Today we live in unprecedented times. Never before have we seen monetary policy attacked so aggressively where households (finally) come to the fore – not to be confused with four. I was speaking with a journalist this week about the state of the property markets and said. “They say you have to lose a Grand Final before you can win one. The same can be said with recessions where Generation X is much better positioned (based on previous bear markets) compared to Generation Y – who are experiencing market volatility for the first time and it is not improving – just yet.”

Continue reading »

Follow Me on Twitter

5.12.08Robert SimeonNo Comments »

The stage is set, but we can’t perform while our economy remains convoluted with excessive and indulgent taxation restraints. Today, the “lucky country” is failing miserably as far as the property industry is concerned. Continue reading »

Follow Me on Twitter

5.09.08Robert SimeonNo Comments »

The most important fact that resonated with me when the NSW Fudge-it was announced this week, is that we are simply paying way too much tax. Last December the treasurer, “Cost – ya” plenty, announced that by his calculations, the budget surplus for the current financial year would come in around $506 million. More than his previous calculations in June 2007 (that the surplus was likely to come in at $376 million) the budget surplus for 2007/08 is now revised up to $700 million. Quite amazing that previously “Cost-ya” thought (hoped) that in 2009/10 the surplus would climb to $730 million. We obviously have a treasurer who either can’t count or has no idea what is actually happening with the NSW economy. Leaving GST aside (the tax supposed to reduce taxes – yeah right) the NSW government has done beautifully out of “P’s” – that being property and payroll tax. In property the “P’s” refer to position – position – position, while payroll tax is a bonanza when the economy runs at record low unemployment figures. Continue reading »

Follow Me on Twitter

6.06.08Robert SimeonNo Comments »

The only real way to actually pass judgement on the state of play within the property market, is to access the previous quarters. The September quarter figures announced this week will certainly raise more than a few eyebrows. Whilst the NSW property market performed well in the September quarter, it was considerably down compared to previous quarters, which clearly indicates that the property market is in cruise-mode. However, it is interesting to note that it is good news for the Mosman market and bad news for the real estate agents. Woollahra, recorded the highest median price of $1,560,000 for Local Government Areas with a 12.9% increase. This is the first time in quite a while that Mosman has dropped to number two position, with a median price of $1,535,000. This is a -1.76 reduction from the previous quarter. This clearly indicates that the volume of properties for sale in Mosman is reducing. Given that we only have some 5,900 houses, the vast majority of those sold are now going into home-renovation mode. Another significant factor contributing to the lack of houses on the market is the Stamp Duty. Many now have decided to renovate as in some cases the cost of moving, equates to the cost of renovation. I would anticipate over the next few years that the volume of sales in our area will continue to diminish, which will all but guarantee property values in the area will not show any significant decreases.

Whilst the volume of property sales in Mosman is down, it is alarming to see that the growth areas are Illawarra with 11.5 per cent growth and the Hunter region which recorded its highest annual growth since September 1995. What has not been determined is what proportion of these sales actually went to investors from Sydney as against their own domestic market, which is not renowned for being a high trading market. Moving back to Sydney, again the Campbelltown area is highlighted with just a 2.8 per cent quarter increase and 17.1 per cent overall for the year. With regard to the highest turnover areas, again, it is the Western Suburbs leading the way with Blacktown first and Penrith and Baulkham Hills following close behind. What is interesting to note is that this September quarter did not have the .25 per cent rate increase, so many will be eagerly awaiting the results of the December quarter. The home unit market for the September quarter was thirty per cent down from the previous September quarter, so I am sure that the ‘Governor of Moolah’ will be very happy with these statistics. Also great news was that the residential vacancy rate dropped to 3.7 per cent for the quarter, which is well down on the 4.4 per cent for the same period last year.

