SAME, SAME – BUT NOT DIFFERENT!

SAME, SAME – BUT NOT DIFFERENT!

Wonderful institutions these state governments! It was revealed that the government included a four – year old stamp duty bill on the sale of Sydney airport which had previously remained missing in action. One would have to ask would any business miss a $400 million donation ? The only problem is that now, the Federal government has refused to pay as it claimed it was a share transaction and Mr Cost – ya Plenty claims it is a property transaction.

It was good news for homeowners and investors where relief was found in cuts to land tax and mortgage duty. The land tax rate will be reduced from 1.7 per cent to 1.6 per cent in 2008, but it will probably be knocked back up again. These tax cuts are worth $2 billion over four years. So at next years “Fudge-it” if they don’t get the $400 million, you can bank on these taxes being re-invented with masterful efficiency.

Most agree it was a boring Fudge-it that completely lacked innovation or vision. A compelling argument was put to the government to reduce payroll tax which is the highest in the nation. For the last two years NSW has experienced higher unemployment than the rest of the country which explains why so many have left. One could argue that the only thing moving today in NSW is the people.

With the June quarter just a week from completion, it would be fair to suggest that when the data is released it will identify one of the strongest property markets on record. Figures released from Australian Property Monitors identified that on the North Shore, properties went from 123 days on market to just 88. Quite a number of houses that we recently launched, sold after just one open house. Just as interesting is that the clearance rates on the lower North Shore have climbed from 57 per cent to 72 per cent. Even clearer, is that the wealthier suburbs will continue to reach levels never experienced before. Australia’s Rich 200 boosted their wealth by 26.7 per cent this year which is the largest increase in the history of the survey. To put this into greater perspective the previous year recorded a record increase also.

On top of this, many people who have been renting are now being forced into buying as the rents continue to soar. Most real estate agencies around here are factoring in rental increases from between five to ten per cent per annum. So the outlook for those in rental properties continues to look bleak as investors can factor in guaranteed increased returns on their investments.

Our subscriber sales are now at $606,647,500 and climbing, as three houses we sold last week were sold with just electronic advertising campaigns. Just as surprising, is that all three properties attracted upwards of fifteen couples.

Unlike the state government, we like to test new methods of marketing and be creative with our business model. State Fudge- its have become a repeat of previous years and pay very little attention to the key performance indicators in the economy. It is a good thing for them that a $3million property acquisition will see you fined an additional 2 per cent to take it to 7 per cent of the purchase price.

That is nothing to cheer about ^__^.

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