Australia Is In A Vortex Of No Vision

Australia Is In A Vortex Of No Vision

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Well hold the phone – RBA to cut rates by 25 basis points next week and reduce the cash rate by 2.75% by year end: Westpac. Things are about to get a whole lot interesting on the home front although as I will show this week, the Mosman market at the moment is trending quite differently to other comparable markets.

Real estate is a numbers game based on the number of properties available at any given time and whether this number is reducing or increasing. Of course these numbers are dramatically offset by the number the Reserve Bank of Australia (RBA) puts on its official cash rate and 2.75 percent would be the lowest in the twelve years that I have been writing Virtual Realty News – the previous low of 3.00 percent was in April 2009.

The reason for taking a chainsaw to the cash rate is aimed directly at the fall and fall of Europe. No doubt the “World’s Greatest Treasurer”, Wayne Swan will use this announcement to reflect on his masterful fiscal policy skills as he steers the Australian economy to triumphant heights. On a cautionary note, buyers must be aware that when the cash rate was at 3.00 percent in 2009 and climbed back to 4.75 percent in 2010, households were caught in mortgage frenzy as repayments nearly doubled.

What goes up can also go down and vice versa.

BUY PRINT

I must admit that residents in Mosman are somewhat of a protected species  compared to those who reside outside a 15 kilometre radius of the CBD. This explains why property prices in the 2088 postcode are so much higher. Australia has an enormous housing crisis which has remained for the most part ignored, over the past decade.

Federal Government needs to convene home building summit: CommSec’s Craig James – “The RBA has certainly expressed more concern about the lack of home building in recent months, however it can only do so much in stimulating activity. Ultimately federal and state governments need to sit down with developers, industry bodies and finance providers to work out the fundamental constraints on new home building.” Hallelujah! Australia has no infrastructure blueprint aside from pork-barrelling in the run up to an election (most of which never sees the light of day). In NSW, infrastructure would be at best, at year 2000 standards (if such a measure existed).

The Howard government introduced the GST in 2000 and years down the track, we learn that it is destroying the building industry.  Look at the number of building companies filing for bankruptcy.  Build mines and not houses – the Canberra kindergarten has absolutely no idea.   I believe the only person in Australia who could correct these anomalies and set a platform and blueprint to correct this, would be Malcolm Turnbull, the only politician who has worked, run and owned businesses albeit, successfully.

Instead of relying on mining and passing on tax handouts, Australia should be planning, producing and directing a grand Australia master plan for infrastructure. Put the new migrants to work by giving them a sense of hope and (as we saw with the Kosciusko Scheme) a sense of belonging and contributing. The problem today is that Australia has clueless politicians with no long term foresight, but short term elitism.

We get lost on –

Yet never offer any explanations as to why –

The Australian property industry has shot itself in both feet and is aiming the gun at its head: Terry Ryder – “Approximately 99.7 percent of the earth’s people believe Australia is the strongest, wealthiest, most fortunate nation on the planet. The 0.3 percent who do not believe it are Australians. A lengthening list of authorities – including the OECD, the IMF and sundry consultancies that conduct surveys and write economic reports – all conclude that we are indeed the lucky country. We rank at or near the top for economic prosperity, standard of living and personal wealth.”

It has now been twelve months since I started recording the weekly property volumes in Mosman, Cremorne and Neutral Bay and I’m now able to provide you with a weekly and yearly comparison. This week’s numbers are fascinating and clearly identify that prices have bottomed.  Should you not agree, the blog is there at your disposal.

Source: Domain Property Monitors

    MOSMAN – 2088

  • Number of houses on the market last week– 105
  • Number of houses on the market this week – 97
  • Number of houses on the market this time 2011 – 118
  • Number of apartments on the market last week – 100
  • Number of apartments on the market this week – 89
  • Number of apartments on the market this time 2011 – 101
  • CREMORNE – 2090

  • Number of houses on the market last week– 14
  • Number of houses on the market this week – 15
  • Number of houses on the market this time 2011 – 21
  • Number of apartments on the market last week – 30
  • Number of apartments on the market this week – 22
  • Number of apartments on the market this time 2011 – 36
  • NEUTRAL BAY – 2089

  • Number of houses on the market last week – 18
  • Number of houses on the market this week – 18
  • Number of houses on the market this time 2011 – 12
  • Number of apartments on the market last week – 68
  • Number of apartments on the market this week – 56
  • Number of apartments on the market this time 2011 – 58

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

Enter Australia’s most flawed economist (I use the term lightly) Steve Keen – As the Australian housing bubble bursts, prices could fall a lot further than people expect. What on Earth do Australian property machinations have to do with what happens in America? Absolutely nothing although when you are an irrelevant source how do you make a mountain out of a molehill? Just keep adding dirt.

Sounds very much like Australian politics too – if only Australia had a national infrastructure master plan that is bi – partisan.

Only then we could look into the future and plan however, having said that is Malcolm Turnbull the only politician in Canberra that has run a business before and, I’m not talking about running a Union either.

Cheers ^__^

3 Responses to “Australia Is In A Vortex Of No Vision”

  • Ann says:

    I think Swan was expecting a forced election in 2012, so he went with a surplus so he could crow about it. Now an election is unlikely and the Surplus was never likely, so now he trots out Treasury to start the spin

  • Wayne Swan will never deliver a surplus and this is his final term in politics. He will lose his seat at the next election – whenever that may be.

  • Ann says:

    I bet when he announced his ‘surplus’ several years ago, he thought the economy would be bouncing ahead. It isn’t and how long will it take him to fess up.

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