How did we get here?

While on his morning walk, Prime Minister Kevin Rudd falls over, has a heart attack and dies because the accident and emergency dept at his nearest hospital is too understaffed to treat him in time.

So his soul arrives in Heaven and he is met by Saint Peter at the Pearly Gates. 'Welcome to Heaven,' says Saint Peter, 'Before you settle in, it seems there is a problem. We seldom see a Socialist around these parts, so we're not sure what to do with you.'

'No problem, just let me in; I'm a good Christian; I'm a believer,' says the PM.
'I'd like to just let you in, but I have orders from God. He says that since the implementation of his new HEAVEN CHOICES policy, you have to spend one day in Hell and one day in Heaven. Then you must choose where you'll live for eternity.'

'But I've already made up my mind. I want to be in Heaven,' replies Rudd 'I'm sorry .. But we have our rules,' Peter interjects. And, with that, St.
Peter escorts him to a lift and he goes down, down, down ...all the way to Hell.

The doors open and he finds himself in the middle of a lush golf course.
The sun is shining in a cloudless sky. The temperature is a perfect 22C degrees. In the distance is a beautiful club-house. Standing in front of it is Gough Whitlam and thousands of other Socialist luminaries who had helped him out over the years --- Bob Hawke, Paul Keating, etc. The whole of the Labour Party leaders were there ..

Everyone laughing, happy, and casually but expensively dressed.
They run to greet him, to hug him and to reminisce about the good times they had getting rich at the expense of 'suckers and peasants.'

They play a friendly game of golf and then dine on lobster and caviar. The Devil himself comes up to Rudd with a frosty drink, 'Have a tequila and relax, Kev!'

'Uh, I can't drink anymore; I took a pledge,' says Rudd, dejectedly.
'This is Hell, son. You can drink and eat all you want and not worry and it just gets better from there!'
Rudd takes the drink and finds himself liking the Devil, who he thinks is a really very friendly bloke who tells funny jokes like himself and pulls hilarious nasty pranks, kind of like the ones the Labour Party pulled with their master strokes on Education, Immigration, Petrol prices, Tough on Crime promises.

They are having such a great time that, before he realises it, it's time to go. Everyone gives him a big hug and waves as Rudd steps on the lift and heads upward.

When the lift door reopens, he is in Heaven again and Saint Peter is waiting for him. 'Now it's time to visit Heaven,' the old man says, opening the gate.

So for 24 hours Rudd is made to hang out with a bunch of honest, good-natured people who enjoy each other's company, talk about things other than money and treat each other decently. Not a nasty prank or short-arse joke among them. No fancy country clubs here and, while the food tastes great, it's not caviar or lobster. And these people are all poor. He doesn't see anybody he knows and he isn't even treated like someone special!

'Whoa,' he says uncomfortably to himself. 'Gough Whitlam never prepared me for this!'
The day done, Saint Peter returns and says, 'Well, you've spent a day in Hell and a day in Heaven. Now choose where you want to live for Eternity.'

With the 'Deal or No Deal' theme playing softly in the background, Rudd reflects for a minute ... Then answers: 'Well, I would never have thought I'd say this -- I mean, Heaven has been delightful and all -- but I really think I belong in Hell with my friends.'

So Saint Peter escorts him to the lift and he goes down, down, down, all the way to Hell.
The doors of the lift open and he is in the middle of a barren scorched earth covered with garbage and toxic industrial wasteland, looking a bit like the eroded, rabbit and fox affected Australian outback, but worse and more desolate.

He is horrified to see all of his friends, dressed in rags and chained together, picking up the roadside rubbish and putting it into black plastic bags. They are groaning and moaning in pain, faces and hands black with grime.

The Devil comes over to Rudd and puts an arm around his shoulder.' I don't understand,' stammers a shocked Rudd, 'Yesterday I was here and there was a golf course and a club-house and we ate lobster and caviar and drank tequila. We lazed around and had a great time.. Now there's just a wasteland full of garbage and everybody looks miserable!'

The Devil looks at him, smiles slyly and purrs, 'Yesterday we were campaigning; today you voted for us!

First Home Owners Grant boost to end June 30

Q: Who are Direct Negotiations?

