Residents around Whiteside Ave North Ryde protested in the streets last Sunday about a proposal to develop a site opposite the Optus building to take 270 units in an area currently restricted to two storeys.
The proposal is to build five structures ranging from three to eleven stories! Of course the developer is hoping to use the Labor government's Part 3A powers to approve this.
Victor Dominello, State Liberal MP for Ryde, said that if the Liberals win government at the election this Saturday, one of the first tasks will be to review all outstanding applications submitted under Part 3A.
Friday, March 25, 2011
Tuesday, March 22, 2011
Barangaroo Remediation
Extracted from 7 News, by Caris Bizzaca:
NSW Premier Kristina Keneally is under siege from the Opposition, Greens and action groups who say the government has undermined a court case by exempting Sydney's Barangaroo site from environmental laws.
Planning minister Tony Kelly on Wednesday gazetted an order that effectively excises Barangaroo from his department's own planning laws for managing contamination, just days before the government goes into caretaker mode ahead of the state election.
The Sydney Harbour site is at the centre of a case in the Land and Environment Court being pursued by Australians for Sustainable Development (AfSD), a group concerned about contaminated subsoil.
Opposition spokesperson for planning Brad Hazzard said on Thursday it was an "abuse of process".
"The signature on the planning document may be Tony Kelly's but Kristina Keneally's fingerprints are all over it," he said in a statement.
"In September, Ms Keneally confirmed that she was, 'taking direct responsibility and control of Barangaroo' - so there's no ducking that this rotten act is all hers.
"This is an abuse of process and Kristina Keneally is in it up to her eyeballs showing that NSW Labor has no respect for the rule of law and the NSW community."
But Ms Keneally denied she was behind the order.
"This is a planning decision," she said while campaigning in Sydney.
"I am not the minister for planning."
Ms Keneally, who assumed ministerial responsibility for the $6 billion project last September, said she heard about Mr Kelly's action on Wednesday and spoke with him on Thursday morning.
She defended Mr Kelly saying he had simply made a "technical clarification".
NSW Premier Kristina Keneally is under siege from the Opposition, Greens and action groups who say the government has undermined a court case by exempting Sydney's Barangaroo site from environmental laws.
Planning minister Tony Kelly on Wednesday gazetted an order that effectively excises Barangaroo from his department's own planning laws for managing contamination, just days before the government goes into caretaker mode ahead of the state election.
The Sydney Harbour site is at the centre of a case in the Land and Environment Court being pursued by Australians for Sustainable Development (AfSD), a group concerned about contaminated subsoil.
Opposition spokesperson for planning Brad Hazzard said on Thursday it was an "abuse of process".
"The signature on the planning document may be Tony Kelly's but Kristina Keneally's fingerprints are all over it," he said in a statement.
"In September, Ms Keneally confirmed that she was, 'taking direct responsibility and control of Barangaroo' - so there's no ducking that this rotten act is all hers.
"This is an abuse of process and Kristina Keneally is in it up to her eyeballs showing that NSW Labor has no respect for the rule of law and the NSW community."
But Ms Keneally denied she was behind the order.
"This is a planning decision," she said while campaigning in Sydney.
"I am not the minister for planning."
Ms Keneally, who assumed ministerial responsibility for the $6 billion project last September, said she heard about Mr Kelly's action on Wednesday and spoke with him on Thursday morning.
She defended Mr Kelly saying he had simply made a "technical clarification".
Friday, March 18, 2011
Property as an Asset
A really interesting article in The Economist 5th March starts by saying "Property is widely seen as a safe asset. It is arguably the most dangerous of all."
The article, by Andrew Palmer, includes some interesting thoughts:
People buy property for various reasons, but dominant amongst those motives is financial gain. This mixture of motives can be toxic for financial stability. If housing were like any other consumer good, rising prices should dampen demand. But with property, higher prices are seen as a signal to buy. What happens if prices start to drop?
The value of any particular home is set by the latest local transactions. One absurd bid can push up prices for lots of people living nearby. But has it changed the intrinsic value of those properties?
An analysis shows that in America for the past 30 years renting was better financially than buying (but only if the renter meticulously saves the difference between the rent and what a mortgage would be costing).
The article, by Andrew Palmer, includes some interesting thoughts:
People buy property for various reasons, but dominant amongst those motives is financial gain. This mixture of motives can be toxic for financial stability. If housing were like any other consumer good, rising prices should dampen demand. But with property, higher prices are seen as a signal to buy. What happens if prices start to drop?
