Wednesday, April 29, 2009

This Week's InsideStory

Headlines in property this week again seemed positive for all of us in SA. Access Economics report by Chris Richardson name Hobart and Adelaide as the two best placed for property. A NAB report says “SA’s economy is likely to fare better than the other states...”, BUT a tiny article by Callie Watson in Wednesday’s Advertiser contains some critical clues to the future of Adelaide’s property market.

Firstly though let’s put on the record some thoughts on the First Home Owners Stimulus Grant. It seems likely that established homes will no longer be eligible post 30th June. At the moment the sub $500k property market is overheated thanks to demand intensity from first home buyers. I believe we are seeing 2 years forward buying occurring right now, and this may have serious consequences. The non-extension of grants for established homes past the 30th June will create a buying frenzy in the closing weeks of this Stimulus Grant followed by a collapse in demand. Combine with this the reality of home ownership, job losses and property running expenses hitting home to first home owners (rates, taxes and maintenance etc.), and there is potential for a destabilised market with a mini correction later this year.

The positive scenario of this is after having lived in the property for the obligatory continuous 6 months, first home buyers are free to rent their property and become investor landlords resulting in several positive effects. Any risk of oversupply of properties flooding the market is alleviated, the rental market supply grows balancing out the current shortage, and rental income would provide funds to the first home buyer to assist them service the property commitment, as well as providing potential tax benefits. Home ownership is really a form of compulsory savings providing long term financial benefits.

Now let’s look to that little gem of an article last Wednesday and give our property owners in SA a warm feeling inside. Headline reads “Shortage of land to impact housing” with the opening sentence “South Australia is facing a severe land shortage that will not meet the state’s population needs, a report suggests.”

Here are the important numbers- 8000 new allotments to June 30, 2010; 11% down on previous forecasts; 4000 new allotments now forecast in 2011; Population Growth forecast of 135,000 by 2016.

The Advertiser article reports a direct negative impact on the state’s affordability through increasing property prices as costs escalate and demand exceeds supply. For owners of property, this scenario will be music to your ears.

“Demand exceeding supply”, is the single most important factor in protecting your asset.


Anthony Toop, Managing Director.


www.toop.com.au


© Toop Real Estate Group

Friday, April 24, 2009

Interest Rates/Economic Outlook/Rates Strategy Update

Here is the ANZ’s latest report. Don’t read this unless you like bad news. Not a great read but we have to be balanced and post all the relevant information, you can decide for yourself then.

ANZ Economic Outlook June Quarter (PDF)

Rates Strategy Update (PDF)


This is pretty heavy reading, so it is up to you!



Kind Regards





Anthony Toop, Managing Director.


www.toop.com.au


© Toop Real Estate Group

Thursday, April 23, 2009

CommSec says light at the end of the tunnel!

CommSec says light at the end of the tunnel! Property in SA has been very strong all this year and we are hoping we will escape the brunt of the recession in the residential property sector. It seems property is still popular, which is great news for Toop&Toop……we hope this trend continues.

Recession, but light at the end of the tunnel (PDF)

Have a read, it is a short report and will only take a few minutes to read.



Kind Regards


Anthony Toop, Managing Director.


www.toop.com.au


© Toop Real Estate Group

AN OPPORTUNE TIME FOR RENTERS TO BUY

Real Estate Institute of Australia released this media release and it is a good read if you are renting.

AN OPPORTUNE TIME FOR RENTERS TO BUY (PDF)

Have a look and let me know if you want any more information about the logistics or a local take on it.

www.asktoopie.toop.com.au

Regards


Anthony Toop, Managing Director.


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


© Toop Real Estate Group

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

Friday, April 17, 2009

Market Update...

