InsideStory

No interest rate drop, what are they thinking?

2012-02-08T16:07:00.001+10:30

The Reserve Bank did not give us the expected rate cut this week and I blame our InsideStory column - too optimistic! We've been saying the market has been great this year compared to 2011, which is true, but I hope the Reserve Bank were not solely relying on our column for their decision this week - people are still finding it tough.

There remains a lot of nervous people out there, so at Toop&Toop we are taking one week at a time. I assume the Reserve Bank know more than we do...maybe they got it right, while seemingly the rest of the population of Australia got it wrong. Either way, their decision to leave rates unchanged this week was disappointing for property people.

Moving on, Toop&Toop have some amazing properties on the market at the moment...a real "purple patch". While we realise it may not continue at this level, those buyers out there looking for really lovely homes should not assume this level of choice will remain either. The reality is that once sold, these properties will be looked back on as missed opportunities by those who where umm-ing and ahh-ing. So take it seriously; properties like "Benacre" and "Carlton House" are generational opportunities; real estate of this calibre doesn't become available often.

If anyone reading this knows of friends or family wanting to sell, please ask them to call us. We have so many buyers running around at present - these gorgeous homes have generated an incredible number of enquiries. Despite reports on Tuesday that the local market is currently overstocked, we have certainly not experienced this problem at Toop&Toop. This flood of oversupply is likely to be "old stock" which has remained static for quite a while now. Right now at Toop&Toop, there are not near enough houses to go around, and we are talking in pretty much all price ranges. The demand is high, the supply is limited.

Landlords - all good for you. Hot demand and rents rising, it's all looking good for you. On the flip side, sorry tenants - it might be best to revisit buying right now; with prices down and rents on the way up, get some advice because buying could be a smart move at the moment.

Not getting that interest rate drop will stop any immediate pressure for property prices to rise, and remember, we are in a very solid space at the moment here in South Australia.
We will keep you posted on any changes in the market...in the meantime: landlords and sellers - call us, we need to hear from you!

Anthony Toop Follow me on Twitter: @Anthony_Toop or call 0418 824 188

All Things Change...how the wheels keep turning.

2012-02-01T16:41:00.001+10:30

Fads come and go, markets rise and fall, businesses boom and bust, people come and then move on... but some things never change.

Way back in 1988, Toop&Toop produced a corporate brochure - its title was "All Things Change". In those days, we had to "borrow" the father of one of our staff members to feature in the brochure so we had "someone with grey hair." Genevieve, our eldest daughter, also featured in it as a three year old. In those days, we were passionate about doing things better, doing things differently and reinventing an industry stuck in tradition. We wanted to show diversity.

The function of a traditional real estate agency was then, and remains today, at risk of becoming irrelevant to our information seeking customers, and that is why innovation is absolutely crucial for our survival.

We recruited people with passion and we were driven by our customer's needs. This led to an array of innovation and plenty of flack from the 'Ole Boys' of the industry.
It seems that while all things have changed, ironically at the same time very little has changed. The major difference is these days, we don't have to look far to find experience in our Toop&Toop team; when preparing for a photo shoot, we no longer need the fathers of staff to assist, the diversity is organic.

The future is amazing, providing our focus is kept clearly on our customers, and not on competitors, nor on ego. Competitors and fads will come and go, but if we ensure to do what we do best, our customers will always remain.

Our customer's needs are moving more quickly than ever. Providing we continue to predict and move where they're heading before they get there, we believe we can truly make a difference to our customers and our profession.

Our people are paramount to our business; they are the most critical link between innovation, systems and best practice for our customers.

Today, we see the return of one of our most passionate and enthusiastic Sales Partners, and we see the arrival of arguably the most highly respected and energetic real estate identities on the Fleurieu to our Victor Harbor Office.

Welcome back Peter Brown (Browny) and welcome aboard Roger Smith.

It is an honour to be able to support you both with Australia's most influential, highly awarded and sophisticated selling systems in the real estate industry. Your passion and commitment to your clients can not be questioned. Toop&Toop's desire to lead our profession and take care of our customers, through supporting our team with industry best marketing and innovation, grows stronger every year.

Some things never change... customers reward quality, they are comforted by experience and they respect results.

2012 is the beginning of an exciting new era, how the wheels keep turning.

Anthony Toop Follow me on Twitter: @Anthony_Toop or call 0418 824 188

Australians, let us celebrate...not just for one day but ALL year round!

2012-01-25T16:41:00.001+10:30

Wow, we are off to a great start in property this year; attitudes are good and people seem motivated and decisive, and to top it off, we have just celebrated our special day - Australia Day.

However, read the papers this week or watch the news unfold and you're likely to be pulled straight back into all the doom and gloom. So...let all Australians band together and turn OFF the TV News, I suggest reading only the sports pages in the paper (and real estate of course), and TURN OUR BACKS on the negativity of the media who are peddling doom and gloom simply to sell more papers or gain better ratings.

Let's face it, if the astrologers are right, there will be weird natural disasters all year; if the economists are right, Europe will be a basket case all year and we may as well all just stay in bed and close the blinds. For me, I'm not prepared to lose a year of my life worrying about what may happen. And it seems I'm not alone, there are many more like me; you just want to get on with life in 2012 and enjoy what we have today. We are VERY LUCKY to be in South Australia, so why not enjoy it.

Personally, it's all about living in the now and having a great attitude towards life, not jumping at shadows.

Last year the real estate market changed dramatically, so Toop&Toop adapted and transformed accordingly to meet it head on. Experience and history have helped us enormously. I would hate to be dealing with this new market without having spent the late 80s and 90s selling, when there were no buyers and both interest and unemployment rates were running at double digits - now that was tough!

Things are so much better now than they were then. Don't forget that in SA, we now have record low interest and unemployment rates, record low property stock levels and record start up capital projects; new mine starts of record proportions, a Defence battalion arriving, and some of the cheapest property in this country. To top this off, the SA rental market is running red hot so far this year, exciting for property investors, as rents are currently being pushed up; it's a healthy start to they year as investors will no doubt start buying again with this sort of demand.

This brilliant start to 2012 has been amazing, so good that we are now recruiting. Toop&Toop need to employ more sales people, and we're hoping you can help. If you know any motivated and smart property people - especially living near one of our offices - we want to know about it! Call me personally, or email through some details. Our brand new Golden Grove office (plenty of room for up to five more sales professionals) as well as our Victor Harbor, Glenelg and Stirling offices should all have additional Sales Partners. But here's the catch - we need brilliant, motivated people with a great attitude. Passion, enthusiasm and "coachable", because we do things differently at Toop&Toop; we constantly change and innovate, and we expect a lot from our people. These positions are not for everyone.

We transformed our business last year to meet the new market conditions; we're now stronger than ever and are taking the next step, employing even more brilliant people to become part of our exceptional team.

So until next week, be proud to be Australian, be honoured to be South Australian and let's show passion, enthusiasm and leadership; these are times where our experience, passion and character can lead the Nation.

Anthony Toop
Follow me on
Twitter: @Anthony_Toop
or call 0418 824 188

Week three, all is still good in real estate....LIVE IN THE MOMENT.

2012-01-18T16:28:00.001+10:30

As we said last week, the market in 2012 has started with great gusto but we're holding our breath waiting to see if this is a blip or a new year trend and the start of a new cycle.

It's way too early to call...but notably the Hills and rural areas have not seen any noticeable change from last year. On the other hand, the Fleurieu has seen the busiest start we have experienced in years.

Multiple offers, people arguing that they would have paid more after missing out to another buyer - all the issues associated with the boom markets have resurfaced in two short weeks... quite staggering.

The auctions start over the next two weeks and that will be interesting. Return to school will be the next phase, it always is. We will have a clearer picture by mid February. And of course, all the clowns arrive back from holidays in the Canberra Circus too, and they played no small part in what happened last year.

As we continue to point out, real estate is all about confidence. Essentially 2011 was an election year, with an entirely new and scary tax system - that alone was enough to kill a property market. Then Europe, yes it will continue to haunt us this year, but hopefully people will become more accepting, realise they're sick of all the day to day drama and just get on with their lives.

When it comes to property, housing needs change, and there is only so long you can put off moving. Last year with 30% less people moving, it's inevitable that sooner or later those people will reappear.

Prices? We watch volumes of people moving and movement of prices. Prices relate to affordability and interest rate drops directly impact on affordability. Reducing interest rates and rising salaries will combine to stem any downward pressure/movement, which was such a feature of last year's market.

However, the lower prices of 2011 are unlikely to bounce back to their peak any time soon. Why? Apart from affordability issues, Australia is now one of the most expensive housing markets in the world. The Australian Dollar has made us internationally uncompetitive for real estate, in my view, and this, combined with the tightening of policy on foreign investment, has impacted on our market. Many would argue this is a good outcome, I guess that depends whether you are a buyer or a seller.

So there you go. An amazing and surprising start to the year and for sellers, plenty of buyers committing. So enjoy the moment. Live in the now.

Anthony Toop
Follow me on Twitter: @Anthony_Toop or call 0418 824 188

Boom Conditions last weekend...what is happening?

2012-01-11T16:24:00.001+10:30

Sellers, it's BACK TO THE FUTURE at Toop&Toop...new marketing for real estate junkies in 2012!

Week 1 boom? An unbelievable start to 2012, but one awesome week doesn't make a BOOM. Sure we're feeling pretty happy about our decision to get back to work early, but the incredible lack of competitor agents working last week may have created this selling spree for our clients.

Let's see how the next few weeks go but buyers were aggressive, sales were swift and the opening of the 2012 selling season has been exhilarating. It's possible South Australians are sick of putting their lives on hold and understand that if you have a secure job, now is possibly the very best time in many years to get on with your property moves... investors are back in 2012 too!

Back to the future. At Toop&Toop, we built our business in the impossible markets of the late 80s, and again in the shocking conditions of the late 90s. We have gone back in time and picked the most successful innovations we introduced then, and made them 2012 savvy.

This weekend we launch the most exciting innovation since iToop - Australia's first real estate iPhone app. We have completely re-engineered our ToopWeekly magazine. Our 2012 weekly gloss magazine has gone back in time, including all the features buyers want.

A magazine produced to get listings, or a magazine to sell properties? Over the past 10 years the purpose of real estate magazines got lost. They became superficial, they went monthly, fortnightly or completely disappeared. They lost all their selling value with the dominance of online. But you DO NEED both.

Toop&Toop got lazy through the boom. We didn't really need the mag apart from getting listings, and we took the easy path and dropped the most important features that buyers needed. We dropped the most important detail of all, weekly open inspection times - too hard. We stopped putting every single property in it - too hard. We stopped putting any real detail like land size in it - too hard. We completely stopped pre-planning open inspections weeks ahead for our clients – just too hard, and not really needed in boom times.

Well now with 2012 technology, we've weaved together the best online marketing in real estate in Australia with hi tech printing technology. The result. Weekly - a full gloss printed real estate bible. This week we launch the real estate publication for real estate junkies.

Every single Toop&Toop client once again gets advertised UNTIL SOLD. Buyers get a functional one book that has it all, including direct index to every property's web address.
We haven't offered UNTIL SOLD advertising to our clients for more than a decade. We return to proven common sense selling principles, combined with our award winning Toop&Toop online selling horsepower. 2012 sees the return of a low cost and fully integrated approach to selling. Just like the old days - but backed with today's best technology.
Toop&Toop are back doing what we do best, selling, renting and auctioning houses like no other.

Get you property fix, get your copy of ToopWeekly at any Toop&Toop inspection or office this weekend. The ToopWeekly together with your free iToop app now work hand in hand - there is nothing like it.

Anthony Toop
Follow me on
Twitter: @Anthony_Toop
or call 0418 824 188

2012.....time to get serious

2012-01-04T16:07:00.001+10:30

Property owners, investors and sellers – it's time to get serious. Last year caught many of us by surprise. The market changed and I feel Toop&Toop took too long to change things up to match the demands of the new conditions.

In the second half of the year we did respond appropriately ending the year strongly for our clients. The changes really kicked in.

So what does 2012 look like from our perspective?

Firstly the market. Property relies on consumer confidence. With Europe remaining on a knife edge - this is the challenge for property owners in 2012. The silver lining is that interest rates may continue to fall. In 2011 with softening of prices, lowering of interest rates and increases in salaries, affordability has returned to high levels. The 30% drop in real estate transactions in 2011 meant there are increased levels of demand built up. There are a lot of people who need to move – and haven't yet. Given we have no blow out in unemployment, that is a very healthy set of indicators.

But there's more....

First Home Buyers have been dormant for 18 months due to the end of the First Home Buyers Stimulus Packages. This means we also start the year with a solid pool of First Home Buyers... again, a great scenario.

Available stock. There is none. There is no oversupply. In fact supply is as tight as a drum. This is significant and created by a number of factors, including the fact banks have been rejecting funding of developers projects for around 18 months.

But there's still more....

South Australia in 2012 sees the realisation of a string of massive projects - including the Adelaide Oval and Torrens redevelopment, (this will transform Adelaide), the new RAH, the BOWDEN development, the Southern Expressway.....not to mention the mining and the Defence projects....these are big stimulus factors given we are such a small state.

Boom time? I doubt it! However I am confident property will push through the global economic disasters that will challenge us this year. People acclimatise. We all get older and life goes on, there is only so long that people will put their lives on hold. South Australia is a good space in property.

What about Toop&Toop? Well in 2011 we have had to deal with market changes and changing consumer needs.

In the second half of 2011 while others are 'Corporatising', we 'Decorporatised'! Sylvia and I are completely hands on again working alongside and coaching our team, back to family business values again. Back to basics, but with intense focus on Innovation and reinventing real estate. We have refocused to give our clients the edge. Our mission is clear - do things better and smarter than competitors to give our clients the best outcomes.

2012 for Toop&Toop is about Leadership, Innovation, Results and People.

Anthony Toop
Follow me on Twitter: @Anthony_Toop or call 0418 824 188

The final report for the year...and what a ripper it is!

2011-12-15T08:44:00.004+10:30

Fantastic and very positive news came from the RP Data "Best of the Best - 2011" report on Wednesday, with Adelaide achieving notable results! We performed right up there with the very best in the Nation. The standouts for South Australia were Brighton and Mitcham, which came in 4th and 7th position in the Top10 highest median price growth list.

I have attached the full report to our InsideStory blog (download here); property people will definitely want to look at the report in its entirety...it will make your Christmas!

Now you may well ask the question: how does this reconcile with the reported 20% softening in the market this year? Well, the explanation I have is that there have been winners and losers in the market, with Top End properties proving to be the overall standout winners. While first home buyers have been lost for most of 2011, the bonus for property people is that there has been a skew to the activity up the food chain. This has helped hold official median prices at an optimistic level.

Home sellers know how tough it has been, but let's bask in the glory of some really outstanding stats and just enjoy the moment!