The value of any particular home is set by the latest local transactions. One absurd bid can push up prices for lots of people living nearby. But has it changed the intrinsic value of those properties?
An analysis shows that in America for the past 30 years renting was better financially than buying (but only if the renter meticulously saves the difference between the rent and what a mortgage would be costing).
Thursday, March 17, 2011
John McGrath Hates Underquoting
John McGrath's blog of 12 April 2010, responding to a question about underquoting, says:
"Hey Sonja, I agree, it's a pet hate of mine too. Guides should reflect the Agent's opinion and the Vendor's expectation. I hope it wasn’t a sale connected with our firm but if it was please let me know so I can look at it right away. John McGrath."
John, you should check out the 14 Allerton sale last month. Quote price $900,000, sale price $1,117,000, 24% over guide! Yet a comparable house next door sold a year ago for $1,116,000 so luckily for Wayne this one sold below market price.
While you are at it, John, check out all the other recent Wayne Vaughan sales:
8 Dennistone Rd Eastwood 20% over guide.
17 Railway Ave Eastwood 19% over guide.
55 Eastview Ave N Ryde 19% over guide.
74 Ray Road Epping 14% over guide.
24 Angus Avenue Epping 12% over guide.
He almost got 1/17 Pinner Close N Epping right, only 9% over guide.
Wayne is in good company though, Betty Ockerlander of Better Homes clocked up:
41 Stanley Rd Epping 18% over guide.
30 Surrey St Epping 17% over guide.
28 Cecil St Dennistone E 16% over guide.
Come on, OFT, protect the buyers. Let's see some prosecutions to stamp out this pernicious practice. Unfortunately the maximum fine is only $22,000, which is less than the commission, but the OFT can take away the licence of repeat offenders.
Wayne is now being investigated by OFT, so will have to be careful not to sell any of his present under-quoted listings for the correct market price, or he could lose his licence. An interesting problem for an agent, trying to persuade buyers to settle below market price!
"Hey Sonja, I agree, it's a pet hate of mine too. Guides should reflect the Agent's opinion and the Vendor's expectation. I hope it wasn’t a sale connected with our firm but if it was please let me know so I can look at it right away. John McGrath."
John, you should check out the 14 Allerton sale last month. Quote price $900,000, sale price $1,117,000, 24% over guide! Yet a comparable house next door sold a year ago for $1,116,000 so luckily for Wayne this one sold below market price.
While you are at it, John, check out all the other recent Wayne Vaughan sales:
8 Dennistone Rd Eastwood 20% over guide.
17 Railway Ave Eastwood 19% over guide.
55 Eastview Ave N Ryde 19% over guide.
74 Ray Road Epping 14% over guide.
24 Angus Avenue Epping 12% over guide.
He almost got 1/17 Pinner Close N Epping right, only 9% over guide.
Wayne is in good company though, Betty Ockerlander of Better Homes clocked up:
41 Stanley Rd Epping 18% over guide.
30 Surrey St Epping 17% over guide.
28 Cecil St Dennistone E 16% over guide.
Come on, OFT, protect the buyers. Let's see some prosecutions to stamp out this pernicious practice. Unfortunately the maximum fine is only $22,000, which is less than the commission, but the OFT can take away the licence of repeat offenders.
Wayne is now being investigated by OFT, so will have to be careful not to sell any of his present under-quoted listings for the correct market price, or he could lose his licence. An interesting problem for an agent, trying to persuade buyers to settle below market price!
Wednesday, March 16, 2011
Fair Trading disqualifies agents
Two central coast real estate agents have had their licenses revoked by NSW Fair Trading.
Kevin Barnes and Nicole Mars were disqualified from practising as estate agents for 10 and six years respectively, after the duo were found to have obtained $500,000 profit in a property sale.
Fair Trading took action against the pair after a compliant came through from Housing NSW concerning the sale of a property at 1-3 Walmsley Road, Ourimbah.
Fair Trading deputy commissioner Steve Griffin said Fair Trading would continue to take decisive action when real estate agents and businesses acted inappropriately in putting their own interests before that of their clients.
Nice to see Fair Trading showing teeth! There is a great need for this in the real estate industry!
Kevin Barnes and Nicole Mars were disqualified from practising as estate agents for 10 and six years respectively, after the duo were found to have obtained $500,000 profit in a property sale.
