THE BEST THING ABOUT WAR IS THE END OF IT

THE BEST THING ABOUT WAR IS THE END OF IT

Greetings from our Mosman bunker, and the very first khaki edition. This week many have been deliberating on whether or not the events in Iraq will have an effect on the property market. Given that every cloud has a silver lining except a war cloud, it would appear that our financial and property markets do not share the same meteorological paranoia. Just before the stroke of 12 noon on Thursday, not all eyes and ears were glued to television stations for announcements, at certain auction venues it was the auctioneers making announcements that “the property is on the market, and we are selling”!! In one case, a Beauty Point home, with a reserve of $1,750,000 sold for $2,150,000, and it only took four bids in a few seconds, to pass the reserve price. This is not an isolated case. The Mosman market is performing beyond all expectations and purchasers are making judgement calls based on how they see it. We will always have pessimists in society and in our market, they have been there for years and still remain. The optimists who make the judgement calls are laughing all the way to the bank, with the property market continuing to radiate sunshine. On the other hand the pessimist can only apply in summation, that when one door shuts, another does not always open as quickly, and when it does open you don’t necessarily get the keys.

Not a week goes by that I don’t check the average prices for Mosman @ Domain.com.au. For the twelve months to 28 February 2003 the average was $1,725,066. There have been some very big sales so far in March and my tip is that a record $2,000,000 average will happen sooner rather than later. We shall watch with interest. Figures just released have seen that in the year to June 2002, investor acquisitions for housing across Australia totalled $43 billion, which is about a third of all housing finance in the country. To further follow the money trail of the investors in NSW, it was around $1.3 billion in 1992 to almost $20 billion in 2002. Now that is very impressive in the space of just ten years. This clearly identifies the strength and resolve of our market and further highlights that real estate today is a fact of life. As for those who seek the property hot spots, all of Sydney today has high growth areas, and ever improving infrastructures. Today we can identify capital appreciation in some suburbs recording as much as 68.8 per cent in just a twelve month period. This adds to the overall harmony of our industry and sends out a clear message that property investment is not restrictive. Those who invested in the ‘Dollar Each Way’ markets have experienced excellent capital growth.

For any markets to survive they need balance, growth and popularity and this is certainly the case for the ‘Dollar Each Way’ markets. It is great news and a very positive sign for the continued longevity of the real estate industry that these markets continue to perform. It is all about return on investment, and also understanding the idiosyncrasies of the marketplace, which in turn allow the investor to judge the market on the return. No wonder the figure to June 2002 was $43 billion. It will be very interesting to see where it is after the financial year, this year.

We are already experiencing great interest in our latest listing Burran Avenue, Balmoral, this will be in all probability the finest property to be listed in Balmoral for the year. Whilst it is too early to tip, watch for another record breaking sale by the team at RWM, just love it when a plan comes together. Not all the fanfare is contained to this listing, there continues to be plenty of action across the board, and more sales will be posted in the up-coming editions.

For those rushing out to up-grade their “Army disposal” apparel, these stores are now just listed as disposal stores. How times change! I think you would actually be better off using your disposable income to acquire another investment property. With that I will leave you, cheers and clink……..^__^

Leave a Reply

Your email address will not be published. Required fields are marked *