A: The Direct Negotiations team is Adelaide’s leading property buyers agents. We don’t sell property, we buy it on behalf of local, interstate and overseas clients.

Q: What are the principal points of the Direct Negotiations business that make it different from others?

A: We act totally independently on behalf of the purchaser. Our team’s background extends across property acquisitions and consulting, finance, building and construction, commercial property, development and wealth creation. We are in the best position to mitigate risk and assist in making the right choice for investors and home owners to meet their requirements on all types of property.


Q: Is there growth in any particular areas?

A: Many areas, that were traditionally less desirable because of difficult access, surrounding zoning or lack of public transport are now being rearranged. The long list of new infrastructure projects both projected and under construction, have enabled us to identify areas of growth due to the ripple effect, access to modern facilities and changing lifestyles.


Q: What is the best type of property to buy?

A: Choosing the right investment property for your individual circumstances and goals requires a thorough understanding of the key principles and dynamics of investment property. Whether you need to isolate niche areas offering strong future capital growth potential, homes providing effective tax depreciation, strong rental yield, or subdivision/development opportunities for immediate equity, all depends on your short and long term goals and your current position. An individual strategy is devised for each client to match their unique circumstance.

Q: How do you see the South Australian market at present?

A: South Australia offers some of the nation’s most affordable housing and most appreciable assets. Adelaide’s median house price is significantly lower than that of Sydney, less than Perth, Melbourne and Darwin. This means you can own your own home or investment for a lot less – or alternatively, buy more property for the same money. House prices are stable and strong capital growth is on the horizon with our mining and resource deposits, unprecedented skilled immigration levels and massive injection of cash for infrastructure. This potential, makes Adelaide real estate currently and looking towards the future, one of the world's most stable investment vehicles.

Q: Any advice for first home buyers?

A: It is vitally important to be educated and well informed before undertaking to commit to potentially the biggest financial decision of your life. Your first home is your first investment property and it’s crucial you make the right choice in terms of property, location, and paying the right amount. A buyer’s agent is a valuable ally to first home buyers, walking them safely step by step through the entire process. With the increased grant potentially only being offered until 30th June this year however, time is of the essence!

If you are looking for a well performing residential or commercial investment property, an addition to your existing property portfolio or a home to live in, We guarantee to save you money on your next real estate purchase. Go to http://www.directnegotiations.com.au/ or call the team on +61 (0)8 84631997

Houses in Adelaide selling before first open inspection

Many potential property buyers are getting frustrated. Adelaide properties that are advertised for sale are commonly already under contract before the buyer has the opportunity to view. This is frequently the case with properties at and under the $400k AUD price range.
Through our networks and databases, we are alerted to properties before they are available to the public. Direct Negotiations purchased several properties this week before the signboard was put on the property.
Last night I organised a private inspection of a particular property that was later to be presented to the market. The agent asked if I didn't mind if a couple of interested groups came through at the same time. There were, in fact seven groups pushing their way in the door. The property lived up to expectations and every single group walked out the door full of anticipation with a "letter of offer" form. What they did not realize was that I had already prepared a contract, complete and signed on behalf of my (off shore) client, with the right price and conditions (negotiatiated prior to inspection). Vendors agreed and signed. The property was under contract to Direct Negotiations.
This morning there were likely be at least four letters of offer being submitted for a property that was sold before they actually walked through the front door.

If you are looking for a well performing residential or commercial investment property, an addition to your existing property portfolio or a home to live in, We guarantee to save you money on your next real estate purchase. Go to http://www.directnegotiations.com.au/ , or call the team on +61 8 84631997

Real property in super.