So, on the practical side of selling properties this close to Christmas, right now is the time you need to set your 2012 selling strategy. As we pointed out last week, it is imperative that those looking to get a move on with the sale of their property contact one of our team to run through some high energy, new year marketing strategies. We have set up some great initiatives and we're helping with the sale costs in January. So NOW is the time to get on board!

To all our clients and friends of Toop&Toop and to all the Community, a very heart felt THANK YOU for all your support through 2011. To our very special Toop Team, a public thank you to you all, your efforts have been amazing under tough conditions.
Have a happy and safe festive season, then when you are ready to get serious, be sure to give us a call. We are ready to throw every ounce of energy and expertise behind you to support your sale in 2012.

Thank you again, your loyalty and support has been very much appreciated.

Anthony Toop
Follow me on Twitter: @Anthony_Toop or call 0418 824 188

Forget Retail...buy a house for Christmas!

2011-12-08T10:13:00.001+10:30

Father Christmas has arrived just in time for homebuyers… that's if your bank passes on the 0.5% savings the Reserve Bank has made in the past 2 months.

Think about this. The reality is that a $700k house you may have bought in 2010, today you can buy that same house for around $650k or less... and there are plenty of examples of this, just ask your neighbours. Add the savings from the last two interest rate drops – that gives you another say $22k to play with. Either pocket the savings or buy a better house… either way it's got to be fantastic news.

So every one is asking, ARE WE AT THE BOTTOM OF THE BARREL FOR PROPERTY PRICES YET?

No one knows? But what we do know is that houses are great value, and if you have a stable job, this is the time to start moving up, or buying up investments. As we said last week, luck alone picks the absolute top, or the absolute bottom and this is seasonally a very good time to be buying...and many informed commentators are predicting that we have already bottomed out in SA.

Last Thursday I recorded an exclusive interview with CommSec's Chief Economist Craig James, where he predicted a 3% rise in property prices in 2012 in this state. To view this half hour interview, simply log on to www.toop.tv and click on Fireside Chat – there are some very interesting predictions for property owners in 2012.

Father Christmas delivers to sellers too...

Now sellers of property, we need to hear from you this week! We have a 2012 recessionary marketing initiative that launches in January; a high energy approach to getting your sale. Much of the costs for this once off initiative will be borne by Toop&Toop - we're playing Santa in January.

While competitors play catch up with our online dominance and video marketing, Toop&Toop will reset standards in customer service and communication in 2012. I am so pumped up with what we believe can be achieved as the iPad2 and tablet market takes off, and smart phones dominate. We have been there from the start, and our clients are about to get pay back as we tap into this tidal wave of users. Online is absolutely made for real estate marketing… a gift from heaven in tough times. Video is huge!

Unlike last year, Toop&Toop are prepared for tough selling conditions in 2012. We say bring it on as we have seriously changed things around. I have fast tracked and thrown everything at getting our online marketing and database selling to another level of sophistication.

Sellers will win because Toop&Toop will have the buyers!

Buyers will be like kids in a lolly shop with what we are currently working on and set for release early 2012.

Call right now to sell in January.
Anthony Toop
Follow me on Twitter: @Anthony_Toop
or call 0418 824 188

³Caveat Emptor²... Buyer Beware

2011-11-30T16:37:00.001+10:30

Chewing the fat yesterday with Tim (Thredgold) who has shared 24 years with me in the trenches - and I might add for those pessimists out there, through much worse conditions than now - Tim brought up a great point. Buyers may have forgotten that to buy a property… they have to actually make an offer or bid at the auction. Quite hilarious really, the fact that there are buyers circulating the inspections who just need to say...."We like it", then actually buy it!!

I quote Tim: 'We hear, at our opens, "…there's not much on the market…" and "…oh we think we'll buy in a year or two…" or "…it's a buyers market so we'll just keep looking…"

Tim goes on to advise buyers 'Well it is time to make an offer. Many current sellers are very keen to sell prior to Christmas... but unless you make an offer you'll never know what could have been....We'll then deal with your offer and present it to the owners... give you some feedback ... who knows you may just buy a property and end the drudgery of walking through opens week after week - and have something really special to celebrate this Christmas.'

Most sellers are happy to sell when they get a fair price. The sellers understand where the market is now. Conditions appear to have stabilised.
Over the many years, I've seen buyers put their lives – and the lives of their families - on hold. Always waiting for the end of the boom, the bottom of the market, the freeing up of finance, the drop in interest rates, and so on. There are 101 reasons not to do anything, but unfortunately we only get one crack at life and in these times our lives can simply pass us by.

Buyer beware, don't put your lives on hold, seize the day and make the move. This is a great time for you to get hold of a beautiful piece of real estate and make it your home.

Next week we'll have an end of year wrap. I caught up with Craig James (CommSec's Chief Economist) on Thursday and now have all the latest facts and predictions from those in the know.

Looking to buy or sell? Call or email me, Anthony Toop
0418 824 188
anthony.toop@toop.com.au
or follow me on Twitter: @Anthony_Toop

November is now done....sales have really stepped up as buyers seem to have switched on again....hooray.

2011-11-23T17:43:00.002+10:30

Some massive auction results last week with another $3+million sale under the hammer and a $2 million sale with 10 registered bidders! There are buyers everywhere, so we need to hear from you if you're selling.

So… what if you need to sell before Christmas?

From this week on we have modified selling strategies and shortened auction campaigns to get sales across the line for our sellers. This is a time of the year that clients really want to see some action and that takes a lot of focus from our end.

Suppliers - like sign writers and printers - are harder to pin down, yet unlike previous years we are gearing up for a busy end to 2011. We sense that the sellers are in the mood to do the deals and buyers recognise that this is as good a time as ever to just get on with their purchase, and are doing just that.

The peak amount of interstate and international activity occurs in January and we want to ensure our clients get access to these buyers....lots of "lucky sales" in January every year.

So.... here at Toop's it's flat out right to the line on Christmas Eve, a few days off through to New Years Eve, and then pedal to the metal making things happen for those wanting sale results with both online and traditional marketing machines running flat out.

Video commercials are absolutely gold for selling online over this period and our Toop.TV crew are busy getting commercials edited and online for this busy time. Our Toop.TV crew are so exhausted that I have insisted they take a couple of weeks off, so ring ASAP to get the video commercial ads done prior to Christmas and online straight away. They're an incredible way to sell property yet help save buyers coming through your home over this period. A great qualifier and buyer filter too.

So make your move now, get organized and get your sale happening. There's a saying, "if it is to be, it is up to me", we just need to make these sales happen for you but we can't do it with out your help. Ring now

Christmas at Toop's is about getting that sale done for our clients.....I hope we can deliver for you.

Anthony Toop
Follow me on
Twitter: @Anthony_Toop
or call 0418 824 188

Landlords impacted by State Government cut backs....

2011-11-17T10:44:00.001+10:30

Massive Delays....Residential Tenancies Tribunal blame cuts in funding for massive delays getting cases heard and bond refunds to Landlords with claims against the tenant.

TRIBUNAL DECISIONS.....The imbalance between outcomes for Landlords verses tenants anecdotally seems to be widening too as decisions coming from Tribunal Hearings often leave landlords shaking their heads in amazement.

The situation has got so bad that Landlords commonly accuse agents of "working for the Tenant" as they are advised of the Tribunal formula's applied to claims, the delays and of the surprise decisions being reached in this tribunal environment. For the novice, it is quite an eye opener where logic and fairness seem to have little to do with reality.

This week on www.toop.tv we open up the discussion on some of the weird stuff going on in this space. If you are a landlord, you need to log on and watch this weeks show.

Sales.....yep the year is nearly done and South Australia will end up in a reasonable space to finish 2011.

I was talking to some really smart real estate mates on Tuesday night at a function - one is deeply involved in Whyalla....he says the predicted demand from the much talked about mining boom is already under way up there, and to move quickly.

At the same function I was getting the inside goss an where those close to market forecasting think things are tracking in property....18 months is the timeframe "smart people" are now honing in on as to the start of the next cycle for South Australia.

If you haven't already done so, you must log on (www.toop.tv click Fireside Chat) and watch my Ralph Norris MD & CEO of Commonwealth Bank interview on his predictions and advice to us. We are following this closely as our market is caught up between Europe's meltdown and our own great infrastructure and mining announcements.

I have got the Gurus booked in for Toop.TV in 2 weeks time so I am very excited about getting a December update on all things property for you all for the end of the year.

Last Friday I was a guest on Your Money Your Call with Chris Gray in Sydney, the night went well where we got great national coverage on the fact Australians should be investing in South Australia. The phones have since been ringing from people around Australia considering investing here....shhhhh, don't tell them about the Residential Tenancies Tribunal, hey!

REMINDER; the year is nearly done.... if you are selling this year, time is almost up. Call us NOW to sell.

Anthony Toop
Follow me on Twitter:
@Anthony_Toop
or call 0418 824 188

Curtain comes down on 2011... has the boom returned?

2011-11-09T16:28:00.001+10:30

Last weekend you could have been excused for thinking the market had changed and it was party time again for real estate. Toop&Toop again had an incredible weekend with 7 out of 8 auctions selling, and we were on fire. So has the market suddenly changed since the rates dropped?

...while on another key matter, do sellers realise that we are only a few weeks away from missing the boat for 2011 sales.
First the market. Yes, Toop&Toop kicked butt last week. A better than boom weekend of auctions backed up with a string of multi million dollar private sales.

BUT no, the market has not fundamentally changed, and is unlikely to for quite a while I expect. What has happened? Sellers have worked out the advantages are enormous for getting good advice early on in their sale. The days of flippant buyers have well gone and we are operating in a predictable and less emotional market. Good decisions early are making a difference.

Auctions are working in classic style as owners become educated that a well priced property will sell before, at, or straight after auction, and competition is likely if the market is good enough. It is the competition that sorts out the final sale result as witnessed last weekend. The final sale price has been very fair and in recent cases has resulted in a pleasant bonus for auction sellers. The auctions are starting to fire up again.

Buyers are active, and as predicted last week in this column, they are again committing since the rate drop last week.

The curtain is closing on 2011 sales. Sellers, get your skates on. Toop&Toop are launching our special end of year selling campaigns next week to ensure a sale this year. Sellers must get under way urgently if your sale is to be done properly. Selling late December is ok but we do run into issues with some suppliers in getting properties prepared.

We will finish the year on higher sales volumes, while prices appear to have stabilised....this is the return of the balanced market.

Call me or any of the Toop team over this weekend if you want to get things moving, we need more properties urgently.

Anthony Toop
follow me on Twitter:
@Anthony_Toop
or call on 0418 824 188

Rates drop, so will prices rise??

2011-11-03T09:07:00.001+10:30

First let's see what the experts say… RP Data provide advice to the Reserve Bank so they have to be listened to when it comes to their views on the property market. We interviewed RP Data live on Toop.TV Wednesday, and if you are selling or buying, you really need to log on to www.toop.tv and hear their 'post interest rate drop' predictions first hand.

Here are 5 key points from their latest national market report ....
1. "Australian housing market correction slows in September.... capital city home values had their best result in 7 months (down just -0.2 per cent seasonally-adjusted and raw)"

2. "With home buyers budgeting on 2-3 rate hikes in 2011 that never eventuated, the housing market has been weighed down by concerns about family's future finances. The RBA's apparent switch to an "easing bias" ........"housing market has undergone a controlled correction."

3. "Notwithstanding the extraordinary hysteria whipped about house price bubbles and so forth, the fact is that the gross total return of 0.7 per cent generated by Australian housing in 2011 is very reasonable in the scheme of things. Indeed, it looks positively attractive compared to the extreme volatility, and stunning losses, sharemarket investors have had to endure."

4. The number of homes advertised for sale remains high, which RP Data's Tim Lawless suggests is one of the key explanations for the secular softness.

5."We are counting almost 300,000 homes advertised for sale across Australia, which is more than 30 per cent higher than the same time last year. The large number of properties available for sale implies buyers will continue to hold the balance-of-power at the negotiation table," he said.

These comments are based on a national perspective and South Australia has been consistently tracking mid ground when you drill down in the reports. Yet again South Australia is steady and one of the least volatile markets in the country, which in turn is one of the most stable in the world, we should be very happy.

What is not apparent to those outside the industry is that volumes of transactions in September 2011 were at an 11 year low. This means less people have sold and purchased while stock levels have ballooned. Ironically the weekend Advertiser last week carried just 2000 opens which is down substantially on last year. This is possibly explained by the dynamic of less new stock being released this spring compared to previous years (sellers put off because prices are not as they were previously), and the fact new releases typically have an initial advertising budget for press, while old unsold stock remains without ongoing advertising budgets and seem to get parked on internet portals like realestate.com.au . Many sellers cross their fingers hoping for that miracle buyer who has been in a coma for 12 months.

There are winners and losers in this market. Winners sell first, then buy. Sellers invariably get caught with optimistic expectations of their own property. This market is sensational for those who sell first. Buying additional property or a first home, you are winners over boom time buyers. When buyers and selling in the same market you are in a neutral position but there are less costs when prices are lower.

Sellers who understand and adapt to current conditions are getting sales in a short space of time. Buyers are plentiful, they are active and they are buying, but they are ultra discerning.

My predictions based on the rate drop... we will experience an immediate adrenaline rush of activity for a few weeks followed by a progressive return of the first home buyer to the market. Activity and sales volumes will rise for November. Investors will gradually return in search of the relative safety and simplicity of residential property investments. Lower funding costs and improved rents are attractive. There will be little capital appreciation with possible exceptions such as our underpriced top end and our mining affected markets. The downside risk of SA property has been reduced given our past year's price and volume adjustments. International financial woes will keep sentiment nervous for 2012 while local infrastructure projects will help offset these negative influences in SA.

Steady as we go for an extended period with (what I term) a "boring" market for South Australia, where "boring" will be considered awesome news for the long term property investor.

Invitation... Next Thursday 10th we invite all Golden Grove residents to our community opening of our brand new office. From 5.30pm come along and check out our Historic Golden Grove Homestead at 8 Sandstock Blvd - all GG residents welcome.

Anthony Toop
Follow me on Twitter: @Anthony_Toop

The Real Estate Jungle...the best and the worst seems to come out in people when the going get¹s tough.

2011-10-27T10:44:00.000+10:30

First, let's start with the best....by Saturday night at 11pm I was on a massive high, having had 100% success rate with my 3 property auctions, 2 huge open inspections, a lightening change into 'tails' and onto auctioning at the PinkYellowBlue Ball for Flinders Medical Centre Foundation. What a night, a record attendance of 730 guests, a record $75,000 paid for a single item with Gordon Pickard's Triple 8 boat! Wow, what a thrill!

