Sydney prices jump

Sydney prices jump

It was once said that “fact is fact and feeling is feeling; never does the second change the first.” Feelings may misrepresent the facts and facts do not change, but feelings can. If we take a moment to look at the big picture, the property market involves many who may have ulterior motives. Their futures are vested in the hope that the market has peaked as they wait to buy. This is nothing new to the property market and it has been going on for years. Back in the ‘1991-1993 market’ many were preaching that real estate prices would continue to fall and the facts of that market are there for all who wish to pass judgement. I prefer to take something from Steve Bradbury’s 1000m short track gold medal achievement. Simply, he was in the right place at the right time, as against those that are comparing the market to other speed skaters who failed at the final bend. The property market is a long way from that scenario – and that is a fact, not a feeling !!

Now I have a feeling that nobody can argue with these facts. Sydney’s median house price jumped 11% to $350,000 in the December quarter and once again remains the most expensive capital city. The numero uno suburb goes to Mosman again. (As I fight back the tears of joy!!!) Mosman continues to out-perform all the other suburbs. Another great result. Now if there is a feeling that the market forces will change, this only confirms that Mosman will be last to witness the correction. Whilst on correction, the pundits are predicting a 10% drop, shock horror !!! The leading agents usually negotiate prices well in excess of that, so the majority of the market will see little change. One ethos that we aspire to is ‘Don’t blame the market, lead the market’. As we have said before, the market doesn’t determine the sale price, it only creates the parameters for the sale price. The record sales are only created by the agents who have little fear and plenty of confidence for the homes with which they have been entrusted.

Well, the much awaited launch of the ‘First Eight’ hit the shimmering waters of Mosman Bay last Tuesday night and by all accounts it was a great success. With five properties selling prior to auction, we were left with three excellent properties. 1 Bickell Road sold for $1,714,000 under the hammer. Well done Steve Patrick. The next was an apartment in Kirribilli which we understand is out to contract, and last but not least was “moi” with 13 Carrington Avenue. With eight contracts issued we were anticipating a ‘roar and soar’ auction. Well, we had just one bid of $2,450,000, which only confirms that real estate is not an exacting science! As you know we do not dummy bid, so the property was passed in and negotiations are progressing smoothly. We anticipate a ‘sold’ before the next edition. For those attending other auctions be advised that many are still using dummy-bidding and it is easy to detect. Look for the 90/10 ratio. Agents spend nintey per cent of the time with the genuine buyers and ten per cent with the dummy bidders.

Last week when I reported on the ‘Premium Property Tax’ I made a mistake!!! I quoted Western Australia legislation, not N.S.W. The exact rate is as follows; the threshold is $1,414,000 and the rate is calculated at 1.7%. I would like to thank one of our long time subscribers Bob Ward, who brought this to my attention. For those I scared with my suggested 2%, I apologize. You can now call your travel agent back and re-confirm those travel plans. Whilst on the subject of Bob, he also has a free property newsletter for those interested, it is called the “Residential Property Investing Made Easy” and is a free monthly e-mail newsletter covering tax reduction for property investors and other property investment news. You can subscribe at his web site HERE

Now back to what is happening in the Mosman market this week. The top end once again showed that it is alive and well, with a Burran Avenue cliff top property selling for just under six million dollars. This represented a Land Value sale only, (and no we did not sell it). Once again this is great news for the market. Just over twelve months ago it sold for $5,600,000. After much cursing, we have some sunny weather so we can photograph all the new properties and by all accounts our subscribers will have plenty to look at over the next few weeks. We are most anxious to take our Internet sales to the 100 million mark, only 25 million to go. On Tuesday night we also launched our new marketing strategies to the market place. We call it ‘Succeeding is Exceeding’ !!! We are combining our three main marketing strategies namely; ‘First Eight’ and ‘Private Treaty’ with our highly successful ‘Internet Marketing’, which makes sense when you see for the month of January our little agency had just over 66,000 page reads for the month. There are few small businesses that can even compare these kinds of results, but then again it is unlikely to be contested as a vast majority of agents are unaware of what a ‘page read’ is !!!

On that note, I am off to read more about Premium Property Tax, which from previous accounts confirms that I will be having an early night, that’s right !! “The early bird catches the worm”, yep that also is a fact !! Cheers, ^_^

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