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

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