One of the most insightful articles to appear in the print media was one written by Alan Kohler for The Sydney Morning Herald. It was titled, “It’s not property on fire, it’s debt, silly” and it was one very intelligent and brilliant interpretation of the property market. As a few have been saying all year, Mr Kohler is right on the money!!” The Reserve Bank is trying to target a debt/property binge with an increase in the interest rate, probably in the order of 1 percentage point by the middle of next year. It wants us to stop borrowing so much and start saving, so it has put up the price of money. Kohler then went on to say that, “but pretty soon, possibly within 12 months, it will have to turn around and cut rates again to prevent the slowdown becoming a recession.” There is plenty of talk that the rates may hit six per cent. All this will do, is send the market into a ‘holding-pattern’ mentality which many will see as a positive step.What many forget is that the cash rate target on May 3, 2000 was six per cent which is hardly a long time ago and I am sure that the investors will encourage this as an increase only highlights the advantages of negative gearing. The last thing the ‘Governor of Moolah’ wants to see is more investor money being driven back to the investment unit sector.

There is absolutely no doubting that the property market is becoming a science, as at this time every year we record the lowest clearance rates. The December quarter is historically, the only quarter of the year where the purchasers have a greater control over the market, as was evidenced at this exact time last year. The interesting outcome was that the buyers united to sit-out the quarter and see what happened in the January quarter of this year. The result was a twenty per cent hike in prices from the December quarter! What remains to be seen is which of the purchasers will execute contracts in this quarter or take a punt for the January quarter. May I offer this little bit of advice – “a bird in the hand, is worth two in the bush”.

From our perspective the intensity of the market has eased. We are still trading, however and this week we exchanged eight properties with a value of $7,680,000. This figure accounted for three houses and five apartments, so it is still most encouraging to see balance in the property market. We at RWM continue to read a totally different market to many of our colleagues in the industry who are having trouble coming to terms with ‘increased intensity’ to secure the sale. As we keep saying here in the office, “it’s easier to open the door of opportunity after you have a key position”. Simply, it is all about which key one selects to ignite their market!! Cheers and clink…^__^

Follow Me on Twitter

29.11.03Robert SimeonNo Comments »

It has been a week of reaching milestones for RWM and for Bob Carr. He appears to have tripped on his fragile tombstone, courtesy of a dazzling uppercut from John Singleton. Never a dull moment in the ‘State of Taxes’, as compared to Queensland where a sale of white-shoes makes the front page news. This week we celebrate the third anniversary of ‘Virtual Realty News’. Some 128 editions later, we have notched up a very respectable 120 Internet sales totalling $199,371,000 from ‘click on a mouse to buy a house’. A special thanks to those agents who said “the Internet is just a faze, the industry is going through”. I can think of nearly two hundred million ideas why it not a “just a faze”!!

Once again all eyes return to the strongest market in Australia – the property market. The economists are telling all that we can expect a rate increase. What they don’t say is how many times they have been proved wrong since June 5, 2002 when the ‘Governor of Moolah’ bumped the cash rate +0.25. If one actually takes the time to look at the Sydney property market growth from December 2001 to December 2002 it is the western suburbs that are really performing beyond expectations. Areas such as Campbelltown, have been leading the way, posting 28% appreciation for houses and 35% appreciation home for units. In comparison, Mosman managed 9% for houses and home units over the very same period. There are very clear market indications that areas such as Bankstown, Liverpool and Blacktown are right up there on the popularity stakes, with the Eastern Suburbs and North Shore suburbs all sitting comfortably at just under ten per cent capital growth.

The Productivity Commission finally issued a media release and the head Pooh Bah, Gary Banks, revealed that “The Commission will be taking a close look at how housing markets operate and the reasons for the recent surge in prices. We will also assess the scope of government action to lead to better outcomes”. Great to see that since they were handed this riveting assignment a few months ago, so much thought has gone into this Commission. Should you wish to read more about this Committee that ‘keeps minutes and wastes hours’, click on www.pc.gov.au No doubt many will be adding this site to their list of favourite websites. This ‘up to the minute’ Committee will be publishing their ‘exposure draft’ in mid-December with the final report being handed to the Govenment on 31 March 2004. No doubt the latest figures released by the Australian Bureau of Statistics will assist them greatly. It shows that the property boom has moved from Sydney and Melbourne, and now Brisbane, Adelaide and Canberra are the favoured areas. Brisbane jumped 26.3 per cent for the year, although Sydney over the same period, still posted a 20 per cent market growth, and a clearance rate of 73 per cent. I wonder if the Committee might stumble on a small fact, that the principal place of residence is tax free!!

