Thursday, April 23, 2009

This week's InsideStory

Anzac Day weekend is perhaps an appropriate time for reflection on how lucky we are in South Australia. It is so easy to loose perspective when facing all the noise and hysteria of the World Financial Crises, especially if your job is at risk, but there is a great deal to be thankful for.

Interest Rates are at a 50 year low and falling. The latest CommSec report (go to www.insidestory.toop.com.au) predicts another drop in rates in June. First home buyers get the biggest leg up in history from the Government Grant and let’s not forget the generous cash hand out in the stimulus package. Our housing prices are the most affordable in the country. It is also easier to buy a home here than in any other State with the time on market at 78 days (RP Data latest figures go to
www.insidestory.toop.com.au). Our rents are amongst the most affordable in the Nation.

Even some good news for those home owners who have got into financial difficulties with the four main banks having stating they will support them through this tough period. Now that is a comforting thought for home owners (although highly unlikely to be matched by landlords/investors if you are a tenant).

March sales were a near record for Toop&Toop which is a good indication that property is still holding up well in South Australia. Toop&Toop has 10259 registered active buys looking (as at Wednesday) for houses right now! Vacancy rates remain extremely tight so investors will be happy.

It appears to me that property is emerging as the most comfortable space to get through times of financial uncertainty. This is logical from the way I view the world and as a real estate person. While Gold is historically seen as a safe haven in tough timesÉ maybe today it is becoming good old property ownership? It is hard to feel safe cuddled up to a block of gold on a cold night. If you think about the differences in Gold and Property, to me when the price of Gold varies so does its value. The one amazing thing about investing your money in residential property is that even if its price were to go to near $zero, unlike Gold or other asset classes the house still retains its value to provide shelter.

I am so grateful to all those before us who have allowed us to live here in magnificent South Australia which we call home. Our State I feel is showing that Anzac spirit and just going for it even amongst this global uncertainty! We have so much to be thankful for.

For all the latest stats and market information go to
www.insidestory.toop.com.au



Anthony Toop, Managing Director.


http://www.toop.com.au/


© Toop Real Estate Group

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