Fair Trading took action against the pair after a compliant came through from Housing NSW concerning the sale of a property at 1-3 Walmsley Road, Ourimbah.
Fair Trading deputy commissioner Steve Griffin said Fair Trading would continue to take decisive action when real estate agents and businesses acted inappropriately in putting their own interests before that of their clients.
Nice to see Fair Trading showing teeth! There is a great need for this in the real estate industry!
Friday, March 11, 2011
McGrath Underquoting Again
No doubt the large crowd at the auction of 4 Allerton Road Beecroft were surprised when the advertised price of "Guide over $900,000" resulted in an auction with 69 bids! The first wildly optimistic bid was for $875,000. Bidding then leapt away in $25,000 steps until finally a realistic market sale price of $1,117,000 was reached, 25% above the McGrath Guide Price.
A newly listing vendor says that they went with McGrath because they explained to her that this is their technique. Once people have paid to do building and pest inspections for a property that seems to be a bargain, they will come to the auction and might continue bidding way beyond the limit they had set themselves. Great policy for the vendors, but unkind to the poor buyers who spend their money with no prospect of buying the property.
It is actually also against the law. Trouble is, the Fair Trading Minister's people typically fine the agency $2,200 which is seen as just a trivial tax on a sale which realises commission of $24,000 or more. Apparently the maximum fine is $22,000, so still just matching commission. So the only real threat is loss of licence, which penalty should be applied for repeat offenders!
It's amusing that in 2008, when McGrath was fined for this, John McGrath's response was "I'm obviously disappointed. We've had a great reputation for the exact opposite of this," and no doubt smiled as he said "I think the only thing we're guilty of is achieving a good price for our vendors." Or to put it another way, "Bugger the Buyers". But it's not a fair comment anyway, because a nearly identical property next door sold nearly a year ago for $1,116,000, so the McGrath sale price was at best market value.
Read more: http://www.news.com.au/business/real-estate-agents-busted-for-low-quotes/story-e6frfm1i-1111116430288#ixzz1GFhh9Skd
A newly listing vendor says that they went with McGrath because they explained to her that this is their technique. Once people have paid to do building and pest inspections for a property that seems to be a bargain, they will come to the auction and might continue bidding way beyond the limit they had set themselves. Great policy for the vendors, but unkind to the poor buyers who spend their money with no prospect of buying the property.
It is actually also against the law. Trouble is, the Fair Trading Minister's people typically fine the agency $2,200 which is seen as just a trivial tax on a sale which realises commission of $24,000 or more. Apparently the maximum fine is $22,000, so still just matching commission. So the only real threat is loss of licence, which penalty should be applied for repeat offenders!
It's amusing that in 2008, when McGrath was fined for this, John McGrath's response was "I'm obviously disappointed. We've had a great reputation for the exact opposite of this," and no doubt smiled as he said "I think the only thing we're guilty of is achieving a good price for our vendors." Or to put it another way, "Bugger the Buyers". But it's not a fair comment anyway, because a nearly identical property next door sold nearly a year ago for $1,116,000, so the McGrath sale price was at best market value.
Read more: http://www.news.com.au/business/real-estate-agents-busted-for-low-quotes/story-e6frfm1i-1111116430288#ixzz1GFhh9Skd
Thursday, March 10, 2011
Back on the Gas
On the front page of the Northern District Times this week is an article about an independent petrol station starting up again on the corner of Blaxland and Lovell Roads in Eastwood. The demise of independent petrol stations has been a sad result of Coles and Woolworth discounting, and it is a real pleasure to see a movement to open some of them up again.
Saturday, March 5, 2011
Property Choice Keeping Prices Down
An article in today's Sydney Morning Herald says "prices remain under pressure as discounting increases to secure sales".
Auctioneer Damien Cooley is quoted as saying, "The majority of sellers are becoming a lot more realistic about what their home is worth".
Auctioneer Damien Cooley is quoted as saying, "The majority of sellers are becoming a lot more realistic about what their home is worth".
Friday, March 4, 2011
EcoTransit Sydney Forum Sunday 6 March
EcoTransit Sydney are hosting a community forum at which Liberal, Labor and Greens transport spokespeople will explain their policies on expanding rail services in NW Sydney, and in particular on delivering the long promised North West Rail Link.
Sunday 6 March at 7pm, in the Pennant Hills Community Centre, corner of Yarrara and Ramsay Roads, Pennant Hills.
