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Actually not that different with the three P’s that pertain to property – position, position and position. Throw in politicians and bankers and what we have is the 2010 equivalent of economic soup that is murky and far from palatable. During the global financial crisis (GFC) Westpac and the Commonwealth banks wrote approximately eighty (80) per cent of all mortgages which explains why today, collectively, they own the largest mortgage books. Alan Kohler wrote on The Drum that banks only have themselves to blame which has caused a stir given many consumers are losing faith in our pillars of society. Of course, there has been plenty of gratuitous PR advice for our friends in banking although the politics of banking was intelligently addressed when Janet Albrechtsen wrote in The Australian – Let’s hear the positive story from the banks.

Plenty of rhetoric this week as home owners angered by increases in interest rates then news broke that the Big Four banks to dump exit fees as backlash grows against lenders. Then late this week ANZ raises rates, scraps exit fees at or about the same time as ASIC bans banks from double – dip mortgage exit fees which means banks that charge customers to establish a mortgage, will no longer be able to apply contentious exit fees. Too early to say who will get the last laugh with this announcement – possibly bank establishment fees will rise? Certainly the four new P’s won’t change.

BUY PRINT

Is the landscape at Circular Quay about to change? Special deal on city skyscraper as a giant residential tower, double the size of any other building in Circular Quay, is expected to be approved soon. The site Gold Fields House is set to become a luxury apartment block that will tower 191 m above Circular Quay making it Sydney’s eighth tallest building. Sydney has only one of the top 10 tallest buildings in Australia – which prompts the discussion for progress of our capital city.

Australian Property Monitors released its House Price Report for September 2010 and here are the key findings:

• National median house prices remain effectively unchanged at +0.1 per cent for the quarter with annual house price growth slowing to +11.5%
• Most capital cities experienced falls in prices over the quarter; however the major markets of Melbourne and Sydney bucked the trend recording positive quarterly house price growth
• National price units (excluding Tasmania) have fallen slightly, down -0.4% for the quarter, with annual growth falling sharply to +6.5%
• Unit prices have fallen in all cities except Melbourne, with Brisbane experiencing the largest price decline, falling -2.8% for the quarter

Source: Australian Property Monitors

SYDNEY

• House prices increased slightly by +0.7% in the September quarter, which is the third consecutive quarter of slowing growth.
• Unit prices have started falling for the first time since 2008, recording -0.1% for the quarter.
• Sydney’s median house price is now $634,346 and the median unit price has fallen slightly to $436,714.
• Annual house price growth sits at +11.3% and unit price growth is at +7.3%, both trending downwards.

Weak demand made for rate surprise all things considered the clearance rates are positive, although the most important conclusion would be that prices are flat lining. It is only natural that auction clearance rates fall on rate rise and we are seeing anecdotal sales evidence. One interesting observation in Mosman at present, is that private treaty sales are producing the highest volume.

Here is the comparative analysis for Mosman houses:

Mosman Houses 2009 – 1 January 2009 to 31 December 2009

• Total sold – 322
• Private Treaty – 281
• Public Auction – 41
• Total Value Sold – $815,649,751
• Median price – $2,094,000
• Average price – $2,564,936
• Highest price – $13,200,000 (RWM)

Mosman Houses 2010 – 1 January 2010 to 10 November 2010

• Total sold – 292
• Private Treaty – 219
• Public Auction – 73
• Total Value Sold – $639,048,555
• Median price – $2,100,000
• Average price – $2,468,570
• Highest price – $12,600,000 (RWM)

It should be noted that with the 2010 house sales, that the vast majority of sale prices are yet to be recorded, so we expect this year’s total value for houses sold, to be considerably higher $750,000,000 approximately. For example, this week, RWM recorded the second highest house sale for Mosman in 2010 which is yet to be recorded. Here is the Macquarie Research Economics Forecast where it should be noted that the banks have already moved the cash rate to the Reserve Bank of Australia (RBA) Macquarie Research Forecast for Quarter 1 – 2011. So what we now have is an official cash rate and a real cash rate, which I will call the “real, official cash rate” – ROCR!

So to the four new P’s – polls, populism, performance and of course profits which continue to stymie our Forts Fumble and Crumble. The politician who should have been Premier of NSW, Blacktown MP Paul Gibson ‘Fed up’ NSW Labor MP quits so now thirteen (13) Labor MP’s have announced their retirement in the past two months. Paul Gibson “we’ve moved from platform and policy and pursued a poll driven agenda.” Fort Crumble is shambolic and an embarrassment where Transport Minister John Robertson has already called his transport removalists to grab the now vacated seat. Thirteen, with more to come as powerbroker Joe Tripodi quits. Premier Kristina “Bambi” Keneally has (unofficially now) been placed on the endangered species list due to a lack of interest – polls, populism, performance and no profit.

A perfect dismount from the strangest election ever – You can say that again! The four new P’s continue to dominate as Julia Gillard losing ground to Tony Abbott, News poll shows given the continuance of Labor’s policy woes pile up. No doubt we will be hearing and reading plenty more about this in the months to come. Fort Crumble continues to disintegrate – polls and populism shape public perceptions. Fort Fumble relies on the hope factor – Swan’s numbers looking rubbery when more ‘courage’ needed in spending cuts, says Access Economics. Polls, populism, performance and of course profits continue to threaten the capability of Fort Fumble.

Back in 2000, Virtual Realty News subscriber sales sat at zero when we launched our online platform. Today, they sit at $998,770,220 so we are now $1,229,780 from breaking the $1,000,000,000 mark.

Unfortunately, this week’s $10.000 million plus Balmoral sale did not qualify – another big week of local sales which suggests a strong run of property transactions through to Christmas.

Cheers ^__^

This week’s sales 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

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12.11.10Robert Simeon5 Comments »

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Another fascinating week following the recent federal election. Our new politics takes on a toxic taste, the newly elected Fort Fumble is under attack and there will be plenty of casualties. Whilst treason within Fort Fumble can never be ruled out – Paul Kelly in The Australian wrote “Welcome to the new politics once inconceivable yet now on stunning display: the discredited Kristina Keneally NSW government, the ACTU and the Greens in a united troika against the Labor government of Julia Gillard.” Whatever the outcome, this will get ugly, especially when one throws in the broadband battle: PM appeals to opposition as bills reintroduced.

Wayne Swan ‘no’ to release of mining tax figures which defies a Senate order as the deal with big miners unravelling. Was there ever a deal? These are but a few issues which will impact seriously on the Australian economy. Such as mining tax ‘unravelling budget surplus’ – Abbott although it is fast resembling a mining and banking war as Labor’s besieged on two fronts.

Will Keneally burn Gillard? I don’t think so you broke our deal, Gillard tells Keneally so this hissy fit then became the “Battle of the Birds” – (finger salutes included.) Paul Kelly wrote “there are many morals from these events; the clearest is that the NSW government is radioactive in a political sense and will contaminate anything it touches.”

In The Australian Niki Savva wrote this brilliant piece Lead on reform or lose way – “Julia Gillard has failed to take charge and shape the national debate on key issues. More than 100 days in both jobs, Julia Gillard has failed to properly define herself as Prime Minister or as Labor leader.” Then to Premier Bambi (I will have to borrow that) – “If a state Premier as damaged and weakened as NSW’s Kristina Keneally feels emboldened enough to challenge Gillard on an issue involving unions, and one central to Gillard’s claim of success as a reformer, negotiator and administrator, then the Prime Minister is in real trouble.” Don’t forget the farmers are up in arms given their “rivers no longer run free.”