At my Rose Park auction on Saturday we had 10 registered bidders and a 40 minute auction ending a long battle - yet with a great outcome for all parties, well over the reserve....it sure was a battle! Could the boom be back?

The market is as tight as a drum with spring releases down substantially on volumes last year while buyers are generally tough and conservative. There hasn't been an oversupply created so far this spring... which usually occurs at this time of the year. Weird dynamics. There are buyers everywhere - but they're playing it hard. Sellers are frustrated that they're not (generally) getting sales in line with their expectation, and until they meet the new market pricing , they don't receive any offers. Then the twist: buyers are missing out because they're playing hard ball with vendors and are trying to be too tough. How do you figure that?

It isn't actually a buyers market, yet it is tough. But… at the right price, there are plenty of buyers. So the market is actually settling in to a new phase now.

OK… The Jungle - part two of this story. I've been in real estate since 1978. Even in those days, agents had a certain code. Not the professionalism expected of today's agents, but there was an order. One of the biggest NO NO's was (and still is) to "go behind the sign". This is an industry term for direct soliciting… for attempting to take business away from another agency even though it is obviously listed by that company, and doing so without invitation from the seller.

This Code was important to 1) protect sellers from being harassed, 2) protect seller privacy, 3) show respect for a sellers choice of agent, and 4) show respect to fellow agents. Wednesday, I spoke to "C.W." from a city based franchise office - after having left a message for him a week earlier. His business cards have appeared on the front doors of our clients' houses with what looks like a hand written message saying "sorry I missed you, please give me a call regarding your property". I was shocked with the conversation that ensued when I spoke to "C.W." The Real Estate Institute of South Australia (REISA) Code of Conduct only applies to members, so be aware, not every one is a REISA member. "C.W." assured me he would continue placing cards on seller's property doors! Sellers, you have a right to be left alone. You are at liberty to initiate as many invitations and opinions as you wish, but that needs to be your call.

If you're in business, a Commonwealth Bank customer or just interested in the economy, be sure you see Ralph Norris' exclusive interview with me on Fireside Chat at www.toop.tv.

We need houses to sell, so call me on 0418 824 188. Time is running out for 2011...

Anthony Toop Twitter: @Anthony_Toop anthony.toop@toop.com.au

Awards Awards Awards.....do Awards really translate to better results for our home sellers and landlords?

2011-10-20T09:04:00.001+10:30

To answer that - you need to understand what it is that drives an organisation. What the people inside an organisation think and how they act. I believe awards give clear insight into the culture of a business.

It's no secret that Toop&Toop have a 26 year history of winning awards. It was after several years in business when we began to win our really big awards... including the coveted Australian Customer Service Award. This was a decade prior to the real estate industry commencing their Awards program in 2005.

An incredible highlight for me was receiving a personal letter of congratulations from the Prime Minister. Last year being awarded the pinnacle of SA awards, the 'Robert Torrens Award', for service to the profession, winning National Agency of the year twice and being first inducted into the Agency Hall of Fame were all very close seconds.

This year, to be inducted into the 'Community Service Hall of Fame', while my brother Lew was awarded the 2011 'Community Service Award' was a special and very proud moment for me too. As a home grown South Aussie, these awards hold a particularly special place.
But how does this all relate to you. What relationship is there between Toop&Toop doing better things and getting better results... and how does that translate for our clients and customers?

It's all about culture. It's about creating an atmosphere where being the best is important. About being proud and motivated to go that extra mile. It's about knowing that every year we choose to put ourselves up against any new or improved competition. It's the only true benchmark we have to judge ourselves against and to drive positive change constantly. There is nowhere to run, nowhere to hide… the results are the results.

It's about being scrutinized by the judges, leaders in our own Community. It's about bearing all and letting audits be conducted behind all the smoke and mirrors....this is intimidating and revealing for all our team, but they do it willingly.

Claims are easy, reality is tough, and all claims have to be substantiated. The tough stuff… we don't always agree with the judges decisions, but that's the price of being subjected to often subjective assessment.

Sure anyone will admit you can fluke it once in a while. You can maybe win when you are fresh and exciting, you can impress the judges on the day.....BUT....the one thing you can count on, it's just not possible to win these awards year in year out with out running a damn good business.
So, do in fact, awards relate to better results for our home sellers and landlords?

In our case it's a resounding yes. Our culture of performance, our commitment to innovation, our self imposed standards of customer service and our pride are all linked to being the best operators in the Nation and world leaders in Innovation in real estate. We know quickly when we are off the pace, we know when we are kicking goals.

While we have pretty much Hall of Fame'd our way out of our 'FAMOUS' categories in the REISA competition, we still have much work to do. We need to change our business to win for our clients against the changed market conditions.

2012 we are focused on lifting our service levels to new nights, harnessing new technology and stepping up our training. We are passionate in (& love) achieving results when competitors can not. We are completely absorbed in lifting the bar.....and if we achieve our goals, the awards will follow.

So to all that have had the courage to enter these awards, whether finalists or winners – congratulations you deserve the recognition.

At the end of the day, our greatest judges of all are YOU!

follow me on Twitter @Anthony_Toop or call on 0418 842 188

First Home Owners are back!

2011-10-13T14:47:00.002+10:30

What a surprise, this past 2 weeks the first home buyers have come out of hiding and are back at the open inspections and firing up.
Why??
It seems that the new market conditions have seen prices soften to such an extent that this group now feel it's time to jump in and get on with things. There may be some logic to it as well.
My view is that people (markets) will only put their lives on hold for a short while… eventually any market acclimatises to the prevailing conditions and then away it all goes again.
There are some other factors too... Spring releases in 2011 have not been as prolific as they could have been, while buyers are currently securing their new homes at around 2005-06 prices. With the next interest rate movement likely to be down.... perhaps the mood has changed indicating here is an opportunity to jump into the market.
Markets are incredible.
How do unrelated buyers act on mass like this, it's as if there is a secret communication system operating out there? Whatever has happened
– it has been exciting.
As for the rest of the market, it is settling down to a new NORM. It's really just back to the good old days - where a home must represent good value and where buyers are not rushing around, they are looking around.
Our sales team have (and are still) relearning how to sell - most agents today have never had to do this. It's all settling down now as reality sets in for all.....buyers, sellers and real estate people are all having to adapt to these new norms or they are getting out of the "game".
Be sure to see our 100th episode of Toop.TV this week, where you can experience first hand one of Adelaide's most incredible homes. So whether you're a First Home Owner or have done this a couple of times… call me on 0418 824 188 to get you started.

Inside Story

2011-09-28T17:20:00.001+09:30

Footy Fever V's Real Estate Fever

Toop&Toop have had real estate fever with a huge week of sales, but what impact will the long weekend of sport - including the AFL Grand Final - have on our fragile spring property market?

The obvious impact is the drop in open inspections in the real estate pages this week as weary sellers and real estate agents take the opportunity to have a weekend off.

There is good news. Sales have been amazing so far this spring - which may come as a surprise to some. The one clear difference to market conditions this year compared to conditions in the late 90's is that "we have buyers". We have heaps of buyers!!

I was selling properties when interest rates were 15% and unemployment rates were double digit. Under those conditions we not only had prices in free fall, but there were no buyers and real estate was totally dead. Mortgagee sales were common and things were really tough. So we haven't seen anything yet in 2011.

I commonly hear real estate people say "this is the toughest I've ever seen it". That is clearly because those people have only been in real estate for a decade or so. Those of us who have been through the late 70's, early 80's and late 90's know that this market is a breeze compared to then. We have buyers galore, we have people employed, and we have ridiculously cheap interest rates.....so stop whinging and get selling is what I say. It's all about relativity.

Sales are a breeze once a seller has decided they are serious about selling and prepared to accept reality.

The bitter pill for all of us is that the prices we can achieve today are sure not the prices we would have achieved at the peak of the market....but then again, what about the "poor" share investors. You don't hear them whinging all the time. Most share investors accept how stock markets operate and work with it.

Property owners have a lot to be thankful for.

In September Toop&Toop have made 1 x $4 million+ sale, 1 x $3million+ sale, 2 x $2million+ sales and 6 x $1million+ sales. In just 3 days and 3 sales last week we sold over $8 million under the hammer.

So for those agents and sellers it is time to stop whinging, stop sooking and accept the reality of the new conditions and work with it. The world has changed, the real estate peak is over and we have a new era of cheaper houses - so enjoy it. Falling real estate prices and share markets are a worldwide phenomena so we are actually not that special here in South Australia. Let's be thankful we are having a better time than most around the globe.

Let's be real. If you are buying and selling in the same market you are saving money in agents commissions and in stamp duty. Providing you sell first, and then buy, this is a great time to be moving. Given competent agency marketing, up to date negotiation skills and correct price expectations....buyers are active and they are buying!

So this long weekend, prepare for real estate fever as the run up to Christmas get's underway next weekend.

Regards

Anthony Toop

Note: Be sure to see this weeks episode of Toop.TV - we have a frank discussion about shares and property.

It’s awards time again... yawn!

2011-09-20T13:18:00.001+09:30

Sellers - not so quickly….

Given recent RP Data research showing that South Australians on average hold their homes for just over 7 years, deciding who the best performing real estate agency is at the time you want to sell (or lease) your property is near impossible.

Times change in 7 years - change a great deal.¶

So how do you determine who the best operators are right now? The top real estate agent in 2004 may not be the best in 2011, and the best agent during the "boom" may not have a clue how to sell in this tough market.

As an insider, it's pretty clear. One of the best benchmarks of a wellrun real estate business is through the rigor and auditing processes associated with business and industry awards. Sure, award wins can sometimes be luck, but luck will only bring about random results. Consistent year-after-year wins of credible and competitive industry-based awards are not possible without ACTUAL excellence - ACTUAL results.

This week our amazing Toop team beat great odds in achieving 10 finalist positions in the Real Estate Institute of SA (REISA) Awards of Excellence - congratulations to all!

Why do we say "beat great odds?"

Because we're literally running out of categories we can compete in. Toop&Toop have been honoured with Hall of Fame in 6 of our strongest award categories - that means we've had 3 wins in 5 years for each of these categories - now that's hard work. As a consequence we can no longer compete in those areas that help make us one of Australia's most respected and highest profile agencies.¶

We have achieved Hall of Fame status in all these categories : Large Residential Agency of the Year 2010, Sales Person of the Year (Peter Veitch) 2008, Large Property Management Agency of the Year 2010, Innovation 2010, Community Service (Anthony Toop) 2011 and Website of the Year 2010.¶

Such a privilege - yet so tough to no longer be able to check in each year and benchmark our year's performance against the best of the best in Australia.¶

Along with SA awards, we've also been honoured with top awards from the Real Estate Institution of Australia (REIA) - National Large Residential Agency of the Year in 2007 and National Small Agency of the Year (Stirling) 2011. These achievements were career highlights.

Make no mistake that these are pinnacle industry awards. They're almost impossible to win against the big hitters around the nation, and these great achievements show just how good South Australian real estate agents are.¶

For entirely different reasons, this week REISA announcing Toop&Toop's 10 finalist positions has shown a great depth to our team we hadn't previously acknowledged. Congratulations to them all. With winners being announced in the coming weeks, be sure to watch this space!¶

So, if you're not sure where to start in your search for your real estate agent this year, take the safe option. We would be honoured to show what passion and commitment can achieve for you, especially in a tough market.¶

If 2011 is your moving year, it's no yawning matter. Pick up the phone today, NOW is the time to get moving - right now !

Things are a changing.....and don't we know it!

2011-08-24T17:43:00.003+09:30

In the online environment, video has become the new 'picture', and social media has taken a leap forward by pushing communication out on a scale that is hard to imagine - online media is steaming ahead, we either adapt to change or we get left behind. Consider this:

How is it that a tweet of mine last week - and I thought I only had about 6 followers - ended up in Friday's edition of The Advertiser as a quote of mine? Yes. I was named, and the quote was correct.

How is it that last month our online live and interactive real estate show - Toop.TV - saw viewers from 30 different countries - most common being the UK, followed by the US?

How is it that this very real estate blog - our weekly InsideStory - reaches not only people locally, but nationally and internationally as well? Since the beginning of the year, InsideStory has had over 400 overseas readers, from over 60 different countries.

And how is it that this week, we sold a house for close to $4 million and not even the neighbours knew about the sale!

How? Because things are changing in a BIG way.

The reach Toop&Toop are getting through the effectiveness of our online video 'sneak peak' promotions for clients and the way we are now able to spread the word about a property was inconceivable only a year ago - 12 months later, look where we're at - it's new, and very valuable territory. We're currently in our final stages of bringing together a dynamic, innovative and future-driven media mix for selling your properties. It will enable us to reach a previously unattainable market and launch us - and your property - into the online media arena, allowing us to engage with consumers like never before. It's extremely exciting and we can't wait to share it with you.

Now that buyers are doing all their real estate homework from the very comfort of their own home, at work and in the coffee shop on their iPad's, it is no surprise that by the time they physically come to an open inspection, they are ready to buy it!!

26 years in business tells me that real estate agents need to now move swiftly into the new place clients are found - if they don't, they'll surely be left behind. We also need to understand some fundamental changes in buying habits, like shortening our auction campaigns. Today, a buyer's first appearance at the house is actually equivalent to their second viewing in the OLD DAYS - and they really ARE the old days. The dynamics and pace of selling real estate have changed - whether we like it or not - and we as industry professionals need to understand this, accept it, embrace it and move forward.

WHY? What has changed so dramatically, so recently? It is the proliferation of smart phones, the arrival of the tablet - especially the iPad - and the fact you can surf the net on high-definition TV screens while relaxing on the couch! For example, this year traffic has increased four-fold on iphone.toop.com.au compared with last year; July alone saw 1,933 visits and this month we've seen an increase in usage by 360% - these are some serious statistics - all the more reason to jump and hold on with both hands! All the rules of marketing are shifting, and not just with the young ones either - high powered top end clients are leading the charge, and this is just the tip of the ice berg.

Embrace the new - things are a changing alright!

Winners are grinners....and there was a lot of grinning.

2011-08-17T16:47:00.001+09:30

Last Friday night the Toop team got together for our Annual Gala Awards night to celebrate our successes. It is a great chance to recognise all those who go above and beyond. As per the Toop tradition - the night was spent enjoying a crazy theme and a huge amount of fun.

In such a challenging market - this year had extra importance for us. It was a night where partners of the team were also celebrated for their contribution to our business - the business of helping our clients. Our heart and soul goes into doing a great job and at the moment in particular, the demands are unbelievable.

The consumers and community seem so stressed. Buyers, renters, sellers... pretty much everyone is now needing constant reassurance and support from their real estate agent.

Anyway, I guess Toop&Toop are in a great position - having gone through three of these very tough periods in our 26 years. We know the changes that need to be made and we need to draw on previous experiences. It is so different selling in this market - compared to conditions just six months ago or even three months ago. You really have to be on the ball now and totally committed. This is not a time for the inexperienced or part time operator. Everyone is back to basics - yet trained and able to use the very best technologies and tools.

