The fright at the end of your tunnel

The fright at the end of your tunnel

Or, should that read the light at the end of your tunnel?

Many are reporting light and others fright. I for one, support the light given that the Mosman property market remains controlled and given the current stock levels, the message is clear – Mosman houses are closed for business!

Should the current pattern continue, there remains a strong possibility that available properties will reach the lowest level in decades. Simply put: the fright no longer remains a concern and for the first time, real estate agents and vendors are not starting to see the light, but are now seeing a brighter turnaround, although it should be noted that longevity is not guaranteed.

Tim Mooney Photography

It would then be somewhat reasonable to suggest that given the circumstances in our inherited global financial crisis, businesses today, require vision, strategy and greater acknowledgement of evolving technologies. For the first time, property market interaction has seen online take the lead over the previously preferred print campaigns which are no longer the dominant force. Print will still play a part just that from an economies of scale basis, it will require a re-definition so that it can remain competitive. The leading real estate agencies are now driving and presenting smart online marketing alternatives. For a real estate agency that does not host its very own website, the future is bleak to say the least – simply because all their competitors do.

Markets today are judged from online results, because they are readily available, subscriber driven, easily accessible (except property data) and allow individuals to draw compelling conclusions. The inbox today is what activates consumer interest first, simply because it now is the first point of contact and first impressions count. With the benefit of hindsight it is much easier to track our current recession simply because in our last recession (early nineties) the Internet was still in creation mode. Today, we extrapolate (and then pontificate) data and depending again on your point of view, some believe we have seen the worst and others predict that the worst is still to come.

The ongoing, frustrating debate continues but I believe we have turned the corner and slowly but surely, we are on the long road to economic recovery. When businesses move from economic growth to economic recession – you don’t lose intelligence, you learn and grow from the experience. Unfortunately, the reality of the current economic crisis can be attributed to one word – greed.

As Alan Kohler wrote on The best kind of recession – “This is turning out to be quite a nice recession for Australia.

Aussie GDP has fallen just 0.5 per cent, compared to nearly 10 per cent in Japan, 4.6 per cent in Europe and 2.6 per cent in the US. Unemployment has actually decreased according to the latest data and is now at 4.5 per cent – at least two percentage points below other western countries, where unemployment is rising quickly.

With tax cuts and a drop in both mortgage interest rates and petrol prices, the after-tax disposable income of the average wage earner has actually increased by 19 per cent, according to calculations by CommSec’s Craig James.”

Furthermore, one in five international business people (in a survey of 7,500 across twenty four nations) named Australia as the country best surviving the recession. Australia first, China second and India and Singapore equal third.

Toxic debt within our banks has been a very well kept secret but in 2009, banks have certainly been responsible by opting to wait for property markets to stabilise instead of fuelling the problem as they did previously. Nobody can win the argument that property markets don’t recover as we all know that with time, all wounds heal. The Mosman market is not only healing, its appeal is greatly assisted by a cash rate of 3.00 per cent.

Without a doubt the media microscope of opinion has manipulated as well as injected fright into market perceptions. After an unprecedented period of economic growth in Australia, it was hoped that we would bask in economic consolidation before we found ourselves in economic recession. The decline from consolidation to recession surprised everyone. What remains to be seen is how quickly GDP recovers so we then climb back to economic consolidation. Whilst economic growth is still a way off, every Australian business has a strategy to climb back up. The test of time can only be measured by what you are actually testing and discovering.

We have to move with the times.

This time around the businesses with strong online content (in real estate) have done much better than those businesses that wait for it to happen. Watch the movement of property between now and June 30, which I believe will be a defining property market moment. RWM Internet sales jumped to $848,794,019 this week. Our point of difference over other real estate agencies is our online factor which is exactly where we have your eyeballs at this very point in time. You will also notice with this week’s recorded sales a substantial upward spike in sales volumes (see below).

Once upon a time it was a window card placed in the shop front, then an advertisement in a newspaper. Today, consumers judge real estate agencies by their online content. After all, we are in an economic recession where it is all about money. In economic growth they show the money and in economic recession they slow the money.

The real fright at the end of the tunnel is actually shared by the real estate agencies that ignored the move into technologies– just like every other economic recession money is slower. In a recession one has to put the faith in themselves, not others.

Chk – Chk – Cheers ^__^

For this week’s recorded Mosman real estate, Cremorne real estate, Neutral Bay real estate and Cammeray real estate sales

14 Responses to “The fright at the end of your tunnel”

  • well written article as usual its a pity that Canberrra doesnt understand the current market or how to encourage future growth in Australia.

  • Robert Nankerveal says:

    “Many are reporting light and others fright. I for one, support the light given that the Mosman property market remains controlled and given the current stock levels, the message is clear – Mosman houses are closed for business!”