Market Update... As professionals in Real Estate we try to keep ourselves up to date with events which impact on the market and in turn bring this information to you. For those of you who don’t deal in property every day of the week but are interested in what’s happening and how your assets may be effected – let us give you a succinct update on what’s happening right now.
Interest RatesLast Tuesday the RBA cut interest rates by a further 0.25% bringing the cash rate down to 3%, with most of the big banks passing on a 0.1% drop to their clients. The cash rate is the lowest that Australia has seen in 49 years, since February 1960 when it stood at 2.94%.
Following multiple interest rate hikes up until September 08, an immense drop of 4.25% to now has alleviated mortgage stress for many, and according to CommSec these cuts are positively affecting the economy with home lending soaring. At Toop&Toop we’re certainly seeing a volume increase in sales, a particularly hot first home buyer bracket, a lift in the top end and prices remaining steady. Should conditions continue to deteriorate abroad, economists are predicting further rate cuts into 2009 but possibly just another quarter or half a percent with the end point now in sight.  
Australia Vs the Global MarketLast week CommSec released their latest report on the market and highlighted a key point… “The problem is that Australians are seeing the news from abroad and wrongly believing that what is happening abroad is happening here”. So what are the differences and why should Australian’s be more confident? Australian interest rates are still 3% higher than the US, which gives the RBA room to move should they need to further stimulate our economy. Australia remains under supplied with property as opposed to the huge oversupply in the US which has plummeted property prices. While US and UK banks are being ‘bailed out’, the Aussies are retaining their strength and our Government finances are solid. So really – it’s pretty good news!
Employment & MortgagesI think we’d all be aware of the unfortunate increase in unemployment figures of the past few months, and they look to continue this way throughout ‘09. It’s a terrible position that no home owner wants to find themselves in and this is a huge contributing factor to consumer’s lack of confidence.
Thankfully the federal government and banks are listening to us! A number of the big banks are introducing options to suspend loan repayments for up to 12 months, while the interest continues to compound on the loan – providing relief for those without an income. The key is to start talking to your bank manager should times get tough, there may be more positive options for you than you think!
So you can always be kept up to date with what’s happening in the market, we’re posting reports from the banks, economists and news from our team on the frontline at www.insidestory.toop.com.au

Anthony Toop, Managing Director

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

 
© Toop Real Estate Group

Wednesday, April 15, 2009

This Week's Inside Story

Innovation... Why is it so important to consumers and so prominent in Industry Awards? Why is Innovation so important to the culture of Toop&Toop?

After Toop&Toop yet again took out the National Innovation Award for Excellence (4 times back to back) and confirmed that we are unquestionably the Nation’s Most Innovative Agent, it is important to explain why we bother.

Consumers need innovative organisations to drive extraordinary service and better value for money. Industries need innovators to keep them relevant to changing consumer needs. Toop&Toop have built their business on being the best in the business and setting new standards.

Innovations in real estate are the things we can do for our clients that other agents cannot. Innovation is what creates new ways to deliver results that were never before possible for our clients. Innovation gives our team tools to assist in their tasks that are not available to any other employees in this industry.

It used to be such fundamental innovations like designer sign boards, pre-planned open inspection times, and colour newspaper advertisements and weekly magazines-now it is about an entirely new way of bringing buyer and seller together through harnessing new technology. Toop&Toop have sophisticated databases, our VitualAgent patented software (named because it acts virtually as an agent) and a website that has won every industry award... is it a coincidence that we are one of only 2 agents to ever win national Large Agency of the Year and National Salesperson of the Year? Plus we currently hold the National Customer Service Excellence Award. Only the best of the best can ever achieve these accolades - it has to be innovation and doing things different and better that allows new heights to be achieved.

Toop&Toop have invested heavily in operating smarter. If the going does get tough, it is then that our clients will truly see the stand out power of innovation at work with their sales and rentals. I hope our efforts can genuinely help our customers in this changing world of real estate.

Anthony Toop, Managing Director.


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


© Toop Real Estate Group

Thursday, April 09, 2009

South Australia - raising the bar in Real Estate

South Australia - raising the bar in Real Estate While South Australia is often ‘overlooked’ for concerts, tours and important visitors, our Real Estate industry is once again making the entire nation sit up and take notice… we’re leading the way and lifting the benchmark even higher for the rest of Australia.
Last Thursday night the Real Estate industry’s “Best of the best” from around the nation converged on the Plaza Ballroom in Melbourne for the announcement of the prestigious 2009 Australian Real Estate Industry Awards – and what a great night it was.
After a tough 12 months for the industry you’d think some may have dropped the ball, but competition was fiercer than ever and South Australia managed to defy the odds by picking up 6 out of 16 titles!
Across the whole of Australia agencies are raising the bar with their marketing, service & innovation – the old ‘used car’ sales persona is well and truly on it’s way out the door and we’re presenting a new breed of Real Estate agents who work in line with the vendor and purchaser to achieve the best possible result, through the most efficient and effective means possible.
Toop&Toop are immensely proud to have been finalists in the 2009 National Awards in four categories… Innovation, Sales Partner of the year (Phil Harris), Property Manager of the year (Sandra Gesuato) and Community Service.
We’re even more excited to  be able to let you, our clients, know that for an incredible 4th year in a row Toop&Toop won the REIA Award for Innovation! Not only is it a huge feat to have held this title for four years running but we are also the only agency in Australia to have ever won this award!
At Toop&Toop we pride ourselves on being your local Real Estate Agency and giving back to our community, and we are truly honoured to have been awarded with this year’s REIA Award for Community Service.
A huge congratulations to the whole team at Toop’s for supporting our community and making these awards happen, to Phil Harris & Sandra Gesuato for achieving finalist status in such highly contested awards, and a special thanks to our phenomenal IT department who manage to turn our sometimes “out there” ideas into reality.
South Australian’s thank you for your support – we hope we’ve made you proud.