Come along, listen to the speakers, and have your say.
Sunday 6 March at 7pm, in the Pennant Hills Community Centre, corner of Yarrara and Ramsay Roads, Pennant Hills.
Come along, listen to the speakers, and have your say.
Rail link key in state's growth
This article by Brian Robins is from the SMH, March 3, 2011.
The north-west rail link is the most worthwhile public transport project the state government should pursue, since it has the greatest economic spinoff, research has found. Modelling by the Centre for International Economics, on behalf of the Property Council of Australia, used the multi-criteria approach adopted by Infrastructure Australia, the federal body which has refused to fund most projects nominated by the state due to inadequate assessment and planning.
''Our recent survey of Sydney residents showed just 3 per cent felt we have a good road network and only 32 per cent gave a tick to our public transport system,'' the executive director of the Property Council, Glenn Byers, said. ''It's no surprise the north-west rail link is the highest ranked public transport project in testing its economic upside and strategic importance to Sydney's growth.''
The survey, which ranked a series of transport projects across 16 criteria and then assessed them in terms of which would give the greatest economic fillip to the state's economy, found that taking freight heading to the Botany port off the roads and putting it onto rail would have the greatest single economic impact.
''Collectively, these projects would deliver a $5.8 billion boost to the economy, representing a 1.1 per cent growth in real gross state product,'' Mr Byers said.
By 2020, the projects would help boost employment by creating 5700 jobs and boosting exports by 3.5 per cent, in real terms, the study found. ''The transport projects lead to a larger NSW economy that produces more, exports more and employs more,'' the study found. ''The projects also lead to greater investment in NSW and lower prices for NSW consumers.''
The state government should establish a portfolio of Infrastructure, Planning and Transport, along with an independent infrastructure and planning commission and an independent body similar to Infrastructure Australia to assess, prioritise and help deliver large projects. Taking freight bound for Port Botany off the road involves upgrades to road and rail links in Moorebank, Ingleburn, Minto and Eastern Creek.
The most expensive project would be the M4 East and tunnel to Port Botany, at $9.1 billion, followed by the Western Express, city relief line and Harbour rail link at $8.5 billion. The onus of these projects would be especially acute, since they would be largely funded out of the state budget, with only limited alternative funding prospects, the study found. Similarly, helping improve the position of the Epping-Parramatta rail link in the study was the promise of sizeable federal funding, 80 per cent of the total, it noted.
This story was found at: http://www.smh.com.au/nsw/state-election-2011/rail-link-key-in-states-growth-20110302-1bey2.html
The north-west rail link is the most worthwhile public transport project the state government should pursue, since it has the greatest economic spinoff, research has found. Modelling by the Centre for International Economics, on behalf of the Property Council of Australia, used the multi-criteria approach adopted by Infrastructure Australia, the federal body which has refused to fund most projects nominated by the state due to inadequate assessment and planning.
''Our recent survey of Sydney residents showed just 3 per cent felt we have a good road network and only 32 per cent gave a tick to our public transport system,'' the executive director of the Property Council, Glenn Byers, said. ''It's no surprise the north-west rail link is the highest ranked public transport project in testing its economic upside and strategic importance to Sydney's growth.''
The survey, which ranked a series of transport projects across 16 criteria and then assessed them in terms of which would give the greatest economic fillip to the state's economy, found that taking freight heading to the Botany port off the roads and putting it onto rail would have the greatest single economic impact.
''Collectively, these projects would deliver a $5.8 billion boost to the economy, representing a 1.1 per cent growth in real gross state product,'' Mr Byers said.
By 2020, the projects would help boost employment by creating 5700 jobs and boosting exports by 3.5 per cent, in real terms, the study found. ''The transport projects lead to a larger NSW economy that produces more, exports more and employs more,'' the study found. ''The projects also lead to greater investment in NSW and lower prices for NSW consumers.''
The state government should establish a portfolio of Infrastructure, Planning and Transport, along with an independent infrastructure and planning commission and an independent body similar to Infrastructure Australia to assess, prioritise and help deliver large projects. Taking freight bound for Port Botany off the road involves upgrades to road and rail links in Moorebank, Ingleburn, Minto and Eastern Creek.
The most expensive project would be the M4 East and tunnel to Port Botany, at $9.1 billion, followed by the Western Express, city relief line and Harbour rail link at $8.5 billion. The onus of these projects would be especially acute, since they would be largely funded out of the state budget, with only limited alternative funding prospects, the study found. Similarly, helping improve the position of the Epping-Parramatta rail link in the study was the promise of sizeable federal funding, 80 per cent of the total, it noted.