An unfortunate consequence which has occurred as a result of the stock market crash is that many hard working people who require retirement funds, associate the term superannuation with shares, the stock market and huge risks/losses together with commissions and ongoing ‘trails’ to financial planners.
Many of these persons also think that by putting their hard earned cash into superannuation that it has to go into the stock market linked investments and that they immediately lose control and at the same time will be subject to fixed and ongoing fees from financial planners.
Nothing is further from the truth!
A superannuation fund, in most cases is the best ‘investment vehicle’ people can use to accumulate a secure retirement income.
This is why………….
Superannuation funds accomodate better tax breaks than any other ‘investment vehicles’. During the ‘accumulation mode’ the maximum income tax is 15% or 31.5% less than the top tax rate including Medicare.
Capital gains tax for profits on assets held for longer than 12 months in a superannuation fund is 10% and does not attract Medicare surcharges as compared with the top personal taxation rate of 46.5%. Benefits from Salary Sacrificing into superannuation in some cases can reduce personal tax during the accumulation mode in some cases (dependent on individual circumstances) to nil thus saving 46.5% tax.
Superannuation funds with the use of warrants, can now purchase property without the need to have the entire purchase price together with stamp duty at the time of purchase. That is to say they can gear real estate investments.
Prior to the stock market crash, many people had a vast percentage of their wealth invested in stocks and shares via their Superannuation.
The current prevailing attitude towards superannuation-while totally understandable, is foundered by fear and frustration must be put to rest by accountants and superannuation professionals in an effort to protect the workers from incurring even more financial loss and pain.
Legislation is available to enable all tax payers to put away money for their retirement at world competitive taxation rates. The legislators obviously have done their part. Its now up to the investment advisors to ensure that savvy investors have a comfortable retirement by stepping up and doing their part and advising people of their options so that those who want to invest our superannuation into investments other than stocks and shares, such as direct property, have the choice to do so.
Superannuation now offers distinct alternatives.

If you are looking for a well performing residential or commercial investment property, an addition to your existing property portfolio or a home to live in, We guarantee to save you money on your next real estate purchase. Go to http://www.directnegotiations.com.au/ , or call the team on +61 8 84631997

First home buyers battle the investors in Adelaide.

Adelaide remains within the top 10 real estate locality performers WORLDWIDE.
The median Adelaide house price remains at a relatively affordable $373,000.
With all the turmoil in investment markets over recent months, many
investors will be asking if they have done the right thing by investing
in shares or managed funds. Many will be looking cautiously towards
bricks and mortar in 2009 as a potential safe-haven for their
investment dollar.
While some see the current global economic crisis as a reason to
despair, the reality is the current local property market has an
abundance of opportunity ripe for the picking... if you know where
to look.
Just about anyone can make money when the market goes up, but
only skilled, properly informed and educated investors will make
huge profits as skill supersedes luck.
The secret to successful investing is a counter-cyclical approach・
Traditionally, human nature tells us to invest when markets are going
up and to sell when markets are in decline. However, we need to
change our mindset and avoid the herd mentality'・instead, invest
when everyone else is selling (giving us maximum choice, discounts
and negotiating power) and sell when everyone else is buying.
Similarly with longer term investments, we should be buying when
markets are down and hold on to our investments for the long term.
Time in, not timing.
Warren Buffett is quoted as saying:
be fearful when others are greedy and to be greedy only
when others are fearful.・
The world's most successful investors make their money by buying in
the gloom and selling in the boom. To fully understand the current
market and how to profit and make the right decisions for your
investment portfolio, now more than ever you need sound coaching
and advice.
The problem is - where do you turn for help and good advice?
That's where Direct Negotiations can help. Unlike real estate agents and
spruikers/seminar holders, we won't ever try to sell you a property.
Instead, we'll provide you with un-biased independent advice,
comprehensive research, and guidance to ensure you select the
right investment, in the right area, at the right price.
Whether you're a novice or seasoned investor, we can help you wade
through the myriad of land mines in the property market, and see
you on your way to stability and success in 2009!

If you are looking for a well performing residential or commercial investment property, an addition to your existing property portfolio or a home to live in, We guarantee to save you money on your next real estate purchase. Go to http://www.directnegotiations.com.au/ , or call the team on +61 8 84631997

Just keeping it real

Capital City Performance
Annual change in dwelling value – year ending August 2008

