WELCOME BACK, IT’S GOING TO BE BACK TO BACK!!

WELCOME BACK, IT’S GOING TO BE BACK TO BACK!!

I think the two greatest ‘bloops and blunders’ in 2003 were from those who doubted the ability of the Wallabies, and those who predicted a property market collapse. I, like many others, backed the property market and had no faith in the Wallabies. Now I am backing both and my apologies go to all those brilliant Wallabies for their sensational performances last week!! It takes courage to admit mistakes and make amends for them, so it was great to see all those who were doubters, stand up to be corrected. Shame the same can’t be said for those who have been niggling all year at the property market. They have been consistently one hundred per cent incorrect!! Some started as early as the first week in January this year. To make a mistake is only human-with the property market, the mistakes were well and truly overdone.

Great to see the Productivity Commission is alive and well. For the first time they came out snarling with their dentures locking-in to the property market. The problem as I see it, is that they have identified the investment market as a great place to start. I guess they share the same view as the ‘Governor of Moolah’ in that they identify three factors that drive the investors to the property market. One being the attraction of capital gain, second the availability of attractive finance rates, and third, tax minimisation. How convenient that they failed to identify the big ‘CC’, otherwise know as Corporate Collapses, that constantly appear in the newspapers with gloomy forecasts marinated with non-profit warnings and earnings downgrades. Maybe the Productivity Committee might wish to rinse their dentures as they contemplate these figures, which are compiled by the Australian Bureau of Statistics and researched by Australian Property Monitors.

Mosman property prices twelve months to 31 October, 2003. Average price for a home $1,795,129, median price $1,420,000 and the median price change over the last twelve months sits at 0 per cent. Average price for a unit $$596,253, median price $451,000 and the median price change over the last twelve months sits at – 1 per cent.

Cremorne property prices twelve months to 31 October, 2003. Average price for a home $1,281,046, median price $1,052,500 and the median price change over the last twelve months sits at – 4 per cent. Average price for a unit $572,243, median price $487,500 and the median price change over the last twelve months sits at 1 per cent.

Neutral Bay property prices twelve months to 31 October, 2003. Average price for a home $1,051,013, median price $884,250 and the median price change over the last twelve months sits at – 2 per cent. Average price for a unit $705,960, median price $506,500 and the median price change over the last twelve months sits at 13 per cent.

Since the last edition we have had four apartment sales fall over due directly to unobtainable finance. All four were first home buyers with approved finance. Well the approvals were “approved” until the ‘Governor of Moolah’ upped the rates on Melbourne Cup Day. Now the banks are reassessing the borrowings/equity ratios. This week we sold four apartments with a fifty/fifty split between home owners and investors. Even more confusing are the attempts by agents to explain why the auction clearance rates dropped to 56.5 per cent last weekend, and 51.5 per cent if withdrawn properties are included. Not one agent commented that the new legislation now stops them from dummy-bidding so at the risk of attracting a fine, together with adverse publicity properties are now withdrawn. The reality is that the numbers of prospective purchasers attending open for inspections have halved. Then, take into consideration the current stance taken by the banks, which is the ‘RRR’, reality realty rate!! This equates to applications for 2003 which are now denied the “please re-apply next year” response, when we can work out what is happening. Merry Christmas, your re-establishment fee has been waived as your business is important to us.

Sydney’s residential vacancy rate dropped to 3.4 per cent in October, which is a further improvement on the September 3.7 per cent figure. These figures from The Real Estate Institute identified that the reduction was greatest in the areas within a 10km radius of the city. Well, I guess that also confirms why our Property Management team is so busy.

Whilst on teams, our great team, The Wallabies will be the first ever nation to win back-to-back World Cups this Saturday night. Spare a thought for our English friends. I guess the words “age does not weary them” no longer applies, maybe a name change from the Barmy Army to Dad’s Army. Memo to: Sean Fitzpatrick picked his ANZAC team and not one Australian player made it. Don’t give up your day job mate, baaaaaaaa byeeeeeee!! Cheers and clink ^__

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