This story was found at: http://www.smh.com.au/nsw/state-election-2011/rail-link-key-in-states-growth-20110302-1bey2.html
M2 upgrade contract should be cancelled
John Goldberg had this letter published in the Northern District Times on 5 Jan. It is worth repeating now the state election is nearing, and with the EcoTransit Forum taking place on Sunday 6th at the Pennant Hills Community Centre at 7pm.
"Understandable attempts by the Transurban interests to talk up the “benefits” of the M2 upgrade in terms of travel time savings have little credibility (“M2 rubbishes ‘no benefit claim’”. NDT 15 December). The claims of travel time savings are part of a derisible economic analysis prepared by a Transurban consultant with the clear aim of justifying the project.
"The claims have been shown to be spurious by the author in a paper to be published shortly in the refereed Proceedings of the 2010 Australasian Transport Research Forum based on the author’s research at the University of Sydney. The results already reported in the Sydney Morning Herald (7/10/2010) show that Transurban overstated the savings by a factor of four times. This result means that the savings are worth far less than the cost of the project over its concession lifetime.
"Why then proceed with this uneconomic project which will be of minimal benefit to road users? The real reason lies in the need for Transurban to generate increased cash flow. In 2010, the total expenses of Transurban exceeded its total earnings by $234.60 million, and its group debt is over $7 billion and keeps rising. Yet Transurban continues to assert group profitability.
"Increased revenue is to be obtained by taking advantage of induced traffic. This will have the effect of increasing congestion, reducing travel time savings but it is likely to increase revenue. These hopes have been publicly expressed by Mr C.J.Lynch the CEO of the Transurban Group(The Australian, 15-16/5/2010) while the possibility of induced traffic has been marginalised, not unexpectedly, in the EIS published by Transurban and endorsed by the RTA.
"The M2 upgrade affair generally demonstrates that transport planning in a major Australian city cannot be reliably carried out by incompetent agencies such as the RTA using deception and community manipulation disguised as consultation. There is no substance in this M2 upgrade project which would support Kristina Keneally’s2009 claim, clearly influenced by the RTA, that the M2 upgrade project was “critical” infrastructure and one of “state significance”.
"The incoming government should therefore invoke the doctrine of executive necessity and cancel the contract for this essentially fraudulent project and also undertake serious reform of the RTA."
"Understandable attempts by the Transurban interests to talk up the “benefits” of the M2 upgrade in terms of travel time savings have little credibility (“M2 rubbishes ‘no benefit claim’”. NDT 15 December). The claims of travel time savings are part of a derisible economic analysis prepared by a Transurban consultant with the clear aim of justifying the project.
"The claims have been shown to be spurious by the author in a paper to be published shortly in the refereed Proceedings of the 2010 Australasian Transport Research Forum based on the author’s research at the University of Sydney. The results already reported in the Sydney Morning Herald (7/10/2010) show that Transurban overstated the savings by a factor of four times. This result means that the savings are worth far less than the cost of the project over its concession lifetime.
"Why then proceed with this uneconomic project which will be of minimal benefit to road users? The real reason lies in the need for Transurban to generate increased cash flow. In 2010, the total expenses of Transurban exceeded its total earnings by $234.60 million, and its group debt is over $7 billion and keeps rising. Yet Transurban continues to assert group profitability.
"Increased revenue is to be obtained by taking advantage of induced traffic. This will have the effect of increasing congestion, reducing travel time savings but it is likely to increase revenue. These hopes have been publicly expressed by Mr C.J.Lynch the CEO of the Transurban Group(The Australian, 15-16/5/2010) while the possibility of induced traffic has been marginalised, not unexpectedly, in the EIS published by Transurban and endorsed by the RTA.
"The M2 upgrade affair generally demonstrates that transport planning in a major Australian city cannot be reliably carried out by incompetent agencies such as the RTA using deception and community manipulation disguised as consultation. There is no substance in this M2 upgrade project which would support Kristina Keneally’s2009 claim, clearly influenced by the RTA, that the M2 upgrade project was “critical” infrastructure and one of “state significance”.
"The incoming government should therefore invoke the doctrine of executive necessity and cancel the contract for this essentially fraudulent project and also undertake serious reform of the RTA."
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