Friday, November 19, 2010

Market Activity Update Nov 2010

Hi InsideStory Subscribers

Here is a very timely and interesting report into what is happening out there in the real estate market.

MarketActivityUpdateNov18-2010.pdf (405K)

Enjoy the read, and be sure to also take a look over the Toop.TV archive
for local property news

Anthony Toop, Managing Director.
http://www.toop.com.au/
© Toop Real Estate Group

Friday, October 22, 2010

A night of Awards and Hall of Famers!

2010 REISA AWARDS


Community Service Award - Anthony Toop, Toop&Toop


Local Residential Salesperson (North/Northeast) - Len Allington



Small Agency - Toop&Toop Stirling



Hall of Fame Induction - Website - Toop&Toop





Hall of Fame Induction - Lare residential Property Management Agency of the Year - Toop&Toop


Hall of Fame Induction - Innovation - Toop&Toop

Sir Robert Torrens Award - Anthony Toop, Toop&Toop


Anthony Toop, Managing Director.
http://www.toop.com.au/
© Toop Real Estate Group

Thursday, October 14, 2010

I spent Monday and Tuesday this week in Sydney speaking at the REINSW real estate conference and it was quite interesting. Online everything dominates discussions and I guess...maybe...that was the reason for my invitation to present and to represent South Australia on the panel.

I was reminded of why we are spending so much of our effort in this online marketing space. The numbers are actually frightening, even for me! 9,151,000 Facebook users in Australia, 6,127,000 YouTube users, 1,300,000 Linkedin users.....and more than 80% are over 21 and the older demographic is now going through the roof.

What a sedge-way into our release as promised last week of Toop&Toop's YourNetwork. Some of you would have seen Marcus, our IT guru talk about it on last weeks TOOP.TV episode 50, but today is the public release of it. From now on our T&T sellers will be able to choose to really get involved in assisting their own sale if they want to, via their friends, family and networks.

While every one is jumping on the Social Network bandwagon we have already realized that any real estate agent sending out endless notices of new properties is doomed. This has already lost it's novelty and consumers are starting to be shut off sites, just like the "no junkmail" signs on letterboxes, the equivalent is happening with real estate online.

So, to stop annoying people, and to get total engagement we recognized we had to understand how all this works in the minds of the users. We had to come up with a solution if we wanted to harness this powerful marketing tool for clients.

The answer....as so often....was simple, but the solution took us 8 months to develop.

People always want to know about friends selling their house, and invariably someone they know are the best candidate or they know of someone who is. Just like the 3 steps removed theory in Adelaide, if you let your contacts and friends know about a sale, chances are they know someone who is in the market for it. Very Adelaide! By understanding our local market, YourNetwork works with your own contacts and/or social media interests.

This wizard is designed to professionally broadcast to all your friends, contacts or social media friends effortlessly and with virtually no experience on your part at all. It is safe, there are no tricks or trapping of information, just a simple process and away she goes in marketing your property in a way NEVER EVER CONTEMPLATED a few years ago.

This is virtually free, and depending on how many contacts you have, will get to an unbelievable number of people instantly and effortlessly, especially if they then send it on again to their friends and contacts.

Very exciting, very cool and a game changer!!

Next week, we launch iToop, have you had a sneak preview?? It is very close now, I am so excited for our clients, this is awesome technology for all South Australians looking to sell/buy or rent!

Don't forget, when it is time to get serious, it is time to get Toop's, sellers, did you go to www.sellerschecklist.toop.com.au. Call my PA Jody on 1800toopie appraisal hotline for just for a chat about anything property, or go to www.advicecentre.toop.com.au and we will get back to you.


Anthony Toop, Managing Director.
www.toop.com.au
© Toop Real Estate Group

Wednesday, September 29, 2010

The show must go on!

The million-dollar question this week
was, do you delay your property sale
another week or not? Well as with the
Grand Final result, we will know soon.
In an event even bigger than this
week’s opening of Toop&Toop's
new Hyde Park office; the 100,016
spectators who attended ‘that one
day in September’ witnessed a game
they will never forget…Collingwood
V St Kilda. It’s the first draw the AFL
Grand Final has seen since 1977.
In an amazing twist of events, it’s been
a year that’s seen a hung Parliament
(where it took 17 days to decide on a
winner) and now an AFL Grand Final,
which ended in a draw – potentially
causing a lot of problems for agents.
Many believe all eyes will be set on the
AFL again this week as the two teams
prepare to go back into battle – the
biggest game, media wise, in
AFL history.
We have fielded plenty of calls from
anxious home sellers this week. In a
nutshell, sellers have had two options:
postpone their auction/opens for
another day/week, or go ahead as
planned. The reality is that the show
must go on!
We reviewed last weekend’s Grand
Final impact and received positive
feedback. Opens went ahead, buyers
were still active in the marketplace
and the real estate sky did not fall in.
In reality any delay in your sales
process creates an even greater risk
of being caught up in a late spring
bubble of property releases, creating a
flood of stock and stalling the market.
This is the likelihood we are facing,
especially if interest rates go up next
Tuesday!
The number of properties hitting the
market in the space of the next few
weeks is expected to skyrocket with
the Commonwealth Bank joining the
growing number of banks shifting
expectations of another interest rate
rise on October 5. Therefore we feel it
is vital that those looking to sell should
proceed at full speed ahead.
So have faith that not everyone will be
in Melbourne or having another Grand
Final BBQ this weekend (after all not
everyone follows AFL). Those who have
pushed on with open inspections may
be the big winners on the day, with so
much happening in the market at the
moment. In the week leading up to
the October long weekend last year,
30 properties were photographed
in preparation for their advertising
campaigns. This the year the number
has dramatically increased with our
photographer visiting 45 properties this
week. The increased number of sellers
along with the current strength of the
Aussie dollar and the traditional onset
of investors is creating a real
estate buzz.
As Collingwood coach Mick Malthouse
commented last week “Expect the
unexpected – but when it happens, be
ready for it.”
Bring on the rematch…bring on
the sales…
And a big thank you must go out to
those who came out for the opening
of our Toop&Toop Hyde Park office
‘The Abbey’ on Thursday. Make sure
you check out the latest
episode of Toop.TV where I
chatted to my mother about
‘The Abbey’ and the history
my family has had with this
building over the years.

Anthony Toop, Managing Director.
www.toop.com.au
© Toop Real Estate Group

Thursday, September 09, 2010

Rental growth in Australia- the performers and the laggards (RPData)

Hi InsideStory subscribers,

There has been a flurry of new reports coming through, but those of you who are investors, this is essential reading.

Rental growth in Australia- the performers and the laggards (pdf)

We have Cameron Kusher speaking to this report next week in a 4 minute segment next Wednesday and a 30 minute Fireside Chat going to air next Friday at 12 noon.

Great information,

Regards



Anthony Toop, Managing Director.
www.toop.com.au
© Toop Real Estate Group

Market Wrap: Presentation

Dear InsideStory Subscribers


Here is a comprehensive power point presentation on the real estate market.

Click Here

It is a complete Market wrap and we have our Friday Fireside Chat with RP Data’s Cameron Kusher next Friday at 12 noon where he will explain it all in detail.


I recommend you read the presentation before next Friday 17th September, then watch my interview on www.toop.tv .


Remember all the Toop.TV interviews are available also on archive and on podcast…..check out some of the current interviews now if you have time.



Regards



Anthony


Anthony Toop, Managing Director.
www.toop.com.au
© Toop Real Estate Group

Housing Affordability: Poorly Understood.

Hi InsideStory Subscribers


Attached is a great summary of what has been happening in the property market, including a piece on Housing Affordability.

CommSec Research. Investor Signposts: Week Beginning September 2010 (pdf)


Here is a quote to give you a taste….”One of the most poorly understood concepts in Australia is housing affordability. However to be fair, the main reason that it has been so poorly analysed and understood over time is because data has been either incomplete or inconsistent.”


Craig James is always interesting, and if you want to see our Toop.TV interview with Craig James on this subject be sure to look up that interview on Toop.TV by clicking here.



