Posts Tagged ‘Housing affordability’

rsimeon

Sydney has a new property face – you’ll be either happy or angry


With housing affordability now front and centre, it will be a very interesting meeting next week when the Housing Ministers meet to explain what they are doing to address these anomalies to the Treasurer Scott Morrison.

In NSW for example,there are two very big property elephants about to enter the room in November and December that most don’t know about and they will have massive impacts in the clear majority of Sydney suburbs.

The first are the unprecedented reforms to strata laws which commence on November 30, 2016. Presently with strata properties a developer can’t acquire the entire block without the owners being in 100 per cent agreement, but from November 30, … more »

rsimeon

Will the RBA governor go out with a bang?

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That’s the big question that many are thinking with his current running commentaries on the Australian economy – but will he tee – off on exactly what are the major problems facing our economy? I hope he does with his ten-year term expiring on 17 September having taken over as the Head Teller back on September 18, 2006. Interesting to note that over that time he has left the cash rate alone on sixty-seven (67) occasions, cut the cash rate on twelve (12) occasions and increased the cash rate on six (6) occasions. Surprising how time flies when you’re having fun as the last cash rate increase was back on … more »

rsimeon

The Property Storm Sydney Had to Have

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Is this quote by Johnny Isakson the perfect property quote – “In the real estate business you learn more about people, and you learn more about community issues, you learn more about life, you learn more about the impact of government, probably than any other profession that I know of.”

Let’s focus on the part of governments in property – more particularly as it relates to Sydney and its many niche property markets. Local governments are being amalgamated so that the NSW government can put on its developer cap and start approving thousands upon thousands of new developments. They identify overseas buyers as the driving force so they then introduce higher … more »

rsimeon

ATO Quickly Wields Its Big New Property Tax

‘ If you thought the election debate on negative gearing was interesting watch the new property debates get a whole lot hotter with the Australian Taxation Office’s (ATO’s) latest bombshell announcement which guaranteed will send shockwaves through property markets. No doubt this is just the next step following the ATO being handed total ownership of the Australian property transaction register in mid – 2015, a role they had been champing at the bit to control for quite some time.

From Friday July 1 2016 (the day before the federal election) all sellers of residential and commercial property worth in excess of $2.000 million will be deemed as an overseas investor unless … more »

rsimeon

Out With the New and In With the Old

It would be fabulous if when property commentators write about the market they actually differentiate between the two markets that we have, being the new markets (namely houses and apartments under construction) and the old markets being the existing homes.

Now it has been very well documented in recent times that the “new” markets are about to face their first big Litmus test with the majority of lenders blacklisting a number of areas because they believe they are over exposed. If one looks at this “new” construction in Australia there were:

  • 2009 – 102,347 new houses and 37,672 new apartments totaling 140,019
  • 2010 – 111,382 new houses and 63,801 new apartments totaling 175,183
  • 2011 … more »

rsimeon

Lots of positives from discussing negative policies


With great interest the Australian property debate has never been as interesting given we are on the precipice of change and the politicians don’t like it either. Take the negative gearing debate which has been quite fast and furious of late where the catalyst for the first time was that both major parties had to declare what their positions were and was there a slight chance of reform? Previously when any policy topics were discussed they are usually farmed with the standard “no comment”. The major difference today is that the electorate demands a more exacting policy position from the major parties. This is good debate.

This week myself and many … more »

rsimeon

Of Course I Hear You – I’m Just Not Listening!

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Allow me to pose a hypothetical question – if the Australian federal government was listed on the ASX what do you think the share price would be doing? This week we saw a right for Julia Gillard, but anger growing – a carbon tax from July 1 next year is now guaranteed yet the ongoing debate is far from over. This week we read another Newspoll in The Australian where the Gillard government sits on a very ordinary primary vote of 26 per cent and the Coalition cruising along on 48 per cent. Makes one wonder if … more »

rsimeon

Business confidence back – government financial crisis still going backwards!

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The  worry is, will Fort Fumble (Federal government) tax the living daylights out of businesses to pay down the Treasury’s projected budget deficit for 2009/10 of $57.7 billion? . Nobody denies the fact that Australia (like the rest of the World) required a stimulus package although in Australia there remains a strong school of thought that our economy was misdiagnosed and over-medicated. With the convalescing now over, we are  told that all markets (property included) are back to 2007 levels. What a recovery!  Annualised growth rate in November 2009 was 5.4 per cent, December 2009 up to 6.2 per cent which was 3.5 points above the long – term projections.

The … more »

rsimeon

Housing affordability – a cone of silence!

It is official! Recent data revealed that in the March quarter, new home construction was just 38,811 – down 3.3 per cent on the December quarter. Property market commentators rang alarm bells, announcing that the housing market was well and truly in the doldrums. The current shortfall is now projected at 30,000 per annum and growing, yet property prices keep falling. A direct result of high interest rates, where private ‘new house starts’ also fell 6.3 per cent in the March quarter. New apartment construction did rise by 3 per cent which is hardly a great yardstick. For new housing starts, ACT was down 16.9 per cent, Tasmania posted a 13.3 per cent decline, Queensland down 9 per cent, Western Australia 7.3 per cent and Victoria down 4.8 per cent. South Australia posted a 24.7 per cent increase, NSW up 9.3 per cent and the Northern Territory up 14.9 per cent. more »

rsimeon

THE AUSTRALIAN ECONOMY NEEDS “GIDDY –UP”. NOT GOING, GOING & GONE!

Just what part are Australian tax payers missing, when the monthly Reserve Bank of Australia (RBA) reports are met with Federal government approval . Inflation continues to accelerate yet the inflation drivers remain for the better part, on ignore. Interest rates remained at 7.25% when the RBA met this week and neither it or the Federal government offered an economic solution that will intelligently address the inflation accelerants, other than a moronic suggestion, that over time it (inflation) will address itself. The inflation rate is headed to 5 per cent (as we will identify). more »

rsimeon

REPORT CARD – BUSINESSES “A” AND GOVERNMENTS “F”!

It has been well documented that businesses over the last ten years have been the star performers (well most anyway) and governments at all levels have struggled to properly manage their respective portfolios. Despite concerns with global financial markets which were evidenced when the share market finished in negative territory yesterday – we are now just one more edition away from another interest rate rise. This week we witnessed commodity prices drive the Aussie dollar to a 23 year high of 94.50 which is the highest since March 1984. The economy continues to grow at a startling rate with increasing output results based on stronger demand where capital spending increased 5.1 per cent in Quarter 4 – 2007. If interest rates are increased at next week’s meeting this will equate to just over a 1 per cent interest rate increase in eight months. more »