Thursday, July 20, 2017

What’s trending in our market this winter?

How's the market tracking? This is one of the most common questions our team is asked out on the ground each week. Real estate is a hot topic and people are eager to know what's happening in the market, what their property might be worth and how house prices in their suburb or city are performing. Staying up to date on property market trends is key to knowing when it's your time to make a move. 

Team Toop has just released our latest Quarterly Property Report and we cannot believe how quickly the first half of 2017 has passed us by. Traditionally throughout the cooler months we see stock levels in the market sit lower than usual, but we've seen first-hand that this hasn't impacted buyer demand for properties, which continues to surge.  

Looking to the national market... the CoreLogic Home Value Index recorded a recovery from the 1.1% fall in May, now sitting at a 1.8% rise in capital city dwelling values over the month of June. It was also recorded in CoreLogic's latest Pain & Gain Report that 90.2% of properties nationally sold at or above their previous purchase price. Both stats trending higher than last year, indicating a strong market.

Back home... Adelaide remains the most affordable mainland capital city in Australia. With our stable returns and consistent growth it's clear that we are a highly attractive market for investors. Our local market continued to be extremely competitive in the second quarter of the year. For suburbs in sought after locations with relatively low stock available, we saw transactions occurring at a rapid pace. These suburbs included Norwood, St Peters, Leabrook, Malvern, Millswood, Aldgate, Mile End and Henley Beach. 

What stood out to us the most during the quarter was that Adelaide's auction clearance rate sat in the top tier of the nation at 71.8%, showing the confidence from buyers in our market. Sydney and Melbourne recorded 72.4% and 71.8% respectively. CoreLogic RP Data statistics state that not only does an auction help achieve premium results, but in South Australia properties sell on average in under half the time than properties listed for private sale. Serious buyers also benefit from this process as they can utilise their financial position on auction day to have an advantage over conditional buyers in the market.

The auction method in South Australia is certainly gaining traction, however, we are still behind our eastern state rivals who on average take over four to seven times the amount of properties to auction. Its popularity has maintained power throughout winter with auction activity increasing across the majority of our capital cities.

At Toop&Toop we have always been strong advocates for the auction process and this passion shone through at the Real Estate Institute of South Australia (REISA) Auctioneering Championships last week, with our team taking out top honours in the finals. Subject to a panel of interstate judges and incredibly tough mock auction conditions, Team Toop's Bronte Manuel made history by taking out South Australia's Auctioneer of the Year for the third year in a row! He will now go on to represent South Australia on the world stage at the Australasian Auctioneering Championships in September, held in Adelaide. Team Toop's Kirk Fernandez also took out the 2017 Novice Auctioneer of the Year!

From the entire team, a big congratulations 
to you both, we are so proud. Go get 'em 
in September Bronte!


Thursday, July 13, 2017

The rise of the ‘Rent-vestor’

Gen Ys are proving that perhaps, they really can have it all. And not just when it comes to breakfast and smashed avocado... but in property too. 

Let me explain.

If you are a 20-something year old, with a good job, living in a capital city across Australia, chances are you're looking to buy a property. However, the current climate makes this particularly challenging, especially if you live in Sydney or Melbourne. But the best thing with Gen Ys is, they don't see hurdles... they see ways to get around them.

The hurdle. Housing affordability coupled with the fact that Gen Ys want to be close to the action. Living near the CBD, beach or a trendy metropolitan neighbourhood is the dream location, but purchasing nice homes in these areas is simply unattainable for the vast majority of people in today's property market.

The solution. Gen Ys have found another way, where they can have their cake and eat it too. Introducing... the 'Rent-vestor'.

A Rent-vestor is a person who chooses to rent a home to live in, whilst buying investment properties to rent out. Essentially this results 
in getting 'the best of both worlds'.

The logic. By renting, Rent-vestors can afford to live in their area of choice, and they don't have to compromise on the modern kitchen or the second car park. A 12 month lease means it's super flexible. They're not tied down and can pick and choose new trendy areas, or relocate for career opportunities. And the best part is, it's all without having the hefty mortgage repayments that would come with owning that particular home. And while they are enjoying the perks of renting their dream home, they've purchased a modest unit - one with good growth potential, in an up and coming area. This property requires a reasonable (but achievable) deposit, and the Rent-vestor starts receiving a rental income that covers the mortgage repayments. And in a few years? The Rent-vestor's goal is to achieve capital growth as this will allow them to draw equity from their investment property, to in fact buy their dream home in their suburb of choice.

Hurdle. Overcome.

A simplistic view, yes. But on the whole, it is proving to be a creative way to achieve a win-win. The Rent-vestor gets to experience the financial security of home ownership, with the flexibility of renting. Unprecedented housing growth has created a new era of property ownership right across the country. Rent-vestor, aka genius.



Thursday, July 06, 2017

The new year is here… and we’re excited!

The new financial year brings new beginnings, and at Toop&Toop we are constantly looking at ways to reinvent ourselves and find new means to add value to our clients.

Our benchmark is to not only be industry-best, but to listen to what our customers want and deliver to this standard, if not exceed it. This is our goal, it is our mantra.

In Property Management, this means finding new ways to improve returns for our landlords, have a team that pursues knowledge at every turn, and provides an unmatched level of service.

And we have started this journey.

We've sought out external trainers from outside the immediate industry to bring together a holistic education on property investing. Our Property Management team recently heard from Grant Thornton on the new tax changes to ensure we are across the implications of the Budget 2017-18. This was 
eye opening for our team, as some changes weren't that obvious from the articles available 
in mainstream media.

We are also passionate about providing 
the best global tools in digital marketing to South Australia.

An interesting statistic is that as consumers, we are bombarded with over 10,000 ads per day. So in our world of real estate, it has never been more important to tailor the right marketing campaign for your property to cut through and engage tenants.

Introducing ToopCreate and ToopFurnish! These two amazing, game-changing tools are available to landlords to promote their properties in the best possible way!

Toop Create

ToopCreate offers landlords professional photography, 3D floorplans and the ability to visualise their dream home before moving in.

ToopFurnish

ToopFurnish gives tenants the power to digitally furnish and decorate their perfect living space online. Tenants can now drag and drop furniture onto an interactive and dynamic floor plan, giving them the ability to start planning where their couch will go, or confirm that their queen-size bed will fit in the third bedroom... all before actually attending an open inspection!

We have achieved unprecedented vacancy rates for our landlords over the last 12-18 months, currently sitting at 0.93% compared 
to the industry average of 1.8%. We know 
that investing in the right property marketing tools, means putting more money in landlords' back pockets. ​

With an average of 22 days on the market (compared to the market average of 47 days), we are excited to see ToopCreate and ToopFurnish take this to the next level. 

At Toop&Toop we strongly believe in providing our team with the knowledge and tools to achieve exceptional service and results for our landlords. This is just a small taste of the exciting things we have in store for the new financial year... and we have an exciting 12 months ahead!