50/50 Reserve Bank Rise

50/50 Reserve Bank Rise

With the scribes now content (keeping a foot in both camps), it came as little surprise this week when they announced that there was a fifty per cent chance that The Reserve Bank would be raising interest rates. Initially the rates were marginally increased to take some of the fire out of the property market. As the financial markets are under-performing at the moment, this could well backfire. Investors may soon have no better option than to direct their ‘hard earned’, back to bricks and mortar. The ‘Big Aussie’ – AMP came out this week declaring that earnings were down due to a slide in the share market. I have a new name for AMP, “Aussie Meat Pie”! Why? Cause it is soft around the edges and starting to run! I await my little fully-franked ‘party pies’ at the end of the financial year! You only have to pick up the business section these days to understand why the death notices, follow the share market prices!

Good old Bob (the builder) Carr, you know the one who states that “Rome was not built in a day” finally approved some legislation last week! Yes, finally the Property, Stock and Business Agents Act 2002 was stamped! (June 28, 2002). Good news for the honest agents. Bad news for the agents who were the reason this legislation needed to be introduced! No names, no pack-drill, we all know who they are!! The main features which will be progressively implemented are: 1)- Auction ‘dummy bidding’ will now be a thing of the past – for some of us it has been for ages. 2)- New rules of conduct for agents. 3)- No more over quotes to get the business, then under quotes to lure the purchasers. The legislation has plenty of bite and most appealing fines, should the dishonest practices continue! This legislation will provide interesting reading for many of us in the future. Now purchasers and vendors have real ammunition to shoot the bad agents where it really hurts!!

Whilst on new legislation, “A cooling-off period should be introduced at auctions to protect consumers from unscrupulous agents” says maverick agent and author Neil Jenman. “Heeeee’s back!!!!!!” He is the guy who wrote a book titled “The Essential Truths”. His dos and don’ts when selecting an agent. I touched on these a few weeks back, but here are a few more… Beware of overdressed salespeople. They may be too wrapped up in themselves! Later he says… look for an agent with a nice pen and a watch and a nice pair of shoes. Last but not least, he offers a real charmer… “Never employ an agent, who asks to use your bathroom”! When nature calls, maybe he is suggesting that we find a nice private place in the garden!! *lol* That’s enough of that… back to ‘cooling-off’… We recently had a few properties that sold for a few hundred thousand dollars above the reserve prices. They were announced as, ‘on the market’ at the auctions and everyone made fair bids. In essence, what Jenman is suggesting, is that a purchaser can bid whatever he/she likes at auction and then rescind on the contract later on!! The last time I looked up the ‘Ethics of Real Estate’, it categorically stated that an agent should be working in the vendor’s best interests at all times… looks like some have a differing opinion! Our vendors and purchasers are intelligent professionals. It is their choice to use the method they prefer when selling, and their choice as to how much they intend to bid on a property at auction.

If you want to see how an auction is run honestly, drop down to our First 8 Auctions next Tuesday night to observe how they’re done correctly! And yes, the hot food is being served.

We finished the end of the financial year with quite a bang!! We are happy to announce the sale of 21 Killarney Street for $1,200,000, 29 Medusa Street for $2,517,000, 246 Raglan Street for $2,900,000, 20 Botanic Road for $2,160,000 and 49 Prince Albert Street has offer and acceptance. Our market is far from broken.

The biggest news for the week was the purchase from the ‘Australian of the Year’ – Mr. Pat and his beautiful partner Lara are moving to Balmoral!! (and no, you don’t have to stop subscribing, now that you have purchased!!) Well mate, you beat us in the State of Origin, and you can ‘kick my butt’ in golf, but under no circumstances will the Balmoral Cellars stock that un-drinkable XXXX beer! We can drink Crown Lager in God’s country!! Welcome! Cheers, and clink!! ^__^

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