BUY PRINT

Building industry faces skills shortfall as the booming mining industry is now moving our skilled workers away from building infrastructure as construction industry braced for upturn. The Australian Industry Group (Ai Group)/Australian Construction Association (ACA) construction outlook survey expects the value of construction work to rise by 5.9 per cent during 2010/11 and then 7.9 per cent in 2011/12. This follows just 1.5 per cent in 2009/12 which is led by iron ore and coal; commodity export prices have soared by 52 per cent in the past year to surpass the pre–global financial crisis. Australia’s jobless rate creates wage pressures, report says given skilled workers are headed off to make their fortunes, thanks to our mining boom.

Fast but not free is key to future crisis approach where there are similarities with the failed Fort Fumble home insulation bungle. “The coordinator general and the kitchen cabinet that made all decisions about stimulus spending got the speed they wanted: actually they got a kind of modern – day gold fever: 200 insulation installing firms mushroomed to 10,834 in less than a year and the budget for the program blew out by $400 million.” Australia appears to be digging plenty of mines without any foundations given house building activity hits 18 – month low. Australia has a labour market of just 12 million people – the mining industry is eating up the construction industry. Julia Gillard needs to immediately remove the GST from the residential construction industry and get licensed builders back building houses. Recently it was revealed that Australia has a shortage of approximately 200,000 houses and this will grow to 800,000 by 2020 which identifies glaring problems within the Australian building industry.

Much written, read and said about the condition of Australia’s housing markets, so we found this RP Data graph an interesting insight into the state of play. Here are the Top 5 suburbs around Australia for the year to July 2010. No need to guess which suburb leads NSW for total value of sales.

Mosman dropped to third in the apartment stakes although what is interesting, are the results for Manly and Dee Why. With just eight weeks left in the official selling season for 2010, a Melbourne Cup cash rate increase will certainly test many niche property markets (which we preview next week). Compelling viewing given Mosman stock levels for both apartments and houses are on the rise as the graph below shows.

Always something to write about in our industry although I could not believe my eyes when I read Minister moves to mandate NBN so even if you don’t want Fort Fumble’s national broadband network you will be charged (reportedly $300) to be connected to it. Of course, this will probably blow out to $500 plus by the time the trenches are dug.

Cheers ^__^

This week’s sales 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

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22.10.10Robert Simeon6 Comments »

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First of all read the following transcripts which clearly identify why our presiding Government, Fort Crumble, is not only up the proverbial creek without a paddle, but in five months time, will finally be laid to rest. Never before in the rich political history of NSW, have so many elected sitting members opted to stand down (thus far) prior to an election. No new stars can shine in ALP’s black hole summed it up pretty well – “It will be fascinating to see how NSW Labor rebuilds itself after the election. One thing is certain, though, anyone lining up as a star recruit this time around needs a mental health check.”

Transcript number one: ABC News Stateline New South Wales when Quentin Dempster interviewed former Head of the Premier’s Department, Gerry Gleeson who spoke out against the NSW Government saying public confidence is gone, access and influence are being peddled through political donations and incompetence is apparent – Gleeson criticises NSW Government. Without a doubt one of the most insightful interviews pertaining to the inner workings and failures that continue to plague Fort Crumble – no prisoners taken.

Transcript number two: Gerry Gleeson addressing the Institute Of Public Administration Australia – NSW Spann Oration 2010 – If I was Premier of NSW in 2011.

In his interview with Quentin Dempster on the Epping to Parramatta railway Gerry Gleeson said “Well look I think when the Prime Minister Gillard when she announced the Epping to Parramatta railway line the audience laughed. Now there can be nothing worse for a minister or a prime minister for derision like that, because that audience had heard this so often before, and that’s what, it’s this continual changing of plans. Bob Carr had promised a railway line to the north west sector, it is the top of state priorities, yet here we have a federal, the Prime Minister of the country announcing, what after 24 hours notice to the New South Wales Government that, I’m going to build this railway line, I’m going to give you the money for this railway line.”

In his NSW Spann Oration, Mr. Gleeson said “The Yes Minister television series was close to capturing the culture of the times; a culture that is not entirely buried. The failure of Ministers to give any rational reason for the Metro to Rozelle reminds me of Sir Humphrey Appleby saying “in the great restaurant of government, civil servants are the cooks and politicians are the waiters. We prepare all the dishes and they serve them up to the customers.”

BUY PRINT

Having read Mr. Gleeson’s interviews, we sent Australia’s finest aerial photographer, Tim Mooney, to capture Barangaroo given former foreshore authority head takes a shot at Keating. Of greater concern is the new management as Premier lashes lord mayor over Barangaroo.

Coincidentally, this week I received this PDF – Time To Go FINAL Another must read as the theme continues.

Under Labor, NSW has grown slower than any other Australian state or territory. GSP is Gross State Product and since June 1995, Queensland and Western Australia have recorded GSP growth of 90 per cent and 80 per cent respectively. NSW has recorded 46 per cent growth and if NSW had managed to match Victoria’s growth of 65 per cent, our economy would now be $50 billion larger, equivalent to the turnover of BHP. That additional economic growth would have meant another $2.4 billion in state tax revenues this year.

NSW debt has climbed from $15 billion in 2003 to a projected $55 billion by 2014. This explains why infrastructure is on hold despite a surging population growth. The reason why? A spokesperson for Infrastructure Australia revealed one of the reasons NSW missed out on Federal funding was the inadequacy of the State Labor Government’s submission. The spokesperson indicated there was a lack of detail on the benefits and costing for the State’s key projects, saying, “There’s a lack of integrated planning in the NSW submission.” So here is the funding graph for the States and Territories that could fill out a form intelligently.

A horrific graph that would leave even Sir Humphrey Appleby lost for words. NSW is the largest contributor to GST payments. Even taking into account the incompetence of Fort Crumble, surely Fort Fumble would recognise that NSW deserves a greater apportionment of funds – Victoria won’t overtake NSW: Keneally. When you look at Infrastructure Australia’s funding allocations, Victoria is a work in progress model and NSW has completely stalled. Developers warn homes too big to build on time is another classic example where NSW has a massive crisis in housing availability. Australian Bureau of Statistics data revealed Sydney dwelling construction continues to slide with just 14,400 houses built in the year to June last year.

Aaron Gadiel, chief executive of Urban Taskforce, said that at June 2010, data showed just 13,400 of the 21,000 new Sydney houses that the state government had predicted. The Metropolitan Development Program report released by the premier, Kristina Keneally, in April said Sydney housing construction rates were “well placed to re – bound strongly” and forecast to exceed 27,000 houses by 2012. Mr Gadiel said the new data “has blown the government’s predictions out of the water”. “The government’s own experts have found that targets for an extra 25,000 homes or more,will not be achieved without major policy changes by government”.

Matthew Quinn, the managing director of Stockland, told the Urban Development Institute conference this week that Australia had a shortage of 200,000 houses that would grow to 800,000 by 2020 and 1.4 million a decade later, unless major policy changes were implemented.

I have never been a supporter of First Home Buyer Grants which (previously) I declared was like throwing lollies onto a highway without supervision. So, little surprise to see first – home buyers loans share shrinks to six year low as outer suburbs struggle most with mortgages. NSW has 44 per cent of the nation’s mortgage delinquencies which comes as no surprise when one looks at this article that appeared in the Sydney Morning Herald on April 27, 2009 first – homes rush creates boom suburbs in west. The boom generated by the Federal Government’s decision to dramatically increase first – home – buyer grants has been confined to Sydney’s west, NSW Government figures reveal. They show first home buyers in the inner city, lower North Shore and eastern suburbs have failed to cash in on the grants. The artificial government stimulation of the western Sydney markets will see a crash ‘n burn outcome as interest rates rise.

