with data reporting. My head shakes in total disbelief and ponders what other significant economic data flaws Australia urgently needs to address – after all this is 2012 not 1912.

Australians pay off their mortgages faster than Americans: RBA well this report smashes the ‘doom and gloom” fraternity who continue to speculate a crash with the Australian housing markets. There will be crashes just not anytime soon. The reason why Australians pay down their mortgages faster than Americans is simple: if they default they are bankrupted. In America one simply returns the keys and moves on to another home. Having said that mounting credit card bills drive bankruptcy boom in western suburbs.The 2770 postcode – Mount Druitt, Minchinbury and surrounds – was the most affected, with 163 bankruptcy declarations. In comparison Mosman filed 22 bankruptcy applications which is one of the lowest delinquency rates within Australia.

Not a week goes by where I’m not critiquing our Mosman market where the report card remains impressive when compared to comparable property markets. Mosman now has just 98 houses on the market which is significantly down from the 145 on March 3 this year. We can only rely on anecdotal sales evidence so this evidence is compelling.

RWM Research predicts that Mosman will not see available properties on the market getting anywhere near 145 until possibly September 2012 – we predict a very tight next five months of trading. It will be real estate agencies that default not households.

.MOSMAN – 2088

• Number of houses on the market last week– 114
• Number of houses on the market this week – 98
• Number of apartments on the market last week – 103
• Number of apartments on the market this week – 105

CREMORNE – 2090

• Number of houses on the market last week– 11
• Number of houses on the market this week – 11
• Number of apartments on the market last week – 26
• Number of apartments on the market this week – 30

NEUTRAL BAY – 2089

• Number of houses on the market last week – 13
• Number of houses on the market this week – 14
• Number of apartments on the market last week – 50
• Number of apartments on the market this week – 51

Source: Domain Property Monitors

For this week’s sales in Mosman real estate, Beauty Point real estate, Clifton Gardens real estate, Balmoral real estate, Cremorne real estate, Cremorne Point real estate, Neutral Bay real estate, Cammeray real estate
• Click Here

For this week’s open for inspections –
• Click Here

I always chuckle when I hear that politicians don’t pay attention to the polls – even though state polling in Victoria, NSW and Queensland predictions proved to be 100 percent accurate. Labor on the nose in every state so I was interested to read an internal federal Labor polling which was conducted by former Labor senator John Black. The result?

46 of Labor’s current 72 members of the House of Representatives would lose their seats at the next federal election, including Bill Shorten, Stephen Smith, Greg Combet, Simon Crean and the “World’s Greatest Treasurer” Wayne Swan. The next generation of Labor leadership would be wiped out. Given the polls seventy percent of Australians would argue that this is exactly how Australia can “move forward’.

Electricity price rises: blame the carbon tax, says NSW where last year, IPART predicted electricity prices would increase by between 2 and 10 percent – well they announced yesterday the increase is now 16 percent.
Everyone is doing the numbers and it is not looking pretty.

For voters they keep seeing that the numbers up!

Cheers ^__^

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13.04.12Robert Simeon3 Comments »

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I can offer the Reserve Bank of Australia (RBA) just three words – out of touch!

A classic case of economic tautology where on the one hand the RBA acknowledges that growth is “somewhat below trend” yet they remarkably decide to leave the cash rate on hold at 4.25 percent. Remarkably the RBA holds rate, but points to May cut so four months into 2012 we have not seen the cash rate adjusted since December 2011?

So why a cash rate cut in May and not April – we will have to wait another 26 days to find out. Not many clues were left in the Statement by Glenn Stevens, Governor: Monetary Policy Decision aside from the fact that the cash rate is too high. It was more a meeting of “wait there’s more“ (without the steak knives being thrown in.)

Like a lull before a classic storm Alan Kohler wrote Business panic in government calm. “There’s an air of growing panic among Australia’s business people. Company directors are calling for a budget deficit, retailers feel like they are peering over a cliff and everybody’s worried sick about the carbon tax and the high currency.”