Enjoy the read,


Regards

Anthony Toop, Managing Director.
www.toop.com.au
© Toop Real Estate Group

Friday, September 03, 2010

Units give houses a run for money: RPData

InsideStory subscribers here we go with Units verses Houses, which is the better investment.
RPData Property Pulse (pdf)
I do not actually agree with this but there you go, you decide!

Regards

Anthony Toop, Managing Director.
www.toop.com.au
© Toop Real Estate Group

Wednesday, August 25, 2010

Hung Parliament = Hung Property Market?

Talk about election blues! We have a host of sellers delaying their marketing campaigns until the election hype dies down. So what should you do??
 


Personally I would just get on with things. Far more profound than election worries, are the dark clouds gathering over the global economy. In over 30 years of selling, it’s rarely the right time to sell. The market is either rising so you want to wait to get the most out of it, or falling so you want to hold off altogether. And when it’s stable you’re waiting for it to rise again. So you NEVER win!

Seemingly in real estate there’s always a reason to wait. I constantly see moves left too late. Growing families buying the perfect house as the kids start to move out; retirees forced to sell their high cost, high maintenance family home after they get sick or lose their partner; or first home buyers starting a family, losing their second income, and with it, the chance to buy their first home. So much stress and all because there was some reason why the timing wasn’t quite right!!
 


The reality…your needs are constantly changing. The choice gets back to whether you want life to simply pass you by or whether you want to optimise it. The fact is if you’re both buying and selling, you’re in the exact same position no matter what the market conditions.

Rich Harvey, CEO and founder of Property Buyer, last week said, “I believe the mood of the market has changed. With the looming Federal election this coming weekend, many buyers have been fence sitting…my prediction is the sky won’t fall in and life will continue…BUT, we are likely to see property prices go sideways for the rest of the year as the pendulum swings back in favour of buyers. The onset of the spring selling season will see many more listings flood the market, which means more competition amongst vendors.” Thanks guys for the Hung Parliament!
 


RP Data’s latest Property Pulse report adds statistics to the discussion of a hung property market and the time period between sales in certain suburbs. The shortest ownership time in Adelaide is for Mawson Lakes units with 146 sales averaging $320,000 and selling every 3.1 years. The longest is for houses in Collinswood with 14 sales at an average of $602,500 selling every 10.9 years. Come on Collinswood; get things revved up a bit over there! I have posted the full report here (pdf)

So, from my observations, invariably the time to sell is right now! Please don’t all decide to list your home on Saturday 16th October, like most years. Dumping new stock on the market mid spring creates major supply issues where buyers take control.

As the saying goes…JUST DO IT! Don’t get hung up on the property market!

Anthony Toop, Managing Director.
www.toop.com.au
© Toop Real Estate Group

Wednesday, August 11, 2010

Beat the Spring rush - hit the market early!

There’s a feeling in the air spring is just around the corner. Maybe because it is!

Even though statistically, spring isn’t the best time to sell, it never seems to change people’s perception that it is.

So here are some Toop’s Tips. If like other vendors you have decided you must sell in spring, for goodness sake do it early! There’s usually a surge of houses hitting the market the first weekend in October. With both South Australian AFL teams unlikely to have your attention this September, and coming off the back of the Federal election, there may be an early rush this year. In a perfect world you would have already sold by now as stock levels are tight at the moment and sales are holding up really well. Then, while awaiting settlement, you can cherry pick the best buys from the seasonal flood of newly listed properties. Buyers become supremely confident when there’s an array of options to choose from!

As a seller you must be extremely careful in the way you go about the sale or it may cost you a lot of money. If you’re serious about getting the best outcome, put some time and effort into selecting the right salesperson operating within the best agency. Look behind the promises and into the reality of the resources available to the salesperson. Why not ask for a tour of the agent’s office? See what is going on behind the gloss to support promises and compare…reality will become clear. The difference Toop’s innovations can make to accessing extra buyers, through our online sales strategies and extensive database, is amazing. So be aware apples ain’t apples in the real estate world. Getting to all the buyers quickly is imperative for the best result.

Following on from last week’s InsideStory on ‘Strike me Pink, they are all kids’, page 3 of Monday’s Financial Review ran an article on ‘Agents cash in despite property lull’. The article is available onlineavailable online here (pdf) but the last paragraph says it all...“Eighty per cent of real estate sales people turn over within five years…They don’t make the cut. The long hours, the weekend work and just the general pressure. It has a high attrition rate and a high divorce rate”. We’ve been in the business 25 years and we get it.

On another note, Friday the 13th was Toop&Toop’s 25th annual awards night. It’s always a crazy fun night where Toop legends are made!!

We’ll report on the winners and the night next week. There are sure to be some great pictures, so if you’re one of our clients, I bet you’ll have trouble identifying your favourite Toop staff!

Be sure to log on to www.toop.tv, where we are cranking up the information and featuring the latest property releases, perfect for iPhones and better again on iPad!
Anthony Toop, Managing Director.
www.toop.com.au
© Toop Real Estate Group

Wednesday, July 28, 2010

The Top End in demand!

It’s the end of July and the middle of winter, yet so much is brewing in the Real Estate market.

An update from the frontline
When it comes to attendance at open homes, days on market and negotiating sales the feedback is virtually contradictive right now – it all depends on which area of the market you’re dealing in.

“$1m homes boom. Market confidence drives record sales”. That was the headline from the Sunday Mail’s David Nankervis last week, and he is spot on. The ball is well and truly rolling in the top end and sellers are tapping into this positive shift. At Toop&Toop we’re seeing registered buyers showing keen interest in beautiful homes priced over $1million, with early ‘off market’ inspections attracting good attendance. Last week I spoke of multiple bidders on a $3million home in St Georges – for those who missed out or are looking in this bracket, there will be more prestige properties being launched over the next couple of weeks (register as a VIP buyer at www.register.toop.com.au).

Across the board it’s quality homes needing little work that buyers are seeking, and in the Eastern suburbs there’s a shortage in the mid price bracket. Are these sellers still insisting on holding off for the age old ‘Spring launch’ just to compete with so many other properties? Or…

Is it a case of election fever?
Election days are a funny thing in the world of property… in fact, historically, election day sees BIG buyer numbers at open inspections. It’s true! Whether it’s time to go to the polls on a state or federal level, voters are forced out and about on mass, often planning in a few ‘stop offs’ along the way in the form of open inspections. As a seller, this isn’t the weekend you avoid, but one you embrace with arms wide open – and what better time to vote during the day than when your home’s open to buyers?

Interest rates
With the Reserve Bank set to meet this Tuesday it’s a matter of ‘will they or won’t they’. Earlier this week the finance sector were saying yes, but would the RBA really do this in the middle of an election campaign? After all, it may not bode well for the current government. Well Wednesday’s release of the inflation figures has subsided these concerns somewhat. With a growth of 0.6%, lower than the 1% forecast, it’s unlikely the RBA will increase the cash rate this week.

So with the cost of living on the rise and interest rates often viewed as an ‘uncertainty’ is property still the way to go when it comes to investing?

Showdown 2 – Property vs Shares
Greg Troughton and Amy Durant from REISA represented the property side while Mark Potter and Ryan Bamford from Baker Young Stockbrokers argued for shares. It was an intense and cleverly thought out debate with creativity used by both sides in bringing home their points. Guest judges Adrienne Smith (Commonwealth Bank), Cosi (SAFM) and David Stowe (NAB) all cast their votes with shares winning 2-1. But the public had the final say and they voted property as the Showdown 2 winner! Log on to www.toop.tv to catch all the highlights.

Mandy Wurth, General Manager
www.toop.com.au
© Toop Real Estate Group

Wednesday, July 21, 2010

The election, mining & property... who's set to win?

Last Saturday’s announcement by Prime Minister Gillard has certainly triggered an election frenzy across the country. The pollies are out campaigning hard, the press cartoonists are having a field day and the usual preference deals are being struck amongst the parties.

But when these political groups have such differing opinions, who will really end up the big winners, or losers, once the votes are drawn?