In the three months to 31 August in Sydney alone, 581 homes valued in excess of $1,000,000 were auctioned, according to Australian Property Monitors. I am sure that every home posted a very tidy profit, totalling $906,361,200 in overall sales. Yet another windfall in Stamp Duty! What is happening is that the property market is dying, due to natural causes as we are simply running out of properties to sell, and we are seeing sales volume down considerably on previous years. This is now seeing real estate agencies looking closely at their businesses, and how they will grow in years to come.

ACCC Chairman, Graeme Samuel, signed off this week on our latest aquisition, Richardson & Wrench Neutral Bay. We are now Simpatico Realty Pty Limited, trading as Richardson & Wrench Mosman & Neutral Bay which means that we are now trading from the Spit Bridge to the Harbour Bridge. We see the aquisition as a natural progression for the growth of our core business, and we have quite a few innovative ideas in our letter-box ready for implementation. We have five new staff members so welcome to Bernadette, Jayne, Deeann, Pip and Jasmine, Bob ‘glass jaw’ Carr will also be happy as we qualify now for Payroll Tax!!

Should be some great advertising campaigns on the box this weekend, with ‘glass jaw’ still down on an eight count, maybe he will find solace with his beloved gropers on Clovelly Beach. Great to see ‘Singo’ the modern day advocate of the biffo!! I just hope that ‘Singo’ ups the anti and lands a few more on Land Tax also. Have a great week, for some it was a week that they would prefer to forget, cheers ^__^

Follow Me on Twitter

20.09.03Robert SimeonNo Comments »

All eyes will be focussed on ‘The Block’ this weekend to see just how strong the Sydney real estate market is, when the four apartments hit the market, after the very public renovations. General opinion is that they will sell between $675,000 and $725,000 and no doubt the Productivity Committee will be showing more than an interested eye. The intrigue of renovation was rubbing off at our auctions this week as an un-renovated apartment at 3/10 Raglan Street sold for $690,000 which was $100,000 above the reserve. The strength of the renovation market is such that we issued twenty-eight contracts to interested parties and Marize the “Queen of Apartments” sold four from four on the night and all up we did five from five. What we are seeing with the renovation market, is that you don’t have to be “the sharpest tool in the shed” to make a tidy profit, and it has become very contagious.

For the month of June alone, loans to buy investment properties were up 8.3 per cent to post a new record of $6.88 billion, which coincides with household debt climbing 20 per cent per year. With the Reserve Bank courageously suggesting that “this is simply unsustainable”, one must never forget that the borrowings are asset-backed. What they really should be saying is that the real reason Australia is engaged in an unprecedented housing boom, is directly attributed to the deregulation of the banking industry, and this is why money is cheap. It should also be remembered that Sydney was the very first Olympic city that did not go into recession after the completion of the games. In simple terms the Australian economy is performing well against the weaker overseas economies. What also needs to be taken into consideration is that in the majority of areas we are not really seeing any new developments, so the renovation market has taken the place of the new off the plan market. Who would have thought a television show with four couples living in a derelict block of apartments, would exceed all rating expectations and rate ‘number one’ for the year. As for a follow up series, I doubt it, as ‘Big Brother’ owns their house and after this weekend there will be no more of ‘The Block’. As for finding a suitable replacement, good luck. They don’t make them any more!! Which then explains why the property industry is where it is!! When it comes to renovating, Aussies have made an art form of ‘rip off and duplicate’, so we can expect to see many cloned properties, courtesy of ‘The Block’.

With the Bureau of Statistics coming out this week with figures that identify that lending to investors for housing is up by 36 per cent on the previous year, some will show concern. Many would be giving a nod of approval. In the majority of cases the borrowings are set against the family home. As the value of the family home continues to climb, due mainly to the fact that the number of homes coming on the market continues to diminish, because home owners are now in renovation mood. The vast majority of these borrowings are for the specific purpose of negative gearing. Many young home buyers are still living at home, so they are taking advantage of their position by using the Australian Tax Office to deduct their losses from their assessable income. No wonder the Productivity Committee has yet to furnish its ‘terms of reference’. I honestly believe that it has no idea where to start!! Memo to: Productivity Committee (if you do exist). “Housing affordability has nothing to do with GST, Stamp Duty, or first-home owners grant. The problem is that the leading suburbs of Sydney are too popular and nobody wants to leave”. Maybe we might see the introduction of the American system, where all the costs are tax deductible including the mortgage. At least that way when someone does some home improvements, that question, “what about cash”, will no longer exist!! You do however pay tax on the capital gain.

