Which Bank In 2012?  None Of The ‘Big Four’!

Which Bank In 2012? None Of The ‘Big Four’!

With unprecedented times in our “Big Four” banking fraternity, it was puzzling when the Reserve Bank of Australia (RBA) declared that big banks not too profitable. What did make sense was Australia’s ‘head teller’, Glenn Stevens, telling the House of Representatives Standing Committee on Economics, that “you only have to look at the dimension of the banking problems in Europe to see that we don’t want banks that can’t earn a good return.”

Whilst the “Big Four” have come under huge scrutiny regarding variable mortgage rates, it really is no big deal, when consumers can and should shop around. This is evidenced by the 2012 Citi Fin – Q Survey where it was revealed two – thirds of borrowers to look beyond big four banks for mortgages: Citibank. The survey also found a high level of negative sentiment about the mortgage market with 70 percent saying the government needs to do more to help first-home buyers and 63 percent saying they don’t believe home ownership will be an option for the next generation of Australians.


On the flip side, a most revealing announcement when Property Observer reported Major becoming banks more profitable and more liquid. Between September 2010 and September 2011, the combined profit margins of NAB, Commonwealth Bank, Westpac and ANZ have risen from 31 percent to 35 percent. The major banks’ lending books combined, are now worth $1.11 trillion, with an additional $72 billion worth of new loans in the 12 months to September 2011.

This prompted the announcement this week, that the RBA is going to investigate funding costs. It will be intriguing to see the findings from this report given the ‘Big Four’ independently increased their cash rates last month – citing “higher funding costs”.

“Tell a European you think there’s a housing bubble and you’ll have a reasonable discussion. Tell an Australian and you’ll have World War 111. US doomsayer Jeremy Grantham tiring of Australian housing price bubble argument which is a classic example of an individual who has absolutely no idea about the Australian real estate market demographics. As quick as a flash Christopher Joye reignites his $100 million housing challenge to Jeremy Grantham.

The world’s first real–time daily home value indices and world first home value indices that track asset–class stock was released on the Australian Securities Exchange (ASX) yesterday Home Value Index.

Source: Domain Property Monitors

    MOSMAN – 2088

    • Number of houses on the market last week– 137
    • Number of houses on the market this week – 139
    • Number of apartments on the market last week – 128
    • Number of apartments on the market this week – 126

    CREMORNE – 2090

    • Number of houses on the market last week– 16
    • Number of houses on the market this week – 13
    • Number of apartments on the market last week – 21
    • Number of apartments on the market this week – 23

    NEUTRAL BAY – 2089

    • Number of houses on the market last week – 21
    • Number of houses on the market this week – 22
    • Number of apartments on the market last week – 92
    • Number of apartments on the market this week – 63

Mosman house listings continue to hover around the 140 this week, although well below the spring 2011 peak of 168 house offerings. This number should decline in the run – up to Easter otherwise it is not a good sign for our property markets. Just as interesting Mandolong House listing set to test Mosman market.

For this week’s sales in Mosman real estate, Beauty Point real estate, Clifton Gardens real estate, Balmoral real estate, Cremorne real estate, Cremorne Point real estate, Neutral Bay real estate, Cammeray real estate – Click Here

For this week’s open for inspections – Click Here

The climate change debate is getting worse for the Gillard Government when $180,000 a year (part time chairman) Tim Flannery predicted in 2005 that “Sydney’s dams could be dry in as little as two years because global warming was drying up the rains, leaving the city ‘facing extreme difficulties with water.’ Tim (you dope) the Weather Bureau advised this week, Warragamba Dam will spill for the first time in 14 years!

Yet another toxic week for Australia’s most incompetent Prime Minister, Julia Gillard, as she survived a Labor leadership battle – a result where members voted against Kevin Rudd rather than a overwhelming support of the PM. “The Emperor” Kevin Rudd, who previously sat on the throne of political incompetency, resigned.

Next, Julia Gillard had to replace a “Faceless Man” when Mark Arbib resigned (more to come on that,) Enter Bobby ‘Dazzler’ Carr who after sitting in the Qantas lounge bound for Canberra to announce his new foreign affair, received a call that the gig was off – due to political intervention(s).

The Carbon Tax will be Julia Gillard’s greatest hurdle in 2012 in a photo finish with her every utterance!

If you are looking for a fun night next Friday, you must be at Hotel Mosman for Applause For A Good Cause with The King and I. Yes our very own Andrew Blaxland is appearing as Elvis (and he can really sing). The show starts at 7.30 pm and costs $35.00 which includes canapés and a drink on arrival. Proceeds are in support of Balmoral Swim for Children’s Cancer Institute of Australia. If you want tickets (they’re selling fast) email andrew@rwm.com.au

Cheers ^__^

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