Here in South Australia mining, defence, the development of the new RAH plus the Northern Expressway are set to inject funds into our economy and boost our population over the coming years. As we all know, more people means a higher demand for housing, a positive impact on real estate and good news for property owners.

So where does the election play a part in this?

Mining, a key part of our State’s growing economy, has unequivocally been in the media spotlight over the past few months. It all started with the release of the Henry Tax Review and in particular the Resources Super Profits tax. Then shortly after the swearing in of our new Prime Minister, Julia Gillard, came the softening of this tax regime to focus solely on iron ore and coal, impacting just 320 companies rather than the original 2,500 and excluding any Uranium mines such as Olympic Dam.

This is where the potential politics comes in. Although the super tax has now been addressed, could the $21billion expansion of this prominent mine still be in jeopardy?

On a state and national level the Labor Government has continually backed Uranium Mining. In the opposite corner we have The Greens, who state in their policies that they will “end the exploration for, and the mining and export of, uranium”. With the two parties making headlines during the past week for ‘striking a deal’ on preference votes, it makes you wonder what exactly has been compromised to reach this deal. Perhaps nothing, as Greens have traditionally backed the Labor Party in the polls, but with such opposing opinions… I guess we’ll have to wait and see what unfolds.

The election aside, South Australia continues to perform well in the property stakes. The rental market is remaining tight, investors are returning to the action and the top end is performing well – we got a property away at auction just a couple of weeks ago for over $3million with 4 registered bidders! It just goes to show that buyers are looking for quality homes and all importantly, at a price in line with their expectations.

Mandy Wurth, General Manager
www.toop.com.au
© Toop Real Estate Group

Wednesday, July 14, 2010

We may be in the ‘off-season’ but our rental market is fairing well and set to strengthen

Winter seems to be fairing well on lots of counts this year, when it comes to our property market. Just a few weeks ago RPData analysts backed up our long held belief that June is one of the strongest months for sales in Adelaide, not Spring.

Now it’s our rental market’s turn to buck the trends.

This year June’s vacancy rates were almost reflective of our peak season (November to February) due to an increase in demand triggered by the end of financial year and an increase in corporate relocations. Toop&Toop recorded vacancy lows of 0.9% in the North, 1.8% East, 0.8% South and 0.6% in the city and North Adelaide. The West continued to fair a little higher, at 2.8%, with a number of Newport Quays properties currently vacant, yet there is a silver lining here also. Last week our coastal team let two penthouse apartments in this development - the interest is there.

When it comes to growth in rental rates over the month, it’s a different story. In the latest report from RP Data’s national research analyst, Cameron Kusher, rents around the nation, saw little or no change. Adelaide remained steady with a 0% change, yet when it comes to annual growth – we’re out on top at 6.7%, and it looks like we’ve much more room for growth.

We now host the most affordable rental houses in the nation with a median of $320 per week, lower than Hobart at $325. Our unit prices sit second to lowest $280 per week, with Hobart at $275 – it seems we’re literally neck to neck with Tassie.

This closely mirrors where Adelaide sits nationally when it comes to housing prices. Going on May figures (June’s won’t be released until later this month), Adelaide was second in affordability only to Hobart, with a median dwelling price of $387,500.

The price of our housing is constantly in the spotlight, with first home buyers finding it increasingly difficult to get their foot in the door of the property market. Those who took the plunge last year, ready or not, have now felt the pinch of numerous rate rises and may be questioning whether to sell or retain their property, by renting it out.

“… it makes sense that we will see demand for rental properties increasing over the next 12 months. Affordability pressures, due to higher interest rates and higher home values, are forcing many prospective buyers to remain (or return) to the rental market”.

According to Mr Kusher, the outlook for investors going forward is all positive… but renters may feel otherwise.

“Landlords are likely to be reviewing rental rates to make up for an erosion of profits caused by higher interest rates. Low vacancy rates and ongoing high rental demand means that landlords should have a reasonable amount of leverage to raise weekly rents upon a rent expiry. Higher rental rates should in turn lead to an improvement in rental yields and a greater incentive for investors buying into the residential property market.”

So the future is looking bright for the market in the ‘Year of the investor’. This week’s ToopTV, with Baker Young Stockbrockers’ Mark Potter, was a must see for investors keen on shares or property. To view or podcast the show go to www.toop.tv, and be sure to keep Wednesday the 28th July free for the second Property Vs Shares Showdown – we’ll see if property can make a comeback.

Mandy Wurth, General Manager.
www.toop.com.au
© Toop Real Estate Group

Wednesday, July 07, 2010

Tax Lotto... try House Lotto

The top end market in Adelaide has been alive and well over the past 6 weeks. Everyone seems to be asking what we mean when we say ‘Top End’ – well we’re referring to the over $1million price range.

Due to the proliferation of TOP END sales recently, we feel it is time to adopt another special category. So for the sake of discussion let’s split the TOP END into TOP END ($1 to $5million) and S.A ICONIC HOMES ($5million plus) categories. On our weekly Toop.TV segment we collectively call these two categories S.A’s Finest. Interestingly, there is still no pure residential home to have broken the $5.5 million ceiling in South Australia, and those that have been reported have either had additional development potential or other non-residential financial benefits.

This week’s headline of “Record breaker Ivanhoe back on the market for $7million” was interesting, and if a sale at this price were to be achieved Ivanhoe would be a S.A. ICONIC HOME sale as it is a single dwelling. The timing should tap into the current frustration of buyers who are searching for those rare S.A ICONIC HOMES. The article also states "Ivanhoe joins Cygnet Court waterfront home, with two marina berths, at Glenelg, which is on the market for $7.75 million" then goes on to cover the $6.5 million sale of Stormont in Glenelg.

So is South Australia finally moving toward achieving that first magical $10 million sale? Or are owners of S.A. ICONIC HOMES on the verge of winning HOUSE LOTTO? It really is like a lottery at the moment, but the stakes are high. The dilemma for buyers is that they have too few properties to choose from at the moment in this S.A. Iconic Homes category. Selling S.A ICONIC HOMES is completely different from standard real estate dynamics. Valuers and banks are often hesitant to support record breaking sales yet buyers in this market are financially independent. Conservative, professional advisors often become the real estate agents challenge rather than the actual buyer. This is where Adelaide’s unique networks come into play, while overseas markets are able to be accessed like never before utilising technology and the latest of online capabilities.

For sellers, once the property goes public the clock is ticking and getting a result, without lengthy delays avoids market fatigue, this can have serious consequences. Given such a small community, these super high profile properties become the focus of dinner party discussions within the Adelaide establishment and networks, which works positively in the first instance. However a long protracted sale invariably can end up with unhappy buyers & sellers.

As with all lotteries, you have to be in it to win it.

On the mainstream market, our TPI for June is 4.65 where 5 is normal conditions. June was a very strong month for sales and especially Top End. Be absolutely certain to watch Wednesdays Toop.TV as we had a fantastic, insightful look into what is happening right now with guest Anthony Keane, Your Money Editor and writer for Australian publication, My MONEY. To watch it just log onto www.toop.tv.

Anthony Toop, Managing Director.
www.toop.com.au
© Toop Real Estate Group

Thursday, July 01, 2010

Spring bumped as optimum time to sell a property

"The notion touted around property markets that spring is the ultimate time to sell could now be a myth according to rpdata.com research analyst Cameron Kusher..."

Well we have been spruiking it for years, and now it is official, June has been statistically proven to be the busiest time for property sales in Adelaide. RPData's latest report, released this week, is compulsive reading for property sellers especially if you are holding off to sell in spring.

We discussed this very issue on Toop.TV just 2 weeks ago, with RP Data’s Cameron Kusher (log onto www.Toop.tv Episode 34 and have a look). Cameron’s looked into the figures and surprise, surprise, in Adelaide Spring selling is rated the 3rd best time to sell.

We didn't need the stats to know this but wow, were we amazed at the results. They are spot on with our own local experience and align with the years of advice we’ve provided to sellers.

According to Mr Kusher, "while spring sees the greatest number of listings, there is evidence to show that these do not convert to the greatest number of sales. Within Adelaide, June has proven to be the busiest month for sales".

