Thursday, March 26, 2015

Traditional... but even more valuable than ever

This year Suzannah and I decided Team Toop would sponsor The Advertiser's Annual Property Guide – a lift out magazine in this Saturday's Advertiser. As 'Gen-Y's', Suzannah and I have grown up with technology. Innovation is at the heart of Toop&Toop's culture, and we are well known and awarded in the industry for this. So from the outside it may seem odd for Team Toop to be so heavily aligned with such a traditional publication. But here's the thing... The 2015 Property Guide has done all the hard work for you, by compressing and analysing all the masses of information that is just too overwhelming to trawl through online.

There is no denying that buying, selling or renting out your property is a major decision. On average, people spend 20 to 30 years paying off their home. So before making any decisions, it is smart to research your market and do a little homework on exactly what the trends are, and have been, in your area.

As a property nerd, I have been hanging out for the new guide since last March, and I 100% believe it is a 'must have' tool for anyone looking to buy or sell property, or start an investment portfolio this year! The Advertiser's Annual Property Guide is essentially a year's worth of A+ homework compiled for you!

With interest rates at all-time lows, vacancy rates at the lowest we have personally seen and market conditions strong, the guide gives a concise recap of the past year in property for those who want to take advantage of the exceptional buying conditions! The information that is supplied in the book can offer some extremely valuable insights into what is happening (and what has previously happened) in every single SA suburb!!

Having technology at our fingertips and the internet ensuring real estate statistics are so readily available, it could be easy to look past this guide with the mentality of 'looking it up online later.' But trust me; if you're serious about transacting in the property market, you are going to wish you kept the Property Guide!

Understanding exactly what this information is saying is key to unlocking a huge amount of market knowledge and intel that you can use to make truly educated decisions and feel confident in your buying, selling or investment strategy.

So what do these red and white lines of statistics and information mean and why are they so important?

Firstly, having every suburb in SA consolidated into one magazine is so valuable if you are a buyer who is not necessarily looking in a specific suburb. You may be looking for a specific type of house, or features like four bedrooms, but have a few different areas in mind. The Property Guide makes it easy to compare these suburbs and their short and long-term results to gauge and predict how the area will fair for capital growth and what sort of prices you can expect to pay.

The median house price is generated by looking at every house sale in a particular suburb over the year and taking the middle price. This is the most recognised and representative indicator of typical selling prices over time and can give you a solid understanding of current house prices in the suburb.

How does your suburb compare? A quick way to gauge how a suburb is comparing to the rest of SA is to look at the ranking column – this column takes the change in median value over the last 12 months and ranks the suburb compared to the rest of SA. Investors, if you have properties in the top 10, these areas are experiencing massive capital growth right now and could be a great chance to take advantage of this and look at selling, and buying up in the new up and coming areas.

Change in Median (5 Years and 10 Years) is a very useful column for those in their primary place of residence looking to sell or those looking for a new family home. This information gives you an insight into the medium and long-term capital growth from the past and gives you some indication of what to expect in the future. The long-term view is more balanced and neutralises the peaks and troughs that can occur in a market.

Vendor Discount is a really important figure for both buyers and sellers to look at. For vendors, it is an imperative figure to understand when working on your sale strategy with your agent. This figure gives insight into past seller experience from the last year in your suburb. It is derived from the first advertised price of a home (which legally needs to be the higher of the agent and vendor selling figure), compared to what the property actually sold for. So for example, if you see that an area has a -4% Vendor discount, this means that the average property sale in that suburb sold for 4% less than the prices that were originally mentioned in the marketing. The reason this is important to understand, is that when you see current listing property prices in your area online you may use this as the basis of your sale expectations, but it doesn't necessarily mean that this is what they sell for and you could run the risk of losing the initial impact of your campaign to buyers if you don't look at this vendor discount figure and take it into consideration.

Right now, Adelaide is THE hot spot where it seems everyone is focusing their attention for the next property cycle. We are the most affordable mainland city in Australia with strong and stable rental and capital returns, making Adelaide a safe option, even for the conservative investor.

So, locals who are looking to buy or sell; the Property Guide can give you the inside story and is a great way to equip yourself to recognise the best opportunities in the Adelaide property market. We believe this tool is extremely valuable to customers, which is why we have supported the publication this year and why we have 2,000 extra copies being delivered to our offices on Monday... to provide to anyone coming into the market throughout the year that wants to get up to speed quickly! 

If you have any questions about buying or selling, or would like one of our team to help talk you through what all of these statistics mean, or even if you would just like an extra copy of the guide, make sure to give one of our team a call... they would love to help! 

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