Breaking Square | 17/10

I am sure you have heard, our Prime Minister has purchased a 4.2 million dollar property on the mid-north coast in NSW, so what is so special about this, nothing in my opinion from a purely real estate transaction point of view, but it is news worthy as the “optic” is not good, given all the chat about a cost-of-living pressures we have and how the PM and his party are working hard to relieve the housing crisis.

I don’t begrudge the PM buying a holiday home or a home for his next stage of life, however it makes me think that this plays more into the psyche of Australians and the chatter about property and the tax breaks investors get.

Let me first discuss the psyche of Australians and our penchant for knocking down Tall Poppies. Most folks with hand on heart, if asked, would say they aspire to be well off at a minimum and secretly, wealthy. Most want more money, possibly a better place to live and for some, never to have to work again. However, when we see others succeed, many will find reasons as to why that person has it and why they don’t.

This leads me to the current situation with politicians changing legislation to favour tenants at the detriment to landlords. Talk of adjusting tax breaks or abolishing them all together, all the while, trading on the legacy of Tall Poppy, because all property investors are rich – right? Wrong…

Most property investors fall into investment or just have one investment property, which is part of a plan to hopefully enjoy capital gains and when the time is right, sell and put the proceeds towards debt reduction or retirement. Why should we begrudge anyone who works hard and saves, to aspire to some form of wealth and financial security. Probably not many, however, investors are easy targets for politicians who lag in polls or political parties who want to wedge their counterparts.

The PM buying this property once again shines a spotlight on our countries psyche and how we view or perceive wealth and I believe it is unhealthy. Unfortunately, this purchase with be leveraged by the Opposition and minor parties and will be part of the political debate, which may have unintended consequences for property investors.

In other news, the market at the moment continues to roll along, although, buyers are still a little cautious in making offers and decisions. Often this is when good agents rise to the occasion and make deals happen, as opposed to being order takers. Over the past several years it has been an order taker market, with many agents making a good living just because they showed up. Across the industry and what is being reported, agents with no structure are struggling and unfortunately for owners, you only find out too late that you ended up with one of these agents.

Our listings are very strong; not surprising given this is our busiest quarter of the year. Should we get a rate cut in December or possibly in February, watch this space, we will go on another wild ride next year. One rate cut will provide buyers with confidence and sellers will react and sell. Regardless of what happens to rates, Brisbane has continued to shine and according to Corelogic, Brisbane is the most profitable state in terms of profit made on the sale of a property. Owners are enjoying strong uplift in prices and are enjoying the benefits, which means, very few properties are selling for less than what they purchased for.

Our lack of rentals has been a little frustrating given the enquiry we get, we still have families seeking large homes and of course, the sub $700pw is red hot. We finish this week with only 3 properties on the rental market. The nuances of the new legislation have also been a source of frustration as we work to maximise our owner’s returns and protect their interests.

Before we know it this year will be done and dusted and as we raise a glass at Christmas parties, I am sure we will all wonder where this year went. We will be going hard until Christmas and then enjoy a break with family as I hope you have planned as well.

Until next week, stay safe and be kind.