Well we have been very busy expanding the business of late and we can announce that we have just purchased Richardson & Wrench Cremorne and Richardson & Wrench Neutral Bay. We will officially take ownership on September 1 this year, and we are very excited about our new business plan. We have added another feature to Virtual Realty News, which now includes our rentals section. We have had plenty of requests to include this feature in our weekly e-zine. From September 1, our new Company will be Simpatico Realty Pty Ltd, trading as Richardson & Wrench Mosman / Cremorne / Neutral Bay.

Well it will interesting to see who comes home with the money from ‘The Block’. It just goes to show that ‘The Toaster’ is not the be all and end all of desirable residential locations, although ‘The Toaster’ does come with parking, and given the recent goings-on in that car park, some may prefer not to have parking!! Cheers and clink ^__^

Follow Me on Twitter

16.08.03Robert SimeonNo Comments »

With the Governor of Moolah announcing that he has accepted a further three year term, the property market is all but guaranteed to reach ten years of continued growth. Never before has the property industry experienced such a long period of prosperity and Macca has identified himself as the all time super coach of the economy with his ten year reign. Whilst building approvals climbed 6.2% for June thanks to a 13.6% jump in approvals for private housing, apartment approvals fell 10%, so watch for a huge turnaround in new apartment approvals following the announcement.

From the super coach to the mini bus, (and I am not referring to Eddie Jones), enter the shadow treasurer Mark Latham who announced that he is examining prudential guidelines and the potential to smooth out property cycles. Well, history has shown that all that is needed to send the property industry into a tail-spin, is to elect the Federal Labor party, who apply a monetary policy of balance your budget – rotate your creditors!! Australia has 122 home loan providers, so it really is the responsibility of the Australian Prudential Regulation Authority to ensure that the respective lenders can survive a downturn. I am somewhat amazed how they continually refer to the 1991-92 recession, considering that in 1991-92 the cash rate started at 12% and finished up at 5.75%. All up, we saw eight reductions over the period. Today the rate is 4.75%, and the super coach has not touched it since 5 June 2002. With the word ‘bubble’ seemingly removed and the word ‘cycle’ inserted, the major concern for the property industry is the investment market, which is not to be construed as the family home. From our perspective, the local home unit market has never been stronger which is understandable as Mosman does not have an abundance of home units. With so many new apartments being built, all they need to do is tighten up the lending requirements, although a research paper released this week, identified that even though debt has more than doubled in relation to disposable income in the past twelve years, the households still remain comfortable with their financial commitments.

The fact that the average price for first homebuyers in June 2002 was $368,900, and has now jumped in June 2003 to $467,600, clearly identifies, that for the younger generation, owning property is a greater priority than ever before. What we are already starting to see is the first homebuyers heading west in the search for affordable home acquisitions, so overall the property market has a greater balance. This in turn will see the State Governments having to reduce Stamp Duty, which is great news for the property industry although ‘Cranky Franky’ Egan would not agree. Since the introduction of the $7000 first home owner’s scheme the Government has now assisted 480,000 home owners. The one fact that many failed to recognise is that so many people were such strong participants in the property market. This now suggests that property was under-valued ten years ago.

The Mosman market continues to contract with the number of houses available showing no sign of improving. This all but guarantees that the prices will continue to climb. Overall we are witnessing the most intriguing market that I have ever encountered, and it continues to defy all who question it. We could be facing the a Spring market that offers next to nothing in terms of volume, and this once again, will be an all time first. Understandably we had slim pickings in the recessions, yet it is quite extraordinary that we have very little property in a bull market. As we said last week, with nearly seventy per cent of the housing market having traded over the last seven years, there had to come a time when the Mosman market exhausted itself. Just goes to show that when it comes to property, it has a mind of its own!! Take a look at the “property of the week”. Now that is a hot property!! Cheers and clink ^__^

Follow Me on Twitter

2.08.03Robert SimeonNo Comments »

With the financial year now completed it is interesting to note that less houses were traded in comparison to the previous financial year. Therein lies the clue!! The Mosman property market posted a respectable thirty-nine sales in the Top 200 luxury house sales for 2003. RWM posted twenty per cent of these sales to finish equal first. We did manage to post the highest and second highest sales and secured three out of the top ten sales. Auction numbers were significantly down on last year’s numbers and this explains why home values have remained constant and healthy. The Mosman market has posted just the one significant loss with a home on The Esplanade, which was initially purchased in March 2000 for $5,900,000 and sold in March this year for $5,300,000. This is a classic case of paying too much for a property in the first place.