The national end of month property indices report released
today by RP Data & Rismark International confirms that the
supply and demand imbalance currently being experienced in
the Australian property market has placed a floor under housing
prices, resulting in minimal value falls.
Based on the analysis in the report, this is most evident in the
metropolitan areas around the country where record
national dwelling values remaining positive over the 12 months ending August 2008. Over the three months to August 2008
there was a modest overall national decline with property values down by just 0.96 per cent over this period.
population growth has not been accompanied by new dwellings
to satisfy the housing demand.
According to RP Data National Research Director Tim Lawless
the property market has proven to be remarkably resilient with
Mr Lawless said the recent figures should put to rest claims that Australia’s property market is headed for a crash.
“In fact, values are holding relatively firm particularly when compared to the benchmark equities S&P/ASX 200 Index which
dropped by 19 per cent between January and August,” he said.
The only capital city to record a material decline in property values was Perth where this market fell by 5.69 per cent over the
August 2008 period. While this fall in values has caused some distress for home owners, Mr Lawless reminds owners that the
results need to be placed into context where values increased by 13.9 per cent annually over the past five years.
One of the most interesting findings in the indices release today was the convergence of the capital city market dynamics over
the past six months which revealed that all capital cities recorded slightly negative growth; no particular city was significantly out
of step with the others.
According to Rismark International’s Dr Mathew Hardman “Clearly, the observable phenomenon of the two‐tiered markets in
Sydney and then in Melbourne and to a lesser extent in Brisbane and Perth has disappeared ”
Sydney and then in Melbourne, and to a lesser extent in Brisbane and Perth, has disappeared.
“Market movements are now similar across all metro areas rather than value falls being isolated within the mortgage belts. This
balancing can be attributed to the squeeze the more affluent markets are experiencing due to the turbulence in the financial and
equities sector.
“Looking towards the next six months, strong excess demand in most capital cities is creating a floor under property values,
making large falls unlikely,” Dr Hardman said.
According to RP Data, with population growth projected to remain high and interest rates falling, the demand/supply imbalance
is expected to protect the market from any major falls in property values.
Rismark International’s Dr Hardman believes that unemployment is not a major factor driving property prices; affordability,
excess demand and market momentum are far more significant he said.
“Although unemployment is rising, unless it grows rapidly to significantly greater levels, eg 6 or 7 per cent over the next couple
of years, excess demand will eventually outweigh affordability constraints and begin to push property markets upwards again,
probably by the second half of 2009.”
“Over the long term, home unit values tend to track GDP growth, while house prices exceed it by approximately 2 per cent. In
Sydney, house and unit values relative to GDP have returned to their pre 2000 levels so affordability is slowly returning to the
Sydney market,” Dr Hardman


If you are looking for a well performing residential or commercial investment property, an addition to your existing property portfolio or a home to live in, We guarantee to save you money on your next real estate purchase. Go to http://www.directnegotiations.com.au/ , or call the team on +61 8 84631997

Adelaide real estate data

::::::::::::::::::In a modern real estate market, it is crucial that buyers are well informed. Purchasing real estate has a greater technical aspect today than in the preveious decades, years and even months.
Adelaide has been a standout performer worldwide- historical and current data support its longevity. The point is, that it is critical to be well informed and have not only the right information at hand, but the buyer or buyer's representative must also know how to "drive it".
The local newspapers and internet report figures everyday that originate from reasonable sources, but predominately the operators have very little or no hands on experience regarding the Adelaide real estate market and are drawing statistics, creating reports from programs without actually knowing what it means.
For example:
Adelaide's southern beach suburbs, such as Christies Beach and Port Noarlunga have performed extremely well in the last 36 months and continue to do so. The difficulty in understanding this from a newspaper report that exclaims a 35% change in the market (either up or down) is that beachfront properties sell at or around one million dollars while several streets back, a 3 bedroom family home can be secured for $250k with a healthy rental yield. Given a month in which 15 houses are sold in Christies Beach,(a mixture of 4 beachfront and 11 backstreet homes) and reported in printed press against another single month (in which sales consist of 12 homes predominately in backstreets) sold in the same suburb, the newspaper has a habit of taking total dollar value over an unreasonably short sample duration and reporting a large percentage drop/rise.
There are hundreds of scenarios and I will talk more about these over the next few weeks.
Adelaide real estate is actually operating at a healthy and sustainable overall growth rate of around 3% over the last 36 months.
Buyers must be very careful from where they draw their information. Direct Negotiations has access to genuine, up to the minute sales figures on every house in every suburb. Our consultants are trained to interpret reliable data and generate accurate reports for Adelaide property buyers.
Tell us what type of property that you require
http://agents.realestate.com.au/cgi-bin/cs/run.pl?_t=EmailFriend&_c=MJGJJY&st_Contact=1

