Have Australians become a bunch of Whingers?

By Peter Sarmas on 11 Sep 2017
No Comments yet, your thoughts are very welcome

 
Melbourne Auction Results 11th of September 2017

73%
Clearance
Rate

836
Reported
Auctions

Sold at Auction: 523    
Passed in: 194  

 

Sold Before: 99    
Sold After: 0    
Postponed 14  

 

 

Source:REIV

 

Melbourne Market Wrap March 11th September , 2017

The REIV reported 836 properties auctioned this weekend versus 881 last week and 948 for the same time last year. The clearance rate was 77% which is in-line with last week’s result and similarly for last year.

Melbourne’s auction clearance rates have been steady in the past month and showing no signs of this market strength slowing down.

The suburbs with the most auction activity over the weekend were Reservoir, Glen Waverley and Glen Iris.

Loans to fist home buyers have increased dramatically driven by stamp duty cuts in Victoria and NSW, while investor loans have gone backwards, especially in Sydney.

More agents are reporting a sale prior to auction where bidders are low or non-existent on the property.

 

population-graph

Source: PIXABAY

Have Australians become a bunch of Whingers?

I read with interest a couple of articles over the weekend contrary to the belief that Australia is heading down the economic toilet.

It seems that so many people are caught up in the media’s hysteria saying that our economy is failing that I felt we needed some balance. And two articles which caught my attention, one by Terry McCrann, the other by Peter Switzer, both credible financial commentators and worthy of my attention.

Its official, GDP figures released last Wednesday showed we had recorded our 26th straight year of positive growth in the economy, this is contrary to what’s happened in Europe and the US. Supporting the theory that “things are not so bad” on the economic front was Reserve Bank Governor Philip Lowe who in his speech last week was quite buoyant about our future economic prospects and expects further strengthening in 2018-19.

Since the GFC Australia has taken a very different to growing our economy. Rather than reducing interest rates to nearly zero and printing money which inflates the prices of stock markets and makes the rich even wealthier, our economic leaders we have taken a more sustainable and stronger path which benefits more people more evenly. Property ownership has helped build substantial tax free wealth, with some 70 per cent of Australians either owning or buying their home, according to McCrann. Record population growth in Australia has also helped fuel our economy.

In an article by peter Switzer, the latest GDP growth figure of 0.8 percent released last Wednesday was just shy of the 0.9 per cent predicted by economists. So instead of celebrating the June quarter growth the media whinged and moaned about our GDP growth falling short of 0.1 per cent, really? But why should we be surprised? Bad news does sell papers, doesn’t it?

In a more positive spin on the GDP numbers Peter Switzer discusses Commsec’s Craig James’ thoughts on the Australian economy:

“And let’s crow some more and let’s steal some of Craig’s crowing about us and our economy. This is what he said after the GDP numbers:

“The economy grew by 0.8% in the June quarter after rising by 0.3% in the March quarter. Annual economic growth held at 1.8%.

The economy has just completed its 26th consecutive year of growth – the last recession was January-June 1991.”

    “But the economic growth figures look backwards, not forwards. Looking ahead, the economy is gathering momentum with businesses making money, investing and hiring new workers. The global economy is also in better shape.And while home building is set to slow, its place will be taken by infrastructure spending – especially more roads, tunnels and railways.”

Economists I respect, think growth will actually pick up in the second half of this year and even though the stock market could get the wobbles in September and October, as it can, many good market prognosticators think stocks will power higher into the end of the year.”

As a footnote, the Reserve Bank decided to leave the cash rate on hold yet again when they met last Tuesday. With the Australian dollar rising to $US0.81 cents overnight i would expect interest rates to remain on hold for a while longer.

 

Vendor Advocacy 33 McGuiness Rd, Bentleigh East

This weekend we were fortunate enough to have been appointed as the vendor advocate for the sale of 33 McGuiness Rd, Bentleigh East.

After a four week campaign and much work on the property and the campaign we managed to achive a phenomenal price, $191,000 over the vendor’s reserve, smashing all expectations.

Vendors_33_McGuiness_Rd(2)

Happy Vendors Sold 33 McGuiness Rd, Bentleigh East on the 9th of September 2017

When we were appointed as the client’s vendor advocate we advised on how to best prepare the home for sale. This included, removing and changing the carpet, bringing our stylist in for advice and furniture, changing the tapware and lights in certain rooms as well as some gardening and mulching.

Once the right presentation had been achieved we then interviewed three local agents and selected who we thought suited the client and was prepared to work the hardest on the property. We negotiated their commission and together with the agent communicated and strategised to achieve the best price.

Throughout the whole campaign we were in constant communication with the client discussing the pros and cons of the property and campaign as well as how we could best maximise the selling price. This included face to face meetings to ensure everyone was happy with the whole progress.

On the day three bidders arrived, one opening the bidding at $850,000. The bidding then rose in lots of $10,000 surpassing the reserve price of $920,000 and reaching $1 million dollars. To the surprise of everyone one of the bidders jumped the next bid by $100,000 in the hope to knock out the under bidder. The final selling price was $1,111,000, what a fantastic result for the vendors.

The ultimate winners were a young couple with their parents securing the home against two people looking to downsize.

 

Thinking of buying or selling a home?

Visit our Street Advocate website or send an enquiry below or just call

Peter Sarmas on 0418 740 606.

 

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About the Author

Peter Sarmas is a Certified Property Investment Advisor (PIAA) and Vendor/Buyer Advocate. Before becoming the founder of Street News, Peter completed a Degree in Applied Science (Chemistry) and a Graduate Diploma in Property Valuations (Hons). Peter believes property investing is a major and potentially risky undertaking. In his view, everyone should have an independent person acting on their behalf when seeking property investment advice.

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