MJM Property Group

May 2005 Issue
Market Trends: Boutique Firms Offering Transaction Management Services
Interest Rate Outlook for 2005
New Service Available from MJM Property Group

Market Trends: Boutique Firms Offering Transaction
Management Services

Since our last newsletter a number of transactions have been finalised with MJM playing a distinctly different role in each case.

Firstly, 83 – 85 Chandos Street, St. Leonards is under offer for $3m to a private investment syndicate who intend to refurbish the property and lease up any available office space when the various leases expire in 2006. MJM acted as the vendor's representative in the sale process and introduced the buyer to the property without the need for a high profile and expensive marketing campaign.

This transaction illustrates that owners do not need to employ a major agent exclusively but that an experienced co-ordinating agent can offer a better service at a lower cost.

We will not undertake an agency appointment of any kind where we have another similar property on our books. Loyalty and a total absence of a potential conflict of interest are cornerstones of the unique services we offer to our client base.

Meanwhile a large residential development site in North Curl Curl has been sold for $1.9m to a local developer. Part of the landmark Windy Drop Down estate, the site is unique in many respects and proved to be quite a challenge for the two agencies appointed by MJM to sell the property.

LJ Hooker Mosman & Mona Vale worked tirelessly together as a team rather than in competition and achieved an excellent result for the vendor in the currently very difficult residential development site market.

Interest Rate Outlook for 2005

Well, surprise, surprise the highly paid and over-rated economists got it wrong again. The Reserve Bank increased official interest rates by 0.25% in March 2005 but did not go ahead with further 0.25% increases in April 2005 and May 2005 as predicted.

It appears that the RBA is prepared to wait for conclusive evidence that further rises are needed before taking any further action in the short term. In the meantime if the doom and gloom merchants are causing you not to sleep at night then go ahead a sign up for fixed interest loan for 2 or 3 years. The rates vary only slightly from the current floating rate, which suggests that the medium- to long-term outlook for interest rates is fairly stable.

New Service Now Available from MJM Property Group

Occupational Health & Safety has become a major issue for small businesses, building owners and occupiers alike. In response to various enquiries from our clients regarding the complex set of rules & regulations contained within the OH&S Act we have set up a new division called Worthy Workplace.

Under the Act a company and its employees have a legal (and moral) responsibility to provide a safe and healthy work environment. Non-compliance can result in hefty fines or even prison.

If the company complies with the Act they can apply for the Premium Discount Scheme, which will reduce your annual workers' compensation bill substantially. A happy and healthy workforce means fewer sickies and lower staff turnover, which can lead to increased profits.

WW offers consulting and advisory services to help businesses comply with the OH&S Act so that you can reap the rewards of a safe and healthy working environment.

For further information contact Samantha on (0408) 969 768.