If you are looking for a well performing residential or commercial investment property, an addition to your existing property portfolio or a home to live in, We guarantee to save you money on your next real estate purchase. Go to http://www.directnegotiations.com.au/ , or call the team on +61 8 84631997

Unique circumstances for Adelaide property buyers

The Reserve announced it will cut its official cash rate by 1 percentage point to 3.25 per cent, effective 3/02/09. In practical terms for homebuyers, financial institutions that commit to passing on the cut in full, effectively offer a standard variable rate of 5.91%
For a family with a $400,000 loan, Tuesday's rate cut, if passed on in full, represents a monthly saving of $248. In addition to the savings from last year's rate cuts of 3 percentage points, (banks passed on about 2.78 percentage points) the total saving for a family with a $400,000 loan is $990 a month.
Buyer's general caution in the real estate market has resulted in a choice of property available and some quality properties scattered amongst the non performers. Rental demand is strong and strengthening.
Investors are back into the 5-6% yield and the first home buyers are being offered the equivalent to their deposit,stamp duty and money to spare. The government has released its $42B economic stimulus package. Fuel prices are down.
These circumstances were completely unexpected and are unlikely to stack up this way again in our lifetimes. Individuals and society learn from their mistakes. The upside of this is that investors have the opportunity to safety and strategically build their portfolio while first home buyers can confidently get their foot in the door. This "perfect storm" cannot last forever, but while the circumstances are such, purchasing real estate in the resilient Adelaide property market is one of the strongest investments available.


If you are looking for a well performing residential or commercial investment property, an addition to your existing property portfolio or a home to live in, We guarantee to save you money on your next real estate purchase. Go to or call the team on +61 8 84631997

Real Estate Adventures in Adelaide

On Tuesday night I attended the book launch of Sally Couper's Real Estate Adventures.
Very inspiring, like minded and real (not to mention wealthy!) people just doing what they love.
The book is an excellent read. A very down to earth and realistic account of one woman, surrounding herself with hard working, reliable contacts, a can-do attitude and rapidly becoming an owner of over 50 properties in several countries and a self made multi-millionaire. The guest speakers were entertaining and informative in their individual ways, but had a similar message - Don't just think about it, do it!

To obtain a copy of Real Estate Adventures, you can buy online at www.sallycouper.com.au
Highly recommended!

If you are looking for a well performing investment property, an addition to your existing property portfolio or a home to live in, We guarantee to save you money on your next real estate purchase. Go to http://www.directnegotiations.com.au/ , or give us a call on +61 8 84631997

Adelaide property values defy global downturn

South Australian house prices have defied the global property plunge by recording 4 per cent growth in the past year.

Valuer-General figures show median house prices across the state increased to $332,800 in the December quarter from $320,000 a year earlier.

Adelaide metropolitan prices grew 1.4 per cent for the year to $360,000 while rural prices rose 2 per cent to $245,000.

But a slowing property market was reflected in a 0.7 per cent fall in metropolitan prices between the September and December quarters, and a 0.8 per cent fall in rural prices.

This was still much less than the 6 per cent fall experienced by Perth homeowners in the September quarter – the worst capital city result recently recorded.

Falls of up to 50 per cent in the U.S. housing market triggered a global financial crisis when borrowers defaulted on their loans.

Similar plunges have been experienced in parts of Britain.

But interest rate cuts of 3 percentage points by the Reserve Bank of Australia in the past four months are expected to revive the SA market, with agents predicting an increase of up to 10 per cent this year.

Homeowners in Brighton were the winners in the December quarter, with the median value of houses sold rising more than 38 per cent on the previous year to $747,500.

West Lakes homeowners also benefited from a 37 per cent increase to $700,000, while the value of Tea Tree Gully houses sold increased 25 per cent to $368,500.

Brock Harcourts chief executive Greg Moulton said the data showed SA was bucking the national trend.

"What that's telling people is that the overall SA market has continued to grow, so people should be seeing that their fears were wrong," he said.

"A lot of people predicted our capital growth to go down. It hasn't – it's grown, and it should continue to grow."

Adelaide house prices have slowed after last December's 7.7 per cent growth, with a 2.2 per cent fall in September offsetting a similar rise in March.

Professionals SA chief executive Ted Piteo said SA house prices had held their value after 18 per cent growth in 2007.

