RENTS SET TO JUMP – AND BOB FACES THE BIG DUMP !!

RENTS SET TO JUMP – AND BOB FACES THE BIG DUMP !!

If you are ambitious and live in NSW – the reward still remains high taxes !! If you make a mistake in business these days you get fined; then if you do something right you get taxed. With the honeymoon on investment property now well and truly over for the 60,000 something debutantes who now qualify thanks to the threshold being removed. It now appears that ‘Bobby Dazzler’ is concerned that many now want to divorce him. Further proof on how out-of touch the ‘Dazzler’ is with his constituents in the “State of Decay”, we now hear that the town cryer has come to the conclusion that all these excessive annual taxes are damaging his popularity. Then on the other hand, for those who reluctantly pay their property fine (land tax) and then decide to sell, they are then faced with an additional 2.25 per cent fine for leaving the property investment market. For many who own investment property in Mosman some of the land values have been increased by a staggering 49 per cent, with landlords now demanding rental increases. One home which had such an increase, now pays the first $200.00 of rent each week to the “State of Decay”, their property rents for $1000.00 per week. Naturally, our landlords are up in arms and this has become a huge issue. An apartment we manage which rents for $495.00 per week now pays $2,200.00 per annum. The rental market in Mosman/Cremorne/Neutral Bay is the strongest in living memory and yes, the rents are being bumped up to offset these taxes. The future looks bleak for the rental market if the investors decide to sell up as rents will skyrocket. At one juncture last week we had just eight properties available for rent, however, as you can see from the rental list, we have listed a few more. It should however be pointed out that some tenants will now have to contest higher rental payments in the short-term.

The “Governor of Moolah” seems almost certain to fire-up the cash rate next week from 5.25 per cent to 5.50 per cent which will have little to no effect on our market. One rate rise is a certainty, with a quick-fire second rate rise a strong probability. Whilst the “Governor of Moolah” reported last week that with house prices “the boom has stopped and is now essentially flat”, I think that he, as a long time Mosman resident, has not been watching our niche market as closely as he should. In coming weeks the property market here will prove that the word ‘flat’ has a new definition.

The Real Estate Institute of New South Wales issued ‘Property Focus’ for the December quarter 2004 this week and Mosman still remains in the numero uno position. The Mosman Local Government area still continues to record the highest median home prices with a $1,604,000 home price. It should however be noted that many of the top-end home sales who used the Expressions of Interest sale method continue to avoid the radar as many have settlement delays and those results won’t be available in some cases until the June quarter of this year. So in our opinion the Prices Median Annual percentage decline of 10.65 per cent is not a true reflection on the state of the property market. Overall in NSW the median house price increased by 1.30 per cent which is a positive spin on the entire property market. The median price for a home unit in Mosman was $479,000 which was an annual increase of 1.27 per cent.

We are seeing plenty of movement in sales at the minute with the home at 22 Lodge Road, Cremorne selling for just over $5,000,000 this week which we understand is the third highest sale for a non-waterfront home. The Home Unit Division keeps proving the spinners of doom and gloom wrong with 2/153 Kurraba Road Neutral Bay selling for $572,500 (home owner) and 2/135 Kurraba Road Neutral Bay, for $635,000 (home owner). Another six should exchange before the next edition. Give me anecdotal sales evidence any day because we are predicting a very strong 2005 for the 2088 post code. When all is said and done, it’s the politicians who say it and the taxpayers who do it !! Cheers and clink ^__^

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