Of Course I Hear You – I’m Just Not Listening!

Of Course I Hear You – I’m Just Not Listening!

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Allow me to pose a hypothetical question – if the Australian federal government was listed on the ASX what do you think the share price would be doing? This week we saw a right for Julia Gillard, but anger growing – a carbon tax from July 1 next year is now guaranteed yet the ongoing debate is far from over. This week we read another Newspoll in The Australian where the Gillard government sits on a very ordinary primary vote of 26 per cent and the Coalition cruising along on 48 per cent. Makes one wonder if the Gillard government’s primary vote will fall below 20 per cent?

Labor vows to fight for carbon plan as Coalition pledges its repeal with Tony Abbott vowing in “blood” to abolish the prime ministers carbon tax at the next federal election. Based on what is happening in Europe is the government’s carbon tax price of $23 per tonne too high? Market price for carbon sags on crisis in Europe with the carbon price falling to E10 ($13.70) per tonne. Little wonder business to continue carbon tax fight where the Australian Chamber of Commerce and Industry (ACCI) suggests that the carbon tax will cost small to medium Australian businesses between 10 and 20 per cent of their profits.

Julia Gillard’s carbon tax reminds me of Kristina Keneally’s defeat speech after her government was decimated in the March 2011 state election “The truth is the people of NSW, who entrusted us with government in NSW, did not leave us, we left them .” It will be interesting to see how the constituents respond to “there will be no carbon tax under the government I lead.”

BUY PRINT

With the tax summit now over as too the manufacturing summit – housing affordability keeps on raising its ugly head. There is no denying (unless you are the government) that housing affordability: the summit we really need. The best synopsis of the tax summit that I read was by the Business Council of Australia – Preparing for a Better Future.

  • There are major problems with the way the finances are organised between the states and the Commonwealth, whereby the states have accountability for delivering high – demand services, but have little of their own revenue.
  • This creates confusion but more importantly, forces the states to rely on their own relatively inefficient taxes. Some of these taxes, like stamp duties and insurance taxes, are among the worst and most ‘productivity–damaging’ in the system.
  • The tax system is too complicated for individuals, families and businesses to use. That complexity adds to business and household costs and impacts our productivity.

You can expect absolutely nothing to crystallise from the tax summit.

Just like Stockland lays blame at the door of government when chief executive Matthew Quinn says Australia is in the midst of a housing affordability crisis because the government has failed to listen to the property industry’s concerns. Let’s look at what he is talking about.

Bear in mind that at the present Census figures of 2007 (we are awaiting the release of the 2011 Census figures) which won’t change dramatically 2,399,900 or thirty (30) per cent rent, 2,835,200 or thirty six (36) per cent own with a mortgage and 2,679,200 or thirty four (34) per cent own without a mortgage.

So it should come as little surprise that a surge in house prices is tipped for Sydney. I can never understand why, when real estate markets are stagnant, very few want to engage, despite anecdotal evidence that prices are down. Yet when the market is booming they want to pay well above the market price.

House prices to increase by about 20% in Perth and Sydney by 2014: QBE LMI report this is backed up by housing steadies: home loans rise again. We have construction activity weakest in 31 months and business confidence surprisingly resilient where the National Australia Bank (NAB) index of business confidence rising to negative – 2 in September, from a revised negative -9 in August.

In 2011: Mosman has recorded just twelve (12) sales in excess of $5.000 million. Richardson & Wrench Mosman & Neutral Bay (RWM) has recorded four (4) of these sales. The highest was a home in Stanley Avenue at $15.250 next, Kirkoswald for $14.250 million (price not disclosed yet) four (4) sales above $5.000 million, three (3) sales above $6.000 million and three (3) sales at $7.000 million plus. This is the worst performing top – end year since 2008 based on market sales evidence.

.It is all about consumer confidence and nobody maps, charts and studies the Mosman real estate market as thoroughly as our RWM – Property Research Team. We anticipate the top–end to figure prominently in the run up to Christmas. This had to happen sooner or later with price discounting never more prevalent.

Just look at the increase in listings this week where the houses jumped sixteen per cent (the biggest increase in 2011). That is a great clue – the confidence has finally come home.

    MOSMAN – 2088

    • Number of houses on the market last week – 115
    • Number of houses on the market this week – 133
    • Number of apartments on the market last week – 78
    • Number of apartments on the market this week – 86

    CREMORNE – 2090

    • Number of houses on the market last week – 16
    • Number of houses on the market this week – 15
    • Number of apartments on the market last week – 34
    • Number of apartments on the market this week – 36

    NEUTRAL BAY – 2089

    • Number of houses on the market last week – 15
    • Number of houses on the market this week – 17
    • Number of apartments on the market last week – 80
    • Number of apartments on the market this week – 83

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

So for this week I rest my case and those representing the defence (or on the fence) can argue their case against on our blog.

And go you fantastic Wallabies against the All Blacks – I’m on a roll!

Cheers ^__^

6 Responses to “Of Course I Hear You – I’m Just Not Listening!”

  • Ann says:

    Yes Robert,

    If you ‘shorted’ the Federal Government, you could not lose.

    Also, I just wonder if the carbon tax can be removed. it would require the Greens to be routed and two elections, and that could not happen until 2015….mess

  • It is amazingly shocking to realise the type of home you now get for around $1100 to $1200 per week in Mosman. We are in between a property settlement and may need to rent for a few months before we purchase again. The homes we have seen in this price range are what some would describe as ” Dog Boxes” 🙁

  • Hotly Spiced says:

    I’m so looking forward to the next federal election. It could see the Labor party step into another blood bath. I might even sign up to count votes just to be one of the first to see how it all unfolds.

  • Ann says:

    Wow the cabinet leaks from Thursday are blow by blow. Wonder who is de-stabalising this time. Or is there an easy answer?

  • The rat was observed kissing Julia Gillard in parliament last week – there is the clue 🙂

  • Ann says:

    From Senate Estimates Committees yesterday…

    The Dept of Climate Change has 1013 staff when budget allocated for 856.

    Carbon Tax advertising cost $16M. More than $4M over the $12M they budgeted for.

    A further $3M went in grants to ‘independent’ groups to shore up the YES campaign. Isnt that money for comments?!!

    And best yet! A green-friendly bus that stops off, every 30 minutes, at most Dept buildings in Canberra to take public servants to the airport has shut because it was infrequently used as public servants prefer to use cab charges. The worse offenders? Why the Dept of Climate Change of course who, despite the bus being right outside their doorstep, only used it once…

    Typical socialists ‘do as I say not do as I do!’

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