"The values aren't down, it is the sales that are down," he said.

Only 5279 houses changed hands during the quarter, 32 per cent fewer than a booming December, 2007, quarter.

Mr Moulton said this was due to market uncertainty.

"The number of transactions are down because people are taking longer to make up their minds and it took people a bit of time to realise that interest rates were going to drop even further," Mr Moulton said.

"It takes a good two to three months after the interest rate drop for the flow-on effect to come through, so we won't see the benefit of the drop until the first month or two in 2009. People are reluctant to sell in a falling market so a lot of properties won't come on to the market.

"Also, potential buyers who are concerned about job security are less inclined to commit and enter the property market.

"That is why we are seeing a 30 per cent fall (in transactions), but last year was an absolute bumper.

"(This year) there are going to be some very agitated vendors who will accept low offers but the overall market will be one of continued stability."

SA house prices are forecast to climb between 5 and 10 per cent this year and are tipped to avoid falls expected in other markets.

The value of Victorian property has dropped 5 per cent since July, according to BIS Shrapnel and Sydney prices shrank 3.4 per cent in the September quarter.

But falls in the UK housing market still dwarf Australian figures, with a building society reporting a 34 per cent fall in Northern Ireland and a 16 per cent fall across the British market.

Here, falling interest rates and the Federal Government's $1.5 billion first-home buyers' bonus are expected to bolster the SA market, but not to the 2007 levels.

Mr Piteo said new state legislation about price advertising was expected to inflate prices – a trend expected to offset a slowdown related to uncertainty.

Real Estate Institute of SA president Robin Turner said SA had always performed reasonably well – a pattern he did not expect to change this year.

Quarterly median prices are more volatile than those based on annual sales because they have a smaller sample size

If you are looking for a well performing investment property, an addition to your existing property portfolio or a home to live in, We guarantee to save you money on your next real estate purchase. Go to http://www.directnegotiations.com.au/ , or give us a call on +61 8 84631997

It's not cheap - but it's Adelaide property at the right price.

We have now moved into the new year and had a good chat over the holiday season about whether or not to buy, or rather, when to buy property in Adelaide.

The fact is that there is a good choice of homes and investment property that have been sitting on the market, way overpriced - nevertheless waiting to be sold.

The market has become very realistic. I use the word "realistic" not to lessen any impact, but to describe accurately the climate that we are in.

Property that is priced accurately is selling very quickly. Buyers are looking for value. This is the time that a lot of poor performing properties are flung at the market, but in between the odd shaped blocks, main road frontages, "hammerhead development opportunities (stcc)" and "polished turds", there are some honest properties that will make very good homes for the next generation and yield around 6% return for the savvy investor. Recent properties that we have purchased have ventured into positive geared territory in only a few months.

No, it's not cheap, but if purchased well South Australian property will perform more effectively than cash deposits at the inevitable 2-3% soon to be offered by the banks.

If you are looking for a well performing investment property, an addition to your existing property portfolio or a home to live in, We guarantee to save you money on your next real estate purchase. Go to http://www.directnegotiations.com.au/ , or give us a call on +61 8 84631997

Buying Adelaide investment property from interstate and overseas.

Six simple steps for remote property investors. Direct Negotiations provides an end to end property search and acquisition service - For you.

The brief - Discuss your requirements, lifestyle, budget and investment strategy.

Property search - Extensively search the market to source the best property match. A large percentage of properties are never offered to the general public.

Feedback - Provide reports, property profiles, updates and photographs from our own sources as well as commercial and government databases.- real data and statistics.

Inspections - We personally inspect all properties that are a potential property match.

Evaluation - For properties that match your brief, we will provide guidance on market value based on sound market research.

Negotiations - We will negotiate or bid on your behalf to secure the property within a set price range. In many cases we have preferred pricing before negotiations even commence. We guarantee to show genuine net savings on your purchase.

Other services - We will coordinate other relevant services such as building inspections, conveyancing solicitor, mortgage broker, strata searches, property management, minor renovations.

Whether you are an Australian living overseas, or based in Australia, we are able to cater for your specific needs.