One thing we do know is that buyers always buy, sellers will always sell and people rent… in all market conditions. As agents we acknowledge we need to do things differently if we’re to be a part of this. The three non-negotiables for real estate agents in these conditions - 1. the ability to fully engage the buyer, 2. to have an extremely efficient marketing machine and 3. to be great negotiators.

The reality is that generational profits are made in uncertain times. As long as you don't over commit - there is an amazing opportunity to upgrade or buy property now and get so much more for your money. Unlike shares, you can touch and feel property. Property is rock solid and always has a value.

When the going gets tough, the tough get going. Well done to our entire team who just keep making things happen - we sure are passionate about property.

Mortgagee Sales....they’ve started !

2011-08-12T09:45:00.001+09:30

"Hands up who’s handling properties where the sales instructions are from the bank…", wow - 4 hands went up in just one of our office training sessions. I don’t recall having had that number in the whole of 2010… things sure have changed.

So what do you do if you’re under pressure to sell from a Bank or a Lender??

Step 1 : First of all, take action the minute you know you have a problem. At the first sign of mortgage stress, get on the front foot and start communicating with your lender. Most people we see in serious trouble are those who were in denial and then lost valuable time.

Step 2 : Source one of the many credible financial advisors around - or someone like MyBudget - to help you develop a strategy to deal with the issue.
If you act in time - the Banks will work with you. They are extremely helpful in most instances - as long as you keep them informed and you’re 100% honest with them - and you act early enough. Lenders also tend to be less nervous if they know you’re getting good advice.

Step 3 : If a sale is what you need - let us know. We’ll give you solid advice on how to sell quickly in this market - and importantly, how to get the most money possible for your particular property. We can also help with the communication to your lender - this may take the pressure off a little.
Keep in control of your sale, act early, get the best advice and you’ll save yourself some serious pain - not to mention dollars.

It certainly is tough for those who can’t afford their mortgage commitments, we get that. Don't feel embarrassed - no one can escape the market - we work with it every day and understand it.
Experience and specialised marketing does REALLY count at the moment.

Call me on 0418 824 188… and I’ve just started tweeting so I may be able to help there as well.....Anthony

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

"Showdown"... the best of the losers!

2011-07-29T09:47:00.002+09:30

2011 footy and today's investment game seem to have some common ground? This week we had 'Showdown IV - Property vs Shares' - a funny, yet serious debate on Toop.TV. If you're up for a smile…try watching it rather than this weekend's footy.

The Baker Young Stockbroker team took on REISA and it was gloves off. I'm not sure how many reports will be made, but judges are currently reviewing the Toop podcast - looking for blatant breaches of fair debating and excessive team spin.

Judges Melvin Mansell, Keith Conlon and Snowy (Jason) Carter boldly announced the winners as property - apparently by a small margin! The debate broadcast live at 1pm last Wednesday on Toop.TV including a live public vote. The public's choice - also property - by healthy 32% margin.

The losers picked up the anointed, while winners were crowned in glory - literally. Very funny!

This week, "SA's Finest" showcases an incredible home in Crafers....the video is definitely worth a look.

My IT guy is making me 'tweet', so anyone with a house to sell, tweet me @Anthony_Toop on Twitter!

38 days to sell…BEWARE OF SPRING

2011-07-20T17:51:00.004+09:30

38 days to sell…BEWARE OF SPRING

Yes - it’s 38 days till spring and if you’re thinking of selling - then spring is definitely a time to be wary of. WHY??

Typically - everyone thinks spring is the best time to put their home on the market. The truth is spring - and especially late spring - is when the market is at its most vulnerable. Every year we remind sellers of this. Every year most ignore the warnings and guess what, every year we have to deal with the frustration of long periods on the market and softening demand.

Personally, I believe if the Reserve Bank doesn't work out that we need an urgent interest rate cut - they are completely out of touch. Confidence is teetering on the verge for most and a good old shot of lower interest rates now, would stabilise things in our backyard.

Look at what is happening globally - the Murdoch saga and the collapse of 'News of The World', the international financial turmoil and the Federal Government totally out of touch with Australians - no wonder confidence is on the edge.

The reality is we now have more new buyers starting to look for the perfect property. There is an opportunity to buy well, but there are hardly any properties to buy. Normally this would lead to big price hikes and upward price pressure. Of course, the reverse is occurring - this is a direct consequence of consumer confidence.

What happens then in spring? Suddenly a whole heap of new properties come onto the market and unless interest rates drop, or there is some amazing positive world event, we risk seeing a number of very untidy events in real estate.

And what about the stock market…whew! Property is looking pretty good compared to shares for someone as simple as me. DO NOT miss next weeks SHOWDOWN Property Vs Shares on ToopTV - Wednesday at 1pm. We have a studio debate on this very subject - it will be awesome.

Anyway, all this is irrelevant if you are buying and selling in the same market - and the good news is you will save money on Government taxes and Agents fees. The smart money would get your property sold now, and buy late spring!

Soft Property or Volatile Shares

2011-07-13T16:41:00.005+09:30

Check this out… Toop&Toop currently have 10,081 registered buyers (as at Wednesday) - slightly up from a long term average just short of 10,000 where it hovered for years. Online buyer visits have not dipped AT ALL. On the other side of the card, latest official figures show there has been a drop of 16% in Lands Title Office settlements, and a drop in median prices.

These indicators show the number of new people enquiring to purchase is stronger now than it was in the better market, while the rate at which the current buyers are purchasing has slowed.

Another forward indicator has been the recent drop in actively advertised properties from over 2000 to 1773. These stock levels are a very big driver of the market. Toop&Toop's forecasting tool - the Toop Market Index (TMI) - compares new buyers entering the market vs active on-market homes and it shows conditions have begun trending back toward equilibrium. This is excellent news for those struggling to sell their homes.

RP Data's report released this week shows rents on the rise which will stimulate more investor activity, while rising rents will ultimately kick start the dormant first home buyers.

We called it two weeks ago... overall we are entering a stable period in the SA property market. Unlike the stock market this week, property remains stable. Sellers and buyers need to just 'get on with it' - stop watching their lives pass by.

The RP Data report on the rental market - released on Monday - is available here at http://www.toop.com.au/uploadfile/RPData11July.pdf. The analyst from RP Data appeared on Toop.TV Wednesday (go to Toop.TV), saying "...the balance is returning!"

Go Property! Ring me now on 0418 824 188 - and let's get the sale of your house moving.

Any comments and questions - email anthony.toop@toop.com.au

Homeless......but cashed up!

2011-07-06T17:41:00.003+09:30

Last week’s column was an update on the 2011 market
and we talked about the winners and the losers.
Since then, I’ve been asked to elaborate and explain in more detail who is winning in property and why. To explain this it’s necessary to understand who the losers are and why. Remember there are always plenty of exceptions, but here is the undeniable emerging trend.

First the losers...
We’ve seen some terrible pain from first home buyers who took advantage of the First Home Owners Boost (FHOB) last year. They got caught up in the hype and purchased houses - often before they were financially ready. This unfortunate category was largely swept up into frenzy buying. They eagerly signed up for the huge handouts of $14 to $21k - only to discover 18 months later that their properties are in some cases worth tens of thousands less then what they paid.

The life lessons have been expensive for many FHOB buyers and I only hope that it doesn’t leave these people scarred for life when it comes to property ownership. To add to the woes, rental prices have been soft and it just isn’t a great time for many in this group.

Other losers are those who purchased their properties before selling. There is lots of unhappiness as the price of their new home drops whilst locked into their boom price purchase. Conditions changed, and of course, they remain stuck with their old home which has also dropped in price. In this market property will only sell when it’s adjusted to today’s market.

OUCH! Oh yes and let’s not talk about those who have settled on their new property - they now have 2 houses and a raging mortgage (plus rates/taxes/insurances) on both.
Ok - now for the winners...

This is one of those times to make money in property. The winning buyer categories are 1) First home buyers 2) Upgraders - those upgrading to a more expensive home 3) cashed up buyers who have sold their property first and 4) investors.
First home buyers - you are cashing in on those who bought property in the recent first home buyers hype and can no longer afford the mortgage. Or maybe their circumstances have changed - relationship breakdown maybe - and a sale is required.....often many $1,000s below the purchase price. The $21k government hand out has become irrelevant. The grant got swallowed up in the purchase price through an overstimulated market sector and has since been washed out thanks to changed conditions... that plus more. Demand was insane. Smart first home buyers today however are laughing all the way to the bank.

Upgraders - simple maths. If the market softens from the boom highs by 20%, then a $500k home is now $400k, a $1million home is now $800k. You are $100,000 in front plus all the savings in legal fees and stamp duty. Of course it’s never that simple - but you get the idea.

Cashed up! - in a declining market selling first will lead to a better sale price, while delaying your purchase will improve your buying power. Your cashed up bargaining power increases opportunities, creating even more upside. Go for a long settlement if you wish, it might help get a cash contract and also give you time to look around. If you do happen to end up homeless - you will be cashed up with no mortgage,
so just rent for a while if you have to.

Investors - if you’ve got cash, you’ll buy even better. Investors don’t have to worry about getting emotional - you don’t have to like the property, so you can be opportunistic. Rental demand is a sure bet in tougher times. You can offer the property at a slightly cheaper rent than other landlords who bought at the peak - and entice a better quality of tenant.. buying in this market is so much easier than a boom. You are in a great position.

This is a sensational time to make your real estate move. If you want to know more about taking advantage of this market, send me an email. We can help develop a personal strategy to seize the current opportunity.

I’m at anthony.toop@toop.com.au
Let’s get you ready and get you homeless!

The real estate cycle

2011-05-11T15:56:00.006+09:30

As real estate agents one of the questions we would have to be asked most is, ‘when is the best time to buy real estate’?

Well I’m going to let you in on a little secret…the time is NOW!

After 26 years in the business we’ve seen property prices fluctuate in what’s known as the 7 year cycle of real estate. We see the market peak, then it slows to a flat period and peaks again.

We’ve certainly entered a reasonable time in South Australia, where as discussed in last week’s inside story, Adelaide is the most affordable mainland capital city to live in.

In fact, the latest RP Data Real Estate Market Update reported the market has been fairly flat since May last year and has weakened even further in recent months where, “during the last quarter property values across the combined capital cities have fallen by 1.3%.”

This is good news for those of you looking to acquire property as we are now in a ‘buyer’s market’. RP Data’s statistics show last month in South Australia there were 4,460 new advertised listings. This is quite an increase compared to the 3,244 new listings, which were advertised at the same time last year. With so much choice around this means there may need to be some adjusting in a vendor’s expected selling price when they’re looking to move on.

Buyers you’re also in luck with numerous beautiful properties coming on to the market in the past week. We have homes available ranging from affordable stylish apartments in the heart of the city all the way through to million dollar mansions in South Australia’s most prestigious suburbs.

Another key indictor of the flat lining market is some of the people we have spotted at our open inspections in the past couple of weeks. This market brings out the players in the property game. From our experience these savvy buyers only look at real estate when the market has nearly bottomed out. And when they lead the rest do follow.

When we caught up with this year’s National Residential Salesperson Winner Tim Heavyside, he discussed the 7 year cycle and had some helpful hints for vendors looking to sell in this particular phase…"price, marketing, exposure and the method of sale…all of these factors have to be right.”

For more details on the cycle of real estate with Tim Heavyside take a look at Wednesday’s episode of Toop.TV. While you’re there you can also find out about the financial checklist for potential property purchasers with Wealth By Design’s Christie Rigg and Tim Rogers. That’s all under Episode 78 at www.toop.tv.

Buyers this is you’re time so don’t hesitate to dive into the property market as you’re likely to be waiting another 7 years before the real estate market is this good again!

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

The March quarter results are in!

2011-05-04T18:06:00.001+09:30

The big property news this week… RP Data’s release of the first quarter figures and the RBA’s smart decision to keep interest rates on hold for a little while longer.

There were certainly a lot of property owners breathing a sigh of relief when the announcement of a stay to the cash rate came through on Tuesday. No rushed rise by the Reserve Bank board, despite last week’s higher than expected inflation figures, is a win for the property market. It’s provided another pocket of opportunity to bring down stock levels and improve the housing supply/demand imbalance we’re currently experiencing.

Nationally the number of homes for sale is nearly 30% higher than at the same time last year, according to the newly released March Quarter results from RP Data.

The results paint a realistic, but far from rosy picture. While the rental sector is seeing a gradual improvement in weekly rates, dwelling values recorded a fall in each capital city with the overall average recording a softening of 2.1%.

Annually, to March 2011, Sydney was the highest performer with an increase of 2.1% while at the other end of the scale, Brisbane saw a decline in values of 6.8%.

As always Adelaide has skirted through the peaks and troughs a little better than most. Property values recorded a quarterly decline of 1.6% and a stable past 12 months with 0% change.

Whichever way you look at it, the market is in a partial state of limbo.

The significant drop in first home owners looking to buy property, is causing those selling homes at entry level to step into the next price bracket at a much slower rate than previously experienced. This has created a noticeable stalemate in both the low to middle ends of the market right now, however a change is inevitable.

“With first time buyers now representing a bit less than 15% of all owner occupier housing finance commitments, it is likely that market activity in the first-time buyer market will increase in the medium term,” according to RP Data’s Research Director Tim Lawless.

From what we’re seeing on the frontlines, the news gets a little better. At the Top End of the market it’s far from doom and gloom.

This area has remained out of reach of the first home buyer impact. In fact we’re seeing some great results, with beautiful homes that are priced right being snapped up in a matter of weeks!

We spoke further about the state of the market with RP Data’s Research Analyst Cameron Kusher on Wednesday’s episode of Toop.TV. To hear what he had to say go to Episode 77 at www.toop.tv.

Adelaide tends to avoid the extreme highs and lows of the market, and while that may seem boring to hard-line investors, we actually think we’re lucky.

Sometimes ‘Boring is Beautiful’.

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

Easter, inflation and the market

2011-04-27T16:48:00.001+09:30

We may only be four months into the year, but I think it’s safe to say that for most, the five day break was absolute bliss! It’s been an incredibly busy time across all sectors, and the real estate scene has been no exception.

The volume of homes available on the market continues to be at above average levels for this time of year, with lower demand causing days on market to be extended. So, it’s understandable that a lot of sellers chose to have last weekend off and simply enjoy the break.

The beautiful thing about open homes on long weekends is that it sorts the ‘wheat from the chaff’ so to speak. Those who have a tendency to look at homes simply because they enjoy it, or have always wanted to see inside ‘that one on the corner’ tend to steer away from the property scene, leaving the active buyers on the hunt.