The report is a national one and is available here..
PropertyPulse (pdf)

Sales and listings (pdf)

Essentially, Spring is overrated by sellers. Feeling good with the arrival of spring sunshine and the gardens ‘taking off’ clearly doesn't translate to better sales. Reality is that buyer numbers remain very consistent over the entire year, but what occurs is their activity increases as more stock enters the market. Currently there are so few homes coming on the market that even with wavering economic confidence sales have remained strong. It is a fact that buyers are ultra discerning, banks tough to deal with and advisors cautious (if not negative), yet selling in winter continues to bring great outcomes for many sellers. Buyers simply have so few options.

It is winter where stock levels bottom out and when competing properties are at their lowest level, therefore as a seller you have the best competitive advantage.

So after 35 years in the business, finally it is a fact, Spring is not the optimum time to sell property.

Anthony Toop, Managing Director.
www.toop.com.au
© Toop Real Estate Group

Wednesday, June 30, 2010

Dooms-day melt down? Why this will not occur.

InsideStory Subscribers, this is hot off the press. We have Tim Lawless live on www.toop.tv at 1pm today, log in and watch it...or if you miss it, it will be available from 6pm tonight on pod cast and/or as archive footage. Sylvia is co hosting today for the first time so tune in!!

I have just had May results arrive from RP Data and it tells the story statistically that we have been reporting from the coal face for some time now.

The boom is over; stability returned but this reporty importantly addresses the dooms day spruikers with their predictions of a melt down, and explains the logic as to why this will not occur.

RPData (pdf)

Fantastic report, and a must read. Property is such a terrific asset class....at Toop&Toop we can't get enough of it.

Regards

Anthony Toop, Managing Director.
www.toop.com.au
© Toop Real Estate Group

Wednesday, June 23, 2010

Race to the end of financial year, are you ready?

Apart from those of you with self managed Super Funds who normally have their own good advice, all property investors should be taking a few moments to review last minute maintenance and tax deductible activities that can be included in this financial year tax returns.

Last week ToopTV touched on this subject with Rob DiMonte, Managing Partner of Deloitte's, and it may be worth watching that segment. Log on to www.toop.tv, sign up and download the podcast.

Essentially, tidy up as much maintenance as possible, sort out your financing structures and get all accounts/invoices in order this week.

My recommendation is to contact your accountant ASAP to run through any last minute opportunities prior to the 30th June.

So what is happening with the market? It is all over the place, but it seems to have dodged the bullet again!

One thing that is certain, there is a shortage of quality, well priced property and there are plenty of buyers. Another absolute fact is that the vacancy rate of rental property has plummeted. We have 2000 properties under management, and we are seeing vacancy rates of 0% in the city & North Adelaide, in the East 1.2%, South 0.3%, West 1.2% and North 0.9%. The market is considered ‘in balance’ at 3%! If this continues rents will rise - it is a call to action for investors.

Confidently predicting where the market is going is impossible at the moment. Every Tuesday our entire sales team meets in their respective offices to share information, brainstorm ideas and try to stay ahead of the game in terms of market trends. We track our own market indicators (TMI) with website hits, buyer numbers, stock levels and activity at opens. This information normally allows us to predict the best way to deal with any changes in conditions and adapt our marketing quickly to them.

Consider this. There is a generation of the real estate industry that has never experienced tough selling conditions. The only TASTE they had was during the last 3 months of 2008. It is not since way back in 1998, that we’ve experienced conditions where real estate was really hard to sell, irrespective of price. Anyone who has been in the business less than 12 years has no experience in selling properties when there is little or no demand. This new generation of real estate agents has their skills honed on getting listings, not getting sales. I believe we must turn our attention to both skill sets urgently.

A lengthy dose of tough market conditions is what will ultimately test how clever our current generation of real estate agents is, but it appears we may have to wait a little longer as conditions have yet again bounced back. Tt the moment when the pricing is right, it’s all go.

Anthony Toop, Managing Director.
www.toop.com.au
© Toop Real Estate Group

Friday, June 18, 2010

Winter Sales put heat on Buyers

People are asking when to sell and the standard real estate agent answer is invariably ‘now’.

While real estate seems to genuinely be about selling in the ‘now’, it is winter that always has everyone questioning this. It is a fact that people tend to feel great at the fist sign of spring sunshine, and that gardens burst into life at this time, but there is more to selling a house than gardens and warmer weather.

By far and away the greatest driver of the market is confidence and the way our economy impacts on peoples minds. The second greatest driver of property sales is ‘supply and demand’ - the relativity between the number of houses available to purchase and the number of active buyers ready to buy. In winter there is always a reduction in the number of sellers, yet buyer demand remains pretty much unchanged throughout the year, with the exception of the Christmas New year period. We have the stats to prove this.

Currently the Toop Market Index (TMI) is at 3.64 - this is our way of predicting where the market is tracking 3 to 4 months ahead of time. TMI measures active marketed properties against new buyers entering the market, creating an ideal forecasting measure. It currently indicates that confidence is falling and a shortage of property is keeping the market from capitulating. In South Australia this should continue to be a seller’s friend HOWEVER we seasonally see a massive influx of properties from September to November, making this the most dangerous period for those selling.

Reports predicting strong price growth, such as this week’s from BIS Shrapnel, cannot be ignored. They rely on the underlying shortage of available property to drive demand over supply, however seasonal factors are what need to be considered for those wanting to sell in 2010.

In spring, buyer demand changes ever so slightly while new sellers flood the market. Open inspection numbers (active sales) go from winter lows of around 1500 to virtually double at just under 3000. The total stock levels found sitting on websites and agents books (stock on shelf) balloon even more.

The wild card to all of this relates to what is happening in our economy. Given we have no control over this, and are merely passengers of that critical market driver, what we are able to control is our timing.

So my answer on whether to sell now or in spring? Sell NOW.

Be sure to see Wednesdays Toop.TV where we cover end of the financial year preparations for landlords and investor.


Anthony Toop, Managing Director.
www.toop.com.au
© Toop Real Estate Group

Thursday, June 10, 2010

Will SA’s property market again ‘hold up’

Will SA’s property market again ‘hold up’ in the new round of Global financial wows?

Consider the market dynamics at work.

Fear & Confidence. These are big drivers in property; fear negatively impacts property, confidence positively. Market segments affected by fear will take a hit!

Cost of funding (interest rates) and ability to service a loan (employment and business profits). Cost of funding has been increasing and some top end buyers have recently suffered losses in their share portfolio, but jobs have remained strong.

Supply & Demand (number of active sellers v buyers). Demand exceeding supply is a critical driver of SA’s market, right now we have an undersupply of property yet plenty of buyers.

Alternative investments. Investors look at all their options, including shares and interstate property. SA’s rental market is strong with low vacancy rates – good news for SA property.

Following the Reserve Bank’s hold on interest rates, CommSec released their view:

CommSec believes that the economy will lift later in the year, meaning borrowers should factor in rate increases of up to half a percent. But in the current environment this appears more of an upside risk. As we have seen over the past two months, the environment can effectively turn on a dime. The optimism that was in abundance in mid April has now given way to fear and uncertainty with investment markets increasingly skittish

The $64 million question is how long will interest rate settings remain on hold? Even the Reserve Bank would be hard-pressed making sense of the volatile environment”. Click http://adelaide-real-estate-news.blogspot.com/2010/06/insight-changing-market-conditions.html for the full report.

Since no one can be sure, what do we think?

My observation: The over $1m property market is impacted by any significant movements in the share market while the under $1m is impacted by job security. The market is volatile, and confidence rocky, yet there are too few quality properties available for the demand. This has driven strong sales. Job security ensures confidence in the affordable properties and lack of property has kept this market solid, but first home buyers are few.

The big issue right now is a lack of alignment between seller expectations & buyer capabilities!”

Properties priced to the market are flying out the door, while those priced by ill informed agents or emotional vendors are simply not selling. The blow out of time on market is simply the process of time for sellers to adjust their expectations. Sales are happening months into campaigns at prices well below those offered within the first few weeks. The old real estate saying ‘the first offer is your best offer’ is not always true, but is reality often enough.

