Grubby Politics Will Muddy Properties

Grubby Politics Will Muddy Properties

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Surprise, surprise – Australians increasingly disillusioned with federal system and national tier of government Newspoll finds. According to the third biennial constitutional values survey, two – thirds of Australians do not believe state and federal governments are working well together, with confidence in the federal government as the most effective level of government, falling from 50 percent in 2008 to 29 percent.

Griffin University’s Professor AJ Brown, the survey’s lead researcher, said “the declining faith in governments suggested Australia was headed for a “crisis of confidence” unless greater political priority was again given to issues of federal co-operation and longer – term reform”.

Alas, we constantly hear the buzz word “reform”. For those closely watching the Independent Commission Against Corruption (ICAC) NSW politics’ ugliest years the allegations of corruption are the most frightening in Australia’s political history. The allegations of greed are incomprehensible although not surprising, as suspicion has always overshadowed NSW Labor.

NSW is not alone and federal ALP has more than a few pending court cases to defend, with the latest (being the one where four files conveniently went missing) – bank letter links PM to house mortgage. It has started to get very ugly for the declining ALP support machine. We can expect enormous interest when Parliament sits again next week. Australia’s Prime Minister will have to deliver a plethora of explanations to convince the Parliament that statements she has made previously, were not misleading. Much speculation that her days in the top gig are numbered and I predict a resignation over another knifing.

BUY PRINT

Funding crisis looms, super could be the answer: Clyne an interesting proposition given a restriction on lending is assured of sending an economy into recession.  Australia needs to be investing in new markets although the costs of doing business within Australia is or should be of enormous concern. Blame CEOs for national cost explosion which points out that it is three times more expensive to build a mining plant in Australia than in the United States. This is further evidenced within the declining manufacturing industry which is constantly in decline and propped up by tax payers. I doubt that within ten years, Australia will have a manufacturing industry.  Australia will become an import, not export economy which means that Unions won’t survive either.

The good news for consumers is that the ‘Big Four’ banks are now under increasing pressure given China’s biggest bank, ICBC, moves on Australian expansion plans is now increasing and opening branches all over Australia. According to Wikipedia, Australian residents identified as having Chinese ancestry make up four percent of Australia’s population or approximately 865,000 people as at 2011. Throw in Macquarie Bank doubles loans in first nine months of 2012: APRA figures so we are seeing a change within the banking landscape.

Sydney is Australia’s most densely populated city – its established inner and middle suburbs averaged 3,244 persons per square kilometre in 2010, up 13 percent from 2001. Just like our manufacturing decline, it is the cost of living that is determining our economy.

The best example (I love graphs) is this:

Which brings us back to the Newspoll findings – modern day governments just don’t get it. Australia needs to quickly adjust to the enlightenments of the modern world. Just look at the dumb and dumber Click Frenzy launch this week where the servers crashed. Only an incompetent wouldn’t know that this website needs its own dedicated servers to cope with the demand – not shared servers.

The Mosman housing markets continues to contract much faster than we witnessed last year – which is more to do with the state of the economy than anything else. Although it was pleasing to see that yesterday, Australian stocks jumped through the 4,400 point barrier. One should bear in mind that when it breaks 5,000, house prices go into boom mode. This is a scary proposition (even for a real estate agent) given my belief that the last thing our property markets need is a property boom when, at best, we see so many dysfunctions in our overall economy.

Source: Domain Property Monitors

    MOSMAN – 2088

    • Number of houses on the market last week– 112
    • Number of houses on the market this week – 107
    • Number of houses on the market this time 2011 – 134
    • Number of apartments on the market last week – 106
    • Number of apartments on the market this week – 106
    • Number of apartments on the market this time – 118

    CREMORNE – 2090

    • Number of houses on the market last week– 13
    • Number of houses on the market this week – 13
    • Number of houses on the market this time 2011 – 16
    • Number of apartments on the market last week – 21
    • Number of apartments on the market this week – 20
    • Number of apartments on the market this time 2011 – 31

    NEUTRAL BAY – 2089

    • Number of houses on the market last week – 20
    • Number of houses on the market this week – 17
    • Number of houses on the market this time 2011 – 15
    • Number of apartments on the market last week – 60
    • Number of apartments on the market this week – 57
    • Number of apartments on the market this time 2011 – 100

    For this week’s sales in Cremorne real estate, Cremorne Point real estate, Mosman real estate, Beauty Point real estate, Clifton Gardens real estate, Balmoral real estate, Neutral
    Bay real estate, Cammeray real estate.
    • Click Here

    For this week’s open for inspections
    • Click Here

Australia’s infrastructure ‘barely adequate’ although in coming week’s we very well may see the Gillard government suffering from the same problems, although time will tell.

Analysis: Australian housing, is it a bubble if it never pops? Well let me point out a few Australian Bureau of Statistics findings:

  • Sydney’s population is 4.5 million, which makes up 63 percent of the population of NSW
  • Melbourne’s population is 4 million people, which makes up 73 percent of the population of Victoria.
  • Brisbane has a population of 2 million people, which makes up 45 percent of Queensland population.
  • Perth has a population of 1.6 million people, which makes up 74 percent of Western Australia’s population.
  • Adelaide has the smallest population, with 1.2 million people, but it makes up 73 percent of the population of South Australia.

Source: Mastering The Australian Housing Market

On that basis, the complete incompetency of Australian governments with infrastructure, explains why Australia’s real estate bubble is ‘unpopable’!

Cheers
^__^

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