Another interesting statistic to emerge is that our home unit sales increased by thirty-eight per cent and for the year, they showed a very comfortable twelve per cent capital appreciation. The participants in this market are a blend of investors and owner occupiers and overall, demand is at an all time high. With BIS Shrapnel coming out this week with the prediction that Sydney house prices will jump a further twenty-four per cent over the next three years, the home unit market will remain buoyant for the foreseeable future. It should be noted that with the re-introduction of investors to the market, vacancy factors have risen in the short term, although winter is always a difficult rental time.

With the “Governor of Moolah” deciding to leave the cash rate at 4.75 per cent this week, economists blamed the strong property market for the decision. With the vast majority of economists predicting a reduction prior to the announcement, it is nice to see them getting one thing correct. It’s interesting that they did not take the property market into consideration when they predicted a rate cut.

With all the discussion and debate, about ‘the bridge over troubled waters’, one thing is a certainty, property prices on the Northern Beaches will dramatically increase, which in turn will drive Mosman property prices higher. With Federal MPs getting involved and when the present plan is overturned and a tunnel is announced, home prices in these surrounding areas will skyrocket. This then means that the Government will reap plenty in Stamp Duty. Why haven’t they worked that one out before now? Running true to form the Carr Government has delayed the new property laws from 1 August to 1 September, which in all probability will be delayed even further. With agents facing fines of up to $22,000 for indiscretions, one would think they would rush this one through, given the number of agents who appear before the Department of Fair Trading.

With the market going into hibernation for July, most agents can be found at Sydney Airport this month. Steve is attending a property conference in Fiji, and I am attending one in Phuket so Richard will be doing the next two editions. I will see you in a few weeks. Nothing beats a real estate conference at this time of the year!! Cheers and clink… ^__^

Follow Me on Twitter

5.07.03Robert SimeonNo Comments »

Once again the NSW State Government showed how out of touch it is with the people, when it delivered its ninth budget. With the Government yet again adopting an Ebenezer Scrooge economic policy, it is no wonder all the leaves are turning brown. In 1998-99 the Government grabbed $1.88 billion in stamp duty. At the end of 2001-02 it was $3.05 billion, in 2003-04 it expects $3.37 billion and in 2006-07 $4.019 billion is expected. With the Government releasing these budget forecasts it is now blatantly obvious that it has no intention of revising the Stamp Duty formula until the next election, which means that the formula will then be twenty-one years old. Over the past ten years NSW has consistently gone backwards economically when compared to the other states, failing to keep pace with the economic growth of Victoria and Queensland. From 1991-92 to 2001-02 NSW could only manage economic growth of 3.7%, Victoria averaged 4.2% and Queensland led the way with 5.0%, I guess the Government will start showing concerns when Tasmania passes NSW. The ‘Garden of Egan’ is forcing the people of NSW to locate elsewhere. Figures show that in 2002, 30,000 NSW residents moved elsewhere, which is more than double the number of five years ago. Looks like somebody can’t see “the forest for the trees”.

With the end of financial year all but upon us, we are coming home with a wet sail as the property market moves into winter consolidation. Over the last week we have exchanged ten properties, and at our auctions this week we posted an eighty per cent clearance rate. Our Internet sales stand at 107 totalling $172,500,000, which clearly identifies that we are the market leaders in combining the Internet with real estate agency practice techniques. Over the next few months we anticipate that the market will swing more towards Internet and private treaty sales, and we very much looking forward to these challenges. RWM now holds the top three sales ever achieved in Mosman and with the recent waterfront sale on Middle Harbour of, my twin brother Richard joined me as the only other Mosman agent to post a ‘double-digit’ residential sale. The highest sale ever recorded in Mosman is $15.5 million, followed by Richard’s waterfront sale, and the third belongs to our very own Steve Patrick who posted a $9.5 million sale in March. We are just one big happy family!! Steve currently has his eye on becoming the third agent in Mosman to join the ‘double-digit club’ and soon we could hold first, second, third and fourth.