What does all this mean? Sellers need to get their expectations and marketing right first up. Cheap selling strategies will create lost opportunity. Bargain hunters will struggle too; once a property price hits market alignment we are seeing multiple offers, yet banks are limiting buyer’s capabilities.

Toops Tip: BUYERS, the price you pay will be long forgotten when you’re enjoying the home you LOVE while that bargain may NEVER feel like home. SELLERS, don’t take risks with your sale process, do your homework, and remember that old real estate saying!

Anthony Toop, Managing Director.
www.toop.com.au
© Toop Real Estate Group

Incredible Admission as to what is really happening out there

InsideStory readers this is hot off the press from RP Data this morning, and is an incredible admission as to what is really happening out there.

RPData (pdf)

Also read my InsideStory article that was sent to print yesterday (for the weekend Advertiser) but is exactly aligned to this National report....it is changing really quick out there. Adelaide has its own unique set of dynamics so read my take on that.

Very important read!!


Anthony Toop, Managing Director.
www.toop.com.au
© Toop Real Estate Group

Wednesday, June 09, 2010

Insight: Changing Market Conditions

InsideStory readers



Here is the latest from CommSec. This is an important insight into the changing market conditions, be sure to read our own observations on this.

CommSec (pdf)

Regards


Anthony Toop, Managing Director.
www.toop.com.au
© Toop Real Estate Group

Monday, May 24, 2010

property again will no doubt save the day...

Hi InsideStory readers,

Feeling twitchy lately, this CommSec report will make you feel better hopefully, steady as she goes, property again will no doubt save the day!!

CommSec (pdf)

Regards


Anthony Toop, Managing Director.
www.toop.com.au
© Toop Real Estate Group

Wednesday, May 12, 2010

The Budget - made easy.

InsideStory Bloggers and Readers,



While I have had a raft of Budget summaries this morning appear in my inbox, it seems that CommSec always seem to be able to put this type of information in an easily read format that even I can absorb easily….so here it is.



CommSec (pdf)


Don’t forget we seem to be ramping up the information on Toop.TV each week and we have some awesome material this week along with some amazing property to check out.



The Countries leading guru on Social Media marketing is on today….speaking about new ways of selling property.



Join us live every Wednesday at 1pm on www.toop.tv or download podcast or view on our library any time.



Regards




Anthony Toop, Managing Director.
www.toop.com.au
© Toop Real Estate Group

Tuesday, May 04, 2010

Interest Rate Rise

InsideStory



Here we go again, another rate rise….



Regards



Anthony

Media Release
Number
2010-07

Date
4 May 2010

Embargo
For Immediate Release


Statement by Glenn Stevens, Governor: Monetary Policy Decision
At its meeting today, the Board decided to raise the cash rate by 25 basis points to 4.5 per cent, effective 5 May 2010.

Recently, forecasts for world GDP growth have been revised up again, and growth is expected to be at trend pace or a little above in 2010. Conditions in Europe remain quite weak, though recent data suggest growth is becoming more established in North America. In Asia, where financial sectors are not impaired, growth has continued to be strong, contributing to pressure on prices for raw materials. The authorities in several countries outside the major industrial economies have now started to reduce the degree of stimulus to their economies.

Global financial markets are functioning much better than they were a year ago, but sovereign risk concerns have escalated significantly in Europe over recent weeks. This has prompted additional efforts by policymakers to put fiscal policies onto a sounder footing and to provide support for Greece in the near term. To date, there has been very little contagion outside Europe.

Australia’s terms of trade are rising by more than earlier expected, and this year will probably regain the peak seen in 2008. This will add to incomes and foster a build-up in investment in the resources sector. Under these conditions, output growth over the year ahead is likely to exceed that seen last year, even though the effects of earlier expansionary policy measures will be diminishing. The process of business sector deleveraging is moderating, with business credit stabilising and indications that lenders are starting to become more willing to lend to some borrowers, though credit conditions for some sectors remain difficult. Credit outstanding for housing has been expanding at a solid pace. New loan approvals for housing have moderated over recent months as interest rates have risen and the impact of large grants to first-home buyers has tailed off. Nonetheless, at this point the market for established dwellings is still characterised by considerable buoyancy, with prices continuing to increase over recent months.

Recent data on inflation confirm that it has declined from its peak in 2008, helped by a noticeable slowing in private-sector labour costs during 2009, the rise in the exchange rate and the earlier period of slower growth in demand. In both underlying and CPI terms, inflation over the most recent 12 months was around 3 per cent. Nonetheless, the extent of decline from here may not be quite as much as earlier forecast and inflation now appears likely to be in the upper half of the target zone over the coming year.

With the risk of serious economic contraction in Australia having passed some time ago, the Board has been adjusting the cash rate towards levels that would be consistent with interest rates to borrowers being close to the average experience over the past decade or more. The Board expects that, as a result of today’s decision, rates for most borrowers will be around average levels. This represents a significant adjustment from the very expansionary settings reached a year ago.

The Board will continue to assess prospects for demand and inflation, and set monetary policy as needed to achieve an average inflation rate of 2–3 per cent over time.



Anthony Toop, Managing Director.
www.toop.com.au
© Toop Real Estate Group

Monday, May 03, 2010

Cages Rattled!

Hi InsideStory Readers

Well the SHOWDOWN 1 Wednesday promises to be a big event as Property people go head to head with Share Brokers but read this report and explain to me how the property bubble will burst with such a lack of supply. People have to live somewhere! I know escalating prices and affordability are a real issue, but supply and demand factors are too, check these stats on the shortage we are heading into!!

CommSec Research: New housing report to rattle cages (pdf)



Regards

Anthony Toop, Managing Director.
www.toop.com.au
© Toop Real Estate Group

Friday, April 30, 2010

SHOWDOWN 1 - The Great Debate PROPERTY Vs SHARES

The rivalry at the footy derby this weekend will be nothing compared to what plays out constantly between property believers and those who back shares. There is regular banter between real estate agents and share brokers as to ‘which is the best investment’, so we have decided to put both sides in one room so they can have it out.

Toop.TV will expose all the rivalry head on and uncover the arguments for property or shares once and for all. The gloves will be off - expect anything!

So for those fans who are left disappointed after this weekend’s Footy Showdown, get focussed on Showdown 1 The Great Debate, Property V Shares! We go live 1pm this Wednesday 5th May at www.toop.tv.



Representing ‘Shares’ we have high profile businessman, and Chair of everything, Mr. Alan Young with his gun support Mark Potter both of Baker Young Stockbrokers. For ‘Property’ we have Greg Troughton, CEO of the Real Estate Institute of SA (REISA) with Emma Slape, REISA’s property researcher and journo, who together promise to tear the shares team apart and prove property is in fact the only investment class for mums and dads.



This promises to be a fiery and entertaining debate with plenty of content. So, to ensure it’s fair, I will perform the ‘umpire’ duties and adjudicate proceedings. We will also put your questions to the Showdown 1 panel live and you’ll be able to cast your vote during the show through our online poll to determine who the winner will be! All those who vote will go into the draw for a double Magnum of premium Battunga Shiraz Wine.



So here is the deal:



Questions: Submit them via the Showdown 1 icon at www.toop.tv prior to the show.

Register for a reminder: www.register.toop.com.au

Live broadcast: www.toop.tv

Studio Audience: We have extremely limited seats available in the Toop.TV studio, email elise.partington@toop.com.au and we’ll advise successful applicants.



This show will be a bumper edition and will run around 40 minutes with some spectacular new listings showcased and a look ‘Behind The Blinds’ of Adelaide’s properties….don’t miss it!!


Anthony Toop, Managing Director.
www.toop.com.au
© Toop Real Estate Group

Interest rates are beginning to bite

InsideStory readers

The Latest RP Data report has just arrived and for me it is like waiting to catch the Saturday Newspaper as it arrives!!