I suspect we had an Internet first this week, when we successfully launched a website within a website (who said it could not be done). We are now offering premium website pages for our top – end residences so please take a minute to view Glen Osmond – 23 Prince Albert Street Mosman where we have definitely raised the bar with online property presentation.

Cheers ^__^

This week’s sales 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

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15.10.10Robert Simeon1 Comment »

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Australia’s presiding government has now been in caretaker mode for  almost two months and in all probability, will move to a makeshift government, better known as a ‘political pantomime’. The political care factor is all about me, myself and I, but hopefully by this time next week, we will finally know the outcome of the 2010 federal election.

Already many cracks are appearing given we failed, Julia almost admits as three amigos turned into Mexican bandits which was best summed up with funny farm on the hill loses a few inmates, gains some more. Although at the end of the day, there is no escaping the fact that once decided, this will be the government we’ll have to have. It would be catastrophic for Julia Gillard’s CV to read Australia’s shortest serving (union elected) prime minister – no wonder she has turned green.

Unlike this week’s political speak – it was the Australian economy that “walked the walk and talked the talk”. This  highlighted the fact that Australians (not politicians) know their business. Australia’s economic growth accelerates as it remains one of the world’s best performing economies, with the latest data showing growth is back to pre – financial crisis levels. GDP growth was 3.3 per cent at an annual rate, faster than the 2.7 per cent pace in the March quarter, and surpassing the 2.9 per cent tipped by analysts. Just wish one particular bloke would mind his own business as Wayne Swan claims Labor responsible for GDP growth. Somebody should tell him that if that was the case, his government would have been re-elected with a majority.

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This is a sensational photo identifying our urban sprawl – at first I thought it had been photo shopped however I can assure you that it has not. Another brilliant Tim Mooney capture.

BUY PRINT

GDP speeds ahead of economists’ forecast as China fuels mining sector. This  needs to be put into perspective given “the resilience of the economy is thanks to demand for the nation’s iron – ore, coal and other minerals, particularly from China, which has helped boost company profits. This has helped support business and consumer confidence and kept household consumption buoyant, a big contributor to economic growth in the June quarter.” Is this green Gillard’s political blunder? Given federal Labor and the Greens support future Mining Super Profits Taxation revenues which could deliver diabolical consequences as Australian miners flock to Africa. The moral to this story…?

So will all this positive data reporting be the catalyst for the long awaited return of the top–end real estate recovery? They say it comes in threes so first, we had anecdotal evidence that the Australian economy had returned to pre – global financial crisis levels. Secondly, we are now in September (which historically coincides with our peak selling period) although this market has been in  prolonged hibernation. Last but not least, property shakes off winter blues with $52 million sale. Historically, property markets follow GDP growth. Our property markets peaked in 2003 and 2007 which is clearly indicated in the following graph. If trends continue, 2010 will see a period of consolidation and growth and 2011 will return to 2007 prices and probably beyond.

The Mosman house market sales in 2010 (thus far) are far from impressive and turnover is well down on previous years.

MOSMAN HOUSES

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• 2007 – 414 transactions to a total value of $1,169,107,720
• 2008 – 445 transactions to a total value of $736,789,726
• 2009 – 474 transactions to a total value of $730,889,500
• 2010 – 172 transactions to a total value of $402,766,550

Source: Domain Property Data

Interesting to note that in 2010 there have been 141 recorded sales up to $5,000,000 (79 recorded sales up to $1,500,000 and 62 recorded sales above $2,500,000.) Just 19 sales have been recorded in excess of $5,000,000 (12 above $5,000,000, 2 above $6,000,000, 2 above $7,000,000, 1 above $9,000,000 and 2 above $10,000,000.)

When the Reserve Bank of Australia (RBA) meets next week, the cash rate will remain on hold despite some predicting a reduction. The reality is that the RBA will only cut rates when our economy starts heading pear – shaped. Risk of double – dip recession: Debelle which this week was dispelled when rate rise on the radar as profits surge.

Onwards, however not necessarily upwards the great housing dilemma continues as does Sydney rental vacancies rise, data shows. NSW is heading backwards as is our presiding government, Fort Crumble, which continues to stuff – up growth as developers furious at reversal of home levy savings. Australia’s worst ever government is dysfunctional, corrupt and rotten, the end is finally nigh for Labor as corruption fighters take on Keneally. Ferry services are being cut to Mosman, Cremorne and Neutral Bay as Fort Crumble tries to appease voters in Labor heartland seats despite – No minister, don’t cut ferry services – let us run them, say private firms as NSW minister quits for using adult and gambling websites. The stethoscope was then applied as $131 million ‘missing from NSW health budget’ which would explain why NSW is terminally ill in the political sense.

Whatever happens next week when our federal government is announced we can expect plenty of pollies to be singing from different hymn books and not in chorus? Some suggest a parliament of enlightenment although I see a parliament of disenchantment.

Off to the polls we go – yet again.

Cheers ^__^

This week’s sales 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

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3.09.10Robert Simeon18 Comments »

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Try telling that to Fort Crumble who are in a desperate wait for all the cows to come home where the fields are alive with the sound of Independents. The rural revolution is coming thanks to Election 2010 which now resembles a classic case of “foot and mouth” disease, prompting post – election behaviour that could even suggest the arrival of “mad cow” disease on Australian shores. The classic symptoms were noticeable well before Australia was herded to the polls last Saturday – erratic behaviour, aggressive demeanour, disorientated memory and agitated herd mentality. The paddocks now require new fences and boundaries – hay hay, Australia has been hung out to dry.

The post electoral shin dig over at the back paddock had to be cancelled, due to a lack of support which sparked headline act Midnight Soil to go batty as they were coming out of retirement after agreeing to make a one–off election appearance.

Like a bull at a gate, the Mad Monk waved his red robe Abbott attacks Labor’s ‘civil war’ and the mantra could he heard all over the paddock reject Labor: voters’ message to independent MP’s as the hollow men led Labor to disaster. Then the head heifer corralled one of her baby bulls when PM bans powerbroker Arbib from appearing on Q&A. Such was the Labor of Love given the odds shorten on next Labor leader where it keeps getting worse as Gillard in big trouble no what happens given we have a tortuous road to government.

BUY PRINT

Back at the barn, even the cats showed their respective claws as the meows fast turned into a hissy fit McKew a ‘Labor hero’: Keneally then axing Rudd a strategic blunder:McKew. Then Rudd’s fault for dismal result, says Keneally although the alley cats were purring at a sneak preview of a Keneally bloodbath when the cool cats over in NSW go to the polls next March. NSW Labor headed for wipe out which brought about a familiar change after Julia … it’s the real Kristina.

Over in the northern paddock, more cats were hysterically meowing (as against dogs barking) where there was plenty of crying over spilt milk. I won’t suffer Rudd’s fate, says Bligh then Keneally lashed out at Bligh’s ‘NSW disease’ jibe. The 2010 Federal Election today resembles Old MacDonald’s farm although at this point we don’t envisage that the war will be enough to see our soldiers brought back home to restore order given disparities in voters’ priorities are even more stark now. Plenty of cries to cut the crap as electorates keep asking where is the vision? Now we have fighting on two fronts Labor war hurting bid for power and now Coalition begins its own civil war.

