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