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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 cocoon of life in Australia has never before been under greater scrutiny where many await the findings of the Henry Tax Review recommendations (reportedly 10 centimetres thick). Just what remains to be seen is, exactly what comes first? And just who will be indentified as swimming in those new “rivers of gold” that will allow The Emperor (Kevin Rudd) to stimulate his fast growing budget deficit. It would be difficult to imagine his “financial conservative” tag re-emerging!

The Late Kerry Packer once said “Now of course I am minimising my tax. And if anyone in this country doesn’t minimise their tax they want their heads read. Because as a government, I can tell you you’re not spending it so well that we should be donating extra.”

Welcome back to our first 2010 edition – where we celebrate our tenth year of Virtual Realty News (VRN) arriving weekly into your inboxes. Your scribe has somewhat mixed emotions relating to the year(s) ahead. Fort Fumble (Federal government) simply put; has a cash flow problem.

2009 produced just one election – Queensland. 2010 however, offers four elections being three state; Tasmania and South Australia in March and Victoria in November. The Emperor will also contest his second term which no doubt will be the taxing election given he has now frozen his (failed) climate cap for an economic sombrero! Rubbing hard on that inflation genie (growing from within) no need for predictions as 2010 will be either The Emperor ruling the roost or morphing a feather duster. Interest rates, inflation and our banks to name just a few are threatening and indeed most inclement. For example, this week Westpac withdrew from the home loan market when RAMS (Australia’s largest mortgage broker) was reined in (no loans) until Westpac gets its funding issues in order – what a message that sends to our property markets (especially to first home buyers).

Tim Mooney Photography

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Again, Australia’s finest aerial photographer Tim Mooney, will be showcasing his amazing captures with each and every edition of VRN. No wonder Prince William declared that he would like to buy a residence in Sydney – he spent plenty of time cruising Mosman foreshores and who could argue with this view. It is a fact that ‘Balmoral’ is very well known within the Royal family!

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The global financial crisis (GFC) dealt the death knell for every state and territory in Australia – all of which are now trading in budget deficit. Only Western Australia and Queensland can return to the black due to mining royalties.

Without the benefit of hindsight it appears more than likely that in five years time, state and territory governments will simply be made redundant given their inability to manage infrastructures within their electorates (did Henry pick that?) Fort Crumble (NSW government) is Australia’s finest example of incompetence personified – it’s still going backwards and has been doing so for well over a decade. At least our property markets are back on the road to recovery having posted a most impressive December quarter report card adding to the intrigue for the March 2010 results.

As strange as it may seem, if you cast your mind back prior to the GFC where, for housing prices to shake and move it could only start at the top-end. Australian Property Monitors (APM) identified that this is exactly what happened over the December quarter where average prices nationwide, recorded an average 12.1 per cent increase. The Reserve Bank of Australia (RBA) raised the cash rate – an unprecedented three consecutive months to finish 2009 at 3.75 per cent. Next Tuesday, when the Board meets for cucumber sandwiches and English breakfast tea, the cash rate will move to 4.00 per cent in another effort to curb our exuberance for bricks and mortar (the result of cash splashes and government gifts for first home buyers) – a false economy!

The latest RBA figures identify that consumers spent more than $20 billion on credit and charge cards in November (December figures not in yet) so do the maths as the average Australian credit card debt now sits at $3,196.00. Consumer confidence that is currently at near record levels, is in for some shock treatment, thanks to irresponsible government intervention. The top – end was slow, contracted and non responsive to the GFC, because these home owners were smashed in the recession of the early nineties. Now those who were too young to remember will have their turn and this is highlighted by the Westpac retreat this week from the home loan market.

As a result of overcast economic conditions during the GFC, landlords were aware that a paying tenant was a viable business model where APM identified that houses increased 2.2 per cent and apartments 2.4 per cent in the December quarter. With the economic clouds now clearing (given that in 2007 and 2008 rents rose by an average 12 per cent) the rental amnesty is now over and they will again be up, up, and away in 2010. Don’t forget that Australia’s immigration intake (rightly or wrongly) is the highest of any other country on the planet. Despite new construction remaining in the doldrums as consumption/immigration grows, the “lucky country” is failing miserably in the accountability stakes.

I make no apologies for my dislike of politicians (generally) especially when during a worldwide economic downturn, they sugar coat the economy with taxpayer monies. The Westpac decision this week flew under the political radar – quite conveniently.

Although, I do love the irony! The Henry Tax Review will target high income earners and they in-turn will benefit financially from the government- promoted property debutants. Interest rates are heading north – government intervention and opportunity knocks.

A pleasure to welcome Andrew Blaxland to the RWM fold. We have been chasing him for years and he is a perfect mix for our culture. Subscriber sales have jumped to $892,854,220 and hopefully our business model will record the magic billion this year (Australian record). In 2009 we led the market and this won’t change in 2010.

Welcome back friends and foes, it will be action packed for property voyeurs!

Cheers
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For this week’s recorded Mosman real estate, Cremorne real estate, Cremorne Point real estate, Neutral Bay real estate and Cammeray real estate sales www.rwm.com.au/news/

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29.01.10Robert Simeon6 Comments »