Alfred E Neuman would be proud!
The Sydney auction market yesterday handled the threat by the ALP to end civilisation and bring plague and pestilence to the land – by promising modest reforms to the rules regarding negative gearing and CGT discounts if they win office – with aplomb.
The dystopian images, painted by our Prime Minister of Fear, of Sydney BBQ’s of the future barren and devoid of happy banter regarding the importance of working equity hard, fast flipping, value adding cherry bomb splashbacks, painting the lounge soft grey and pink for the overseas market, do not appear to have cut through.
But then the Emerald City would not be nearly so grand if we let Canberra rattle our “can do” attitude and healthy appetite for contracts of debt bondage. If “Winter is coming” in the form of an ALP-Green property speculation buzz kill, Sydney is not convinced and intends to party hard.
If some pointy heads want to stop the “Property Party People” they have to try harder than modest “softly softly” reforms to negative gearing and CGT discounts. Some full blooded reforms to the financing of the costs of bringing new land to market (such as these) is what the doctor orders.
The Sydney Morning Herald and Australian Property Monitors report records that agents reported 80% of the 559 listed auctions – versus 636 and 792 in 2015 and 2014 – which is a fair effort. Continue reading
It has been a tough week for Mr Morrison and his Merry Men in the Negative Gearing Defense League (NGDL).
The ALP announced a policy of modest negative gearing reforms on the weekend and have been promoting it around the nation with a disturbing degree of vigor and coherence that is proving most upsetting to the members of the NGDL.
To make matters worse a bunch of folk including Macrobusiness and Breakfast TV have been piling on and pointing out that Australia can no longer afford the extravagance of driving a bubble in household debt by offering a cocktail of excessive taxation advantages for those lucky enough to be considered “credit worthy” and thus able to leverage up with debt and bet heavily on “bricks”.
The problem is that Mr Morrison would sooner poke himself in the eye with a burnt stick Continue reading
The Sydney property market is not immune to the volatile world economy with “Pre-Auction Panic” levels surging and cracking 30% of listed auctions this week. 23% (82) of 358 listed auctions were reported as having been sold before the gavel could be given a last wipe with linseed oil and a few air swings swung by the boot of a BMW. The remainder of the 109 listed auctions that did not make it to auction were withdrawn by sellers – hopefully to a supervised “safe place”. Continue reading
With the RBA giving indications this week of some interest rate “sweet loving” during 2016 – like a Terminator T-800 back from the past and ready to remake the future – the Sydney Auction market’s eyeballs regained some of their usual ‘red glow’ yesterday with the number of listed auctions at 215 – up an Arnie like 467% on last week’s anemic 46 (though still down 28% on 297 in 2015 and 298 in 2014).
But instead of “Are you Sarah Conner”, it was “Sorry, it was Sold Prior” falling from the lips of agents with 19% of the listed Auctions (up from 13% last week) dispatched before Saturday festivities. Continue reading