Thursday, April 19, 2018

Opportunities for landlords in 2018

With the current market as it stands right now, we believe there is great opportunity for investors to buy their first property or grow their portfolio. 

As we head into the second quarter of the year, we think units are certainly the ones to watch. Whilst house prices recorded a slight decline (0.4%), the average price of units across Adelaide rose. 

We believe the popularity is due to their affordability. Units open up locations that may not have been previously available to purchase in, giving investors more choice. Tenants also certainly enjoy the low maintenance that these properties offer. The lower price point for units, particularly in the eastern suburbs and off the back of an incredible year of growth for houses in 2017, is the key driver here. 

You can pick up a unit in sought-after suburbs such as Norwood, Kensington and Toorak Gardens for around $350,000, whereas houses in these areas can have a median house price as high as $1.4 million. This vast difference in pricing is creating huge opportunities for landlords looking for increased cash flow and higher yields (as opposed to high capital growth). Tenants love being so close to the action, and those units that have a fresh feel with modern amenities aren't staying on the market for long. Tenants will pay a premium for location, convenience to the CBD, and if local shops, schools and cafs are close by. 

Unlike other capital cities, units in Adelaide have not kept up with the same pace as housing growth in the past 12 months. This is where we see the opportunity lies.

Whilst the first quarter of property results show that the 9% growth predicted for houses may not be on the cards, units are a different ball game. Tim Lawless, Head of Research at CoreLogic RP Data, describes Adelaide as a steady and resilient marketplace despite a national slowdown over the first quarter of the year. 

We see the opportunity for landlords to make the most of the current market, with units as a potential front runner. If you want to find out where we are seeing the best investment opportunities in the state or what property types are providing the greatest returns, please give our team a call today. We'd love to chat with you and share what we are finding out in the field!

Thursday, April 12, 2018

What’s trending in our market right now?

How’s the market? This is one of the most common questions our team is asked out on the ground each week. Real estate is a hot topic and people are eager to know what’s happening in the market, what their property might be worth and how house prices in their suburb or city are performing. Staying up to date on property market trends is key to knowing when it’s your time to make a move. 
Team Toop has just released our latest Quarterly Property Report and we cannot believe how quickly the first quarter of 2018 has passed us by. With Mad March, Adelaide500, WOMADelaide, the State Election and Easter it has been a busy start to 2018. Throughout the start of the year we continued to see low stock levels in the property market creating a real urgency for buyers.

Looking to the national market... according 
to CoreLogic RP Data, trends across the March quarter showed that capital city home values were 0.9% lower over the March quarter, while values across the regional markets have tracked 1.1% higher. CoreLogic’s Head of Research 
Tim Lawless states that the Australian housing market is currently showing every sign of recording a soft landing after national dwelling values peaked in September last year. 
Despite a slowing property market, the vast majority of home sales (nine out of 10) in Australia are still turning a profit for their vendors. Across the nation, 91.1% of all properties that resold in the December quarter went for a price above their previous purchase price. 
Back home... it’s been a slower than usual start to the year for Adelaide’s housing market, with home values making a slight drop of 0.4% for 2018’s first quarter. 
These stats were quite surprising to us and our team, given analysts at the start of the year were predicting up to 9% growth here in Adelaide for 2018. However, Head of Research at CoreLogic, Tim Lawless described Adelaide’s performance this quarter as “flat rather than falling”, given previous months had shown minor growth.

Despite this slight drop in values, interstate demand for Adelaide properties remains at an all-time high, spurred on by affordability and higher yields than those on offer in the eastern states. data shows more than 4.6 million property seekers from Sydney and Melbourne eyed off Adelaide properties in the last 12 months, 9% more than this time last year.
The Adelaide suburbs where homes have been selling the fastest include, North Adelaide, Unley and those on the inner-city fringe. Our lifestyle suburbs along the coast such as Glenelg and Henley Beach, and in the Hills, such as Stirling, 
are also proving popular with buyers. 

Adelaide still remains a steady and resilient marketplace despite a national slowdown, and we are looking forward to seeing what the next quarter brings. If you have any questions about the market or would like any additional information specific to certain areas or suburbs, please feel free to contact myself or anyone from Team Toop!