Those who took the chance to ‘stand out from the crowd’ and open their property over Easter were rewarded with the attendance of quality buyers, real feedback from the people who are active in the market place, and in some cases, the hard truth around pricing property in line with buyer expectations.

In this softening marketplace, pricing continues to be the biggest hurdle between sellers and buyers. If you were to liken elements of the current market to that around the time of the GFC, you wouldn’t be far off. While not as severe, the market has softened and buyers have developed an incredible nose for knowing when a property is deemed as ‘good value’. Anything above this and the result is little enquiry and a rather lonely open inspection.

Meanwhile it begs the question, are property investors feeling the temptation to get back into the market?

We know they’ve been waiting for the right time, and right financial reasons, to step into the game. Consistently good yields (Adelaide dwelling average at 4.4%), a stable rental market (Toop vacancy rate is just 1.5%) and the return of some affordable investments may be just what they’ve been waiting for!

However the latest inflation rates released just this week may turn out to be the bigger influence and deciding factor. Against economists’ well founded predictions, inflation figures have come out much stronger than the anticipated 0.6-0.7%. With the trimmed mean published at 0.9% and the year-to-year inflation rate brought to 3.3% (way above the RBAs 2.5% target), we may be set for a rate rise as early as May.

The influence this will have on the market? We’ll have to wait and see, but for many it will be far from good news if this comes to fruition.

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

Buying Vs Renting

2011-04-20T22:52:00.001+09:30

It’s been debated for years that with the funds needed to buy a home, renting may be the better option… but is it really?

When you delve into the reality of home ownership and the sometimes uncertainty of renting, the pros and cons on both sides meet to form a compelling argument. Add to this the increased costs of living plus lack of affordable housing, and the care free nature of renting becomes an incredibly attractive option, especially to the younger generations.

The idea of fewer financial commitments, lower living costs, no maintenance or upkeep fees and a more flexible lifestyle make renting the number one choice for those moving out of the family home and embarking on their careers. And it’s not only the young ones who enjoy this flexibility.

Some individuals who have been in the workforce for a much longer period choose to ‘free up’ their cash flow and invest the difference between their weekly rent, and what their mortgage would be, into shares or long term deposits. It also allows them to live in an area they may not ordinarily be able to afford to buy in and offers flexibility for future job transfers.

Then there’s the great Australian Dream of home ownership. Given that you’re in a financial position to do so, buying property can offer great long term benefits, security and peace of mind.

There’s no need to look for a new place to live every time your lease expires, your hard earned money goes towards your own asset and, if the last 20 years is anything to go by, over time the property will appreciate quite significantly. In fact historically, Australian homes have seen an average growth of 9% per annum – perhaps not the case if you bought twelve months ago, but when it comes to property the best method is to always ‘buy & hold’.

Over the years as you pay off your home and head towards retirement, the security of having a freehold roof over your head is second to none.

At the end of the day the choice to rent or buy is both a financial and lifestyle decision, and it was debated fiercely this week on ToopTV’s Showdown 3. With ANZ Financier Tony Romano and the ATO’s Dom Romano in the buying corner and Toop&Toop’s Leanne Kuss and Jenny Drew standing strong for renting, the facts and logic made the final decision an incredibly close one. Log on to http://www.toop.tv/ to see the full debate on Episode 75.

Finally, from the entire team at Toop&Toop, we hope you have a relaxing Easter and ANZAC Day with family and loved ones.

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

Who pushed up the prices?

2011-04-13T16:33:00.002+09:30

An online ‘First Home Buyers’ strike has been gaining momentum over the past few weeks in a bid to drive down property prices, instigated by tax reform lobby group, Prosper Australia. Their aim is to pull the First Home Buyer footing out of the market place completely, causing a domino like collapse and instantly creating ‘affordable housing’.

Now buying your first home has always been a challenge. Yes property used to be cheaper, but then wages were lower and interest rates were much higher. Property prices began their upwards climb when buyers increased their activity in the market place. Wage increases and declining interest rates from highs of 18% plus in the 80s allowed them to do this.

Then, in 2008, the GFC hit. In a bid to maintain economic momentum, the First Home Owners Grant Boost was introduced. At the time the Real Estate Institute and industry as a whole aired their concerns that this, combined with record low interest rates, would drive up prices… and it did.

A giant wave of first home buyers entered the market, causing a boom at the entry level of market pricing. Demand outstripped supply and property prices were pushed higher. In 2009, 190,852 buyers (70,000 more than the previous year) took advantage of the boost and jumped into property head first.

Then in 2010 the numbers dropped by almost 50% to 96,201. Why? Because the First Home Buyers who normally would have bought in 2010 and 2011 were ‘pulled forward’ into the 2009 buying boom.

So while some first home buyers are choosing to abstain from buying (largely due to the price increase driven by those previously in their position) and investors are waiting for the ‘right’ time, it’s imperative that sellers stay on the front foot when it comes to presentation, marketing and price.

Get the right advice, listen to the buyer feedback, market your property at a competitive level and be prepared that it may take a little longer to sell than anticipated. Price is ‘king’, if it’s right, it will sell. Toop&Toop started the business in the 80s when the market was at its worst. We have the tools and knowledge to get our clients the best possible results, even when times are tough – when it’s time to get serious, it’s time to get Toop&Toop.

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

Sell before you buy - the better option

2011-03-23T16:49:00.001+10:30

The housing market is a similar type of ‘beast’, regardless of which state you live in. Varying dynamics, resources and economics affect each of the states in different ways – that’s a given. Yet people’s needs to have a roof over their heads, desire to upgrade, downsize or simply live in a different location rings true wherever you are.

In South Australia there’s a noticeable trend amongst consumers that’s quite different to those on the Eastern seaboard. It’s the need to buy first, and then sell.

Perhaps this is well founded in a boom market when property is highly contended, prices are escalating and the good homes are sold in a matter of days. But right now there is certainly no shortage of beautiful homes available and this approach to transacting property makes little sense.

While the knowledge of having a roof over your head may offer much needed security, the financial burden imposed by buying first can be far from comforting for most.

First there’s the real risk of spending more than you have.

People move homes for a multitude of reasons, with the most common being to upgrade and therefore take that next step up the housing price ladder. This often means tightening the budget that little bit more for the first 12 months or so, while you build up the equity in your home. The last thing you want to do is over spend.

When buying first you are virtually ‘guessing’ how much cash you’ll get in your pocket from the sale of your current home. If you find yourself saying “Well if we get an extra $30,000 for our property, we can afford this one – let’s buy it”, then batten down the hatches and cut up the credit card. In a market that’s slowing, getting ‘top dollar’ by boom standards is a lottery ticket you simply can’t rely on. What you can rely on, is the cold hard cash from a completed sale.

Then there’s the topic of bridging finance.

If you’re downgrading, go for it! It’s highly likely that your sale will cover any of the outlaid costs and you’ll still come out better off. When you’re upgrading this exercise can be an additional un-wanted cost on top of an already pricey process. Really, this is a last resort. Like mortgage insurance, if you can avoid it, do!

Now that’s all assuming you buy your new property cash unconditional. If you buy it ‘subject to the sale’ of your own home and your current property doesn’t sell, then you could risk loosing the one you had your heart set on.

Of course there’s a risk to selling first as well, and that’s not being able to find the home you really want. A longer settlement or short term rental can easily solve this problem, plus the added attraction of you being a ‘cash buyer’ will put you at the forefront when making any offers on a new home.

From my view, the pros far outweigh the cons when it comes to selling first and then buying. What do you think, is the financial risk worth it?

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

Australia's most livable city, set to be the most vibrant

2011-03-16T16:48:00.003+10:30

Clipsal time! Fast cars, crowds of people and a vibrant night life, not to mention an incredible boost to our local economy. It’s a time you don’t want to miss out on, yet on the property scene it’s also the reason for this weekend’s drop in open homes.

Next weekend we’re likely to see a spike in these numbers as current sellers get back on track and a new wave of property is released to the market. It’s all in the timing. With just 4 weekends of selling time remaining before Easter, these properties will be hitting the market hard and fast – just watch the auction numbers peak around the 16^th and 17^th of April.

There’s certainly no shortage of supply at the moment. Buyers are playing their cards close to their chests, in no hurry to make a move, while sellers continue to gradually adjust to a softly declining market. Meanwhile, on the development scene, there are no signs of anything slowing down.

It makes me wonder… are we in danger of over-developing our city and suburbs?

If we were in a boom right now, I probably wouldn’t even be raising the question. Properties would be in high demand, selling quickly, and subsequently there would be a ‘shortage’ in housing. But right now this is far from reality and too many new homes could result in some significant financial pain in the short term.

The ’30-Year Plan for Greater Adelaide’ outlines a growth in population of 560,000 people for our metropolitan area over the next 30 years, bringing our total population to 1.85 million by 2036. With an average of 350 new people living here each week we quite obviously need to plan in advance for their arrival, that’s a given; But how much of this housing is already in place? There are a number of existing developments on the market right now which are only partly sold. The last thing needed is to compound this problem. However if what we’re really looking at is changes of lifestyle, upgrading our city and increasing the volume of affordable houses, then Adelaide could be about to undergo some significant changes.

With the Adelaide Oval set to become an even more prominent sporting arena, Rundle Mall to receive a $400m redevelopment and the Torrens precinct due for rejuvenation, self confessed ‘Urban Futurist’ and Lord Mayor, Stephen Yarwood is forging ahead to step our city living to the next level.

“The Adelaide City Council is the fastest growing council in Metropolitan Adelaide per capita… the baby boomers want to move back into the city, young people may not necessarily want 2 dogs, 2 cars and there’s lots of different opportunities – it’s going to be about housing diversity”

The CBD alone has been earmarked to increase by an additional 15,040 dwellings, with a minimum 2,250 earmarked to be ‘affordable’. Now home to over 23,000 overseas students, Adelaide continues to be their city of choice when it comes to studying in Australia – a position we want to retain.

The Property Council named Adelaide as ‘The most livable city in Australia’ – if we get this right, we’ll also be the most vibrant.

To learn more about the city’s development, watch the full interview with Stephen Yarwood at www.toop.tv, episode 69.

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

I’m going to let you in on a little secret…

2011-03-16T10:13:00.001+10:30

There’s a common misconception that’s been going around society for years. It’s so strong that even some members of our industry get caught up in it, especially those who are new. So allow me to clear this up for you.

Real Estate sales people don’t sell houses.

You can laugh, be shocked and ask ‘well what on earth do they do?’, but this statement is true everyday of the week.

Selling a home is the product or result of what we do. It’s what deems us to be ‘successful’. It’s how we’re ranked if you like, much like winning a medal in the Olympics.

What we actually do, is something quite different. We connect people. We connect the right buyer with the right seller to get the best sale outcome.

We’re in a customer service industry – not a sales industry. For some practitioners, this is forgotten far too often. The ‘List & Sell’ mentality overpowers the need or desire to deliver great service, resulting in clients being confused, angry and upset.

Now back in the days of the market ‘boom’, rightly or wrongly, this became excusable. Properties were selling so quickly, and so well, that the speed and results made up for any lack of service on the sales person’s behalf. It was literally a case of standing at the front door, handing out a brochure and sitting back while the offers rolled in. It was also a time when we saw an influx of sales people starting out in the industry, looking for some ‘easy money’.

Those days are long gone. More than ever, we are back to the roots of this industry. To be successful and achieve a sale it’s about service, service and more service. It’s about over delivering, not winning the listing then ‘flicking’ it on to someone your client has never heard of!

Selling or buying a house is a process most people go through only once in 7 to 9 years. It’s unfamiliar, often emotional and can be the cause of much anxiety. The last thing any seller needs is to feel as though they don’t know what’s going on with the sale of their own home.

What it comes down to is this. Sellers, it’s your right to expect and demand great service from your agent. When you list with an individual, you should be working with that person, not someone else. If you find yourself saying, ‘We listed with you, and now we never see or hear from you’ – you listed with the wrong one. Equally so, if you shopped for the cheapest agent, then the old adage ‘you get what you pay for’ will ring out loud and clear.

Real Estate is a customer service industry. Great service should be a given, regardless of who you list with.

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

Beware of agents who ‘buy’ listings

2011-03-07T09:11:00.001+10:30

When it comes to business, I have a QAP philosophy; Question, Answer, Proof. Right now, there isn’t enough of this happening in our industry. Clients are asking questions and they’re being answered, but they’re not backed up with the proof.

These days, whether we like it or not, words hold less value than they used to. Throw away lines, unrealistic claims and over promises have led society to be somewhat cynical and distrusting when it comes to dealing with anyone who has a ‘sales’ tag.

Somewhat unjust, this mentality is understandable. When it comes to real estate, the industry has evolved significantly over the past 25 years. We’ve left behind the ‘used car salesman’ label to step forward as professional and ethical sales practitioners.

The problem is a few ‘bad apples’ always remain. These are the guys who come in and ‘buy’ your listing; and they tend to be easier to spot when the market tightens.

They over promise on price, slash their professional fees to ridiculous levels, then under deliver in service and results.

As The Advertiser’s Anthony Keane wrote a couple of weeks ago… “Many will tell you what they think you think you want them to say, while others will say what they think your bank wants them to say. Get it?”

Unfortunately I do – certain agents don’t give clients the truth when it comes to the market place. They fail to back up their ‘claims’ with the cold hard facts and as the clients are so pleased with what they are hearing about how much their property will sell for, plus the crazy 1.1% fee they’re being quoted, they tend not to ask!

End result? You get what you pay for. In this case an unsold property and an unhappy owner.

Sellers, start challenging the agents that appraise your home. Seek the proof when it comes to pricing. Ask the sales person how they arrived at that particular price for your property. If it’s more than what you were looking for, and they can substantiate it, then great. If it’s less than what you were looking for and the stats back it up, then realize that this may be where the market is placed right now. Either way make sure you see comparable property sales plus a report of what’s currently on the market and similar to your home. That way you’ll be clearly seeing your properties potential, not looking through rose coloured glasses which could have a disappointing result.

Then, pay close attention to how they negotiate the professional fee; these are the same skills they will use to negotiate the best price for your home.

With interest rates remaining on hold this week, and Mad March underway, the next couple of months may see the market pick up a bit as interstate and overseas interest hits town – only time will tell.

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

You have to wonder if 2011 is going to be remembered as ‘Mother Nature’s year’

2011-02-23T16:48:00.001+10:30

She certainly has been laying it on us lately… perhaps trying to deliver a message that’s been long known, yet with little action taken.

This week our minds and hearts were captured once again as our New Zealand neighbours were rocked by another big quake. The devastation caused has been felt far and wide - our thoughts go out to all who have been affected.

