Fine dining on the property menu!

Fine dining on the property menu!

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The Emperor (Kevin Rudd) flew in this week with his economic warriors fresh from the Gala – Yours ‘n Plenty Spend To No End festivities, where our very own MasterChef of economic stardom was quick to see how production of his “Bronzed Aussie” school plaques were progressing. Almost immediately, The Emperor and his trusted Treasurer Wayne (“Sum Ting Wong”) Swan, were perplexed! This nearly resulted in the spilling of their traditional Chinese herbal tea (daily ceremony) when the Opening Statement to Senate Economics Reference Committee by Glenn Stevens was read then (later) explained to them.

First to spruik the findings of this report was Financial Services Minister Chris “Noh Nut Hing” Bowen who must have thought all of his Chinese fortune cookies (better known as Treasury forecasts) had come at once. Breathing fire, much like his favourite red silk Chinese dragon pyjamas, Noh Nut Hing declared “Glenn Stevens today gave a very good endorsement of the government’s actions so far.”

Sadly for Fort Fumble (Federal government) it was a peek –in and duck opening statement when it was revealed that very little had to do with Fort Fumble’s economic cooking techniques – the oil in the prized Fort Fumble economic wok was spitting and burning without the usual high – five spice powder. Puff, the magic economic dragon, was tempered with the consequences of economic chop suey – (lawyers on hold) much like each edition of Virtual Realty News.

Tim Mooney Photography

www.timmooneyphotography.com

So off to the opening statement we go. Glenn Stevens “By the standards of past recessions, however, this was a mild downturn. Although the evidence is as yet incomplete, this episode has been much less serious than those in the mid 1970’s, the early 1990’s.” What, no mention of the Great Depression? Fort Fumble revealed this week that the final outcome for the 2008-09 year was a deficit of $27.1 billion – a $5 billion improvement on the fortune cookie (Treasury) predictions of $32.9 billion.

Head economic waiter of Yum Cha proceedings Wayne “Sum Ting Wong” Swan, announced from his economic kitchen “the stronger than expected final budget outcome does not substantially diminish the fiscal challenge imposed on the Australia by the global recession, which has resulted in the largest fall in budget revenues compared with its comparable budget year forecast since 1930-31.” Obviously Sum Ting Wong was acknowledging a point that the Reserve Bank governor missed?

Glenn Stevens “So I think that it is reasonable to conclude, against the benchmarks of historical and international experience, that Australia has done quite well on this occasion.”(No mention of stimulus.)

“Why was that so?” (A Cadbury chocolate moment?)

“First, our financial system was in better shape to begin with, being relatively free of serious problems the Americans, British and Europeans have encountered. “ Umm would that allude to the collapse of HIH when the then government introduced prudential authorities? Obviously a coincidence, learned consumers of fine economic dining may think!

“China will easily achieve her 8 per cent growth target this year, led by domestic demand.” No doubt The Emperor arranged for his school plaques to be made in China.

Last but not leek, “The Commonwealth budget was in surplus and there was no debt, which meant expansionary fiscal policy measures could be afforded.” Past Prime Minister John Howard was last seen doing the cha-cha on his daily morning Kirribilli walk and was observed looking at one particular signboard.

Last Saturday, 682 Sydney properties were offered to the market – eclipsing the previous record of 571 homes and apartments set back in March 2007. Many suggest that this is a direct result of the first – home buyer’s grant which was halved this week. From October 1, the First Home Buyers Boost was reduced to $10,500 for existing homes and $14,000 for new homes – both subsidies will be scaled back to $7,000 next year. What happens to property prices at the lower end is anyone’s guess although increases in interest rates must be factored in. Already there are strong suggestions that we will see the Reserve Bank of Australia (RBA) increase the cash rate in November and again in December. This is self explanatory when you look at the following graphs which provide a compelling reason as to why lower income households will definitely be vulnerable. Given it is a long weekend, here is the RBA Housing Market Developments Report (an interesting report).


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Quite amazing! We are presently experiencing record immigration growth and a major concern is that building approvals fell 0.1 per cent in August according to Australian Bureau of Statistics (ABS) figures. Maybe a clue for the Henry Tax Retort (oops I meant Report). The RBA estimates that the underlying demand for new houses annually, is around 180,000 to 200,000 and we are not even close to meeting these consumer demands which explains the current housing patterns.

It is a very hard market to predict given the above data which identified national property values climbing by 2 per cent in August which is the highest monthly increase since RP Data – Rismark Home Value Indices began in January 2005.

Mosman is a much easier market to predict given that house volumes are at record lows and I’m not reading tea leaves either.