National News Release -RPData (pdf)

All looking good for property still although there are signs that the interest rates are beginning to bite. It is important there are some cracks appearing, especially given the Reserve Bank use this information from RP Data to assist them in making the decision on interest rates.

Here is a table from the report, this is essential reading!

•Brisbane values up 2.4% (median price: $439,000)
•Adelaide values up 2.7% (median price: $385,000)
•Perth values up 0.2% (median price: $480,000)
•Darwin values up 6.9% (median price: $480,000)
•Canberra values up 3.7% (median price: $510,800)
•Hobart values up 0.5% (median price: $323,750)
(Based on final February figures)

Be sure not to miss SHOWDOWN 1 THE GREAT DEBATE PROPERTY Vs SHARES this Wednesday live and Interactive on www.toop.tv and vote who wins...Property or shares.

Enjoy the read,



Anthony Toop, Managing Director.
www.toop.com.au
© Toop Real Estate Group

Thursday, April 22, 2010

Median price rises are getting ahead of rises in rent

InsideStory followers,

This is hot off the press, the latest movement in rental yields and Adelaide is doing OK.

"Currently, it costs 63 per cent more to service the debt on a house than it does to rent whilst for units housing is 42 per cent more expensive."

Look at how the median price rises are getting ahead of rises in rent, and the Yields are therefore coming down.

PropertyPulse-RPData (pdf)

On Wednesday the 5th of May we have SHOWDOWN 1, the Great Debate "PROPERTY V SHARES"....it will be edgy and it will be informative. Adelaides biggest hitters will go head to head live on www.toop.tv so register at www.toop.tv to be sure we send you a reminder email before the show!!

Enjoy the read.

Regards

Toopie


Anthony Toop, Managing Director.


www.toop.com.au


© Toop Real Estate Group

Wednesday, April 21, 2010

Two Speed Property Market?

‘Two Speed Economy’ have you heard the term? What about a ‘Two Speed Property Market’?



It seems we are experiencing this right now; a combination of sensational results mixed up with some underperforming ones.



For those who follow the market commentary there are conflicting stories coming through daily. Our take on things will always be ahead of reporting, given it takes up to 6 months for figures to roll out as statistics. We aim to report based on the past 7 days activity and our observations. Our InsideStory blog is generating interesting commentary that contradicts ours, which we’ve published for all to read so take a look. Predictions of a meltdown in the property market with talk of the ‘Inevitable Bubble Burst’ remain common, with scary and negative predictions from some bloggers. We do not agree. Stability has a long history in our local market.



So what is the InsideStory from the front lines at Toop&Toop? More of the same as reported over 2009…demand has been very strong for carefully priced property, while poorly priced property is not selling. This is consistent around South Australia, holding true for commercial and residential properties. We reported last week that Toop&Toop has recorded it’s biggest volume of March sales in our 25 year history…we are not just spinning up the market with hype and propaganda, the sales are there and are real.



We have taken on properties that have failed to sell with other agents and there is a pattern. ‘No result’ generally fits into one, (or a combination), of just four categories:

• lack of marketing clout of the agency through databases, networks & online/traditional marketing

• energy & passion of the salesperson,

• lack of presentation/marketing of property

• price

Selling a property for the best price, in any market, isn’t rocket science. But a lack of agency ‘rocket fuel’ in technology & networks to reach the maximum number of buyers, or the energy of a salesperson to communicate & negotiate may result in ‘no result’.



On the one hand there are easy sales out there, but they are getting fewer and further apart, while on the other there are some really tough sales. There are easy market segments and tough market segments. Some sales are going absolutely berserk, others seem as if they are bargains. We definitely have a two speed property market emerging!



As the Reserve Bank continue to lift interest rates we will see the impact of the monetary handbrake as it is applied bluntly, changing the dynamics of our market. We’ll keep you up to speed on how your property is tracking each month through the Toop Property Index (TPI) on Toop.TV.




Diary Date Showdown 1: 'Property vs Shares'
May 5th @ 1pm Book it in your diary, full details next week.





The Abbey...thanks to those who have made contact in regards to working from our stunning new Hyde Park office in The Abbey…keep the communication happening, we need the right people in all areas of the business so this is the perfect time to look at working with our team. Call Andries or Vanita on 8362 8888 if you are interested in a career move.




Anthony Toop, Managing Director.


www.toop.com.au


© Toop Real Estate Group

Thursday, April 15, 2010

New Toop&Toop Office Planned !

Hot Real Estate Goss…just a heads up on what we are up to. Toop&Toop have purchased The Abbey, a landmark building at 84 King William Road and we are going to open our Toop&Toop Hyde Park office there.

We are aiming, by August, to have completed the necessary renovations and to have approvals in place to get things up and running for Spring 2010.

While a number of the team have put their hands up to work from this amazing building and location, details are sketchy as we start the process of refurbishment.

I must say I am hugely excited. Sylvia and I have been trying all the local restaurants out over the past few weeks as we visualise how this office could look and feel. We love Adelaide’s early architecture and over the years have developed a reputation for helping to save some of our historic buildings. Pretty much all of our offices are iconic or heritage buildings which we have refurbished and renovated. Our first was at 23 The Parade Norwood back in 1987 which remains our head office today.

The Abbey is so exciting. We want to demonstrate how such a magnificent building can be equipped and fitted out with the very latest technology, to become a modern hip and happening office that the entire community will hopefully be proud of.





On the people front, this new office will attract the top sales people, or people we can train to be the best of the best (for which we are famous), along with a full support team of secretarial, sales assistants and property managers. Essentially, if you are keen to be trained and to become recognised as the best of the best in the real estate industry, call us ASAP.

The person to contact for a chat is Andries Pretorius or Vanita Miller in our HR Department, or for that matter any of our team. We run a family style business so feel free to have a totally confidential chat about what we are up to…get involved and become part of the Toop team!

By the way, if it is of any consequence, March 2010 saw the biggest March sales T&T has ever had in our 25 years! Thanks for your support, we hope we can lift the bar even more for our clients as we continually strive to become better at what we do.

So… want to get into Toop&Toop or real estate… this is the perfect time!

In regards to market conditions, we have some sensational reports posted this week from RP Data, ANZ, and CommSec, all viewable on this blog. Don’t forget to see this week’s http://www.toop.tv/ as well.

Anthony Toop, Managing Director.


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


© Toop Real Estate Group

Wednesday, April 07, 2010

Another 0.25% to the interest rates

Hi InsideStory readers



Well there you go, another 0.25% to the interest rates taking the cash rate to 4.25%.



The reality is that property activity has increased so fast and so aggressively on the East Coast of Australia that there would be some nervousness as to where this was all heading.



Adelaide has done what Adelaide does so well, steady and stable.



With Mad March and Easter 2010 behind us expect an explosion of new release properties over the coming weeks if Toop&Toop stock levels are an indication. Property is all about confidence, and supply and demand. If confidence remains high and supply increases from next weekend we will see discerning sales to property owners who have correctly priced their properties.



Here is the media release from the Reserve Bank.