What spring promises for the market as sales sizzle, auctions cool although for the time being our property markets wrestles with election uncertainty. Australia this time around won’t be paying that much attention to what is happening in America given Obama running out of time to fix economy. This was not helped when this week it was revealed that US existing home sales dive to 15 – year low which is otherwise known as tumbling houses. Quite the opposite here in Australia given the latest HIA – CBA Housing Affordability Report identifies that more than ever before our property markets are out of reach. We are seeing some areas where prices are dropping then on the other side of the coin the prices are now increasing. Household debt in Australia has risen dramatically over the past three decades, but the number of home repossessions in Victoria and NSW is on the decline because we are keeping up the payments.

Last week we brought you the Dyson Austen Top 10 Prestige Residential Survey for January – March 2010 so this week we continue with the April – June 2010 results.

Interesting to note that the Eastern Suburbs recorded eight of the sales and Mosman posted two sales with RWM recording one of these two transactions. There are two interesting conclusions that can be observed from this data. Firstly, the top–end sales appear to be rebounding with suggestions that the upcoming Spring/Summer markets may see increased competition for these trophy homes. This was always going to happen – just that nobody really knew when.

Secondly, we have a new record since the global financial crisis (GFC).

The Dyson Austen Report, Simon Feilich acknowledged “if we look at this result (above) and the highest transaction ever achieved in the survey history ($45 million – Q3 2008) both sales occurred at a time when the $AU/US has just been devalued by 12% and almost 10% respectively.”

“NOTE: The jumbo prestige residential market is directly linked to the performance of the equity market, with the only other main external factor being the $AU/US rate as seen in Q3 2008 and the latest released Q2 2010.”

Since the election debacle the $A has started to fall again, due largely to the uncertainties ahead. It appears the nobody can form a government and even if they do, it will be a s#*& fight with all the internal bickering.

So I predict we will all be headed back to the polls in October.

Cheers ^__^

This week’s sales 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

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27.08.10Robert Simeon2 Comments »

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The 2010 federal election is all about the polls (cometh the spin) then three years on, we have more broken promises than promises that actually came to fruition. Neither party has a single blueprint for the Australian economy, nor the nation as a whole and this was classically highlighted during the global financial crisis spend– a– thon which we are told constantly, saved the Australian economy from recession. Australia’s need to invest in infrastructure, is urgent – roads, rail and ports and this is why Fort Crumble faces election annihilation when NSW goes to the polls in March 2011.

Infrastructure in NSW ‘average to poor’ a scathing new report card from Engineers Australia where more than three quarters of the sectors require major or critical changes. This report highlights the point that industry can identify the problems, yet elected governments are incapable of preparing a work – in – progress strategy for Australia. Fix these problems because today our population is well ahead of infrastructure which was brilliantly explained in gotchanomics doesn’t bring home the real bacon.

Labor struggling in key states which led to rolling out the barrel – Labor denies pork – barrel suggestion. Andrew West from the Sydney Morning Herald wrote Back on track – and just the ticket for commuters “It is politically brave for a prime minister to appear publicly with a NSW premier these days. It is crazy brave to make a joint announcement about public transport. The NSW public is so cynical about public transport promises – after 15 years of projects being announced, postponed, shelved and re – announced – that voters no longer believe state Labor can deliver a crucial service.” The $2.100 billion rail link announcement for Parramatta and Epping will no doubt be shelved once Fort Crumble is removed permanently at the next state election – all aboard the PM’s Parramatta express. Who could forget reading How lazy Nathan Rees sold NSW short which explains why Gillard and Keneally fail on Sydney’s transport infrastructure funding. More than half the pledged monies promised in the current election will not be spent until after the next election in 2013 – pork rolled out on the never-never.

BUY PRINT

Surveys reveal that Australia is home to the world’s least – affordable property. Pundits are at odds over whether it might end in a bang or a whimper – a great read Forever blowing bubbles. The Real Estate Institute of Australia recently announced that a contributing factor to the increase in house prices and the decline in housing affordability, is the under-supply of housing. According to the National Housing Supply Council, the gap between the supply and demand for housing will increase in the next eight years and this will put further pressure on house prices.

Nothing new on offer since the houses that Kevin built – “It might be important to voters – but not the parties”, wrote Kevin Saulwick. “There may have been more pressing issues than housing affordability at the 2007 election, but not many. Which makes it all the more remarkable that three years later – and with the same level of community concern about the cost of living – there has been little focus on housing by Julia Gillard and Tony Abbott. When Kevin Rudd sailed into office, it was due to Labor’s success in putting itself on the side of the angels when it came to housing costs. Rudd’s message was simple: he sympathised with families bleeding ever – larger payments on mortgages and rent. And he came to office offering policies aimed at increasing the supply of affordable properties to help reduce the pressures.” The Emperor was de-throned by the Orange Roughie because he had lost his way, then poor polling saw a phoenix – like resurrection to lead Labor to better polling – hence the soap opera.

Housing affordability can come down only with much improved infrastructure policies – Capital city house prices up 18 per cent from last year – ABS even though home loans sink to nine – year low. When infrastructure is non–existent, this leads to construction slumps in July because there is no point building, where there is no demand (especially when NSW has no South West rail link, North West rail link, Parramatta to Epping rail, M4 East and M5 East duplication). If these facilities were in place as promised, NSW construction would be booming and housing affordability and rentals much more affordable. How can Australia “move forward” when infrastructure is moving backwards, compared to our population growth? Policy on the run again as NSW Labor in the dark over Gillard’s Parramatta – Epping rail link promise which has been revealed as the rail pledge a carrot in push for McKew win for the seat of Bennelong – Maxine who?

The last remaining economic data statistic before next Saturday’s election was released this week – shock jobless rise where the three states of major concern for federal Labor – NSW, Queensland and Western Australia all experienced unemployment increases.

Whilst home loans fall as interest rates bite the good news is that the Reserve Bank of Australia RBA statement suggests longer pause given RBA forecasts plenty of blue sky ahead. With the election ‘soap opera’ out of the way next Saturday, we can expect some normality back in our property markets. Electoral promises rarely come to fruition as The Emperor “Kevin 07” found, even though he has been brought back to life – with a faint pulse.

Richardson & Wrench Mosman & Neutral Bay (RWM) has been busy working on our infrastructure and this week, we released our RWM mobile website. Previously with your mobile phone you could view our website with your phone which was a navigation nightmare because it is impossible to view a macro site on a micro application and do justice to our properties. Agentpoint our developers this week launched our mobile micro site for mobile phones users.

Open a browser on your mobile phone and type in www.m.rwm.com.au. Our research and development team are currently testing new technologies, all to improve your RWM real estate experience..
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Online is our real estate industry point of difference, because we are the only agency that gets it – so now you get it. Our clients can now sit outside one of our properties and view it on their mobile phone (outside set inspection times) from our mobile RWM website.

Thanks to Steve and Richard for filling in whilst I was relaxing in our Thailand branch office which is better known (by me) as the Tipsy Prawn.

Cheers ^__^

This week’s sales 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

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13.08.10Robert Simeon5 Comments »

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It’s the state Fudge–it week and Fort Crumble was on a roll. We’re not talking about polls either, thanks to asset sales and a property recovery leads surge into surplus. Our economy expanded by 4.4 per cent which is the fastest growth since 2007 – 08. So why was the Fudge–it not constructive, given housing all over Australia is showing alarming structural problems? Whilst construction has expanded in March, April and May it has been modest according to a recent survey conducted by the Australian Industry Group and the Housing Industry Association. Then the Real Estate Institute of Australia – dropped the bomb lowest level of housing commitments since 2001.