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Labor’s dire poll result from a one – off – its problem with voters is entrenched hello – a Tarago has more seats than Queensland Labor following last month’s election massacre. So it came with little surprise that Gillard rejects carbon tax review when dumped cabinet minister Robert McClelland stated that the carbon tax was a “burning issue” that needed to be resolved, and the broken election promise went to the “legitimacy of government decision – making”. If last year’s NSW state election and the recent Queensland election leave any clues – destroying a government is a new blood – sport.

Here is why.

The RBA would be closely monitoring the Australian housing market which has produced anecdotal evidence of price softening. Within the Mosman market this contagion is actually more about job security than anything else where it is most obvious that households are more affixed to maintaining job security over increasing mortgage exposure.

The RBA would be closely monitoring the Australian housing market which has produced anecdotal evidence of price softening. Within the Mosman market this contagion is actually more about job security than anything else where it is most obvious that households are more affixed to maintaining job security over increasing mortgage exposure.

What needs to be addressed is that within Mosman the primary concern is not about house prices falling rather job security. Habitual “property fool” Steve Keen declared this week Australian housing market still facing Japan – or US – style downturn due to deleveraging: Steve Keen. The more reports I read by Mr Keen the more I see that the man is delusional and severely suffering from an identity crisis.

.Each week I watch the Mosman, Cremorne and Neutral Bay stock levels and they are purring along very well. Mosman house volumes for sale are dropping in proportion to the peak selling periods which tells us that the markets are engaging very effectively – thank you. It should also be noted that the number of houses in Cremorne is at the lowest number (11) since we started recording this data.

We expect the volume of houses within Mosman to sit within 2 to 3 percent of total number throughout the rest of 2012. When a suburb hits north of 5 to 10 percent then you have a serious problem.

MOSMAN – 2088

• Number of houses on the market last week– 126
• Number of houses on the market this week – 114
• Number of apartments on the market last week – 104
• Number of apartments on the market this week – 103

CREMORNE – 2090

• Number of houses on the market last week– 15
• Number of houses on the market this week – 11
• Number of apartments on the market last week – 26
• Number of apartments on the market this week – 26

NEUTRAL BAY – 2089

• Number of houses on the market last week – 16
• Number of houses on the market this week – 13
• Number of apartments on the market last week – 53
• Number of apartments on the market this week – 50

Source: Domain Property Monitors

For this week’s sales in Mosman real estate, Beauty Point real estate, Clifton Gardens real estate, Balmoral real estate, Cremorne real estate, Cremorne Point real estate, Neutral Bay real estate, Cammeray real estate
• Click Here

For this week’s open for inspections –
• Click Here

There are two big factors that need analysing – will house prices be decimated or will the Gillard government capitulate on policies. I think the latter – polls are like kryptonite to politicians given the vast majority are unemployable. PM unmoved as ACTU cuts ties with union which is quite hilarious given the ALP is the home for union members – they cited “the union movement has zero tolerance for corruption”.

Throw in NBN labelled a waste to set Labor back years “it may be popular now, but Labor’s $36 billion national broadband network is shaping up to be a financial disaster that will set Labor’s image back decades, rebranding it the party of waste and extravagance. That’s the view of Percy Allan, president of the Australian Institute of Public Administration and a former head of NSW Treasury under premiers, Wran, Greiner and Fahey. Releasing a report card on “public policy drift”, he told the Herald that Kevin Rudd came to office in 2007 promising “evidence based” decision – making, but never spelled out what the term meant. “True evidence – based decision making requires consultation. Kevin’s style was to lock himself in a cave and put in all the evidence and then emerge as Moses from the mountain with the tablets to tell the people what they would get.” The broadband network is a case in point.”

Markets are already factoring in that the cash rate will be at 3.25 percent within twelve months time. The government is praying that its approval rating will not be following suit.

Have a great Easter, and may the bunny be respectful of our waistlines.

Cheers ^__^

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5.04.12Robert Simeon2 Comments »

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The “world’s greatest treasurer” Wayne Swan rejects nation’s ‘low productivity’ tag by declaring that Australia punches above its weight in the global productivity stakes, while attacking critics who blame slow productivity growth on Labor’s workplace laws. In a startling revelation, he declared that Labor had long term policies in place to deal with Australia’s productivity slump. These included skills and education reforms, the National Broadband Network and putting a price on carbon. Wayne, productivity needs ailing infrastructure to be remedied to bring it into the 21st Century.