-----------------------------------------------

Media Release
Number
2010-06
Date
6 April 2010
Embargo
For Immediate Release
Statement by Glenn Stevens, Governor: Monetary Policy Decision
At its meeting today, the Board decided to raise the cash rate by 25 basis points to 4.25 per cent, effective 7 April 2010.
The global economy is growing, and world GDP is expected to rise at close to trend pace in 2010 and 2011. The expansion is still hesitant in the major countries, due to the continuing legacy of the financial crisis, resulting in ongoing excess capacity. In Asia, where financial sectors are not impaired, growth has continued to be quite strong, contributing to pressure on prices for raw materials. The authorities in several countries outside the major industrial economies have now started to reduce the degree of stimulus to their economies.
Global financial markets are functioning much better than they were a year ago and the extraordinary support from governments and central banks is gradually being wound back. Credit conditions remain difficult in some major countries as banks continue to face loan losses associated with the period of economic weakness. The concerns regarding some sovereigns appear to have been contained at this stage.
Australia’s terms of trade are rising, adding to incomes and fostering a build-up in investment in the resources sector. Under these conditions, output growth over the year ahead is likely to exceed that seen last year, even though the effects of earlier expansionary policy measures will be diminishing. The rate of unemployment appears to have peaked at a much lower level than earlier expected. The process of business sector de-leveraging is moderating, with the pace of the decline in business credit lessening and indications that lenders are starting to become more willing to lend to some borrowers. Credit for housing has been expanding at a solid pace. New loan approvals for housing have moderated over recent months as interest rates have risen and the impact of large grants to first-home buyers has tailed off. Nonetheless, at this point the market for established dwellings is still characterised by considerable buoyancy, with prices continuing to increase in the early part of 2010.
Inflation has, as expected, declined in underlying terms from its peak in 2008, helped by a noticeable slowing in private-sector labour costs during 2009, the rise in the exchange rate and the earlier period of slower growth in demand. CPI inflation has risen somewhat recently as temporary factors that had been holding it to quite low rates are now abating. Inflation is expected to be consistent with the target in 2010.
With the risk of serious economic contraction in Australia having passed some time ago, the Board has been lessening the degree of monetary stimulus that was put in place when the outlook appeared to be much weaker. Lenders have generally raised rates a little more than the cash rate.
Interest rates to most borrowers nonetheless have been somewhat lower than average. The Board judges that with growth likely to be around trend and inflation close to target over the coming year, it is appropriate for interest rates to be closer to average. Today’s decision is a further step in that process.
Enquiries:
Dr Philip LoweAssistant Governor (Economic)Reserve Bank of AustraliaSYDNEYPhone: +61 2 9551 8800
Dr Guy DebelleAssistant Governor (Financial Markets)Reserve Bank of AustraliaSYDNEYPhone: +61 2 9551 8200
Media OfficeInformation DepartmentReserve Bank of AustraliaSYDNEYPhone: +61 2 9551 9720Fax: +61 2 9551 8033E-mail:
rbainfo@rba.gov.au
-----------------------------------------------


Regards





Anthony Toop, Managing Director.


www.toop.com.au


© Toop Real Estate Group

Tuesday, April 06, 2010

RBA Warns on House Prices (Commsec)

Hi InsideStory readers



I hope you had a safe Easter and Tuesday we find out if the Reserve Bank with lift the interest rates yet again!



CommSec’s report was released a week ago, apologies for the late release.

Commsec Report (pdf)


Regards




Anthony Toop, Managing Director.


www.toop.com.au


© Toop Real Estate Group

Monday, March 22, 2010

Record Heights: National performance Gauge

Hi InsideStory Subscribers,

This is a really interesting report and explains what I was struggling to explain some weeks ago for blogger Paul when it came to deteriorating affordability.

CommSec National Performance Gauge

I interviewed Craig James, Chief Economist for CommSec last week on www.toop.tv which was very interesting and covers a lot of ground with has specific predictions on South Australia. Last week was the first of a 3 part series with Craig James.

Be sure you view last week’s program as we also had as co-host Peter Vaughan who is CEO of Business SA, with his predictions for Adelaide’s property market.

If you have any property you are looking to sell, or if you are in the market, be sure to be in touch as we have been doing a lot of business on line and many properties are not hitting the market at the moment.

This is a MUST READ report,

Regards

Anthony


Thursday, March 18, 2010

Another paradigm shift in real estate

Fair warning... the market is running hot right now, the question is, will it continue? Our February sales were at record levels while the volume of housing stock in SA was down 14.8% (over 2,100 homes) from the previous year, according to RPData. With this tightening of supply & increase in demand, off market selling is forging ahead, upping the ante for buyers who are not tapping into online or registered to be notified of properties first (www.register.toop.com.au).
Toop&Toop are reaching more buyers in ways never before possible.
Last weekend’s launch of the Property Advice Centre (www.adelaidenow.com.au/advicecentre) created another paradigm shift in real estate. This online meeting place for property people in South Australia is a one stop shop for local real estate. As the power of online selling takes control, our Property Advice Centre breaks new ground in quality of information. In a ‘no holes barred’ series of interviews www.toop.tv examines property issues with those who know.





Craig James, Chief Economist for CommSec appeared on this week’s show with the latest on SA’s property market & where our economy is heading in 2010...
“...the key thing is we’ve got China which is fuelling our growth, high population growth Ð fastest population growth in the order of 40 years, & we’ve got super strong demand for construction, whether it’s residential, commercial, engineering construction. So those 3 drivers really are powering the Australian economy & it is going to perform very, very well over 2010”.
We also had co-host Peter Vaughan, CEO of Business SA, talk with us about all things local to our great state - so if you didn’t see it live just log on now to www.toop.tv as it is there to see any time that suits you.
People have now worked out why a real estate agency has its own ‘TV station’... our customers get to access more buyers & tenants through it. With this week’s massive launch of The Advertiser’s own ‘TV Station’ now is an exciting time as world leading applications of new technology are being generated out of South Australia.
Toop&Toop has become a trusted information centre for property. The Advice Centre includes services to help buyers, sellers, landlords & tenants come together. By creating an online space where all parties can congregate, in a confidential & discreet way, people with the same needs & interests can help each other. The general public are able to access inside industry information about all things real estate while South Australia’s best homes are showcased in a local way but on an international platform.
Craig James, Peter Vaughan, Isobel Redmond, Kevin Foley, Katrina Webb, Roger Rasheed, SAFM’s Cosi, Mix 102’s Snowy, Tim Lawless (head researcher RP Data), & many more... all talking Adelaide property - www.toop.tv.



Anthony Toop, Managing Director.


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


© Toop Real Estate Group

Monday, March 15, 2010

The Market Across Australia ...

InsideStory readers,
This latest RPData report is perfect for the property junkies, all the stats on what is going on in the real estate market across Australia including comparisons of the amount of property coming onto the market.

PropertyPulse-RPData (pdf)

Be sure to compare last years results with this year, and also check out the clearance rates at the moment at auction....fantastic!!

For those who have not seen www.toop.tv for a while, do it. Click on that link and see what incredible interviews we are getting and look through some of the amazing tips for property owners and investors.
www.toop.TV has the Chief Economist for CommSec on this week and some really revealing predictions looking forward, with his reasons. Check it out!!
Also we have launched our joint online project with News Corp with their online AdelaideNow website, go to AdelaideNow, click on the property tab, then the ADVICE CENTRE Tab, check it out, all our great video presentations and inside looks into Adelaide's finest properties.
We have also launched the first fun search engine for property in the "Property Fun House", snoop around and find all the hidden goodies, complete with the over 18 only poker room!!
Regards
Anthony

Anthony Toop, Managing Director.


www.toop.com.au


© Toop Real Estate Group

Wednesday, March 10, 2010

Maximum web impact - its all go!

In a fast paced world, it seems forever ago that we commenced our most ambitious online project ever... the Property Advice Centre. Forgive me for a bit of a hard sell today, but this is ground breaking & in collaboration with the big guys, News Corp.

Today we launch the Advice Centre on www.AdelaideNow.com.au - our state’s leading news website which is fast becoming the hub for real estate interaction in South Australia.

Toop&Toop has embraced emerging capabilities, creating Technology Powered Selling for our clients. It looks simple, yet at the leading edge is sophisticated with a global reach.

Historically home sellers have listed properties based on personality & a perception of success. Today’s reality is an individual ‘good operator’ can no longer hope to deliver optimum outcomes for their client without the use of a technology platform. Online isn’t just ramping up, it has gone ballistic in the past 12 months. This medium is literally moving at the speed of light when it comes to accessing buyers & promoting property.

Sale Optimisation is only possible through Technology Powered Selling; this is becoming an undisputable fact for sellers.

With the market running so well, as it has over the past 12 months, pretty much anyone can sell property. You could sell it yourself. So why would you engage an agent & pay a fee?

A top agency has... 1) Trained negotiators. 2) Trusted brand. 3) Superior skills for presenting your property, both in the flesh & in marketing.

Toop&Toop has 4 computer programmers, 3 staff specialising in visual communication (video, photo & production), 4 creative, writing & traditional press producers & 1 data manager. That's 12 full time staff, working behind the scenes & communicating with customers in an effortless way - assisting our sales team to drive ‘sale optimisation’ for you, our clients.