Construction activity expands at slower pace where the overall construction index fell 2.6 points in May to 53.2, but remained above the 50.0 threshold between growth and contraction  a strong probability that it will fall below the 50.0 threshold in June. Fort Crumble treasurer announced “the Keneally government is taking NSW forward into an era of economic growth, building a better future for families and businesses of NSW.” Australia is marinated in (hurtful hikes) where on an annual basis the number of new loans is actually down 25 per cent. The Australian Bureau of Statistics released this week that Australia will be home to 11.8m households by 2031 which is up from 7.8 million in 2006 – so why have the ladders disappeared?

Whilst new home buyers big winners on the Fudge–it, I’m not sure that the NSW Home Builders Bonus is the answer. Morphing First Home Buyers into ‘Residents Over 65 Buyers’ (as long as the acquisition is off the plan) is intriguing as seniors’ duty cut lacks stamp of approval. The former proposal was to entice people into the market and the latter, directed to people already in the market. These new subdivisions are well west of Sydney and plagued with massive transport infrastructure neglect. In May, apartment construction fell 16.8 to see the index now at 42.0 and house construction at 57.7 which is a direct result of a lack of available credit within the Australian economy. This statistic won’t be changing anytime soon.

BUY PRINT

Each week, I challenge Tim Mooney with a photo request and it is plain to see that he has on file, Australia’s largest aerial photographic library.

What Keneally and co achieved … and what they didn’t where simply put: “Kristina Keneally and her Treasurer did little or nothing to bring this revival about. It came thanks to national and international forces beyond their control.” I would call that constructive criticism because one major element that NSW keeps missing are those builders’ ladders. It is all very well to roll – out Stamp Duty relief announced for some buyers however let’s not forget that in May 2010 Fort Crumble introduced its Ad Valorem tax increase of 0.2 per cent for properties between $500,000 and $1,000,000, and 0.25 per cent for properties above $1 million – on top of the usual Stamp Duty fines that were not reduced in the Fudge–it.

Here we have construction being dominated by the public sector over the private sector – so on with my missing ladder concerns. Alan Kohler on his Inside Business programme spoke with Nicholas Collishaw, Mirvac managing director. A great interview Nicholas Collishaw on encouraging development. Alan Kohler, “Australia is experiencing a dire shortage of houses – 40 – , 50,000 completions short of what the actually needs.” Nick Collishaw “Well, I certainly agree with that statistic. We expect a shortfall of 45,000 dwellings for the 2009 year and, as we see 2010 unfold and ’11 ahead of us, that gag increasing.” A must read, as too on Inside Business Christopher Joye discusses lower house prices given the headline mortgage rate has moved from 5.75 per cent to 7.4 per cent. Ironic, that property developers are finding it increasingly difficult to draw credit given no access to the housing emergency chest of funds. Conflicting in that The Emperor PM to pour $5.6 bn into poll fight a decision that shattered faith in PM.

Melbourne close to overtaking Sydney so up the ladder Melbourne goes and down the ladder Sydney goes because of its property structural problems. “With annual population in Victoria running at 2.2 per cent and driving demand in Melbourne, when compared with New South Wales 1.7 per cent growth, it is not hard to imagine Melbourne soon seriously challenging for the crown of Australia’s most expensive median priced city.” Whilst Sydney has a greater proportion of apartments (26.5 per cent compared to 16.7 per cent for Melbourne), Melbourne actually has more houses than any other city in Australia. Although it should be noted that infrastructure determines property values – position, position, position. So why do respective governments find themselves in opposition as against market directing? That would be political bias coupled with ignorance and an extension ladder aimed at re-election. Propping up marginal seats is not the answer given the vast majority of those constituents have re-located elsewhere across Australia.

A reason why the electorates are at loggerheads with The Emperor and his ailing Fort Fumble is exemplified, as he presides over a government that knows best. Trust the government? Not now whilst the result is clear: voters are fed up. Rudd set to lose election on mining tax Australia needs to get back to basics – why is our building demographic market contracting? It certainly does not help when lenders say no to loans as buyers knocked back as consumer sentiment drops in June. There is no doubt that Aussies are cautious after rate rises: RBA which was reinforced this week when RBA governor announced cut debt, save more: Stevens.

It is possible that never before, has Australia vented such anger at Fort Fumble and Fort Crumble – watch the Penrith by-election next week which will identify a record swing against the Premier Pristine government. Sovereign debt capitulations resonate through markets evidenced home loans drop to 9 – year low which represents the fewest number of new loans for owner–occupiers since 2001 and the seventh straight fall in housing finance commitments.

I’m sure that everyone was amazed to read this week lawyers consulted on sacking NSW government, says Governor whilst (not surprisingly) it does identify just how bad our governments are at present. I leave you with this comment from Alan Kohler on Inside Business Talking Point which says all about the RSPT. As Clint Eastwood once said “Do you feel lucky punk?”

Cheers ^__^

This week’s sales 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

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11.06.10Robert Simeon11 Comments »

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Somewhat dejected your Virtual Realty News scribe  (again) did not receive an invitation to Fort Fumble’s (Federal Government) budget lock down. Bugger!  Ten years of delivery and yet again we are ignored as a  non – political friendly identity.

A three ingredient budget (sounds like a cook book) red, being iron ore, black being coal and smoke meaning cigarettes, with  these two big new  taxes  (cigarettes and mining)  both less than one month old. Again, more economic policies consistently on the run.  It definitely looked that way when The Emperor (Kevin Rudd) threw a hissy fit on the 7.30 Report – Here (scroll down to you see The Emperor)

The Super Profits Rent Tax (SPRT) is subject to Senate approval yet it remains the nucleus of the budget. We know in real estate, that ‘subject to approval’ means absolutely nothing as Alan Jones reminded Wayne Swan on Wednesday here is the audio – a beauty.  Rudd may be the blip in selling mining tax given Rudd in freefall: voters lose faith. What a difference a year makes. Last year, Wayne Swan refused to mention the budget  ‘D’ word and kept muttering 58 without mention of the next word, namely ‘deficit’. Kevin07 stages election comeback although he is on notice given his party warns PM Kevin Rudd: no more U – turns.

It won’t be easy as Anna Bligh warns of super tax threat to LNG industry as each day goes by it is looking highly likely that the mining companies will lead a massive capital strike in the lead up to this year’s  Federal election.  As well,  the inflation genie is now growing at a rapid rate. The twenty five per cent increase on cigarettes will reap havoc on inflation. A massive mineral shut down would bring Australia to its knees so The Emperor has picked a fight well above his fighting weight. Knock out?

BUY PRINT

Who’s next to cop a super tax? A question that needs to be asked should the SPRT be blocked in the Senate. Don’t forget Europe on the brink: the web of debt that threatens the world although we should note that Wayne Swan apparently now considers himself as the leading global economic treasurer. On an economic roll Wayne Swan boasts economic management gave Australia greater clout in G20 so rest easy Australia to withstand Greek crisis – Wayne Swan when he stopped short or serving up his special (Moussaka) economic recipe. A strong possibility that Greece’s debt problems could spread throughout the continent which would significantly increase global borrowing costs – higher interest rates? Europe debt could hurt growth: Lowe.

Market turmoil sparks rates cut talk although the cash rate is significantly based on what is happening to the consumer price index which was 1.3 per cent for the September quarter 2009/10, 2.1 per cent for the December quarter 2009/10 and 2.9 per cent for the March quarter 2009/10.