Locally, this week, the real estate market has continued at its steady pace with open homes seeing a minor increase in buyer attendance. Confidence and commitment still seem to be traits that are a little hard to come by, and not only in buyers who are hesitant to put pen to paper. The banks are playing it incredibly safe right now, it’s been suggested that this is mostly due to confusion over their new legislation. We’ve seen a valuation carried out on a property where the buyer was seeking finance for just 50% of the purchased price and numerous settlements delayed due to a lack of action in discharging mortgages on titles. The sooner these new guidelines are clarified, the better!

Hopefully, at least, another rate rise won’t be on the table when the Reserve Bank meet this coming Tuesday. As always, there are opposing views when it comes to this topic, and rightly so given the many various elements that can impact on the final decision. In the latest report from CommSec’s Craig James, it appears at least one area is on the right track to hold rate rises at bay - Australian’s have learnt to be much more conservative when it comes to spending.

“Reserve Bank officials don’t know how long this ‘new conservatism’ will last. In fact no one does. But the longer that consumers actively shop around for the best deals and focus more on saving, than spending, the longer the Reserve Bank can stay on the interest rate sidelines.”

Now, on a different note, Adelaide Hills residents have had their fair share of concerns over the past year in regards to preserving the beautiful lifestyle that this region has to offer. Ann Ferguson, Mayor of the District Council of Mt Barker, joined us on ToopTV this week to discuss the now gazetted development plan which will cover the prime agricultural land that ‘could have been the salad bowl for Adelaide’. Log on to www.toop.tv to see the full interview and the way forward for local residents.

And if you’re looking for something to do this Saturday the 26^th of February, then Goolwa & Hindmarsh Island are where you want to be! The 12^th SA Wooden Boat Festival will be in full swing, but more importantly, the Women’s & Children’s Hospital Foundation Charity Home is going under the hammer at 11am. Located at Lot 206 Princess Royal Parade, Hindmarsh Island, on land donated by The Marina Hindmarsh Island with the added generosity of Systembuilt homes, the residence has been a huge hit with buyers, and with all the proceeds going to the foundation, we’re hoping for a great result!

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

Technology... you can't do without it!

2011-02-18T09:28:00.002+10:30

After a steep climb at the beginning of the year, the volume of advertised open homes appear to be finding some balance as we track toward February’s end. Buyer numbers at open inspections are seeing a slight increase, and most importantly, there is a quiet feeling of energy creeping back into the market.

In a time where breaking into the property scene, or even upgrading, commands a significant portion of the household’s income, we’re seeing many active buyers focusing their attention on homes that need little or no improvement. Presentation has always been a key element in the successful sale of a home; over the past few years we’ve been on board as this has stepped up a notch with the introduction of home ‘staging’.

Seller’s are moving from a ‘dust & declutter’ to improving the property with anything from a coat of paint or some new carpet, to a new kitchen - all for the purpose of selling their home as efficiently and effectively as possible. Once this is done, it’s a matter of getting the property into the sight of the right buyers… and thanks to technology this is now easier than ever for Toop&Toop clients.

YourNetwork

Often a property buyer is someone who lives in the same neighbourhood or, in Adelaide especially, a friend of a friend. With social networking playing such a big part in everyday life, our web of contacts is continuing to become more intertwined with a greater reach – this is where our YourNetwork wizard comes into play. In just a few steps it allows seller’s to post their own property to their personal page on Facebook, Twitter, LinkedIn or even email it out to their contacts. It’s seen by your contacts, their contacts and the list goes on – now that’s great viral marketing!

iToop

‘Properties in the palm of your hand’, in the truest sense of the term. If you haven’t already checked it out, download your free iToop app today and see how this transforms the way buyers search for property on their iPhone or iPad. Another value ad from Toop&Toop, this app contains all your property’s information, photos and even ToopTV video. Buyers can access it from wherever they are, in front of the signboard or search for what’s close by. Pretty handy to find additional properties while you’re doing the weekend ‘open crawl’.

Just .Toop it!

Your property’s unique web address means buyers can go straight to the information they want without the frustration of extra pages that get in the way… and that’s just the start. You can also search for all properties in a specific suburb ie. www.norwood.toop.com.au or with a specific feature www.tenniscourt.toop.com.au. Just another way to get your property to the right buyers with ease.

Unique to Toop&Toop, this technology aids the sale of our client’s properties every day, yet there’s only so much it can do. Even the best presented property with an incredibly well tailored marketing campaign won’t sell if it isn’t priced at the right level.

This is for the market to decide. So listen to the buyer feedback, know what’s on the market in your area and if the signs are there, realign your asking price. When all these elements are right, we’re seeing some quick sales and good results for sellers.

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

When you compare apples with oranges, you may end up with bananas

2011-02-09T16:47:00.001+10:30

They’re both round, have seeds, skin and grow on a tree – but when you’re comparing apples with oranges that’s about where the similarities end. Vastly different in colour, texture and taste, not to mention the host of vitamins they contain, they could be described as anything but alike.

So why do we try to do this in everyday life? Compare businesses, products and services as if they are all the same, when in fact they are as opposite as apples are to oranges? We then fall into the trap of basing our decisions solely on price… and end up disappointed with the result.

In Real Estate it’s no different. If a property is a crazy ‘bargain’ it’s likely that it comes with a few hidden gremlins (or as an agent in the UK has found recently, a few hundred snakes!).

The same theory applies to Real Estate agents. Ultimately you get what you pay for, and it’s worth finding out exactly what that includes.

At Toop&Toop we tend to do things differently to our fellow agencies.

Innovations, technology, customer service – some call it ‘Bells & Whistles’ but we know it’s these extra elements that rent and sell homes more effectively, while making the process less stressful for all involved.

Let’s start with a few basics…

VirtualAgent

Buying or renting, we’ll get our vendor’s property information direct to you before the home is released to the market. Plus you choose to get reminders for ToopTV or receive our Saturday press ad every Wednesday straight to your inbox – no need to search a website. (Nobody does it better? We do!)

Toop Weekly Magazine

Forget monthly or fortnightly, this magazine is out in the market place every week showcasing the latest Toop properties. It’s high quality, it’s full colour and it’s loved by buyers.

ToopTV

It’s Live & Informative every week, but most importantly is a massive ‘value ad’ for our vendors. Video footage of your home posted on the property’s webpage for all buyers to watch.

Press Ads

We bulk buy and pass on the discounts up front. Yes we look expensive, but the cost of our advertising is some of the most affordable around.

… and that’s just the beginning.

Every Real Estate agency is different. Compare apples with oranges and make a bad decision, then you’ll end up with a banana; it will be expensive, and if you hold out to long, have a rotten ending.

When it’s time to get serious, it’s time to get Toop&Toop

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

Adelaide voted most livable city! And then there's the property taxes.

2011-02-02T16:21:00.003+10:30

We’ve been voted Australia’s most livable city… but when it comes to fair property taxes, we’re at the bottom of the scale.

It comes as no surprise that this was the verdict which arose from a recent poll taken by the Property Council of Australia. After all, Adelaide continues to be one of the most affordable capital cities in which to buy property, yet our Stamp Duty costs rank amongst the highest of all the states. As it is, many find it incredibly hard to break into the property market, and as house prices steadily rise over the coming years will it become virtually impossible?

The state government’s 30 year plan for greater Adelaide maps future growth areas to accommodate our increasing population; So we’ll have the houses, the question is who will be best placed to buy them if there is no adjustment in these taxes?

When interviewed this week on ToopTV Nathan Paine, Executive Director of the Property Council of Australia’s SA Division, indicated the findings are already being discussed with the necessary Ministers and these talks would continue over the coming months.

“From the Property Council’s perspective property taxes are 43% of the State Government’s own State revenue. It’s grown from around $1.5billion to $2.5billion thereabouts in property taxes, much of which is Stamp Duty… If we want to ensure housing affordability into the future, we need to get those taxes down.”

So finally, the ball may be in motion. We’ll wait to see where it ends up.

Meanwhile we’re seeing some more investors coming into the marketplace, spurred on by the recent natural disasters. As often happens, after a tragedy comes pockets of growth. Over the coming 12-24 months our trades will be in high demand, as buildings and infrastructure are re-instated, as will the need for rental properties. Investors have been holding off, now that rates are on hold a little longer and the need for temporary homes is increasing, they’re coming out.

The other good news for investors this week was the Dow Jones closing at its highest point in almost two and a half years! As unemployment figures in the US are also abating somewhat, it appears we may be getting back on track. If these conditions continue we’ll see a positive flow through effect to the All Ords in the next few months.

If you missed this week’s episode of ToopTV with REISA President, Greg Nybo and Nathan Paine’s interview on our city, log on to www.toop.tv.

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

After a bit of a sluggish start to the year, the rental market is up and firing!

2011-01-25T17:23:00.001+10:30

Demand is outstripping supply and prospective tenants are making offers over the asking price in an attempt to outbid the competition and secure their next home.

As country students prepare for the start of university, demand is continuing to grow and properties under $500 per week are in huge demand. To put it in perspective a $265 per week unit in Glenelg generated around 100 enquiries last week, while an inspection in Norwood for $400 per week had 40 groups of tenants lined up to view the home.

At the other end of the market, the seasonal wave of professionals relocating from interstate has arrived, they have executive homes in their sights and they’re snapping them up without hesitation. Our team has signed up agreements for a $1,200 per week property in Glenelg, with multiple applications received, and a $1,100pw home in Seacliff, viewed and let via the web. Meanwhile one family relocating from the country and another searching for their next real estate purchase have secured ToopExec rentals in Wattle Park ($1,100pw) and Burnside ($1,250pw).

Our vacancy rates are tracking at a low 1%, with the North at just 0.4% after huge demand resulted in 20 lettings within the first three weeks of January.

It’s just going off right now, and it’s not isolated to Adelaide. Rentals across the Fleurieu have been pumping over the past couple of months. With costs of living increasing, many are relocating to Victor Harbor and the surrounding regions for a more affordable lifestyle. Investors, it’s worth keeping a close eye on this! Property is affordable and if you choose well, the returns are good.

On the sales frontline, the reports continue to be somewhat mixed…

Last weekend saw another jump in Open Inspection numbers, clocking up 2145 in The Advertiser. Buyer attendance continues to be sporadic with the best attended homes being those with prices closely aligned to the current marketplace, as purchasers continue to play their cards close to their chests. We’re seeing a trickle of Investors making enquiries but holding off for the right time… perhaps we’ll see some more action here after the Reserve Bank meet on Tuesday.

Buyers are ranging from being in ‘no hurry’, to just wanting to ‘get on with it’. Toop’s Tip: if you’re looking to buy, this truly is the time – after all we’re in a buyer’s market, aren’t we?

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

New Year buyers hit the market

2011-01-20T17:08:00.008+10:30

Water… we look on it so often as a precious gift, yet at times like this it can make you wonder. The catastrophic events of the last few weeks have touched us all at different moments. For some it was while watching heart stopping footage of flood waters, hearing tales of survival and loss; for others, at the moment of reaching friends and loved ones in the affected regions. Our hearts go out to all those who have lost their businesses, homes and so much more.

To our fellow realtors in Queensland, New South Wales and now Victoria we can only begin to imagine the road that lies ahead… It will be incredibly challenging, to say the least, and we wish you all the best in rebuilding what you have lost.

We have been incredibly lucky so far in South Australia, with just a bit of rain and in some of our regional areas, minor flooding. Our homes are dry, our property market is stable and on a grand scale, all is well.

As for the attendance at last weekend’s open homes - the results are in!

As anticipated Open Inspection numbers soared to 1955 homes. Almost double that of the weekend before. Buyer attendance, on average, was less with homes heading to auction attracting slightly higher numbers. New top end properties and at the other end of the scale, entry level and investment properties, were also well received. Our team on the frontline received an obvious new wave of buyers who are well researched, ready to buy and are willing to put pen to paper.

Sellers, don’t misconstrue this and think the ball’s back in your court. Yes, buyers are taking the plunge and making offers which is great news, but more often than not they are coming in well below asking price. More than ever, the market continues to be price sensitive and over the coming weeks, there will be even more properties available for buyers to choose from.

Seller’s this is where you need to put your business hat on. If your property is heading to auction and you receive an offer prior to the day, consider it wisely. In this market, an early offer doesn’t mean there will be another 5 on auction day… make your decision wisely as the wrong one could be costly.

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

Market Activity Update Nov 2010

2010-11-19T16:26:00.003+10:30

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

A night of Awards and Hall of Famers!

2010-10-22T15:04:00.010+10:30

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

2010-10-14T18:09:00.002+10:30

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

The show must go on!

2010-09-29T16:01:00.000+09:30

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

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

2010-09-09T16:48:00.001+09:30

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

2010-09-09T16:31:00.003+09:30

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.

2010-09-09T16:15:00.002+09:30

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

Units give houses a run for money: RPData

2010-09-03T15:10:00.003+09:30

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

Hung Parliament = Hung Property Market?

2010-08-25T21:52:00.004+09:30

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

Beat the Spring rush - hit the market early!

2010-08-11T18:01:00.001+09:30

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

The Top End in demand!

2010-07-28T17:10:00.002+09:30

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

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

2010-07-21T17:49:00.002+09:30

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

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

2010-07-14T17:21:00.001+09:30

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

Tax Lotto... try House Lotto

2010-07-07T17:50:00.000+09:30

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

Spring bumped as optimum time to sell a property

2010-07-01T11:08:00.002+09:30

"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

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

2010-06-30T11:44:00.004+09:30

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

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

2010-06-23T18:50:00.000+09:30

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

Winter Sales put heat on Buyers

2010-06-18T09:15:00.004+09:30

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

Will SA’s property market again ‘hold up’

2010-06-10T09:43:00.002+09:30

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

2010-06-10T09:01:00.002+09:30

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

Insight: Changing Market Conditions

2010-06-09T09:32:00.003+09:30

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

property again will no doubt save the day...

2010-05-24T16:41:00.003+09:30

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

The Budget - made easy.

2010-05-12T11:41:00.003+09:30

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

Interest Rate Rise

2010-05-04T15:05:00.000+09:30

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

Cages Rattled!

2010-05-03T10:05:00.002+09:30

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

SHOWDOWN 1 - The Great Debate PROPERTY Vs SHARES

2010-04-30T15:29:00.002+09:30

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

2010-04-30T11:56:00.002+09:30

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

Median price rises are getting ahead of rises in rent

2010-04-22T17:06:00.001+09:30

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

Two Speed Property Market?

2010-04-21T18:34:00.002+09:30

‘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

New Toop&Toop Office Planned !

2010-04-15T12:08:00.005+09:30

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

Another 0.25% to the interest rates

2010-04-07T09:43:00.001+09:30

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

RBA Warns on House Prices (Commsec)

2010-04-06T09:00:00.001+09:30

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

Record Heights: National performance Gauge

2010-03-22T19:48:00.001+10:30

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

Another paradigm shift in real estate

2010-03-18T10:05:00.003+10:30

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

The Market Across Australia ...