Richardson & Wrench Mosman & Neutral Bay was again awarded the number one sales agency in the Richardson & Wrench network last Saturday night. A fantastic team effort and special thanks to the nights major sponsor the REA Group.

Cheers ^__^

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

12 Responses to “Fine dining on the property menu!”

  • Mae Lyn Chan says:

    Great newsletter as always, I like your sense of humour.

  • well done on your latest article and being top in the network maybe it has something to do with your website !!!!! and your cutting edge advertising pity the Mosman Daily doesnt follow your example.

  • Patricia says:

    I’ll build on Peter MacCormick’s comment with my wish that your rival agencies (one in particular, known for ‘slings’) would cease the old-fashioned practice of stuffing unwanted ‘For Sale’ and ‘Sold’ property flyers in letterboxes.

    No doubt their respective vendors were duped into running expensive print advertising campaigns and their marketing dollars are further wasted on flyers that are stuffed into all letterboxes, including those with ‘No Advertising Material’ and ‘No Junk Mail’ stickers.

    To those agencies and their duped vendors: your flyers go straight into the recycling bin. More importantly, we note how you waste your vendors’ money and will ensure that we will never be duped by you – you’ll never be given the opportunity.

  • Patricia says:

    Implicit in my post (above) is recognition that RWM doesn’t engage in marketing campaigns that waste their vendors’ money. Using some print media but relying on the power of internet marketing, the agency appears to ‘own’ the Mosman market and the results (eg sales, Google ranking, web hits) speak for themselves.

    Enjoy the long weekend.

  • Robbie Mac says:

    How about adding this to next week’s menu? (Number 72 with steamed rice….).

    A discussion on the recent commentary that Sydney’s prices, by global standards, are over-inflated and heading for a Japanese property bubble type meltdown, within the context of the continuing data, mentioned here and elsewhere, that shows a shortage of housing at all price points. Someone has the wrong recipe, and it’s nothing to do with the GFC or the MSG.

  • Robbie Peters says:

    Patricia,

    Would you relax babe.

    Just chill out. Calm down. Take a deep breath.

    The sun will come up tomorrow. Even if the clouds may cover it for a short while..

  • Tim Mooney says:

    I forgot to mention the the pic is Fort Denison, Sydney Harbour. Did anyone notice the sunbaker in the enclosure at the bottom of pic/island ???

  • Patricia says:

    ‘Robbie Mac’ – I think you are about to be outed. Robert suspects you are ‘Freddie Mac’; I suspect you have a vested interest in the print media, e.g. estate agency vanity advertising in weekly newspapers and letterbox stuffers.

  • Patricia says:

    ‘Robbie Peters’ – I think you used to be ‘Robbie Mac’.

  • Robbie Mac says:

    Wow – I’m a busy boy now! Robert, tongue firmly in cheek some weeks ago, has pegged me as Freddie Mac. Amusing yes, but there it ends. As for being part of some conspiracy theory involving me and print media, as well as having recently morphed into Robbie Peters, a big fat zero on all counts. Pity, because with that combination, I could have had more fun than Bruce Wayne.

    Perhaps we should turn the blow torch on you Patricia? Methinks there is plenty of material….. 🙂

  • Thanks Tim – I did look and found the sunbaker (too funny)

    Patricia – thanks for visiting again and I agree 100 % with you. When I see how much real estate spend annually by attacking letterboxes as compared to the next to nothing spend on their respective online operations I am amazed. Much like the annual drops of White Pages and Yellow Pages where the vast majority are filed in the recycling bins. We limit ours to “Just Listed” and “Just Sold”.

    If you really want to look at the effectiveness of an agent website go to this website http://www.websitegrader.com/ and type in the respective agent websites for a detailed analysis. If they are not scoring greater than 80 % they are not serving their vendors and purchasers correctly (I am yet to find a real estate agency in Australia that scores higher than RWM) then again this is one of our points of difference.

    From what I can ascertain the Robbies are not one of the same. I believe many households are sick and tired of letterbox bombarding paraphernalia of self (not always accurate) promotion.

    Maybe they should be forced into publishing their Website Grading on each and every leaflet? That would slow them down as I have found many (local) agencies that come in under 10/100 – so far 2/100 is the lowest.

    There are many interesting debates on our industry at the moment and for those interested this is a very interesting blog. http://www.business2.com.au/2009/09/trading-post-closes-down-print-versions-ron-walker-saves-fairfax/#comment-6717

    Out of interest one subscriber accused me of being a racist with last week’s edition so if anyone else thinks that I will tone down future editions because anyone that really knows me would agree that a racist – I am not!

    Cheers

  • Mike says:

    Tim

    Missed the sunbaker, probably someone from the Fort Crumble Planning Ministry.

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