Here we are again, the RBA, in their wisdom, has not raised interest rates this month. All the experts had a lot to say on why rates will be going up, fortunately the board members have decided that retail and property markets where depressed enough and did not need another nail in the coffin. More experts, or are they the same one, have said that Banks will probably raise interest rates by themselves, no case has been made yet for it to happen, apart for the argument that their borrowing costs have gone up….The Federal Treasurer has come out with a very mild response, in essence “you are a bad boy if you do it!”. I was very happy to hear RPData analyst putting some figures on the total lack of new residential buildings, this is something I have been saying for some time, until there is a pause in this continuous increase spiral, nobody in his right mind will borrow to build. There is a lot of uncertainty in the community, the news items are forever revolving around cost increases and/or interest rates rises. The oldies with the money, the ones that still have a sour taste in the mouth from last time Labour was in power, are not spending. We are all fearful of another “recession we had to Have” (Thank you Paul). Now to add insult to injury, the Feds are talking about a possible increase in GST….. and “another” mining Tax!!
On the other hand you have the Real Estate Industry that is Bleeding from all pores, wages, taxes, licence fees, electricity costs, transport, fuel and all the rest have gone up( sales are depressed) but we are forced to accept a “Maximum” commission for sale properties and management fees for rentals. We cannot raise our fees, the Government has said so.
All very well and good for the Banks and the various levels of Government to raise fees and charges but the poor Real Estate agent has to absorb every single cost increase. The regulatory framework we have to struggle under is enormous and no relief in sight!
We don’t set prices, margins or percentages. The government does it for us…… Witch other industry can work like this one? NONE! Every other business has been “De-regulated” except the Real Estate industry we are OVER Regulated!! I suppose there’s always another Public Servant that has to Justify his/her Job!!