John McGrath polishes his great short

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From the AFR:

For those interested in McGrath Estate Agents’ $200 million float, this is how the business works.

On a $1 million property sale a vendor pays a $20,000 (2 per cent) fee, of which about 45 per cent, or $9000, goes to McGrath’s coffers and the rest goes to the real estate agent, according to a presentation sent to fund managers.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.