Follow the bouncing ball where inflation is growing rapidly and don’t forget the new Rudd tobacco tax where in all probability, inflation should currently be around 3.5 per cent. Bear in mind that the Reserve Bank of Australia has an inflation comfort zone of between 2.00 and 3.00 per cent. I would also add that in this week’s Federal Budget – Wayne Swan has factored inflation at being 2.5 per cent next year.  The bouncing ball shows that CPI keeps jumping 0.08 per cent each quarter so June would come in at 3.7 per cent and December at 4.5 per cent. We need to reduce spending although The Emperor has a different view on that Greek crisis bolsters need for stimulus spending. The Emperor knows a thing or two about building when insulation clean – up cost hits $430 million and we have asylum refugees residing in four star hotels and costly exercise: asylum seekers’ private jet flights cost $5.6 million.

Stop the reckless spending The Emperor demanded in 2007 – no budget cuts for Kevin Rudd’s own department. Then sham budget built on two great fiddles Terry McCrann in full flight “The Government’s claim to fiscal rectitude is an utter sham. Wayne Swan’s budget is built on two great fiddles.” Then Peter Costello responded to the 2010 Fudge – it Swan’s balancing act won’t add up which was more like ‘ liar, liar – pants on fire’.

The tradition continues – Hit by another sneaky fee NSW Labor (Fort Crumble) introduced yet another property tax on top of the other countless property taxes that continue to retard property investment /development in NSW. Another day, another property tax where our latest property tax took aim at Australia’s most incompetent government new tax on property under fire which was announced immediately after the Federal Budget – ‘hide n seek? Our NSW government is hopelessly bankrupt and even more hopeless with astute economic policy.

A government in total disarray where the Sydney Sunday newspapers reported Premier Pristine (Kristina Keneally) is headed off to Canberra and Joe Tripodi and Eddie Obeid retiring which suggests that there is no more milk in the NSW cash cow. Time to mooo – ve on it would appear. Then ALP braces for ‘massive flogging ‘in disgraced MP’s seat where Fort Crumble is bracing for a massive 30 per cent swing against them. Not exactly a great platform for The Emperor as he maps his election announcement strategy in 2010. At the next election we could see a Guinness Book of Records entry for a government that records the highest swing against it by the electorates – both Forts Fumble and Crumble.

Whilst on swings – I did a comparative analysis with our March quarter 2009 and March 2010 sales results which draws some interesting conclusions. March 2009 Mosman’s highest recorded sale for the year 6 Buena Vista Avenue Mosman and March 2010, Mosman highest recorded sale (thus far) 19 Morella Road Mosman both subscribers too. Subscriber sales to Virtual Realty News now sit at $949,404,220. Our average house sale value in March quarter 2009 was $4,637,000 and whilst we increased turnover by 89 per cent in March quarter 2010, our average sale price came in at $4,610,937. For apartments, we averaged $653,611 in March 2009 and in March 2010 it jumped to $1,242,000. Apartment sales increased by 18 per cent from March quarter 2009 to March quarter 2010 and apartment sales volume increased by 188 per cent over the same period.

Also on the increase is our population as Marize and Michael Bellomo delivered their first child, Chanel Helena Bellomo and Jacqui and Mike Rowland Smith delivered a brother to Will – Riley Rowland Smith. Marize and Jacqui are doing well as are their beautiful babies (who I will soon subscribe,once they connect to the internet).

Thoughts on the Federal budget or, was it a fudge – it? My concerns are directed to the Consumer Price Index as inflation is sky rocketing. Forget Fort Crumble as everyone appears to be abandoning that sinking ship. Someone should tell Kevin Rudd to stop spending  rate rises in doubt as markets melt down and more importantly arrears rise as rates climb. Spare a thought for mortgage stress hits hundreds of tenants and Fort Crumble’s latest property tax will dampen property market sentiment. Leading data points to housing lull: economists – batten down the hatches the Moussaka economics are showing signs of double dipping – no stimulus this time either.

Inflation is much like a politician’s ego – although this economic measure could also result in their downfall. Should inflation climb to greater than 3.5 per cent during the June quarter 2010 then it could be at 5.00 per cent by the end of the December quarter which then, will create havoc with interest rates. To put this into greater perspective, in the September quarter 2008/09 the CPI hit 5.00 per cent and the cash rate target was 7.00 per cent – today the cash rate is 4.50 per cent.

So it is just not the cigarette tax that went up in smoke and Wayne Swan’s prediction that inflation will be 2.5 per cent in 2011,has as much chance as the Melbourne Storm winning the NRL premiership in 2010.

Cheers ^__^

This week’s sales 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

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14.05.10Robert Simeon10 Comments »

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Political correctness is out the window too. With more back flips than a Russian gymnast, degrees of difficulty can escalate in an election year (if off balance) and coupled with poor execution, can result in a lack of balance. It’s all very well to talk-up the routine before the execution, but we all know that Fort Fumble (Federal Government) resembles a modern day pin ball machine that constantly hits  tilt and freezes as a result of overzealous activities. In a nutshell:  You pour money in, only to see the machine (otherwise known as an economy) correct your aggressive behaviour!

The Emperor’s (Kevin Rudd) Achilles heel today, amounts to nothing more than activity freeze. More concerning is that the back flips are not supported with answers pertaining to the original decision -making processes. The Emperor today, is taking plenty of steps back and very few steps forward. The wind has left his sails. Too much, too fast, results in chaos!

Somewhat ironic following the global financial crisis (GFC) that the government of the day keeps back flipping with an abundance of poor policy execution, that does not promote business confidence. Ironic, in the sense that these, either deferred or cancelled policies, now equate to increased unemployment.  It is said that “a picture is worth a thousand words” so this week’s picture is dedicated to the failed economic policies and chartered courses of Fort Fumble and Fort Crumble.

BUY PRINT

Our Virtual Realty News research department (me) is always looking to give subscribers relevant and interesting data and we found just the thing  – IOU AUSTRALIA. The website says “Dedicated to delivering accurate information based on Australia’s debt situation in a real time snapshot. Numbers are based on public information, and are adjusted to reflect the information given out by various organisations time to time. Figures represent our nation’s financial health, and the debt we may leave for our children and future generations.”

Again, Fort Fumble and Fort Crumble lead the way – this is scary, have a look at Debt Clock Australia. I will try to obtain the relevant data and what the figures resembled when The Emperor took over the throne. Tony Abbott’s razor plan to pay off our debts is a good start given spiralling government costs add to deficit pressure as MPs fear Kevin Rudd is losing control.

Not as bad as Greece which today, has an estimated $430 billion, Sea of Debt – although one must remember that once upon a time its debt too, was just a fraction of what it is today. Greece has a deadline of May 19 to pay down its debt and the odds of doing so are looking like 430 billion to one. Greek debt fears rock US, European stock markets and the banks must not let Greece fall.

Sydney, you are the weakest link: survey and the latest quarterly Access Economics business outlook report, tips NSW to underperform again, during this next mining boom as interest rates, push up the Australian dollar and harm manufacturers and tourism operators in NSW. State is paying double for land Fort Crumble is paying up to double for land as part of a $250 million property buy–up for public housing.

Premier Keneally less popular than Barry Unsworth identified that if an election had been held in NSW last weekend, the Labor government would have been slaughtered. Charlie Aitken wrote on his Under The Southern Cross this week, “I did a bit of driving over the Anzac Day long weekend and sometimes you just have to wonder where your tax dollars go. How, for example, can the F3 Freeway north of Sydney, that basically is the gateway to Australia’s fastest population growth corridor, end at a roundabout?” Hypothetically, if another election was run this weekend the results would have been worse Melbourne set to overtake as biggest metropolis a 10 – year fall in the percentage of migrants settling in NSW and the lowest rate of economic growth of all mainland states has Melbourne on track to overtake Sydney as Australia’s biggest city.