Once again this week, the State Government was back in the news for all the wrong reasons as it battled with local residents regarding the “bridge over troubled waters” fiasco. The Spit Bridge debate continues and the residents have been given a ‘don’t argue’ by the “Minister for Pot Holes”, Carl Scully. The combined population of the peninsula and Mosman district is around 280,000 people and sadly the Government fails to acknowledge the stupidity of its proposal. Already the Spit Bridge affects the capital appreciation of many homes due to the ever-increasing traffic delays. It will never improve until decisive action is taken. The State Government is applying a band-aid to a problem that requires a tourniquet. With the Carr Government we have a consistent Government, that is, consistently wrong!!

With this week’s edition being our 116th, it also marks the end of an era, as the brains behind VRN is leaving our employ to pursue other interests. Avril Norman, the creator, architect and builder of our e-business has decided to pursue her energetic healing business and will mix this with her freelance IT consultancy work. Belinda Holmes is taking over the keyboard from Avril and Belinda in time, will be putting her signature on the IT side of the business. For the last twelve months Avril has been building our software programme that we now use exclusively here at RWM. All of us, wish Avril every happiness and success with her new businesses. We are certainly going to miss one of the most talented IT brains on the planet. Avril has been retained as a consultant to RWM.

With just a few days left before the end of the financial year we are busy putting a few more properties to bed. The last financial year has been our most successful ever. So unlike the Carr Government our business plan is exceeding expectations. Very soon we will be making the biggest announcement in our history so we can tell you that our business plan is jumping ahead by leaps and bounds.

Catch you soon, cheers and clink ^__^

Follow Me on Twitter

28.06.03Robert SimeonNo Comments »

For many who reside in Mosman the name Bob Carr does not actually go down all that well; and why would it? His property taxes are an outright disgrace and this year, Land Tax assessments were described by a judge as being defective, unduly selective and lacking in supporting data. Bob, said he was waiting on legal advice!! Well five months later nothing has been said. Nothing has been done except that many householders have been overcharged and the figure has been estimated at $350 million.

A few months ago I wrote to the Office of State Revenue, to enquire as to how the Stamp Duty rate is calculated. It was of great interest to me to find that the current applied formula has not been revised since December 1986. As most would know, hardly any homes in Sydney were worth $1,000,000 then so why hasn’t this formula been revised and reduced, based on current property values? I was politely referred to the department where the sun does not shine. The NSW Government collected $1 billion in Stamp Duty last year. This prompted me to go back to my monthly sales statement for December 1986 to see what we were selling then. I sold a waterfront in Cowdroy Avenue for $630,000. I well remember this one, as the reserve price was $475,000. It would now be worth around $5,500,000. In December 1986 I also sold a three bedroom, older style apartment in Central Avenue Mosman for $93,000, today it would be worth around $850,000. A luxury home in Everview Avenue, with pool and Middle Harbour views sold $390,000. Today it would be worth around $3,500,000. A renovated Federation home in Spencer Road, with a north facing garden sold for $297,500, today it would have interest at around $2,500,000. So why hasn’t the Stamp Duty rate been adjusted? Well in all probability, Bob is using his experience to make an old mistake in a new way!!

The recent NSW Opposition report revealed that Stamp Duty has tripled in 170 suburbs since 1995. In an article in The Sunday Telegraph last weekend, the head of Residex John Edwards, said “higher stamp duty helped inflate the market by acting as a disincentive for people to up-grade their homes”. Yep, you had better read that little beauty again. I had to! I am sure that the NSW Government does not see it that way! Yet again the Stamp Duty budget was in surplus with just over $1 billion. Aside from Stamp Duty, one must not also forget the Premium Property Tax, which returned just over $100 million because a chosen few were taxed for living in nice homes. It wont be long before Bob will be forced to review these fraudulent taxes which could swing many electorates.