2010-03-15T09:42:00.003+10:30

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

Maximum web impact - its all go!

2010-03-10T16:39:00.001+10:30

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.

InsideStory readers, more reports.

2010-03-09T11:42:00.002+10:30

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

2010-03-09T11:07:00.003+10:30

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)

2010-03-09T10:20:00.003+10:30

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

2010-03-09T09:19:00.003+10:30

“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

History of Interest Rates

2010-03-03T16:44:00.002+10:30

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

Property investors, test your knowledge...

2010-02-25T09:17:00.002+10:30

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

Housing less expensive than six years ago: CommSec

2010-02-24T10:13:00.003+10:30

Dear InsideStory readers,

Below is a great little article from CommSec.

I would argue that if the size and facilities included in today’s houses was also factored in to this report the affordability would look even better than this report shows. The expectations of today’s home owners has risen dramatically in housing and in apartment living. A 45 square meter apartment was acceptable 10 years ago, it is double that today, while houses today feature multiple bathrooms, massive family rooms and outdoor entertaining as an entry level expectation.

As an example, in the 1970’s when I was growing up, I lived in a very small 3 bedroom home with one bathroom and a single carport. The kitchen was tiny and there was no family room, no outdoor area and yet because it was new we thought it was just a fantastic home. There were 6 in our family so we all shared bedrooms and we shared a tiny built in robe in each bedroom which had 2 beds, no room to swing a cat, you could hardly get the door open!

Today you would rarely see this as expectations have moved so far…and yet these changes in expectations and size of homes is rarely talked about when it comes to the debate on affordability.

In my 35 years of selling property, little has changed when it comes to buying a home. If you have a job and have a savings record you will be able to afford a home….just as was the case in the late 70’s.

Regards

Anthony

Housing less expensive than six years ago
Housing affordability
· A new measure has shown that housing affordability has changed little over the past six years. In fact housing affordability has actually eased slightly over the past six years.
What does it all mean?
· The general perception – not only in Australia but also across the globe – is that Australian housing is expensive. We get questions on the subject when we are presenting on the economy both locally and overseas. While we try to explain that the issue is more perception and poor use of data rather than reality, it is difficult to change entrenched views.
· Rismark Australia has released a new housing affordability index that seeks to counter the general wisdom. The index uses data on all property transactions made in Australia, via the RP Data database. That is, it covers data on capital cities and regional/country areas as well as detached houses and apartments. The figures on household disposable income are based on the Reserve Bank definition. So it is hard to fault the accuracy of the data.
· The data shows that housing affordability has changed little over the past six years. That is, home prices have held between 3.7 times disposable incomes and 4.3 times incomes over the past six years. As at September quarter 2009, home prices stood at 4.1 times household disposable incomes, below the reading of 4.2 times income that existed at the end of 2009.
· As we have tried to explain to customers and clients over time, incomes have been rising over time. In fact real incomes have risen by 11 per cent over the past six years. So a raft of goods has become more affordable, boosting disposable incomes – not just in nominal terms, but also in real terms.
· The Rismark Australia data shows that household disposable income has risen by 44 per cent since the end of 2003 while the median home price has lifted 41 per cent, from $270,000 to $380,000.
· Over a much longer span of time housing affordability has weakened. From 1993 to 2001, housing affordability held between 2.5-3.1 times disposable incomes. Home prices accelerated between 2001-2003 while incomes didn’t keep pace. But over the past six years, housing affordability has been little changed.
· Of course this doesn’t mean that housing affordability may not have weakened in some cities and for various occupation and demographic groups. But in a broad macro sense, it is clear that the myth that Australian home prices have become dramatically less affordable in recent years has been busted.
· Certainly the Reserve Bank will continue to closely assess home prices and affordability over time. The goal for housing supply to track close to demand hasn’t changed.

Business conditions slump: RBA on rates sidelines

2010-02-18T12:58:00.002+10:30

It has been some weeks since we forwarded a CommSec report to you but this easy to read update will take only minutes to read and explains where things are at.

EconomicInsights.pdf (pdf)

Here is an exert;

“If you want to know why the Reserve Bank is on the

interest rate sidelines you need look no further than the

latest business survey.”

Kind Regards

Anthony Toop, Managing Director.

www.toop.com.au

© Toop Real Estate Group

Isobel Redmond - Video Interviews

2010-02-16T09:55:00.003+10:30

Our comprehensive series of interviews with opposition leader Isobel Redmond can be found on the Toop.TV website here

Topics covered include:
Land Tax
Stamp Duty
Law and Order
Planning
Consumerism
Real Estate Legislation
Tasers

Anthony Toop, Managing Director.

www.toop.com.au

© Toop Real Estate Group

Why don’t we just do what everyone else is doing?

2010-02-04T10:10:00.002+10:30

Saturday week we were at the Australian Open in Melbourne and after seeing on the Rod Laver Arena screen a prompt to do so - I downloaded the iPhone App called ‘Aus Open’. Sylvia and I have attended the Open every year for as long as I can remember but for me this year was different.

So what was different? A little button on my iPhone called the AUS OPEN ‘App’. This iPhone ‘App’ lifted my personal experience of my attendance at the Open to an entirely new level.

This year I knew EXACTLY what was happening, who was playing whom, how all the players were tracking in the draws, all the time! Whatever we wanted to know, whenever we wanted to know it. At my fingertips I had details of everything, on all courts, within one minute of it happening... scores, schedules, Draws, player profiles, maps and a whole lot more including commentary... all at my fingertips in crystal clear format, even without my glasses!!

Then Dr. PC, who was sitting next to me (David Raffen, or Doc), needed some cash after borrowing $20 for a drink from Sylvia (as I had no money either). So there he is, between games, sitting on his iPhone with his drink and getting a map of his Bank’s nearest EFTPOS machines... naturally his own Bank (to save the transaction fee). Effortlessly, instantly, he had a map to the closest machines, with directions on how to get to them and detail on how long it would take!!

So not to be upstaged, and I couldn’t resist, I took Doc’s iPhone, (and Karen’s)... I logged onto www.iphone.toop.com.au and pressed the + to load T&T button to their Home Screen. There is so much more on the way - this new journey has only just begun for real estate. Ultimately property sellers, renters and buyers will enjoy the entire experience of real estate at a level no one thought possible a few years ago.

If you don’t believe these small portable devices will change your life forever than you have some catching up to do.

Last week the announcement of the iPad was just what Toop&Toop needed. This is not just a new toy for gadget people, it may prove a turning point for businesses including ours. T&T need fast advancement in this hardware space which we will now get.

Our work in the mobile online space is well known and highly regarded, we lead the way.

I was asked the question this week... why don’t we just do what everyone else is doing?

If you too were at the Australian Open effortlessly knowing, and enjoying, everything that was going on, you would never ask such a question!

Giving clients what they want, when they want it and without effort, while operating on a global platform is something no real estate agent EVER contemplated 25 years ago when we started Toop&Toop.

Anthony Toop, Managing Director.

www.toop.com.au

© Toop Real Estate Group

Interest Rates on Hold

2010-02-02T14:24:00.000+10:30

Some great news for property owners, or should I say, Mortgage owners!!

The Reserve Bank has left the cash rate unchanged, be sure to tune into ToopTV tomorrow (wed) at 1pm (SA time) and we will be following the market in South Australia and bringing you up to date. We look into how first home owners are faring, and see inside some new properties hitting the market.

Anthony Toop, Managing Director.

www.toop.com.au

© Toop Real Estate Group

2010 is a new decade, a new era and Toop&Toop's 25th anniversary year

2010-01-28T09:07:00.001+10:30

Recently, there have been a number of exciting changes at Toop&Toop covered by the media. Here is our InsideStory as to what is happening.

Over 25 years we have learned that sustainable success is about employing the best of the best people, backing them with resources and training, then enjoying the time you have with them. Our CEO Ian Darbyshire’s appointment as CEO of the SA Tourism Commission last week, was an endorsement of the calibre of Toops’ team! Ian needs to be acknowledged for his remarkable impact on Toop&Toop. A more strategic thinker you will not find and he leaves us in late February having given us a clear in-site into International best practice systems and business structure. His job is done at Toop’s, his legacy profound.

In every business, changes in staff can refresh and accelerate new thinking. Ian is heading off to the government and, in December, two of our selling teams set off to fulfil their dreams of owning a business. We wish them all well in their endeavours.

2010 is a new decade, a new era and Toop&Toop’s 25th anniversary year.

Behind the scenes Toop&Toop have 14 months of hard work, and investment into the future, coming to fruition in March and June this year. Newly developed software, Poseidon and Triton will go live in the field, creating time saving efficiencies never contemplated for our Property Management team, and we are extremely excited about it. This may on the surface appear boring news, but for landlords and tenants it will be a paradigm shift in customer service as they receive information in real time, as well as ensuring our management fees can remain competitive while we offer an entirely new level of service.

We also have remarkable new selling systems, with innovations never seen before being launched in Toop’s 25th year. Our second generation online property E-magazine is nearly ready to go and will further compliment our all new full colour “Toop Weekly”, now in it’s 5th edition. Toop Weekly is the highest quality property magazine you will find that is produced weekly, with extended distribution to optimise the positive impact for our clients. Be sure to secure your copy every week.

Launched in spring 09 ToopTV, www.toop.tv, has been a huge hit. Within the next 2 - 3 weeks we will be launching the Property Advice Centre which incorporates the Property Fun House. Toop&Toop are linking all the traditional mediums with the latest technology, integrating press, radio, online TV, internet, online social networks and print in what we believe is a world first. It will be fun, exciting and simple. Toop clients will leverage their marketing spend and buyers will have more fun ways to search for property. While we are talking of having fun, iPhone users searching for sales or rental properties be sure to launch Safari and log onto www.iPhone.toop.com.au then add this to your Home Screen. Check out all the new features we have incorporated for your property search. You will love the web application …yes we are working on the Apple App and can hardly contain ourselves with the opportunities Apple’s new product, launched just this week, will bring.

So it is an action packed time at Toops. We have never been so busy or had so many new initiatives to share with our clients. This is a time of opportunity, and with energy and passion we will be driving real estate to an entirely new level to celebrate our 25th year in business. The future Industry Superstars are now emerging at Toop&Toop and while we are considering the appointment of a new CEO, we have the luxury of great depth to our team, giving us time to look for exactly the right person for the role.

So if you dream of being the Best of the Best in real estate and want to be part of a Nationally Acclaimed #1 team, call us for a chat - our training agenda is awesome for 2010.
One undisputable fact about T&T - it is an exciting and passionate place to be.

Anthony Toop, Managing Director.

www.toop.com.au

© Toop Real Estate Group

Video: Land Tax Issue - Interview with Isobel Redmond

2010-01-22T11:33:00.004+10:30

Economic and social factors in play

2010-01-22T09:06:00.001+10:30

While the 26th of January marks the First Fleet’s arrival to our country in 1788, 222 years on Australia Day allows us to celebrate so much more. Our diverse multi-cultural society, camaraderie among local communities, and all that we often take for granted yet are so privileged to have in a democracy.

This day also allows us to recognise and reflect on our history... then look to the future. When it comes to property it’s the process of distinguishing where the market has been and predicting where it is heading.

Right now there are economic and social factors in play with finance remaining one of the heavy weights. This week Westpac tightened their ‘home loan’ belt, reducing the maximum standard variable lend available for new clients from 92% to 87% of a home’s purchase price. On top of this, finance approvals across all lenders are now taking an average of 21 days to come through, in effect stalling the purchase process. For buyers, gaining pre-approval is more important than ever; it allows you to act quicker, submit unconditional offers and be placed ahead of the competition.

As for social factors... well the Australia Day public holiday, while we love it, can have an interesting impact on selling homes. The market is currently experiencing a shortage of well presented and accurately priced property. Feedback from the frontlines is there aren’t enough homes buyers can ‘just move into’ and not need to renovate or redecorate. So where does Australia Day come in? Sellers are holding off launching their homes to the market for an extra week, concerned that many buyers will be making the most of Tuesday’s holiday and heading away for a long weekend. With this in mind, next weekend could see a bumper release of new stock for buyers. Our sales team has some fantastic properties undergoing final preparations, ready for the 30th - if you’re buying be sure to see these homes first by going to www.register.toop.com.au.

Keep an eye on Toop.TV for the latest news impacting the market. Wednesday’s show was a must see for investors as we broadcast an interview with State Opposition Leader, Isobel Redmond, on Land Tax then talked Tennis and SA Properties with Roger Rasheed. To watch or podcast the show head to www.toop.tv. As for the upcoming show, tune in on Wednesday at 1pm to find out how the Fleurieu is leading the way in sustainable living and see one of South Australia’s finest homes in Clayton Bay.

Anthony Toop, Managing Director.

www.toop.com.au

© Toop Real Estate Group

We're smack bang, back in a seller's market

2010-01-14T08:56:00.003+10:30

The economy is on the mend, employment numbers are up and the corporate giants are regaining ground... which means employee transfers are happening again and investors are back!

Only 2 weeks into 2010 and we’re already seeing market conditions strengthen. Web visits from around the globe to toop.com.au spiked last weekend, coinciding with the New Year real estate launch, and are up a healthy 13.2% from this time last year.

‘Cashed up’ professionals who have relocated from overseas and interstate are entering the local property scene, fuelling competition amongst buyers for quality homes. The top end is well positioned to be a big winner thanks to these new buyers, with the sale of a stunning estate at Grove Street, Unley Park a prime example. Settling this past week for $4.019million the property was snatched up within a matter of days by a Chinese family new to Adelaide.

Keen investors who have been waiting for the First Home Buyer hype to die down are back in the mix and setting their sights on properties in Adelaide’s CBD. Over the past weeks our sales team has negotiated contracts for city apartments with investors from Dubai, Malaysia, Perth and Sydney.

According to our leasing team, these savvy landlords are looking in the right spot. Properties priced correctly throughout the inner city suburbs, CBD and across the metropolitan coast are currently being secured following the first open, with around 50% going to tenants who have transferred from interstate. As an anticipated rush from overseas students is expected in late January/early February, competition for accommodation in these areas will only increase in-turn pushing up weekly rents. This will likely provide balance for investors as interest rates continue to climb.

As for our ToopExec rental properties, these are currently letting to local families. A shortage of good quality homes for sale is seeing vendor’s sell quickly, then needing to rent while not compromising on quality, as they track down their ideal home.

In a nutshell... we’re smack bang, back in a seller’s market. Vendors, price your homes well and make the most of these buyers!

Anthony Toop, Managing Director.

www.toop.com.au

© Toop Real Estate Group

2010: Population, Rents and Home Prices to Rise.

2009-12-27T13:04:00.001+10:30

Dear InsideStory subscriber

The final CommSec report for 2009, and a really easy to read summary that takes a few minutes to read and makes a lot of sence.

