A POLICY OF NO POLICIES!!

A POLICY OF NO POLICIES!!

Yet another distraction to the real estate industry, that little thing called a Federal Election !! “Who will you trust”, is the catch cry and who can you trust to run our economy, the salient issue. History clearly identifies that the Liberals have a much better working relationship with the property market, than the Labor party. What remains to be seen, is will this be an election based on asset protection? I well remember after the last election when Kim Beazely was licking his wounds, he made a comment that, with the benefit of hindsight, he should have been more transparent on policies and he should have released them sooner, rather than later. Looks like “Achey Breaky” Lathan has a different spin on this, however it is quite ironic that a politician who has been in parliament for ten years, and never been given a portfolio, now believes he has what it takes to be Prime Minister.

With household spending climbing 6.1 per cent over the past twelve months there will be quite a few keeping a very close-eye on the election and the property market. Latest figures released by Home Price Guide showed that the average price for a Mosman home fell $10,602.00 for the twelve months to July 31,2004. Overall, Mosman is maintaining a 12 per cent capital appreciation for the twelve months. Mosman apartments fell $21,110.00 with capital appreciation sitting on 3 per cent. However July is a dead rubber in terms of activity, as the vast majority are away on holidays and this is one of the quietest months on our selling calendar. Mosman, started the year at $1,950,043.00 and seven months on, it is $1,928,826.00. So much for those who declared that the market has come off ten per cent !! Apartments started the year at $586,058.00 and in July they currently sit at $582,790.00. This identifies clearly what we have been saying all year, that today, we have a consistent property market. It is important to note that with our apartment sales, this is an established market of consistency. It should not be construed as a dodgey, speculative market, as the current investors are long term.

Whilst on apartments, Marize has sold another four during the past week, and not one went to an investor. Three of the units went to first home buyers, and they were all under $500,000.00. The other at $1,200,000 went to a home occupier. With the economy performing so well at the moment it is not just the Mosman market that is performing well, the Noosa market has been a solid performer for years. I was chatting with Peter Butt, principal of Richardson & Wrench Noosa this week who recently auctioned an apartment at “First Point”. They had ten registered bidders and none were from Queensland. It was evenly balanced between NSW and Victoria and price expectations were around $5,000,000.00 which is not bad for a weekender. The bidding opened at a bullish $5,200,000.00 and the hammer dropped at $5.65 million. He subsequently has placed another two purchasers at $5 million plus. Richardson & Wrench has a great newsletter on their property market. Subscribe to www.rwnoosa.com.au

Whilst on newsletters we will launch our new look in next week’s edition, and I might add that it is awesome!! The new website is still a few weeks away, however we are confident we will get it out before “Achey Breaky” Latham’s much awaited tax policy. My feeling with all the election banter is “when you listen to a political speech it’s like shooting at a target – you must allow for the wind !! ” Cheers and clink !! ^__^

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