Finishing on a positive note!

Finishing on a positive note!

The property market once again is poised to finish the year on a positive note, as the market rallied in light of this week’s decision by the Reserve Bank of Australia, to leave the cash rate target at 4.75 per cent. This certainly leaves the door open for future rate reductions, which in all probability will be a New Year’s present to the Sydney 2003 property market. Next year, the market will embark on its seventh year of unprecedented trading, and the powers that be will be mindful that the only ‘itch’ they anticipate will be that of buyer impatience, given the Christmas and New Year break. No doubt all eyes will be on the US economy after the US Federal Reserve slashed interest rates by half a percentage point to 1.25 per cent. This represents a new four-decade low. Whilst some may argue that there is anecdotal evidence that all the property markets have eased, what needs to be identified is that the markets have been guaranteed longevity. The present property market poses the question… where can you do better with your money?

Weak share markets, combined with investor nervousness has seen investors concentrate on the merits of retail investment. With figures released from Australian Property Monitors showing that more than $220 million worth of retail property traded hands across Australia during the month of September, it would be fair to assume that this figure will increase as the current yields are at present returning around seven to eight per cent. Australian Property Monitors also revealed that the average median price for a Sydney home in June to August 2001 was $332,000. For June to August 2002 homes had jumped 20.5 per cent to $400,000. Home units were not as bullish, however they also finished in the black with a 13.8 per cent gain over the same period. In June to August 2001 the average price was $290, 000 and for the same period in 2002 it was $330,000. I just love this quote I read, ” Always pay a good price, as history shows that money is more often made at the purchase than at the sale”.

Without a shadow of a doubt, the greatest modern day blunder is the reliance on clearance rates as a market indicator. Here is a classic example; one Sunday scribe wrote, ” Things weren’t going quite as well in the other areas of Sydney. At Richardson & Wrench Mosman’s prestige auction, four from four were passed in”. Well that is true, we did pass in four from four. What they failed to mention was that we offered seven properties last week, and three were sold beforehand. Of the seven properties, five have now been exchanged, and another is all but exchanged, whilst the seventh and final property is under negotiation. A week on and the result will in all probability read seven from seven!! I prefer a market that is all about the facts. I must admit that I have never really been into weekend fairy-tales.

You may have noticed that the Mosman home unit market has been a bit stagnant of late. Well the explanation for this is that Marize has been away on her honeymoon. So don’t be confused if you see “details, Marize Bellomo”. It is the same lady with a different surname. Welcome back Marize, and also a big welcome back to the ex-pats who are busy securing property for pre-Christmas Day settlements. I just love the International ring that our market has… cheers and clink… ^__^

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