“CommSec expects home prices to rise by 8-10 per cent over 2010. Population continues to grow and not enough homes are being built. For investors, rising rents and home prices is an attractive combination.”, and the report briefly outlines its logic.

craigjameseconomicupdate.pdf (pdf)

Worth reading.

See you all in 2010, I am waiting for the latest RP Data wrap for the year so if it arrives I will post it for you.

Just as a final note, be sure you go to www.toop.tv and see the last program for 2009 including a special segment “on the red Carpet”, a fun segment with Adelaide people you will definitely recognise. We have interviews with the State political leaders on Land Tax and Stamp Duty, Planning controls and a series of really important policy issues relating to SA property so subscribe for your reminders on www.register.toop.com.au if you are not in that loop already.

Have a wonderful New Years and see you in 2010,

Regards

Anthony Toop, Managing Director.

www.toop.com.au

© Toop Real Estate Group

Remarkable Year for Property Owners

2009-12-17T08:18:00.002+10:30

InsideStory readers this is it for 2010. It has been a remarkable year for property owners with an unprecedented market turnaround creating sustainable growth. The Top End returned and we believe it will be solid throughout 2010, with much that was lost in the last quarter of 2008 clawed back over 2009.

In less than two weeks the First Home Owners Boost finishes and in the new year interest rates are set to head north further with many predicting a 0.5% rise in February. 2010 will see the return of the investor, a softening of the bottom end of the market and the pressure return to rentals. We will see some first home owners sell up, resulting in unhappiness in that market as opportunist investors flex their muscles.

Price sensitivity has been one of the standout features of this busy year Ð properties that were not priced correctly have not sold. The oversupply of properties in spring did not eventuate as sales were fast and furious, yet not ‘boom like’. Buyers may have less choice in the marketplace than this time last year, but they are showing great restraint even when faced with competition for the purchase. Off market sales have returned, multiple offers are again a feature of the market and with some spectacular exceptions, auctions are being strongly supported but considered.

This is the last weekend of opens for 2009. Selling now will be via online and from our VirtualAgent selling system, where we have 10,000 registered buyers waiting for the ideal home (buyers MUST register, log onto www.register.toop.com.au).

Hot off the press... our 2010 properties are being showcased in full colour in our brand new Toop Weekly magazine! We have taken this publication to a whole new level with a new format, so be sure to pick up our bumper holiday edition... we hope you absolutely love it! Toop Weekly is available from all of our offices and our sales team.

Be sure to visit www.toop.tv to watch some of our incredible interviews of 2009 and view many of SA’s Finest homes. Next Wednesday we have a Christmas edition going to air live and interactive with a special “on the red carpet” segment, capturing interviews with party goers... don’t miss it. We’ll be back live mid January with a fabulous line up for the year.

To all our clients, customers, friends, family and staff have a wonderful Christmas, and a safe and Happy New Year. Thank you so much for the loyalty and support you have shown Toop&Toop again this year, it is important to us and greatly appreciated.

Anthony Toop, Managing Director.

www.toop.com.au

© Toop Real Estate Group

No holiday for the market !

2009-12-10T09:39:00.001+10:30

Time’s Up Folks... just one more weekend of opens and that’s it for selling in 2009. So if you’re wanting to sell, what now?

During the Christmas New Year break it only takes a few days before buyers get hungry for property again. At Toop&Toop our team is well ‘seasoned’ and prepared for buyer enquiries throughout the holidays... especially on the Fleurieu. While many businesses are winding down our Victor office is ramping up, ready for their crazy time!

Thanks to new innovations we’re ensuring our clients don’t miss out on any selling opportunities, yet enjoy private time. This year we have been able to ramp up our online property information, as well as launching a totally new property magazine for Christmas & New Year - keep an eye out for it during the week.

This holiday season Toop&Toop will present properties better than ever before and make life so much easier for both sellers and buyers. Our online magazine, Toop Daily is real time and will remain totally up to date throughout the entire period... plus many properties are now showcased on Toop.TV. Having a complimentary property video viewable 24 hours a day, 365 days a year at www.toop.tv and downloadable by podcast, will take so much pressure off our clients over this period.

Although 2009 is coming to a close ToopTV video presentations are still available for our clients. Limited spots remain for our Christmas program. Sellers must act quickly as these are in hot demand.

To kick start 2010, we have launched our “January TURBO SALE program”. Designed to fast track sales it is extremely cost effective and high impact. January is a critical time when buyers lock in the ideal school for their children, which means securing a purchase or rental property prior to school enrolments closing.

Sellers MUST CALL over the weekend or Monday to get into our holiday marketing program. Capitalise on the phenomenal New Year period when interstate and busy locals get the time to look at property.

We have several awesome online initiatives ready to be introduced in 2010. A paradigm shift in real estate agency capabilities is occurring. Selling real estate in South Australia will be lifted to a new level next year. So today’s message is for those looking to sell as soon as possible, let’s hear from you today.

Anthony Toop, Managing Director.

www.toop.com.au

© Toop Real Estate Group

The first time the RBA has ever lifted rates three months in a row

2009-12-03T11:11:00.001+10:30

Hi InsideStory readers,

Here you go the latest CommSec report.

Some excerpts from the report to give you a feel for what it covers…..

The Reserve Bank (RBA) has increased interest rates for the third consecutive month – the first time it has ever lifted rates three months in a row. The cash rate was lifted from 3.50 per cent to 3.75 per cent.

􀂠 The RBA made two references to higher dwelling prices in the latest statement. The housing market will clearly be a central issue for the RBA in 2010.

What does it all mean?

• The latest rate hike will have its greatest impact on consumer sentiment & psychology rather than on household finances. According to the Commonwealth Bank more than 90 per cent of its home loan customers are ahead in their loan repayments. And while those who have taken out loans in the past six months may be up for higher repayments, few could say that they didn’t see it coming.

CommSec Report - Ecomonic Insights (pdf)

Enjoy the read, and remember to send you questions to www.asktoopie.toop.com.au and we will answer them every Wednesday Live and Interactive on the show, and blog them to you as well.

Regards

Anthony Toop, Managing Director.

www.toop.com.au

© Toop Real Estate Group

Australians opt to better utilise their bigger homes

2009-12-03T11:07:00.003+10:30

InsideStory followers,

CommSec pulled a great piece of research out of the hat this week and made really interesting reading. Here are some exerts from the report to tempt you to read on……

· NSW still has the biggest houses in Australia – and by a large margin. The size of the average new house built in NSW in 2008/09 was 262.9m², followed by Queensland (253.0m²), Victoria (249.5m²), Western Australia (243.9m²), ACT (239.4m²), Northern Territory (232.3m²), South Australia (195.2m²), and Tasmania (190.6m²).

· The other interesting figures released recently relate to housing mobility. The Bureau of Statistics report for the 2007/08 year show that less than half of all households had moved in the past five years to (43.4 per cent). Those that were more likely to have moved in the past five years were private renters (85 per cent) while only 15 per cent of homeowners without a mortgage had shifted premises and 42 per cent of those with a mortgage.

· When the same question was asked a decade ago, 73 per cent of people had moved house in the past five years. All groups had moved more often, including homeowners (56 per cent) and mortgagees (67 per cent).

So in simple terms, figures suggest that an extra 166,000 homes would have been needed had not Australians opted to better utilise their bigger homes over the year

CommSec Report - Economic Insights (pdf)

This summary report into house sizes is an easy read and worth taking a few minutes to look at. For real estate agents, the drop off in mobility will put a shiver down your back bone!!

Enjoy,

Anthony Toop, Managing Director.

www.toop.com.au

© Toop Real Estate Group

Dynamics changing, but Adelaide's market healthy and stable.

2009-12-02T13:30:00.000+10:30

Dominating real estate news this week: the Reserve Bank’s controversial third consecutive interest rate rise, Westpac’s instant move to drive rates even higher & the release of CommSec’s report into the size of Australian homes.

Westpac are leading the “pack” with their 0.45% hike in rates. Certainly disappointing, but is this the trigger investors have been waiting for to re-enter the market? RP Data’s view is... “The twenty five basis point rise from the Reserve Bank is likely to take the average variable rate up to 6.55%... This is still well below average levels which tend to be above 7% & significantly lower than the recent peak when mortgage rates were 9.6% in July & August last year.”

As the First Home Owners Boost ends this month & with interest rates moving up, the dynamics are changing quickly. Investors have been waiting for these events & InsideStory has been predicting them. We have already seen a softening of the sub $500,000 market as buyers have gone from “anxious & enthusiastic” to “cautious & conservative”. Meanwhile the top end of the market has been fast & furious, making up for the record low volumes this bracket experienced last Spring.

Consistent prices plus last month’s volume of auction & pre-auction sales at all levels, (even in the $3-$4 million range), reflect a healthy stable market. Buyers, a reminder to register for VIP advice on “off market” listings at www.register.toop.com.au.

Now some highlights from RP Data’s Riskmark Monthly report & CBA’s CommSec Research Report released this week.

RP Data
“Over the first ten months of 2009, Australian home values have risen by 10% following on from their 3.8% peak-to-trough falls in 2008. Over the year-to-date Melbourne has been Australia’s best performing capital city, delivering capital gains of +14.9%. Sydney is up by nearly 1% per month with cumulative growth of 9.9%... most of the other capital cities have performed strongly with Darwin (+12.7%) leading the way, followed by Canberra (+11%), Brisbane (+6.9%), Perth (+6.1%)
& Adelaide (+4.6%).”

CommSec
“Australian homes are biggest in the world. Data commissioned by CommSec from the Australian Bureau of Statistics shows that the average floor area of new homes hit a record high of 214.6m² in the last financial year... the average size of new homes started in the US stood at 201.5m².

For the first time in at least a century, the number of persons per household rose during the 2007/08 year from 2.51 to 2.56 persons... If the size of the average household continues to rise, there will be reduced demand for new houses & apartments.”

The terrific news is that Adelaide’s market continues to be stable, consistent & reliable... you can’t ask for more than that! To read the full reports go to www.insidestory.toop.com.au

Why not get even more involved in the world of real estate? We are “live & interactive” every Wednesday at 1pm on www.toop.tv, answering your property questions live plus those sent in to www.asktoopie.toop.com.au. This week’s show was compulsive property viewing including a sensational interview with RP Data’s David Williams & Toop&Toop’s own Peter Veitch. If you missed us live, this broadcast is now available to view or download as a podcast at www.toop.tv

Anthony Toop, Managing Director.

www.toop.com.au

© Toop Real Estate Group

A report for those keen to remain very informed..

2009-12-02T11:37:00.001+10:30

InsideStory subscribers,

This is a big report and takes some absorbing. Today we interviewed David Williams, Executive General Manager of RP Data on ToopTV, so to hear and see that interview, go to www.toop.tv from Thursday afternoon as the interview will be available for viewing or downloading as a pod cast.

RPDataRiskmarkNov09.pdf (pdf)

This report is perfect for those keen to remain very informed.

We will be posting a number of great reports this week.

Enjoy the read,

Regards

Anthony Toop, Managing Director.

www.toop.com.au

© Toop Real Estate Group

IS IT WAR???

2009-11-26T10:28:00.002+10:30

A national showdown between the real estate industry and public portals such as realestate.com.au and Domain.com.au seems almost inevitable now as the race for on line dominance goes to a new level.

Actually outright war is possible.
Actually outright war is probably more likely as the greatest fear of an entire industry starts to become a reality. The power of public portals and their ability to capture data is on the cusp of changing all the rules and the age old promise that only real estate agents will have access to advertise on them has been circumnavigated, but who really is being fooled??

A company called “My Home is For Sale” now boasts “We are an online real estate agency that offers vendors 95% of typical selling costs if the owner is prepared to hold an open inspection.” Then it goes on to brag about advertising on “all the top industry sites” in an ad and names the two above.

So what is the inside story on this. Well my guess is that because the REI’s are all getting back on track and rebuilding their own web sites the gloves are off. In Adelaide we have seen REISA adopt www.realestateview.com.au as it’s preferred member web site and this is owned by agents and pretty much is imported from REIV (Victoria’s REI).

My assessment is that because realestate.com.au has put up it’s rates to such an extent, that decisions by agents and sellers have to be made about online verses paper advertising. It was never an issue because online was so cheap. As you can see with the weekend press, we still get amazing results from the press and we have found that it is becoming like TV and Radio, they both play a very important role at different times in the sale. We previously reported what was happening in the USA with online and explained that consumers are ultimately driving the agenda by wanting their marketing done cheaply.

So what are my thoughts? I think real estate agents are at cross roads. In the USA the winners are the heavily resources “FULL SERVICE” agents (franchise and Independent) on the one hand, and then the cheap virtually sell yourself partial service agents on the other. Fewer sit in the middle, and full service highly resourced independent agents are where Toop&Toop have focussed in our USA studies as they are flourishing (and commanding 5 to 6% fees!!!!!). Toop&Toop have used technology to keep client fees competitive even when comparing apples and oranges but what is clear, the discount based agencies are weak and disappearing. These “sell yourself” agencies are staring to take over that discount partial service part of the market.

No private seller can have the power and reach of what we do at Toop&Toop, and the laws are now so complex that private sellers will have to spend a fortune covering them against getting sued. Most normal mums and dads buyers do not like the negotiation process and really have no idea on such large transactions.

Personally bring it on, let the consumer pick what they are after. The only losers here are the agents that don’t really offer much. Sellers who want to save a few dollars are no different to the white collar person who thinks they are a carpenter or bricky and invariably end up realising that hopefully before it costs them tens of thousands of dollars.

With online, well as you know, we set our own agenda at Toop&Toop…be sure to see last Wednesday’s ToopTV available now on line and on pod cast. We had a sensational interview with Brenton Eden, the State co-ordinator for CFS about fire proofing your property. This coming Wednesday at 1 pm tune in live and interactive and hear how to chop off the back of your block, and how to deal with boundary disputes. Email us now with your questions on www.asktoopie.toop.com.au!

Remember all the reports available at www.insidestory.toop.com.au.

Anthony Toop, Managing Director.

www.toop.com.au

© Toop Real Estate Group

RBA stresses no timetable for rate hikes: CommSec

2009-11-19T16:09:00.002+10:30

InsideStory subscribers

This CommSec report talks about interest rates so I guess it will be of interest to all property owners.

CommSec Report - Ecomonic Insights (pdf)

Don’t forget to go to toop.tv and check out our weekly real estate show/program. We are improving it every week and the content is starting to really become valuable. Next Wednesday we have a segment on protecting your asset and your lives in the bushfire season.

Any topics that you are interested in please let me know, and we can answer any questions live and interactive or by email on Wednesdays, which is available on Thursday by way of pod cast or in our archive of shows.

Some great new on line innovations yet to be announced this year!!

Stay out of the heat,

Anthony Toop, Managing Director.

www.toop.com.au

© Toop Real Estate Group