MOSMAN PROPERTY, JUST HAND IT TO BOB!

MOSMAN PROPERTY, JUST HAND IT TO BOB!

For many who reside in Mosman the name Bob Carr does not actually go down all that well; and why would it? His property taxes are an outright disgrace and this year, Land Tax assessments were described by a judge as being defective, unduly selective and lacking in supporting data. Bob, said he was waiting on legal advice!! Well five months later nothing has been said. Nothing has been done except that many householders have been overcharged and the figure has been estimated at $350 million.

A few months ago I wrote to the Office of State Revenue, to enquire as to how the Stamp Duty rate is calculated. It was of great interest to me to find that the current applied formula has not been revised since December 1986. As most would know, hardly any homes in Sydney were worth $1,000,000 then so why hasn’t this formula been revised and reduced, based on current property values? I was politely referred to the department where the sun does not shine. The NSW Government collected $1 billion in Stamp Duty last year. This prompted me to go back to my monthly sales statement for December 1986 to see what we were selling then. I sold a waterfront in Cowdroy Avenue for $630,000. I well remember this one, as the reserve price was $475,000. It would now be worth around $5,500,000. In December 1986 I also sold a three bedroom, older style apartment in Central Avenue Mosman for $93,000, today it would be worth around $850,000. A luxury home in Everview Avenue, with pool and Middle Harbour views sold $390,000. Today it would be worth around $3,500,000. A renovated Federation home in Spencer Road, with a north facing garden sold for $297,500, today it would have interest at around $2,500,000. So why hasn’t the Stamp Duty rate been adjusted? Well in all probability, Bob is using his experience to make an old mistake in a new way!!

The recent NSW Opposition report revealed that Stamp Duty has tripled in 170 suburbs since 1995. In an article in The Sunday Telegraph last weekend, the head of Residex John Edwards, said “higher stamp duty helped inflate the market by acting as a disincentive for people to up-grade their homes”. Yep, you had better read that little beauty again. I had to! I am sure that the NSW Government does not see it that way! Yet again the Stamp Duty budget was in surplus with just over $1 billion. Aside from Stamp Duty, one must not also forget the Premium Property Tax, which returned just over $100 million because a chosen few were taxed for living in nice homes. It wont be long before Bob will be forced to review these fraudulent taxes which could swing many electorates.

Bob keeps going from strength to strength. His Spit Bridge band-aid solution where he plans to add two additional lanes to cross the creek is an absolute joke. The only people who would benefit are those who suffer from hydrophobia. It is all about the notorious traffic bottleneck that leads to the bridge. At a cost of $90 million to build this ‘meccano mishap’, have no fear as Mosman contributes around $100,000,000 each year to Bob in Stamp Duty. There is a peaceful public rally at the Spit Bridge this Sunday at 11.00 am, but don’t expect Bob to be there. In all probability, he will be at Clovelly Beach, feeding sushi to his protected gropers.

Much is being said about further rate cuts, and it will happen sooner rather than later. However what needs to be resolved is what the ‘Governor of Moolah’ is going to do as his term as Governor is up in September. Will he take another term in the ‘bank bunker’ or will he leave quietly and play in the bunkers of Manly Golf Club. The last Governor who backed up for a second term was also a member of Manly Golf Club. H C ‘Nugget’ Coombes 1949 – 1968. One can only hope that the tradition continues. ‘Big Al’ is into his eighties!! Macca, after you have read this edition, just e-mail me and I will release it here, cheers mate!!

The Mosman market is in a controlled canter at the moment and we are seeing some great sales, some indifferent sales and some lonely sales. A Burran Avenue home sold this week for $6,750,000 after being announced on the market at $6,100,000. Congratulations to the successful purchaser. Please forward a cheque to Bob for $383,801, which is your contribution to the Spit Bridge. The auction market has just a fortnight left before the July lay-off, due entirely to school holidays. July will be a private treaty month. We have seven properties awaiting exchange, so hopefully we can report on those next week.

See you at the rally, cheers and have fun…^__^

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