Thursday, April 05, 2018

Airbnb… is my tenant two-timing me?

If you have recently booked yourself a holiday home, there's a strong chance that you used an online booking website such as Airbnb or Stayz. These online systems are now becoming the norm in many coastal and tourist cities or towns. They allow you to book your holiday accommodation directly and live like a local, all at a fraction of the cost of a hotel stay. 

These platforms can create extra cash flow for a home owner who is looking to rent out their property sporadically throughout the year. And with over 50 million Airbnb users, it's a popular alternative to hotel accommodation. 

But it's not just home owner's that are looking to make the most of it...

Some tenants are taking advantage of the Airbnb trend and are subletting their property on the weekend or a few days a month for a bit of extra cash... and it's not going down well with many landlords when they see their property on Airbnb.

So, if you find yourself in this situation, what do you need to know?

The first thing is to work out whether you are OK with your tenant subletting. And it's a personal question. Some landlords see it as a way to help ensure their tenants are never in arrears again - and given the property needs to be in the same condition it was leased in, they may see this as a positive. Others, it's an absolute no. 

Remember, tenants must seek written consent from their landlord should they wish to sublet their property, otherwise they'll be in breach of the obligations under their lease. Being all over this is important, especially if your tenant is doing it without your knowledge. Whilst you cannot unreasonably withhold your consent, you do have a say.

If you are OK with this, you still need to get over the second hurdle. Airbnb is typically for tenants staying less than three months in the property, which means it is deemed a 'short term' rental under legislation.  And as such, you/your tenant may be in breach of various regulations without even knowing. You many also be contravening local laws (such as strata by-laws or zoning stipulations) and hefty fines can apply. 

Compliance is essential. Check with your insurer that you are covered for short term rentals and ensure items such as your smoke alarms, appliances, gas connections and pool are certified and meet compliance standards.

As a landlord, or a tenant, it's important to understand how these types of businesses such as Airbnb can impact you. If you'd like to chat further, please feel free to give myself or someone from our team a call, we'd love to hear from you! 

Thursday, March 29, 2018

Australia’s #1 Real Estate Agency... back to back!

There are awards, and then there are awards. The Real Estate Institute of Australia's (REIA) National Awards for Excellence are the most highly regarded and respected real estate awards in the country. To be eligible you must first win at the state level and as the only independently audited awards, they 
are the Oscars of real estate.

Last week these awards were held in Sydney and Team Toop was acknowledged at the highest level winning three out of three major awards, including being awarded Australia's #1 Real Estate Agency for the second year in a row! This is the highest privilege in Australian real estate. 

We were honoured to also be awarded Innovation of the Year and be inducted into the Hall of Fame for Communication after winning this category for the last three years.

No other South Australian residential real estate agency has EVER won any of these awards in the history of the REIA National Awards for Excellence. We are truly blown away! 

With this track record, South Australia has certainly made a statement on the national stage. Many South Australian businesses, in various fields, have a reputation across the country as innovative and lifting service levels to customers. While we are getting on with embracing technology and new ideas here in SA, players in larger markets such as the eastern seaboard that have plenty of business to go around, risk being complacent and getting left behind. We were so honoured to be representing South Australian business on the night.

Real estate, like any business on earth right now, is unsure where the future is heading. Our industry is ever-changing with new standards and efficiencies emerging through innovation and technology. 

It's not about removing the human element within a business. We understand that people want to deal with people and in a meaningful way. Technology and innovation for us is about transforming business efficiencies so that our team 
have more time than they have ever had to deliver a highly personalised service to our clients. We're excited to be leading the way in this field!

For the first time ever, Toop&Toop has two generations working as one in the business. It's a very powerful combination. We have that perfect balance of experience and youthful energy. This has already seen some incredible changes and results so far 
in 2018!

We are so proud of each and every one 
of our team members who continually 
strive for excellence. Their outstanding 
service to our clients, passion for innovation and ability to set new standards is world-class. We're also so thankful to the South Australian community and all of our clients for 
their continued support.