Bob keeps going from strength to strength. His Spit Bridge band-aid solution where he plans to add two additional lanes to cross the creek is an absolute joke. The only people who would benefit are those who suffer from hydrophobia. It is all about the notorious traffic bottleneck that leads to the bridge. At a cost of $90 million to build this ‘meccano mishap’, have no fear as Mosman contributes around $100,000,000 each year to Bob in Stamp Duty. There is a peaceful public rally at the Spit Bridge this Sunday at 11.00 am, but don’t expect Bob to be there. In all probability, he will be at Clovelly Beach, feeding sushi to his protected gropers.

Much is being said about further rate cuts, and it will happen sooner rather than later. However what needs to be resolved is what the ‘Governor of Moolah’ is going to do as his term as Governor is up in September. Will he take another term in the ‘bank bunker’ or will he leave quietly and play in the bunkers of Manly Golf Club. The last Governor who backed up for a second term was also a member of Manly Golf Club. H C ‘Nugget’ Coombes 1949 – 1968. One can only hope that the tradition continues. ‘Big Al’ is into his eighties!! Macca, after you have read this edition, just e-mail me and I will release it here, cheers mate!!

The Mosman market is in a controlled canter at the moment and we are seeing some great sales, some indifferent sales and some lonely sales. A Burran Avenue home sold this week for $6,750,000 after being announced on the market at $6,100,000. Congratulations to the successful purchaser. Please forward a cheque to Bob for $383,801, which is your contribution to the Spit Bridge. The auction market has just a fortnight left before the July lay-off, due entirely to school holidays. July will be a private treaty month. We have seven properties awaiting exchange, so hopefully we can report on those next week.

See you at the rally, cheers and have fun…^__^

Follow Me on Twitter

21.06.03Robert SimeonNo Comments »

This week was a reality check about the value of life, that planted seeds of uncertainty and remorse, as one of the most beautiful and happiest of destinations on the planet had been transformed into a human holocaust. Bali, the island of romance and beauty had been transformed into an island of bereavement and brutality. For the Balinese population many believe that this is a clear example of a bubble that has been burst. I, like many others will return to Bali. My spirit in life will not be broken, nor my affection for these wonderful people and their beautiful island, “Freedom is the true possession of only those who have the courage to defend it”.

Back from reality to realty, and the Mosman Daily which, this week, is as full as a state school!! With the school holidays well and truly behind us, it is time to weave a little magic in the market and really work the available purchaser lists to the max. What we have now are touches of bygone markets where the agents really had to work the markets to attain the desired results. Sadly, some agents have become somewhat overweight from an over indulgence in past markets, where purchasers carried the majority of the workload. There is no doubting how the property market has changed. Agents now have to work a lot harder and smarter on their strategies, and for some that means returning phone calls from prospective purchasers, and yes that will also involve phoning purchasers who have inspected the properties. From our perspective as an agency, we work our buyer database as aggressively as we can, and on a really good week, we can have up to 100 new buyer entries. As more and more of the property players are using the Internet as their preferred medium of research, this is of great assistance.

Once again the State Government was rubbing their hands together, with the release of the Budget surplus estimates exceeding the initial expectations. Thanks once again to the property industry! The financial year to June 30, showed a surplus of a healthy $495 million, which was $127 million higher than first budgeted. Stamp Duty was once again a star performer, given that they had anticipated a fall. It just goes to show how in touch they are with the economy. It is a good thing that the Federal Government is still driving the property market and not the State Government. This does indicate how important the property industry is to our economy.

Whilst the property market is still being described as the property boom, it is probably an opportune time to remove the word “boom” and replace it with the word “market”. It is a market that vendors and purchasers invest in, as one does with the share market. It is very clear that in the year 2002 prices have remained stable and consistent in Mosman. The market over the last six months has had zero growth, which is a very positive sign for the market and hopefully this remains the case for quite sometime to come. With the market showing greater consistency, it will allow the participants to gather a greater understanding of the market dynamics, and thus it will become a much easier market to understand. Personally, I believe this is the much awaited light at the end of the tunnel.

As you can see from our property menu we are going to be busy over the next few weeks, and the entire team is confident and enthusiastic with the challenges before us. One thing is certain, we will be listening to the purchasers rather than talking. Watch for some properties to sell well before the set dates!

To the victims and families of the Bali tragedy, our sincere condolences.

Follow Me on Twitter

19.10.02Robert SimeonNo Comments »