WHO’S COUNTING??

WHO’S COUNTING??

Interesting to note that the number of houses sold in Mosman last year was 372 (we still have another nine to settle). Even more interesting is that these additional eighty one sales based on the 2005 sales of 291 represent a 21.75 per cent increase in sales volume which is the first time since 2002. So what effect did these extra properties have on prices ? The median price for Mosman in 2006 reached its highest price point of $1,880,000. This is up from the previous high recorded in 2005, when it reached $1,860,000. The median sale prices for Mosman since 2002 shows just how well the market has contained itself over (what many found to be difficult) conditions. although many argue that Mosman appears to continually fly under that radar. Mosman houses are still one of the strongest currencies in the Australian property market.

2002 – $1,690,000
2003 – $1,699,500
2004 – $1,640,000
2005 – $1,860,000
2006 – $1,880,000

The Real Estate Institute of NSW (REINSW) revealed this week that home unit sales have more than halved in NSW over the last four years. In 2002 – NSW recorded 63,610 where in 2006 it managed just 30,184. Mosman in 2002 recorded 725 sales and in 2006 it recorded 447 sales. So the pattern would be consistent across Sydney and of course if you listen to politicians there is no reason for concern. Peter Costello (the guy who keeps coming up with “super” ideas) said “ I think now that the excess has corrected itself, we’re back in a situation of low vacancy and pressure on rents, that construction will kick off again. “That’s the best response to what is in fact a problem of limited supply.” Personally, I think that it has absolutely nothing to do with construction downturns. It is more to do with the fact that investors no longer consider investing in “bricks and mortar” attractive, as the returns are not there – due to that three letter word tax.

It was interesting to note that figures released this week revealed that sales of new homes and units in January, increased 5.8 per cent to 7,963 dwellings. In the later half of 2006 it was in a freefall due mainly to rises in interest rates.

At least Peter Debnam the NSW Opposition Leader offered $400 million in land tax cuts over four years. He then announced that if elected, he would set up a community panel to advise him on tax (at least someone can admit that they have no idea). Enter Michael “Cost – ya Plenty” who called these property tax cuts “fiscal fraud”. I always thought that “fiscal fraud” was when a government was is budget deficit !!

No doubt “Cost – ya Plenty” made this comment before he read an article by Tony Abbott, “A Government so bad should be thrown out” in The Sydney Morning Herald earlier this week. Tony Abbott said (which surprised me as he is always a man in control of his emotions) “For the past few years NSW has consistently economically under-performed the rest of the country”. The latest growth figures show NSW at just 1.4 per cent, the lowest in the country, with unemployment at 5 per cent, the third highest of the states. If, as the Government says, NSW is missing out on a resources boom, why is the similarly resource – poor Victoria managing twice NSW’s rate of growth ? A more plausible explanation is the state’s tax rate: the highest in the country. Iemma repealed the vendor tax, which had stopped the Sydney property market well before interest rate rises, but has imposed 24 increased tax measures, 53 rises in government charges and nine fare increases since August 2005.” Boom Boom !!

And one wonders why rents are sky-rocketing, units sales have gone from 63,610 in 2002 to 30,184 in 2006. This is anecdotal evidence of “fiscal fraud”. – the “super” ideas coming from Canberra and living in the highest tax state in the country. Oh well it was worth it we have a budget deficit to look forward to !! Cheers ^__^

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