    Closed for business? Mate, what are you on about? Closed for business? So let me translate that. “I cant get the price for my property that I leveraged on to get in via Australian stock margin loans, and I used that loan to buy an over-priced piece of property in Sydney, Australia, in the epicentre of the market where the high end of the financial community used levereage upon leverage upon leverage upon leverage to buy already over-priced leveraged houses and now I am stuffed”. Hello? I am “closed for business” because I simply cannot sell my friggin house that I bought for $5mill last year that is now “apparently” worth $3.5mill, but in actual fact doesnt have any interest above $3mill. But the margin loan on my Macquarie Bank stock that I pledged is worth 80% less than what it was when I took out the loan. “Oh F**k”

    So would you, as a real estate agent, stop trying to lecture intelligent people that are now actually looking at investing in this market, and trying to talk the market up.

    Mate. It is what it is. Dont try and put any other crap around it.

    It is what it is.

  • BB says:

    I totally agree with the last comment. I am trying to buy a house and I get sick of agents saying you better hurry prices are headed back up. Prices are not headed back up. They were overpriced to start with and still look overpriced. Ahh the choices in life…………buy a house in Mosman and keep chugging into the city everyday to work to pay it off…..or live elsewhere and retire!

  • Gordon says:

    Hey, fair go, Robert Nankerveal, at least Robert didn’t say “Chk, Chk, Boom”!

    Yes, there will be people reading Robert’s thoughts who are hurting, but I very much doubt that most people in Mosman would be in that category. The multi-leverage crowd are feeling the squeeze for sure, but that applies to everything, not just houses.

    And while greed was a big factor in causing the GFC, there was a bit more to it than that. US government policy over many years mandated that lending bodies had to make housing loans to low income people, who struggled to make their repayments even in “normal” times.

    Couple this with the other US government policy requiring most housing loans to be non-recourse, and when the inevitable downturn came these people just walked out the door with no liabilities and turned it into an avalanche of bad paper.

  • Robert,

    Don’t hold back now as you missed the part about technology too.

    You have now posted under three different names:-

    1. Robert Nankerveal
    2. M Jackson
    3.Dr Wharton Engasol Phd

    A spilt personality? ISP numbers never change though – mate as you said “it is what it is” 🙂

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  • Mark says:

    I dont think property here is overpriced, when you compare it to any other suburb around the world. Tell me a better suburb anywhere, with large bushland, beaches, close to city / airport, local community shops.

  • Patricia says:

    Mark – Mill Valley, CA; Tiburon, CA; Pebble Beach, CA; Malibu, CA (beachside and canyons); Palos Verdes, CA; Laguna Beach/Newport Beach/Balboa Island, CA; Rancho Santa Fe, CA (admittedly not on the water, and perhaps less desirable now that Sol Trujillo has returned); La Jolla/Torrey Pines, CA; and Coronado, CA are just a few suburbs on just one coastline in this world that surpass Mosman in many ways.

    It’s a big world out there and Mosman is simply not that special or unique.

  • Patricia,

    Welcome back – our staff have missed your contributions. I believe one of the greatest features that Mosman offers is that ninety per cent of the suburb is surrounded by water. Very few Sydney suburbs boast the beaches, native flora and fauna, National parks, striking seascapes, the iconic view of north and south heads and beyond + it has a zoo (please leave real estate agent jokes out). For mine it is an island paradise that over time has been very well preserved. I left the nudist beaches out 🙂

  • Patricia says:

    Hi Robert – We all have to leave scenic Mosman at times and when we do, a detrimental aspect of living in an area which is strategically neglected by the state government is reinforced when entering the congestion and chaos of Military and Spit roads, or further afield on the politically selective toll-road motorway system (some full toll, some cash-back).

    The coastal California communities I cited in my earlier post have access to an excellent state freeway system. I prefer travelling in peak hour traffic on a California freeway at 30-35 kph than Military Road at 5 kph, or sitting in the M2 ‘carpark’ after paying $4.40 for the privilege!

    I’ll segue to you and your long-running, consummate condemnation of the NSW government.

  • Thank you Patricia,

    I had better then write something about Fort Crumble in this week’s edition especially for you. It will be interesting to see where the current front bench find themselves in ten years time? Now off to gather incriminating reports of futher bungling in the Premier State!

  • Mark says:


    I have been to a few of the places in CA, and I humbly disagree. Yes they may have bigger beaches, but thats all. No contest I am afraid. However, I respect your opinion.

  • Donald says:

    Tell me Patricia are people in California as stupid as those in Mosman who are prepared to pay $2 million for an average house. House prices were driven up and up in Mosman by a game of pass the house onto the next mugg prepared to borrow more than me. When the music stopped a lot of Mosmanites were in shock. No overleveraged Macquarie Bankers left to keep the music playing.

  • Patricia says:

    Donald…Someone who can’t properly punctuate their posts and misspells ‘mug’ truly is one! Sounds like you have some regrets; don’t come crying to me or anyone else on RWM’s ‘Virtual Realty News’.

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