WHEN PROPERTY STARTS TO ADD UP!!

WHEN PROPERTY STARTS TO ADD UP!!

There is still plenty of energy in the property market even though many continue jumping to conclusions that property prices have finally been fenced in. Even the Un-Productivity Commission declared that “houses do more than provide shelter, they are also the major store of household wealth.” Here in the “State of Decay”, just last month “Bobby Dazzler Carr” introduced another two property taxes which will have a direct effect on the market. The major problem is that Governments appear hell bent on stifling that dream of investing to secure one’s future. Fortunately, the vast majority can see past this as Reserve Bank figures indicate that today, housing makes up nearly two-thirds (65 per cent) of all Australian household assets. In dollar values, that equates to $2.7 trillion, so you can imagine how strong that fence needs to be.

So, it was interesting this week to watch our very own “Governor of Moolah” evading the issue of when he will raise the rate this year. Since June 5, 2002 we have had three +0.25 increases. America has just had two in two months, and there is plenty of action in the “Old Dart”. Since November they have had five increases with the latest increase going from 4.5 per cent to 4.75 per cent, their highest levels in three years. Our highest level in recent times was 6.25 per cent back in August 2, 2000 just before the Sydney Olympics. Despite the rate rises, house price inflation in the United Kingdom jumped in the second quarter of this year. The average price of a home jumped 17 per cent, which was their biggest jump since the first quarter of 2003. So it would be fair to suggest that our property market is simply healthy, wealthy and wise. It is somewhat ironic that those expressing the most concerns are the real estate agents and agencies alike, who are engrossed in a battle of survival of the fittest. With supply at record lows, agencies are now looking at what needs to be implemented to ensure that they will continue to be recognised as a formidable force in the eyes of the public. For many (with respect), they should have been looking at this quite some time ago.

On September 12, 2004 we will celebrate our fourth year anniversary for “Virtual Realty News” and that is when we entered the world of e-business. I guess for us, the proof is in the pudding as currently we have made 140 Internet subscriber sales with a value of $235,564,100 and we are on the way to increasing our annual turnover threefold. To mark our anniversary we will be going live on September 10, with a totally new website and branding of RWM.

“Hitwise” has just concluded its annual survey and the results are sensational for the truly online businesses. They revealed that traffic increased at enormous levels with travel up 44 per cent, employment up 30 per cent, and property up 28 per cent. Overall for business and finance – property, realestate.com.au finished first, domain.com.au came second, ljhooker.com.au came in third, property.com.au came fourth and realestateview.com.au was fifth. With regard to ljhooker.com.au it should be noted that, in its network, it does not have a single stand-alone office website. If you are not hosting your own website you are missing out on an amazing journey, as one of the major reasons the property industry has enjoyed such success is significantly due to its marriage with the Internet.

It is that time again when we all start singing Aussie Aussie Aussie oi oi oi !! Whilst some believe that the property market will once again come to a halt, we don’t subscribe to that theory. It was totally different in 2000 as the Olympics were here in Sydney.

Greece is a long way away, so we will be catching highlights at home in the evenings. If the Aussies perform well so will the property market, as success breeds success!! One must not forget that many, many property voyeurs have also won gold medals in their chosen sport of real estate !! Cheers and clink, there is no better feeling than being an Aussie when the Olympics are on …… ^__^

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