My point was further highlighted this week when key infrastructure projects at risk as funding dries up – yes Infrastructure Australia is evaluating projects however there is no money to fund them. So the Australia economy is not going anywhere soon – actually it is being grossly mismanaged by a government that has absolutely no idea about fundamental economics. Australia may be (currently) the 13th largest economy in the world with population ranked at 52 – however productivity is on a grand scale decline.

This week I wrote for Property Observer – Government changes and interest rate cuts needed to fight Australia’s white – collar recession. Productivity growth has been weak in recent years, which has lowered Australia’s potential growth rate. Our estimates suggest potential growth was 3.5% to 3.75% for 2000 to 2005, but it is closer to 2.5% to 2.75% now. Without a pick up in productivity, Australia will probably have to accept lower GDP growth, higher unemployment and higher interest rates.

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At the Australian Business Economists’ breakfast this week the “world’s greatest treasurer “declared that his May budget will contain very little new spending and heavy cuts to existing programs as the Gillard government attempts to balance the budget by June 30, 2013. Australia’s tax proportion of gross domestic profit has fallen from a peak of 24.2 per cent prior to the Global Financial Crisis (GFC) to 20 per cent. A horror budget ahead for eastern states where the Gillard government is cutting spending locally, yet maintaining expenditure outside Australia. Work that one out!

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The Reserve Bank of Australia (RBA) meets next week so let’s hope it takes an axe to its cash rate. It needs to be cut by 100 basis points to get the economy going again so let’s see if we’re in charge: RBA says it still rules over rates. It is all very well to read that worst of eurozone crisis over, says ECB although it is very clear that the Australian economy is now double-dipping.

It is pretty clear as NSW Treasurer; Mike Baird sets out emergency plan for next economic downturn as the prospect of a global financial shock that would threaten to tip NSW into recession has sparked an emergency plan to pump billions of dollars into key infrastructure projects to stimulate the economy. So why then, is Infrastructure Australia being told that there are no funds available for allocation for urgent infrastructure projects?

Little wonder that Peter Costello aims for Queensland triple – A, after being named head of a budget audit committee. The RBA meeting next Tuesday is without a doubt right up there with one of the most crucial and important in the bank’s history. John Symond urges ‘out of touch’ RBA to cut rates or borrowers will burst like tomatoes.

The JPMorgan, Fujitsu Australian mortgage industry report announced this week that property market undergoing seismic shift by declaring this once –in-a-generation shift has left debt -weary buyers opting to sit on that proverbial property fence. Australians today are now paying down mortgages at the fastest rate since the peak of the GFC.

Interesting to note that again Mosman house volumes for sale keep diminishing (as I predicted) with sold properties out – pacing new listings.

MOSMAN – 2088

• Number of houses on the market last week– 130
• Number of houses on the market this week – 126
• Number of apartments on the market last week – 108
• Number of apartments on the market this week – 104

CREMORNE – 2090

• Number of houses on the market last week– 16
• Number of houses on the market this week – 15
• Number of apartments on the market last week – 27
• Number of apartments on the market this week – 26

NEUTRAL BAY – 2089

• Number of houses on the market last week – 18
• Number of houses on the market this week – 16
• Number of apartments on the market last week – 57
• Number of apartments on the market this week – 53

Source: Domain Property Monitors

For this week’s sales in Mosman real estate, Beauty Point real estate, Clifton Gardens real estate, Balmoral real estate, Cremorne real estate, Cremorne Point real estate, Neutral Bay real estate, Cammeray real estate
• Click Here

For this week’s open for inspections –
• Click Here

Queensland tsunami is headed for federal ALP as Julia Gillard’s party is just about over as Labor routed in Queensland. Federal Labor MP’s were quick to point out that it was a Queensland thing (which is rubbish). It was all about the Labor brand and economic management.

Australians are saving not spending – let’s hope that the Wayne Swan’s appointed RBA board recognise this when they meet next week.