With the First Home Buyers Grant (FHBG) you can artificially stimulate property markets, but the same can’t be said for Australian financial cash markets. Recently, I have been speaking with some of Australia’s greatest financial minds and some are predicting inflation hitting north of 10 per cent. The Real Estate Institute of Australia (REIA) issued this week an alarming media release – Caution required on interest rates otherwise known as an economic storm warning.  The reason why?

Alcohol and cigarettes went up +3.5 per cent at midnight last night The Emperor added another 25 per cent increase to cigarettes that will drive interest rates up further– nice one Kev! An ongoing economic failed strategy that now has him called Captain Chaos or the Prime Minister for No Economic Idea! Frustrated that nobody has picked up on the fact that a 25 per cent increase on the price of cigarettes, will drive interest rates higher and higher – even if you don’t smoke!

Inflation jump drives rate rise prospect given inflation rose in the March quarter more than expected. Inflation rose 0.9 per cent which equates to a rise of 2.9 per cent in the year to March, according to the Australian Bureau of Statistics. Housing is the major culprit which increased by 6.1 per cent due to increases in electricity (+18.2 %), sewerage ( +14.0 %), rents (+4.6 %), house purchase ( +4.1 %) – the major DNA for these increases lies with state governments that keep driving  these utilities up and they (as well as inflation) won’t be going down!

Throw in housing shortfall locking out thousands where Australia has 178,000 more potential home buyers than available properties, with Queensland and Western Australia accounting for almost half the total shortfall over the past decade according to the National Housing Supply Council. On present trends, the total gap will reach 640,000 by 2029. Such shortfalls are a guarantee that home prices will continue to rise as too, will rents. Here is a crucial graph that will now feature prominently, in future editions of Virtual Realty News.

Pay particular attention to the quarters of March and June 2007/2008 and September 2008/2009 pre global financial crisis – the greatest clue as to where the cash rate is headed. It certainly does not help when Fort Fumble is considered to be in total chaos over policy. Only Health remains. Ironic that inflation looks like exploding and our Federal Government is showing signs of imploding despite an election looming.

To make matters worse Kevin Rudd’s great ETS fraud found out – Andrew Bolt and “the greatest moral challenge of our age” decision to put climate action on hold smacks of political cowardice.

For mine: Paul Kelly from The Australian filed the most compelling read Rudd’s dangerous climate retreat. “As retreats go, they come no bigger than Kevin Rudd’s delaying of his once cherished emissions trading scheme – one of the most spectacular backdowns by a prime minister in decades.” Not a case of stand and deliver, rather ‘The Emperor running to them hills’. Then we have this pearler Department of Hot Air costing $90 million where the 400 public servants employed in the Climate Change Department will remain employed despite no work until 2013.

Check roof insulation before buying a home: Archicentre the building advisory group advised that vendors are not legally required to reveal if the home they are selling has been part of the Federal government’s scrapped home insulation scheme. Fort Fumble’s $2.450 billion home insulation scheme has been linked to four deaths and more than 120 house fires.

The much awaited Henry Tax Review will be released this Sunday and one could not rule out yet another Fort Fumble back flip.

Also, next week we will be revealing a real estate individual website first when we announce which company will be advertising its product on our website – property pages and daily email alerts?

Clues will be left on our blog –  banking or media? Maybe a property portal, newspaper group, or search engine?

Whatever, the case they want the thousands and thousands of eyeballs that RWM attract each and every week. Clue one – their business model loves bricks and mortar?

Cheers ^__^

This week’s sales 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

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30.04.10Robert Simeon9 Comments »

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A hypothetical Mosman forecast: (not to be read by the faint heated) – walking your Labrador could soon see you walking on private property. Remember the “once upon a time” analogies? Time brings change – and those picturesque ‘rivers of gold’ (public sanctuaries) are a great starting place.

Sydney population to top 6m in 2036 according to a report compiled by the NSW Planning Department. It forecasts a 40 per cent gain from 4.3 million in 2006. Based on data compiled from the 2006 census, the population of NSW will increase to 9.1 million which is a scary thought, when Fort Crumble (NSW Government) does not even come close to meeting present day planning demands for infrastructure, transport, schools, hospitals and roads which are currently in gridlock. More importantly Fort Crumble is broke!

So let’s look into the property crystal ball Sydney suburbs ready to boom Fort Crumble has turned its attention now to transport in the south–west, rather than the north–west. The population of the top 10 local areas, will increase by more than 50 per cent – Camden, Liverpool, Burwood, Auburn, Wollondilly, Sydney, Wyong, Campbelltown, Baulkham Hills, and Strathfield. So south-west is up by 113 per cent and north–west up 52 per cent. Metro cost more than Labor admitted which should come as no surprise. To meet these unprecedented demands, governments on all three tiers will jump into a dash for cash given they are all entrenched in budget deficit. And don’t forget the huge injection of green shoots for the building industry, the economy and increased tax receipts.

BUY PRINT
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Middle Head is arguably Australia’s most sought after real estate and Mosman’s “Jewel in the Crown”.
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So what can we expect? The greatest sell–off of (open space) land for residential development and Mosman (given its abundance of foreshore land) would become a major revenue raiser for funding sustainability. The ‘posh’ will utter, gosh! A strong possibility that Mosman sea scapes could resemble those from Whale Beach to Palm Beach“. Of course governments will say ‘it is all in the name of economic progress’. Simply put – we may believe we are the custodians of open space and even though we don’t have title to this lifestyle privilege, money talks and many areas that are untouched, could lose their virginity!

We now find that one in four NSW councils is on the brink of being unable to pay for essential services – Gone to pot: councils on brink of slashing services. We are already hearing murmurs that some Councils are looking at selling off public golf courses and replacing them with housing estates.

The Municipality of Mosman (currently) has just under 5000 houses so it would be fair to assume that just like other growth areas it too must expand by up to 25 per cent (another 1250 homes). For this to happen (hypothetically) we would see a new housing estate created on Georges Heights and Middle Head which are prime development areas as to Bradleys Head and Clifton Gardens

Cliff top land value sales using Burran and Hopetoun Avenues comparables on Middle Head would deliver sales from $7,000,000 to $15,000,000 + per block (let’s average each block out at $10,000,000): the governments would love these revenues to assist funding pressures. Working on the premise that HMAS Penguin would become a vacant block from Chowder Bay through Middle Head to Balmoral vacant land sales would deliver hundreds and hundreds of multi – million dollar sales. Not to forget also, a huge injection to Mosman Council revenues, courtesy of additional Council rates from subdivisions that could create another 1000 + houses. It may never happen – but it would be a brave person to rule out such a brazen move (otherwise called progress!)

The Emperor (Kevin Rudd) announced his newly created portfolio of Minister for Population this week and as quick as flash Population Minister Tony Burke says migrants should go bush. An interesting debut? Tony Abbott backs a debate on population levels ”Let’s face it; Sydney and Melbourne in particular are choking on their own traffic.” Whilst a population debate is necessary, we are not hearing anything about (more importantly) an infrastructure debate!

