Thursday, October 10, 2013

People have started asking… "Have we missed the boat?"

Real estate agents constantly get asked about their predictions; most people want to know if we have hit the bottom of the property cycle yet. Everyone knows that simply being a real estate agent is no qualification to give investment advice, however, we do observe what is going on around us, and we wouldn't be much of a real estate agent if we didn't have a personal opinion.

So what seems to be happening? 

The good news for top end buyers is the higher up the price ladder you are looking; the more likely you are still able to buy OK. But given the stock levels are so thin at the moment; the clock is ticking on the best buying opportunities. Get on with it!

Sellers, because there are so few properties, if your property is good enough, the buyer will pay over market. Adelaide's top end is conservative, but with exceptions, any rapid escalation of prices seems unlikely in the short term. 

The story looks very different up to say, $800k. In ALL 6 Toop&Toop offices, our more affordable properties have simply taken off in past weeks. Fast and furious sales with low stock levels—this is a recipe for an incredible spring for our sellers. 

The election, AFL Grand Final, long weekend and winter are all behind us and it's getting serious out there. School holidays will soon tick the final box of distractions, and if you thought you were going to buy a bargain, I'm pretty certain you have missed the boat.

Buckle in for the ride investors, real estate seems to be back in fashion and there is a ground swell of new investor enquiry that can no longer be ignored.

You can feel the optimism at the open inspections. Buyers are still trying to play hardball, but in the affordable end of the market they are already starting to lose the battle. A couple of extraordinary auction results recently have shocked us all. 

Toop&Toop are entrenched and committed to our South Australian market. We continue to put our money where our mouths are. For the last 18 months we have been talking to everyone about the opportunities on the Fleurieu, so we decided it was time for us to act. Last Sunday, Sylvia purchased another investment property on the Fleurieu, very exciting.

Our small Victor Harbor sales team of two—Roger and Jayne—have been flat out with 7 sales this week alone (no, Sylvia's purchase wasn't one of them!) Maybe we have read it wrong, but it feels like the next cycle has now started down there.

Toop&Toop have $1 billion in residential property currently under management and 28 years experience, so we know this market. Many of our residential clients are also investor clients, and we believe this is an ideal time to be investing in Adelaide property, whether it is to simply upgrade your principle place of residence, or start/add to your existing investment portfolio.

INVESTMENT TEAM: We are also putting our money where our mouths are for our clients. We have established a dedicated Investment Team to provide specialised information to Landlords (new and experienced) looking to start, expand or upgrade their rental portfolio. Our advice is free, but naturally we hope we can win your business by showing you how to optimise your investments.

Our start up Investment Team is made up of the following specialists: Kerrie Akkermans - specialist in the business of property rentals; Michele Alexandrou - specialist sales of investment property and acquisition; and Toby Stapledon - specialist investment property finance advisor.

TRADING ROOM: In another initiative, we have launched phase one of a dedicated investors website last month. This will become invaluable for investors wanting to trade up, down or out of investment property. Called the Toop Trading Room, this is just the beginning of a new era for Toop&Toop clients. We have committed resources under Suzannah's leadership to SA residential property investors, and we feel the timing is perfect.

INVESTOR AUCTION: For those looking to upgrade investments, or just invest for the first time, we will auction up to 8 investment properties in-room next month. Toop's Top 8 Investment Auction, to be held on Monday 4 November, 6pm at our Hyde Park office – put it in your diaries!

We are off to a flying start with two of the 8 properties already lined up:

1. 14/222 The Esplanade, Seacliff
2. Scottish Avenue, Clovelly Park (available only to Members of ToopVault so register now at as this is yet to be launched publically)

INVESTMENT BUYERS: Come to our first investment auction. Come and see first hand if it's a flop or a massive success. Our goal is to make it simple to buy and build your rental portfolio. Our team can assist with all the finance, insurance and completemanagement of them for you and help you optimise both your rental returns and long-term capital appreciation.

SELLERS: We are looking for 6 more rental properties to include in our November Auction. The costs are low, opportunities high. To find out whether your investment property is eligible, call Kerrie Akkermans on 0488 034 871 or Michele Alexandrou on 0411 226 600 for a confidential chat.

I am very excited… Toop&Toop are so passionate about SA Property.

With property, you've never missed the boat, but you may have missed the absolute bottom of this cycle.

Remember, when it's time to get serious, it's time to get Team Toop.

Anthony Toop

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