My advice to the RBA – slash the rate and cash- in! Wayne Swan’s foolish surplus fetish where no Australian government has ever proposed such a huge withdrawal of spending from the economy.

I will make a couple of predictions.

The cash rate will be 3.75 per cent next week and Wayne Swan will be seat less after the next election. Highly unlikely his next career will have anything to do with economics.

Cheers ^__^

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30.03.12Robert Simeon1 Comment »

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The Australian economy today, is missing a key ingredient  – productivity! The big problem lies in identifying just why productivity is on a downward spiral. The search for answers is both compelling and perplexing, considering  that our Federal Government (Fort Fumble) spends half a billion dollars a year on consultants (not to be confused with public servants) – Labor spending billions on advice. This is a record spend which identifies how little the Gillard Government knows about economic management.

So how does Australia seduce businesses again – and remove the productivity condom?  I read last night with interest, the HSBC Downunder digest which had a close critique of Australia’s productivity challenges.

• Productivity growth has been weak in recent years, and this has lowered Australia’s potential growth rate.
• Our estimates suggest potential growth was 3.50 – 3.75% per annum for 2000 to 2005, but it is closer to 2.50 – 2.75%
• Without a pick-up in productivity, Australia will probably have to accept lower GDP growth, higher unemployment and higher interest rates.

BUY PRINT

“At the outset, we need to keep in mind that Australia’s overall position is strong, particularly relative to the rest of the developed world. This reflects a number of factors, Australia has strong links to Asia, a huge mining investment boom, a government with low debt, inflation on target, rates at around neutral and a responsive central bank.”

Business Spectator ran a great story when Karen Maley interviewed Saul Eslake – Eslake ponders a productivity pickle. This argument is certainly not helped with Australia’s dirty electricity rip – off and Australians paying some of the highest household electricity prices in the world (yet their electricity is by far the most polluting) and we aren’t even paying a carbon tax – yet!

The combination of all these factors identifies that our economy tipped to grow at sluggish pace. This should not be seen as a negative given many businesses are re- calibrating their models. The question is, are they moving their respective businesses in the right direction?

In 2005, I tipped that within twelve years David Jones and Myer would no longer exist in Australia. They will simply close operations and the big American operations will fill their space. Online metamorphosis on the double – Boston Consulting Group (BCG) has produced a report on the impact of the Internet on the global economy. BCG says the impact of the Internet is getting bigger everywhere, off an already enormous base. It expects the Internet economy in the developed G20 nations to grow by eight per cent a year over the next five years, outpacing almost every traditional economic sector. Now that is powerful.

Sorry but I can’t agree with WA,NSW, and Queensland to lead rebound in residential construction from 2013:BIS Shrapnel. Can somebody please email me a prediction that was ever correct?  How on earth can such a prediction see the light of day when construction carnage: more than 80 firms collapse in a month as building industries suffer through 2012.

Following on from the recent property trail reporting that a Beauty Point waterfront recently sold for $20.000 million – Bankers are supposedly bailing, but Mosman’s Mandolong House reputedly sells for a bullish $18 million.

Monitoring real estate markets is not that hard – just watch your weekly market barometer where in Mosman the number of houses available significantly reduced from 144 last Friday to 130 this Friday. Mosman is a fortunate suburb that rates presently at number 10 in Australia (and climbing higher.) I predict this time next year it will be sitting at number six or five.

Yes we have houses with negative equity on the increase although I can’t see the Federal government must decide if housing industry warrants a handout in May budget they would need to spend another few hundred thousand dollars on consultancy fees to reach a decision on that.

MOSMAN – 2088

• Number of houses on the market last week– 144
• Number of houses on the market this week – 130
• Number of apartments on the market last week – 114
• Number of apartments on the market this week – 108

CREMORNE – 2090

• Number of houses on the market last week– 17
• Number of houses on the market this week – 16
• Number of apartments on the market last week – 24
• Number of apartments on the market this week – 27

NEUTRAL BAY – 2089

• Number of houses on the market last week – 19
• Number of houses on the market this week – 18
• Number of apartments on the market last week – 64
• Number of apartments on the market this week – 57

Source: Domain Property Monitors

For this week’s sales in Mosman real estate, Beauty Point real estate, Clifton Gardens real estate, Balmoral real estate, Cremorne real estate, Cremorne Point real estate, Neutral Bay real estate, Cammeray real estate –

• Click Here

For this week’s open for inspections –

• Click Here

Just 2.65 per cent of Mosman properties are on the market although it is disconcerting that we have a Federal Government that is not the least concerned with market machinations.