25 years of innovations have powered Toop&Toop to be the most highly awarded agency in Australia, proof that investing in technology over two & a half decades pays off for our customers. Technology Powered Selling is all about providing our sales partners with maximum buyer leads, back them with the most comprehensive marketing machine in the nation & allow them to negotiate the best outcomes.

Facts;
1) Toop&Toop homes get the highest traffic on realestate.com.au in South Australia 170,000 in February.

2) Toop&Toop sellers access the nation’s most awarded private website... the best in the Country!

3) Toop&Toop are acknowledged as the most innovative selling agency in the Nation!

4) Toop.TV is the most sophisticated Sale Optimisation initiative ever launched.

5) Marketing via social networks is driven by Toop&Toop, while our sales team focus on the frontline.

6) Property Funhouse drives traffic to Toop properties.

7) AdelaideNow’s Property Advice Centre is the new hub for buyers & sellers - over 1.2m unique site browsers in February.

8) Toop&Toop clients access the best sales support in the business.

Being the best sales person in the business alone will never cut it, being the best resourced sales person will!

Log onto www.AdelaideNow.com.au/advicecentre for property news like never before.



Anthony Toop, Managing Director.


www.toop.com.au


© Toop Real Estate Group

Tuesday, March 09, 2010

InsideStory readers, more reports.

InsideStory readers, more reports.

OK, so it is a flood of new reports, but these really are interesting for property followers.

This one has a great table showing the amount of properties on the market in each state and compares it with last year.

The latest auction clearance rates are also included, one page, easy read.

Coastal property market wrap (pdf)

RPData Market update (pdf)

Regards

Anthony


Anthony Toop, Managing Director.


www.toop.com.au


© Toop Real Estate Group

Australian house prices vs disposable incomes

InsideStory followers,

This is a short but excellent quarterly report from RP Data.

There are 2 graphs that will be of interest and also some detail regarding rental yields for Investors to keep abreast of what the market is doing.

Here is an extract...."Australian house prices are around 4.1x disposable incomes, which is where they have been for the last six years".

Home Value Index 26 Feb 2010 (pdf)

Enjoy the read,





Anthony Toop, Managing Director.


www.toop.com.au


© Toop Real Estate Group

Investor Signposts (CommSec)

Dear subscribers

Investor Signposts (pdf)

This report is dated 25th February and I missed it. Although essentially old news there is some great logic that compliments the article I posted this week, take a read.



Regards





Anthony Toop, Managing Director.


www.toop.com.au


© Toop Real Estate Group

2010 is party time for property owners

“Home Truths - how interest rates will hurt”, media headlines this week... I think it’s time for an alternate view.

I’ve turned to Google to refresh my memory on interest rates and found the last 50 years worth (see previous post to see these). Check out the rates 25 years ago when we started Toop&Toop and back in 1978 when I first started selling real estate at age 19. I feel it’s time to put this week’s interest rate “HIKE” of 0.25% in perspective.






1980 the interest rates were 10.25%, 1990 -16.5% and in 2000 - 7.8%. Now following this week’s rise, the 4% cash rate plus approximately 2.5% margin for the banks, takes the variable home loan rate to just over 6%, once you shop around. The reality is that rates sat above 10% for 20 years, skyrocketing to 17% in June '89. Developers were paying over 20% at that time as were home buyers for bridging loans! In 1992 South Australia’s unemployment rate was double digits at 10.7% while interest rates were 12%... ouch! We also had a massive oversupply of properties with empty houses everywhere... it was a pretty untidy time in real estate, I should know as we started Toop&Toop through that period.

Today unemployment is around 5%, interest rates 6.5% and housing supplies are tight. Hmm... given the supply and demand pressure, I have to say this 0.25% rise may have been needed to ensure we prevent a total blowout in housing prices.

Overlaying the supply/demand curve for SA property, Adelaide has a new bubble of residents arriving thanks to the defence battalion relocation, with big potential in mining and education. Coming off such a small population base, the impact of these stimulants will impact on all of us here in SA.

So let’s all reset our expectations, get our heads around a further 1% rise in interest rates this year and be thankful we’re in such a privileged time in history. If it doesn’t happen, well that’s fantastic. Realistically, so far 2010 is party time for property owners, so just enjoy it while it lasts. If interest rates hit 10%...and unemployment 10%, then it’s time to have a whinge.

Toop’s Tip. Fixed rates vs Variable... expect to pay a premium of at least 1% for the privilege of a fixed rate and more if fixing for over a year. Manage your mortgage clinically. Pay it 'as if' you have a long term fixed rate (say 9%), bank the windfall cash (from having the cheaper variable rate) and pay off as much principal as possible - this will bullet proof you against any medium to long term rate movements.

This weeks ToopTV features magnificent homes along with some very high profile interviews. Log onto
www.toop.tv


Anthony Toop, Managing Director.


www.toop.com.au


© Toop Real Estate Group

Wednesday, March 03, 2010

History of Interest Rates

With all the media hype surrounding this week's 0.25% interest rate rise, I took the chance to take a quick trip down 'memory lane' - thanks to Google.

Click on the link below and check out the past 50 years worth of interest rates. I think you'll agree, compared to the late 80's and early 90's when base rates peaked at 17%, we're in a very positive position right now with loans at around 6.5%.

http://www.loansense.com.au/historical-rates.html




Anthony Toop, Managing Director.


www.toop.com.au


© Toop Real Estate Group

Thursday, February 25, 2010

Property investors, test your knowledge...

Two weeks ago we wrote of the landlord’s requirement to provide their full name and address (via lease documents) to their tenant, as well as notifying them of any change of name and address within 14 days.

Today... we have a short quiz for you.

Scenario 1: You want to lease a house with a dishwasher in it, but it’s not operational. You have a tenant who wants to lease the property “as is”, without a working dishwasher, to save a few dollars. You are completely transparent in telling them the dishwasher doesn’t work, and on agreement, document this in the lease as a condition of taking the property.

Can the tenant subsequently enforce you to have it repaired or replaced?
Section 68 of the Residential Tenancies Act, landlord’s obligation to repair, requires the dishwasher to be repaired or replaced, stating this cannot be written out of the agreement. The same applies to air conditioners, heaters and any fixed appliance. Effectively as a landlord you need to physically remove the appliance, in this case the dishwasher, to be completely safe.

Scenario 2: A tenant ‘skips’ leaving unpaid rent, rubbish and abandoned goods.

Can a tenant’s goods be dumped immediately after they have abandoned the premises?
Abandoned Goods, Section 97, prescribes that if the tenant ‘does a runner’ and leaves goods at the property, the Landlord has an obligation to track down the tenant and if necessary store the goods for a minimum of 60 days then publish in the state newspaper notification of this. So... the Landlord incurs loss of rent, reletting fees, costs for advertising, storage and to auction the goods. Then if sold for more than the reasonable costs incurred, the landlord must pay any balance to the Office of Consumer and Business Affairs.

Scenario 3: A tenant says they are a keen gardener and, as a consequence, rents the premises from the Landlord at a discounted rate. A condition of the tenancy is that they agree to completely take care of the garden.

Who does the pruning?
Any ‘specialist’ work in the garden, such as pruning, cannot be enforced by the Landlord, irrespective of what agreement is otherwise reached.

When it comes to managing property, there are hundreds of examples where common sense doesn’t cut it. From my observations and landlord feedback received, the Act needs modernising or we will see rents rise to cover the increased risk to investors.

It’s election time so get your politicians to look at modernising SA’s Residential Tenancies Act, to make it more competitive in the national housing market and more user friendly for all parties. A great start would be to get out of the dark ages and move to lodging documents electronically. This is, after all, 2010!

Be sure to see www.toop.tv for more on the Tenancies Act, including discussions over the next 3 weeks with Deputy Premier Kevin Foley about this and much more. Want to share your experiences? Log onto www.asktoopie.toop.com.au




Anthony Toop, Managing Director.


www.toop.com.au


© Toop Real Estate Group