Business confidence back – government financial crisis still going backwards!

Business confidence back – government financial crisis still going backwards!

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The  worry is, will Fort Fumble (Federal government) tax the living daylights out of businesses to pay down the Treasury’s projected budget deficit for 2009/10 of $57.7 billion? . Nobody denies the fact that Australia (like the rest of the World) required a stimulus package although in Australia there remains a strong school of thought that our economy was misdiagnosed and over-medicated. With the convalescing now over, we are  told that all markets (property included) are back to 2007 levels. What a recovery!  Annualised growth rate in November 2009 was 5.4 per cent, December 2009 up to 6.2 per cent which was 3.5 points above the long – term projections.

The Westpac – Melbourne Institute, leading index of economic activity, (they predict the future three to nine months ahead) suggests that our financial genie (not to be confused with Wayne Swan’s inflation genie) is predicting boom times ahead.  Thank goodness we offer a weekly edition, because just 365 days ago, (February 2009) we were  told by The Emperor (Kevin Rudd) that ‘this is the worst economic catastrophe since The Great Depression’. Elected politicians keep pointing to cash splashes and stimulus packages and I must admit that the Rudd approved bicycle track at The Spit has done wonders for  the Mosman economy!  A defining moment that delivered our economic recovery and hundreds of Australian municipalities share stories of such inspiration.

ChowderBay

Chowder Bay, Clifton Gardens.  Well worth a visit and drop into Ripples on picturesque Sydney Harbour for a fine dining experience.  On the right hand side of our page we list links to some of Sydney’s finest eateries as well as other businesses too, for your perusal and enjoyment.

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. www.timmooneyphotography.com .

The news just got worse (again) for The Emperor when a Senate enquiry revealed this week  an “alleged” gross waste of tax payer dollars (otherwise known as his stimulus) with the ineffective insulation of up to 400,000 homes under the national home insulation program. A study revealed that 30 to 40 per cent of work done was not compliant. Quite scary given that approximately one million homeowners have taken advantage of this stimulus programme. Loss of life has occurred as well as house fires that result directly from our very own version of No (know) Minister! Fort Fumble now has to allocate another fifty million taxpayer dollars  to fix the shoddy workmanship.

Now let’s wrap up the Neutral Bay house sales comparison for 2009 and 2008. For this week’s new subscribers, here is the Mosman and Cremorne sales data. It’s not exclusive.  All agents/agencies have access, but they don’t have a database or a newsletter.  For our competitors, technology is not a priority!  The Sydney Morning Herald last Saturday, revealed that its Domain property portals Top 10 searched for NSW suburbs on Domain in 2009.

  • 1. Surry Hills 2,537,285
  • 2. Mosman 2,291,860
  • 3. Randwick 2,237,146
  • 4. Darlinghurst 2,159,211
  • 5. Paddington 2,030,416
  • 6. Newtown 1,872,869
  • 7. Chatswood 1,685,820
  • 8. Marrickville 1,694,580
  • 9. Bondi 1,682,834
  • 10. Coogee 1,662,332

. When one adds up the Top 10 that is 19,854,353 online inspections for just ten suburbs alone – yet agents/agencies continue to place the Internet on ignore? The real reason is that when it comes to the Internet, the agents/agencies are the ones that have to pay for it – not vendors. When one observes the dominant agencies across Sydney they are the businesses that offer and present the strongest online relationships within their demographic real estate markets.

    NEUTRAL BAY PROPERTIES SOLD REPORT – (House and Semi only)

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    1 JANUARY 2009 to 31 DECEMBER 2009

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  • Total number offered – 60 (Mosman 334)
  • Total number of sales recorded – 60 (Mosman 303)
  • Total value sold – $83,281,400 (Mosman $668,966,377)
  • Public Auction – 13 properties to a total value of $19,462,000
  • Private Treaty – 47 properties to a total value of $63,819,400
  • Median price – $1,134,000 (Mosman $2,000,000)
  • Average price – $1,388,023 (Mosman $2,397,728)
  • Highest sale – $7,600,000 RWM (Mosman $13,500,000 RWM)
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    NEUTRAL BAY PROPERTIES SOLD REPORT – (House and Semi only)

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    1 JANUARY 2008 to 31 DECEMBER SOLD REPORT – (House and Semi only)

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  • Total number offered – 67 (Mosman 360)
  • Total number of sales recorded – 56 (Mosman 287)
  • Total value sold – $93,561,000 (Mosman $774,865,612)
  • Public Auction – 17 properties to a total value of $23,432,000
  • Private Treaty – 39 properties to a total value of $70,129,000
  • Median price – $1,216,000 (Mosman $2,275,000)
  • Average price – $1,670,732 (Mosman $2,738,041)
  • Highest sale – $4,650,000 (Mosman $14,700,000 RWM)

RP Data revealed this week that in 2009, the highest recorded number of first – home buyers on record plunged into the property market. A staggering 191,000 new entrants. This figure equates to 70,000 more first – home buyers jumping in before the grants finished. A 55 per cent increase!  This is a potential train wreck should the cash rate keep climbing. Only time will tell. America had sub -prime and Australia (potentially) has grant -prime.