Easily explained with Albanese, 10 others breach rule on grants – pork-barrelling is alive and well in the Australian Labor Party. What they should focus on is Australian housing market just a jobs crisis away from collapse.

With businesses struggling I can’t see how productivity will turn around when we are all about to embrace a Carbon Tax.

History shows that when politicians start pork-barrelling, their business model is facing collapse.

We can only hope that it is not contagious.

As for Fairfax Media, your changes in Saturday Domain will only kill print advertising. Print is dying (see Boston Report above) and Fairfax management is fast processing this demise. A history of great journalists which has been sold out to developers’ dollars.  Buyers now have to search Mosman properties in two different sections – hardly user friendly.

Cheers ^__^

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23.03.12Robert Simeon4 Comments »

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There is no way to sugar coat our Australian markets at the moment unless you’re involved in the mining industry!  Even the “World’s Greatest Treasurer” is finally realising that it is pointless to compare our economy with the rest of the world, especially as we have plenty of problems that require urgent attention. All budget bets are off by Alan Kohler over at Business Spectator wrote “If a line in Treasury Secretary Martin Parkinson’s speech a few days ago is to be taken at face value, all the arguments about tax cuts is academic. Tax increases are needed.”

“Parkinson said in the tax to GDP ratio had fallen by 4 percentage points since the GFC and “is not expected to recover to its pre – crisis level for many years to come”. The tax to GDP ratio in 2007 – 08 was 23.7 per cent, which implies that it’s now 19.7 per cent of GDP, or $308.7 billion. However in the mid – year economic and fiscal outlook statement last November, produced by Parkinson’s department, the ratio was 22.3 per cent, or $349.2 billion.”

“That suggests the final outcome for 2011 – 12 will be a much larger deficit than $37.1 billion: perhaps not $77 billion, because there will be savings and fiddles, but certainly more than predicted in November. So the question to both Wayne Swan and the alternative treasurer, Joe Hockey, is: how, exactly, will you produce a surplus in 2012 – 13 if economic growth is below previous forecasts and tax revenue is $40 billion short?”

BUY PRINT

Last night I was reading the Goldman Sachs Afternoon Market Report Thursday, March 15,2012 4:22PM which made some very interesting observations as well as some inaccurate ones about our property industry. Some of the interesting points raised:

• Things are tough out there in the Eastern Suburbs of Sydney – real estate agents telling me that they are seeing a huge amount of properties coming onto the market and a large number coming from bankers.
• As we know, in the last bonus rounds across the industry, many bankers were given their bonuses with caps of around $100,000 in cash (which translates to $50,000 after tax) and the balance paid in scrip, over 3 to 5 years.
• I have also heard stories that Mosman is in a huge state of distress (don’t forget many properties there are not advertised for sale – but are for sale if a buyer appears. Many Mosman owners say that for every 10 properties for sale in their street – just one is advertised). One agent recently said that houses selling for $2.2m a year ago are now back to $1.8m, a -18% fall in a year.
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What I can say to that is complete bull#$&*! Mosman presently has exactly 144 houses on the market today Source: Domain which out of 4,900 houses, represents 2.93 per cent. If you apply the multiple factor (stated above) that would equate too approximately 1,444 houses being available for sale which is 29.46 per cent as against the current precise number of 2.93 per cent.  If the number of houses for sale in Mosman was anyway near 30 per cent, prices would collapse by more than 50 + per cent.

House sales over $1,000,000 make up just 5 per cent of national house sales.  Over the GFC and beyond, Mosman posted one of the lowest delinquency rates in Australia – fact! No houses in Mosman in 2010 sold for less than $1,000,000 where 278 houses sold for a total value of $697,998,792 with an average sale price of $2,748,026



• In the last recession (1990 to 1992), unemployment rose from 5.6% and hit a high of 10.9% but interestingly, house prices still managed to rise +2% each year in 1990,1991 and 1992. So those looking to short the banks, thinking it’s an across the board collapse in property prices, should think again.

