Now it starts to make cents!

Now it starts to make cents!

If we were to suggest that we are on the verge of another property boom we would be accused of attempting to talk the property market up, because we are all know that it won’t happen. So it was interesting to read in a media release by the Real Estate Institute of NSW, that Michael “Cost-ya-Plenty” “mentioned property, housing and homes 23 times in his speech but gave little indication of how the Government would attract greater property investment in NSW”. Recent reports identified that NSW was building just 33,000 new homes compared to the historical average of 45,000 and yes, it will continue to get lower. The fact that we are not building new homes will ensure that house prices hold up and that is a positive sign. We have said on many occasions that the property industry is easily the largest employer in NSW and the key indicators are clearly identifying that it is now on Rocky Road. Yet Michael “Cost-ya-Plenty” sees no reason for panic as he delivered a $700,000,000 deficit. Maybe he should change his name to Michael “Lost-ya-Plenty”. When you compare current state growth figures, NSW is running stone motherless last on 2.3 per cent. But, before panic sets in, we can be re-assured that NSW is on the come back trail.

The only problem with the Cost-ya or Lost-ya economic lullaby is that all the escapees from NSW are headed to Western Australia (on 9.2 per cent growth) and Queensland (6.5 per cent) and unfortunately, we don’t receive referral fees on Stamp Duty paid by our escapees. What the government needs to implement quickly is an Escape Clause Tax. Unfortunately, NSW simply cannot match Western Australia and Queensland in resource exports, so the next best thing is to wipe-out another 5000 public sector jobs to provide new escapees. They will sell up their homes and buy in Queensland and Western Australia and these 5000 sales (according to the government) will constitute a property boom. This makes great economic sense although I am sure that Queenslanders and West Australians will be having the last laugh. Those looking to set up a new business should open a shoe shop and stack it with white shoes!

Now to the property boom in Mosman that saw our Internet subscriber sales this week, jump to $494,781,600. We were down on last week’s $20,000,000 + however we managed to post another $14,935,000 which was a great result. Gone are 19 Rickard Avenue Mosman, 16 Wolseley Road, and two very quiet database sales that are in close proximity to the Bathers Pavilion. Still an injection in Stamp Duty revenue says that we are doing our bit for the Premier State and by doing so, we can make sure that we remain in deficit.

We are all celebrating our Fudge-it week with the realization that our subscribers to VRN have contributed $27,157,988 in Stamp Duty alone to Cost-ya Plenty in just over five years.

We will be watching the apartment market closely in coming weeks to see if the investors are migrating from the share markets as many are suggesting. We are working with investors however, they are not ready to purchase just yet. No doubt when the stockbrokers send their cheques, we will see some action. Although, with June 30 looming, not many are busy looking for investment property – a clue !!

Quote of the week goes to Piers Akerman in the Daily Telegraph who wrote “If any individual handled their personal finances as the states have handled theirs, they’d be in gaol for fraud”. There is light at the end of the tunnel given the rumour that Michael Costa-ya-Plenty was sighted at Officeworks eyeing off an MYOB software programme. Keep a close eye on E-bay, because a used kalamazoo accounting system may be headed that way.
Cheers ^__^

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