Malcolm Turnbull prompted Macquarie Street whispers, when he announced that he was leaving Federal politics A plea to Malcolm Turnbull – your State needs you wrote The Punch. “If anyone can smash his way through the paralysis which grips NSW politics it is Turnbull. In the absence of a mercy rule, NSW voters currently face a battle between the legally blonde and the legally bland. There’s Kristina Keneally, who despite assuring us she’s “nobody’s puppet, nobody’s girrrrrl,” was slotted in by the factional bosses in a vacuous marketing exercise which has nothing to do with policy and everything to do with personality.” Clue: NSW Labor out to buy next election.

The Emperor came in for a touch – up Kevin Rudd’s $3.2 bn health and hospital funding favours Labor seats and Rudd’s new challenge: fix schools so the pains continued Blunders becoming harder to defend and Schools chief orders checks on 260 projects.

The Reserve Bank of Australia (RBA) notched up its fifth 25 basis – point rate hike in seven months taking the cash rate to 4.25 per cent – Good times sting as interest rates rise. Given we are in an election year ,The Emperor would have been somewhat perplexed when he read Housing stress may bring political pain. Economic side – kick Wayne Swan delivered these political pearlers “I know that is cold comfort for a lot of families and a lot of people in businesses,” he said. Then “rates are now at the level that they were when the Liberal Party imposed on Australia 10 rate rises in a row so rates are still at historically low levels.”

Wayne, so what you are saying is that the last five interest rate rises are your doing, given that your Government is in power? It has been well documented that the cash rate will return to 5.50 per cent so, Wayne, that would then make it 10 all. Doh!

Tourism Australia announced its new tag line There’s nothing like it superseding “Where the bloody hell are you?” Why do they continually write about politicians?

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So do you think our treasured foreshore reserves will be turned into a residential subdivision? What would such a plan do to top – end prices? Remember, this is Australia’s most prized land. See you on our blog as I suspect this topic may break our previous record number of comments.

Subscriber sales jumped to $938,179,220 this week. We exchanged $31,000,000 in just three days, setting the highest sale in Mosman for 2010. Thank you – subscribers.

Cheers ^__^

This week’s sales 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

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9.04.10Robert Simeon8 Comments »

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The only problem with writing a weekly blog in the present environment is finding a place to start, because of the constant bungling at both Fort Crumble (NSW Government) and Fort Fumble (Federal Government).

Let’s start with our consistently high performing Fort Crumble where dumping the Metro cost $500 million according to Premier Pristine (Kristina Keneally) “The CBD Metro was a nearly $5 billion project we wanted to be sure as a government it represented value for money.” So we have a $200 million compensation plan from builder Lend Lease and another $300 million had already been spent on the doomed rail wreck. Fort Crumble’s greatest tax payer debacle?

Premier Pristine had her defining plumage ruffled further when she was advised Rudd wants $80 million back as metro bill grows so the train wreck bill has apparently now climbed to $5.3 billion. The Infrastructure Australia money was among dozens of grants shelled out to projects across Australia. The submission by NSW was considered the worst of any of the states. Consequently, only money for scoping studies was handed out. A $5.3 billion tax payer Yes Minister – no brainer!

The Emperor (Kevin Rudd) then took time out from his Doctorate of Medicine studies and if his radical diagnosis proceeds, based on his elective political surgery for our ailing health systems, our States and Territories will need a second opinion. Reductions in Government Spending Tax (GST) appear to be thwarting The Emperor’s prognosis and the diagnosis is a referendum for Dr. Krudd. A bummer for The Emperor as his economic mind sadly lacks the “Midas Touch”.

Buy Print

What a brilliant capture this is. It appears that everything in Australia is climbing. We asked Tim Mooney to make sure that everything was colour coordinated so he had to wait for an aqua car. Each and every business faces a climb back from the GFC and how appropriate is this picture. We have had a number of subscribers contacting us to purchase photos (see our Buy Print above).

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Big Bazza O’Barrell launched his election slogan for next year’s NSW election One year out, O’Farrell picks election slogan “Make NSW Number 1 Again”. Fixing NSW’s economy is the management challenge of our time, wrote Jeff Kennett NSW should look south of the border for the way forward. Jeff Kennett said “I have been asked what I think is necessary and essential for NSW to start rebuilding. It is simple enough, in theory.”

“A new government must be elected, if for no other reason than to end – once and for all – the poisonous culture of self interest that exists among the majority who make up the current government.”

“The alternative government will, over the next 12 months complete (I assume they have well and truly started)– the work needed to immediately commence the reform programme, once in office.”

“This will require a once – in – a generation programme, similar to what we put in place over two terms in office in Victoria.”

A scathing review – “The cost of this entrenched period of failure to NSW and Australia has been monumental. Not only has NSW failed to keep abreast with the advances in thinking and technology, but all basic services that should be provided by government have deteriorated compared with those in other states.”

Charlie Aitken wrote in his Under the Southern Cross – “The political waters are clouded by secret agendas and the political landscape is generally a minefield of broken promises and policy failures. In addition, with a few exceptions, it often appears that the main aim of a politician is to gain re-election rather than pursue genuine political reform.”

The report identifies “Bad Policies” – so look at the failed Emissions Trading System, Pink Batts $2.400 billion debacle (which now requires another $200 million for stuff – up corrections) Fuel Watch and Grocery Watch, just to name a few. Throw in the now growing school halls bungled programme – which will gain greater momentum over time as Ray Hadley at 2GB keeps probing. Julia Gillard says schools building programme saved nation from recession and NSW scraps Hastings Public School project in back flip after critical audit of proposed COLA where a covered outdoor learning area would cost $954,000. A similar structure cost $78,000 back in 2003. Little wonder everything is blocked in the Senate. Government incompetence does resonate throughout the business community – which impacts economic sentiment, growth and confidence.

Bright economic outlook for Australia – Reserve Bank Assistant Governor Philip Lowe at the Reserve Bank of Australia (RBA) said underlying inflation had “moderated significantly” and was expected to decline from 3.25 per cent to 2.5 per cent during 2010. This means that interest rates will move back to normal levels so the 49 – year low of three per cent won’t (in our lifetime) be seen again. Get set for a bank gouging bonanza given Westpac chief warns of need to raise rates although GFC not over, says ANZ chief. Get set for a roller coaster ride in 2010.

Australia’s property bubble: it’s here” it’s official: 60 per cent of investors believe Australia has a property bubble. A confluence of housing shortages, low interest rates, speculative fervour and last year’s move by the Rudd Government to relax the rule of foreign ownership on real estate, has turbo – charged house prices.” I assume they are comparing the property markets to quarter 4 – 2008 although it should be noted that during the global financial crisis (GFC) it was speculated that half of Mosman houses were for sale (2,450) homes and it peaked at 195 homes. I did like this piece in the article “But as John Maynard Keynes famously said: “A market can stay irrational longer than you can stay solvent.” So true – the Mosman market is presently skittish and we are seeing a dramatic increase of foreign buyers moving into our markets.

I have absolutely no idea why The Emperor decided to make the Australian property markets international over local? “The increase in foreign purchasers cannot be underestimated. This abolished mandatory reporting of such acquisitions in a bid to “enhance flexibility in the market”. Absolute rubbish and bulls&%#!

Richardson & Wrench Mosman & Neutral Bay (RWM) are proud to offer “Glen Osmond” to the market place – C 1901 an iconic Mosman home set on a grand estate – “Glen Osmond“.

Is the lifting of foreign ownership a sound decision? We look forward to reading your thoughts on our blog. I tag the politicians so Media Monitors pass on to them, all the comments on our blog.

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Our Australian population hit 22,000,000 this week according to the Australian Bureau of Statistics (ABS) – so what does that do to this supposed bubble?

Cheers, ^__^

This week’s sales 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

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26.03.10Robert Simeon20 Comments »