  MOSMAN – 2088

  • Number of houses on the market last week– 144
  • Number of houses on the market this week – 144
  • Number of apartments on the market last week – 115
  • Number of apartments on the market this week – 114

  CREMORNE – 2090

  • Number of houses on the market last week– 19
  • Number of houses on the market this week – 17
  • Number of apartments on the market last week – 25
  • Number of apartments on the market this week – 24

  NEUTRAL BAY – 2089

  • Number of houses on the market last week – 20
  • Number of houses on the market this week – 19
  • Number of apartments on the market last week – 65
  • Number of apartments on the market this week – 64





This is why I predicted in the last edition, that when the Reserve Bank of Australia (RBA) meets next month I expect to see a 0.50 per cent reduction in the cash rate. Exporters, manufacturing, retail, small business, farmers and financial markets are all hurting.  One would need to have their head  in  the  sand if they honestly believed that our economy is not in a bad place.





Source: Domain Property Monitors

Mosman house listings continue to hover around the 144 (not 1,444) this week, although well below the spring 2011 peak of 168 house offerings. Interesting to note that Mosman houses at 144 remained constant and every other market declined in number (albeit by small increments). Next week it will be interesting to see if this trend continues.

For this week’s sales in Mosman real estate, Beauty Point real estate, Clifton Gardens real estate, Balmoral real estate, Cremorne real estate, Cremorne Point real estate, Neutral Bay real estate, Cammeray real estate – Click Here

For this week’s open for inspections – Click Here

We all know it’s tough out there at the moment cut rates to create jobs. A former senior Treasury official, Ed Shann, has become the latest expert to question Australia’s handling of the resources boom. He went on to say in a paper prepared for the Mineral Council of Australia,that higher interest rates were holding back as much as 80 per cent of the economy.

In October 2009 the cash rate was 3.00 per cent – today it is 4.25 per cent. Housing Credit Growth keeps slowing where it is now down 6 per cent to its lowest level in 35 years (records began in 1976).

Many predicted our economy would double–dip, with our strong Australian dollar adding to a steeper second dip. Consumers are spending less so it’s time to bite the bullet with our cash rate.  After all, our RBA (unlike other central banks) has plenty of room to move.

Cheers ^__^

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16.03.12Robert Simeon6 Comments »

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The Australian economy was critiqued again this week. The cash rate remains at 4.25 percent, annual GDP growth the slowest since 2008 and construction shrinks for 21 months in a row. I am more than confident that when the Reserve Bank of Australia (RBA) meets in the first week of April we will see a 0.50 percent cash rate reduction. It is only natural that this uncertainty scaring off home buyers “industry owned property portal realestateVIEW surveyed 1475 consumers across Australia – their findings compelling. “Our survey shows that while interest rates are a key concern for buyers, there are other factors such as household expenses” said general manager Petra Sprekos.

We are all living in interesting times and “Consequently, we’re finding most are adopting a wait – and – see approach. “We definitely don’t see this changing anytime soon, especially as (banks) break ranks with the RBA again and raise mortgage rates each month.” Mark Bouris takes aim at RBA as Gail Kelly warns of ‘frequent’ independent bank rate rises which is an interesting debate. Mark Bouris challenges the RBA to ‘scratch beneath the surface’ with our multi – speed economy. Gail Kelly warns that home borrowers must expect small and more frequent rate changes as banks look to maintain their profitability in a low growth environment.

That said, should the RBA cut the cash rate at its next meeting the banks are likely to increase rates, not drop them. On the flipside interest rates will be lower in the next decade than in the past: Macquarie Group’s Brian Redican.

BUY PRINT

Over to Business Spectator with their CEO PULSE: Time to slash the surplus Australian chief executives have spoken – “wrong way, go back” is their message to the government, and specifically to Treasurer Wayne Swan. The latest quarterly CEO Pulse survey for Business Spectator, conducted by GA Research and sponsored by IBM, is loud and clear: don’t worry about returning the budget to surplus, drop the carbon tax and the NBN, and spend money on infrastructure and superannuation.