Anthony Toop, Managing Director

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

 
© Toop Real Estate Group

Honestly, does this look like a recession? Confidence soars; home loans at 11-month high (CommSec Economics)

Honestly, does this look like a recession? Confidence soars; home loans at 11-month high (CommSec Economics)(PDF)



Anthony Toop, Managing Director.


www.toop.com.au


© Toop Real Estate Group

Wednesday, April 08, 2009

This Week's Inside Story

Easter Bunny arrived early, more money in your pocket! The Reserve Bank’s 0.25% drop on Tuesday (to base rate of 3%) gave those with a secure job even more power to capitalise on opportunities thanks to the Global Financial Crisis. Congratulations to CBA for being the first to cut their rates by 0.1% only minutes after the RBA announcement. Plus some even better news- one year safety net for those who fall into tough times by the 4 major Banks, icing on the cake in what proved a big week for South Australian property.

What a week, what a month, what a turnaround! Demand is hot while prices are OK (with some outstanding exceptions). We have seen a return to multiple buyers on properties with multiple offers. So you may ask why?

“Our explanation is that prices are fair, affordability is high, rents are rising, Government hand outs are peaking and property is in short supplyÉand property in S.A. is being seen as one of the simplest and safest assets”.

Just a reminder that Spring 08 saw the supply of property peak while demand stalled. T&T talked about property prices softening at a time when the official Data was all positive, but now the reverse is true.



This weeks report from RP Data shows the latest stats but we think prices have firmed and are rising in the first home buyer segment. While the full RP Data report is found at www.insidestory.toop.com.au, here are the main details for you to look at.



Anthony Toop, Managing Director.


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


© Toop Real Estate Group

CommSec Economics: Rates at 49-year low, but end point in sight

Following article compliments of CommSec

Rates at 49-year low, but end point in sight (PDF)



Anthony Toop, Managing Director.


www.toop.com.au


© Toop Real Estate Group

Price growth back in the black - RPData - PropertyPulse

Here we go more information on residential property compliments of RP Data. This is their latest Property Pulse showing movements in the national markets and of course in South Australia.

RP Data-Price growth back in the black (PDF)



Enjoy the read and any queries just go to www.asktoopie.toop.com.au



Regards



Anthony Toop, Managing Director.


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


© Toop Real Estate Group

Monday, April 06, 2009

Life amongst the Autumn leaves

Life amongst the Autumn leaves Autumn… for me this is the most enjoyable of seasons. It’s mild days and blue skies dotted with clouds; a light rain reviving parched ground to lush gardens; It’s enjoying a latte in perfect alfresco weather while oaks, elms and ashes across the Adelaide Hills burst into shades of red and gold.
A short 20 minute drive from the city and you can enjoy the epitome of Autumn in our own Adelaide Hills… and if you love it, why not relocate?
The beauty of the hills is not only in the autumn leaves, this area is renowned for both stunning lifestyle estates and unique or ‘quirky’ homes of all sizes, which means there’s a property for every individual’s personality.
Right now, Toop&Toop have arguably some of the Hills most elite and engaging properties available for viewing and purchase.
Stirling’s historic ‘Wachenappee’, stunning ‘St Marks’ Villa and Aldgate’s Georgian ‘Wycombe’ are amongst these, so if you’re after the ultimate hills property, these are not to be overlooked.
If these aren’t what you’re looking for why not log onto www.hills.toop.com.au to view the wide range of homes we have available. Or if you’re thinking of selling why not drop into our local office at 120 Mt Barker Rd, Stirling to speak to one of our team or phone us on 8332 8888.

Mandy Wurth, General Manager Sales
 
www.toop.com.au <http://www.toop.com.au>

 
© Toop Real Estate Group