According to the Reserve Bank of Australia (RBA) consumer confidence eased in February (although it was 36 per cent higher than a year ago) with businesses and households  throwing caution to the wind. The RBA said that business loans declined seven per cent in 2009 which is the lowest recorded since the recession of the early nineties.

If you think The Emperor has had a tough couple of weeks, the Bungle State – Fort Crumble (NSW government) continues to show its complete incompetence. The $5.3 billion CBD Metro is looking as shaky as a poll and already aligned with the Cross City Tunnel and Lane Cove Tunnel – both broke just like Fort Crumble – Metro headed for disaster:  Opposition.

Finally – two comments grabbed my attention this week.

The first – The Emperor, announcing a $10 million boost to meet a Labor commitment to halve the nation’s homeless rates by 2020.  A fantastic cause but what if it was  $60 million?  Unfortunately, the other  $50 million has to be spent on the insulation stuff – up. Well it is an election year  and we remember in 1987, Bob Hawke launching  his election campaign by promising that no child would be living in poverty within three years. The National Youth Commission (NYC) identified the number of  homeless 12 – 18 year olds fell from 26,060 in 2001 to 21,940 in 2006;  Now, the situation is worsening due to soaring home prices. Housing affordability fell by 140 per cent between 1986 and 2006 where in 1986, 3.6 times average income was needed to buy a house;  by 2006, the purchase price required 7.0 years pay. I keep tagging Kevin Rudd in Virtual Realty News in the hope that when he reads the edition he will post on the blog. I know that his office reads it –  just a tad slow on blogging!

The second is Fort Crumble’s NSW Planning Minister, Tony Kelly, who obviously has had so many portfolios (and Premiers) he has lost the plot.  No pun intended!  More land won’t mean more houses: Kelly. Given that Fort Crumble can’t roll out any transport infrastructure this is what he said “prospective buyers should blame private sector inaction, and the fact most people want to live close to Sydney’s centre and not its rural outskirts.” Maybe Tony, that perception is aligned to the fact that your very own government struggles to build a sand castle let alone a transport model that works or arrives on time for that matter. Not to forget the taxes that developers are forced to pay to obtain a Development Approval/Building Approval.

See you next week to upset somebody else!

Cheers ^__^

This week’s open for inspections http://www.rwm.com.au/sales-list/open_times_sales/

For this week’s recorded Balmoral real estate, Mosman real estate, Cremorne real estate, Cremorne Point real estate, Neutral Bay real estate and Cammeray real estate sales www.rwm.com.au/news/

6 Responses to “Business confidence back – government financial crisis still going backwards!”

  • Gordon says:

    Perhaps The Emperor wants to take a leaf out of the book of the highly successful Fort Crumbled govt (who crumbled to dust long ago). The reality here seems to be that none of the Fort Crumbled maaates will ever live in poverty.

    They all appear to have well paid jobs throughout the Crumbled labyrinth, and a few of them even seem competent enough to know what to do, at least until caucus brings them smartly to heel with ‘approved’ projects like the mindless Metro instead of a vital NW or Northern Beaches rail link.

    By the next election we’ll probably have had the entertaining sight of a few more puppet premiers coming and going. Perhaps there is a powerful incentive in a premier’s pension plus limo and driver for life. Ahh, Fort Crumbled, you can feel the difference.

  • Michael says:

    Thanks Robert,

    You have to wonder sometimes, when a well known real estate competitor moves to a new premises with no street parking and no drive by (unless you are ordering a pizza or visiting a funeral director). Must be the lemon decision of the decade. The website is well down the list of things to do.

  • Patricia says:

    Agree with your observation, Michael, about the puzzling relocation of another agency. Their default strategy of putting virtually every property to auction, inevitably followed by ‘For Sale’ campaigns, has not gone unnoticed.

  • Gordon says:

    Yes, Michael and Patricia, and also the website in question seems to continue to have quite a few problems, including about 85 per cent failure rate of the internal links.

    Perhaps we’ve been spoilt with the smooth and gutsy action here on VRN?

  • Robbie Mac says:

    What about the new tenant of the agency’s old site? Swings and roundabouts!

  • Patricia says:

    Robbie Mac, the more things change the more they stay the same!

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