• Most surveyed CEOs do not see returning the 2012/13 Federal Budget to surplus as a high priority. Almost half (48%) said that it should be a low priority. Another 13% said it should not be a priority at all.
• The highest levels of support for potential items in the upcoming budget included; regional infrastructure funding (80% support), tax offsets for increased superannuation contributions (71% support) and tax cuts for small businesses (70% support).
• When asked what advice they would give the Federal Treasurer, The Hon, Wayne Swan, the responses from surveyed CEOs fall into categories dealing with the budget surplus, the banks, and interest rates, and the focus of government spending and long – term economic policy. There was also fair amount of negativity around many responses with some respondents calling for him to resign.

No doubt having read this report PM creates forum to cut business red tape in an effort to improve relations with the business sector where the government remains ‘on the nose’. What remains to be seen (or believed) is, will the government listen? Its problem is that it (Labor Party) has not delivered a budget surplus since 1989 – this week’s floods will severely impact productivity on top of GDP figures show economic growth slows.

Key business backers of carbon pricing have called on the government to amend the carbon tax – cut carbon price to $10, Labor told. The Gillard government is on a hiding to nothing on the carbon tax although it simply won’t act. RBA man Warwick McKibbin rounds on Treasurer Wayne Swan when he said Wayne Swan was “incapable of accepting criticism” and of “destroying the fabric of good economic policy in Australia”.

If the current regime is working under the Gillard government then why would the latest Australian Bureau of Statistics (ABS) figures show that industrial disputes cost the nation 241,500 working days in 2011, compared with 126,600 in 2010.

Source: Domain Property Monitors

MOSMAN – 2088

• Number of houses on the market last week– 139
• Number of houses on the market this week – 144
• Number of apartments on the market last week – 126
• Number of apartments on the market this week – 115

CREMORNE – 2090

• Number of houses on the market last week– 13
• Number of houses on the market this week – 19
• Number of apartments on the market last week – 23
• Number of apartments on the market this week – 25

NEUTRAL BAY – 2089

• Number of houses on the market last week – 22
• Number of houses on the market this week – 20
• Number of apartments on the market last week – 63
• Number of apartments on the market this week – 65

Mosman house listings continue to hover around the 140 this week, although well below the spring 2011 peak of 168 house offerings. This number should decline in the run – up to Easter otherwise it is not a good sign for our property markets. Mosman posted its second highest ever waterfront sale – Chinese buyers playing property pick a box, but record Mosman price unlikely.

For this week’s sales in Mosman real estate, Beauty Point real estate, Clifton Gardens real estate, Balmoral real estate, Cremorne real estate, Cremorne Point real estate, Neutral Bay real estate, Cammeray real estate – Click Here

For this week’s open for inspections – Click Here

Not great for those renting – Why rents will keep rising: Tim Lawless rental rates across the combined capital cities grew by 6.3% in 2011, compared with a fall in home values to 3.6%. The superior growth performance of rents compared with values has been a consistent trend over the past five years.

This Sunday we are proud to be sponsors of Fighting Chance Celebrity Cricket Day at Alan Border Oval. The day starts at 11.00am – Mosman first graders vs Sydney University. At 2.00 pm, half time entertainment, including an address from Ian Chappell and Mosman Mayor Anne Connon then at 3.00 pm a celebrity game between Stuart MacGills XI and Shane Lee’s XI. So come along as it will be a great afternoon.

Cheers ^__^

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9.03.12Robert Simeon3 Comments »

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With unprecedented times in our “Big Four” banking fraternity, it was puzzling when the Reserve Bank of Australia (RBA) declared that big banks not too profitable. What did make sense was Australia’s ‘head teller’, Glenn Stevens, telling the House of Representatives Standing Committee on Economics, that “you only have to look at the dimension of the banking problems in Europe to see that we don’t want banks that can’t earn a good return.”

