THE GREAT DUMMY SPIT!

THE GREAT DUMMY SPIT!

Welcome to the first week of agent house-trap. With the new legislation coming to the fore, the most obvious thing is the number of agencies that have been caught with their clothes lines down? When you don’t dummy-bid, the first thing you note is that auctions take much longer, hence the reason why we only auction a maximum of eight properties on the night. Makes you seriously wonder what so many have been doing, given that some found their auction nights this week closing in on the stroke of midnight. Guess who turned into the pumpkin? Another casualty of the new legislation will be the demise of the on-site auctions with the end of an era for many. They can’t dummy bid!! What will happen now is that the auctions will head back to auction rooms, which means larger numbers and longer nights. It will certainly cost the agencies much more as now they will have to split the auction room numbers which (boo hoo) means a bare minimum fortnightly, as against monthly. There will be plenty of vendors asking this week how many on the list, and what number will I be!! On the other hand watch the number of “sold prior to auction” signs treble as the culling begins. Very few auctions started on time this week due to delays in registrations which only exacerbated the situation.

The weight was right in this week’s edition of The Mosman Daily, with the number of available properties increasing significantly from previous editions. The strength of our market will now be tested, thanks to the new ‘you beaut’ legislation. One agent was reminded that he should be quoting within ten per cent of the reserve, he then reached for the calculator and started pressing buttons. Never to be the ‘sharpest tool in the shed’, he forgot that south facing homes and solar-powered calculators don’t exactly mix!! I have been saying all year that property numbers are on the decrease, and Australian Property Monitors released this week that between June and August around 4,610 homes were listed as compared to 5,500 at the same time last year. I must be “north facing” as the number of homes in Mosman fell from 125 to 95, which no matter which way you look at it is a significant drop.

With the ‘Governor of Moolah’ posting his 15th consecutive ‘dead rubber’ on interest rate movements, it is great to see that the domestic economy is performing so well. It was a pleasant change to see that the focus this time was on motor vehicle sales and the strong retail sector grabbing the limelight. A nice attempt by some who tried to ignite the debate about ‘special’ reduced interest rate schemes offered to employees of the Reserve Bank. If it upsets them that much and it has to be documented under the ‘Freedom of Information’ then get a job there!!

Outrage on Mosman Bay this week with the NSW Government introducing a 1000% rent increase on the premises leased by Mosman Rowing Club. The new rental value has been determined at $72,000 per annum, and the Club posts a net operating profit of $45,000 per year. With Bob (leave my beloved Gropers alone) Carr, into his fourth term as Premier one must ask the question why are they so behind when it comes to administering their own backyard. Great to see that the Spit Bridge fiasco was not just an isolated apparition, watch for a Channel 7 promo on “Funniest Home Premiers”. John Brogden is yet to comment. I guess he could be excused as he is in a traffic hold-up on Spit Hill.

The one thing you can say about the Carr Government, is that you can hand it to them, literally!! This will be a very interesting month in terms of property. New legislation and once again the State Government should have issued a demonstrational video to the agents about the new changes, because it still looks that for a few, the words have escaped them. Cheers and clink…^__^

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