Whilst the “Big Four” have come under huge scrutiny regarding variable mortgage rates, it really is no big deal, when consumers can and should shop around. This is evidenced by the 2012 Citi Fin – Q Survey where it was revealed two – thirds of borrowers to look beyond big four banks for mortgages: Citibank. The survey also found a high level of negative sentiment about the mortgage market with 70 percent saying the government needs to do more to help first-home buyers and 63 percent saying they don’t believe home ownership will be an option for the next generation of Australians.

BUY PRINT

On the flip side, a most revealing announcement when Property Observer reported Major becoming banks more profitable and more liquid. Between September 2010 and September 2011, the combined profit margins of NAB, Commonwealth Bank, Westpac and ANZ have risen from 31 percent to 35 percent. The major banks’ lending books combined, are now worth $1.11 trillion, with an additional $72 billion worth of new loans in the 12 months to September 2011.

This prompted the announcement this week, that the RBA is going to investigate funding costs. It will be intriguing to see the findings from this report given the ‘Big Four’ independently increased their cash rates last month – citing “higher funding costs”.

“Tell a European you think there’s a housing bubble and you’ll have a reasonable discussion. Tell an Australian and you’ll have World War 111. US doomsayer Jeremy Grantham tiring of Australian housing price bubble argument which is a classic example of an individual who has absolutely no idea about the Australian real estate market demographics. As quick as a flash Christopher Joye reignites his $100 million housing challenge to Jeremy Grantham.

The world’s first real–time daily home value indices and world first home value indices that track asset–class stock was released on the Australian Securities Exchange (ASX) yesterday Home Value Index.

Source: Domain Property Monitors

MOSMAN – 2088

• Number of houses on the market last week– 137
• Number of houses on the market this week – 139
• Number of apartments on the market last week – 128
• Number of apartments on the market this week – 126

CREMORNE – 2090

• Number of houses on the market last week– 16
• Number of houses on the market this week – 13
• Number of apartments on the market last week – 21
• Number of apartments on the market this week – 23

NEUTRAL BAY – 2089

• Number of houses on the market last week – 21
• Number of houses on the market this week – 22
• Number of apartments on the market last week – 92
• Number of apartments on the market this week – 63

Mosman house listings continue to hover around the 140 this week, although well below the spring 2011 peak of 168 house offerings. This number should decline in the run – up to Easter otherwise it is not a good sign for our property markets. Just as interesting Mandolong House listing set to test Mosman market.

For this week’s sales in Mosman real estate, Beauty Point real estate, Clifton Gardens real estate, Balmoral real estate, Cremorne real estate, Cremorne Point real estate, Neutral Bay real estate, Cammeray real estate – Click Here

For this week’s open for inspections – Click Here

The climate change debate is getting worse for the Gillard Government when $180,000 a year (part time chairman) Tim Flannery predicted in 2005 that “Sydney’s dams could be dry in as little as two years because global warming was drying up the rains, leaving the city ‘facing extreme difficulties with water.’ Tim (you dope) the Weather Bureau advised this week, Warragamba Dam will spill for the first time in 14 years!

Yet another toxic week for Australia’s most incompetent Prime Minister, Julia Gillard, as she survived a Labor leadership battle – a result where members voted against Kevin Rudd rather than a overwhelming support of the PM. “The Emperor” Kevin Rudd, who previously sat on the throne of political incompetency, resigned.

Next, Julia Gillard had to replace a “Faceless Man” when Mark Arbib resigned (more to come on that,) Enter Bobby ‘Dazzler’ Carr who after sitting in the Qantas lounge bound for Canberra to announce his new foreign affair, received a call that the gig was off – due to political intervention(s).

The Carbon Tax will be Julia Gillard’s greatest hurdle in 2012 in a photo finish with her every utterance!

If you are looking for a fun night next Friday, you must be at Hotel Mosman for Applause For A Good Cause with The King and I. Yes our very own Andrew Blaxland is appearing as Elvis (and he can really sing). The show starts at 7.30 pm and costs $35.00 which includes canapés and a drink on arrival. Proceeds are in support of Balmoral Swim for Children’s Cancer Institute of Australia. If you want tickets (they’re selling fast) email andrew@rwm.com.au

Cheers ^__^

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2.03.12Robert Simeon4 Comments »