If you are looking for a well performing investment property, an addition to your existing property portfolio or a home to live in, We guarantee to save you money on your next real estate purchase. Go to http://www.directnegotiations.com.au/ , or give us a call on +61 8 84631997

Norwood house prices resilient

Please read a small case study that I did for Adelaide inner city suburb prices.
Sixteen months ago, I attended an auction in an area that I know very well, and where quality property will sell in all markets and economic climates if/ when correctly priced. Norwood, Adelaide.
I compared 2 Auctions of entry level properties located 3 km from the city centre of Adelaide.
The first property was a classic freestanding, single fronted , return verandah , 2 bedroom, C1910 bungalow on a 355m2 allotment. The home had been modified over time and was in need of at least a cosmetic renovation and preferably a rebuild of the extension.
The auction attracted almost a carnival atmosphere, with multiple bidders starting in the 300k's and finishing on bids of five hundred dollars at a final price of $457,500.

On Thursday 11th Dec, 2008 on an unseasonable rainy evening, I attended the auction of a second, comparable property. The property was a very similar freestanding, 2 BR, 320m block in need of renovation, situated 150 metres away from the previously mentioned property.
There were less onlookers and less bidders. The property opened boldly (by the eventual winner) at $400,000 AUD and was steadily and genuinely bid up in $10,00 and $5000 increments by 4 strong competitors.
The property was sold at $445,000 AUD.

These were the closest comparables that I had seen in that time. The land was smaller on the second property, where square meterage is at a premium.
My conclusion is that both properties were sold under similar conditions in very different markets. (Adelaide peaked sharply Dec 2007) Taking into consideration slight differences in allotment sizes and other minor variables, both properties were of similar characteristics and sold in different markets for very similar prices over a volatile period over 16 months.

Direct Negotiations has access to the facts.

If you are looking for a well performing investment property, an addition to your existing property portfolio or a home to live in, we guarantee to save you money on your next real estate purchase. Go to http://www.directnegotiations.com.au/ , or give us a call on +61 8 84631997

Lowest Australian interest rates since 1964

With the RBA slashing rates by 1% to 4.25% today, the housing market is poised for a significant increase in activity amid improving buying conditions and easing affordability constraints.

The extraordinary series of cuts now forecast would take the Reserve Bank cash rate to 2.5 per cent within six months. If the cuts passed through to mortgages, standard variable rates would hit a level not seen since 1964, when they were fixed at that level under the Coalition government of Robert Menzies.
Harley Dale, chief economist with the Housing Industry Association, said there are already some tentative signs that inquiries from investors are starting to pick up. "I think many are looking at their sums and are realising that with the amount of interest rate cuts and what remains a very tight rental market where yields are still climbing, it is now a good time to buy. Despite not getting the growth in asset at the moment, it's actually a good time to be investing in property particularly with what's happening with the share markets."
Tim Lawless, national research director with RP Data, said the rate cut would see further activity in the lower end of the market. "We do expect the markets that are likely to respond to the interest rate cut are the ones in the lower price segments because there has been a lot of pent-up demand building for these types of properties from first homebuyers and lower income families over the past few years. They are the markets that are becoming more active now and probably the ones that will respond first to further falls in interest rates."
However, Lawless said buyers are likely to remain very cautious as uncertainties over jobs continue to dominate.
"I don't think we're going to see a sudden increase in buying activity as a result of the latest rate cut. We have started to see more people go to open houses and inspections, but we haven't even seen a strong buying behaviour just yet. I think we're going to see the start of a gradual return to the market. It will be quiet over Christmas holidays so it won't be until the first quarter of next year that we're going to see any real signs of increase in sales volume as buying conditions and affordability will continue to improve."

If you are looking for a well performing investment property, an addition to your existing property portfolio or a home to live in, we guarantee to save you money on your next real estate purchase. Go to http://www.directnegotiations.com.au/ , or give us a call on +61 (0)8 84631997

Back In Black

Nationally, property value growth is back in the black.
Claims that the Australian property market would in 2008 experience a major downturn have been proven incorrect based on the most recent findings of the RP Data-Rismark Hedonic Property Value Index, which in October again showed that Australian capital city property prices had increased for the second consecutive month.
Released today, the RP Data-Rismark Hedonic Property Value Index showed that Australian dwelling prices had increased by 0.3 percent over the three months ending October ’08. On a month-on-month basis, Australian dwelling prices have now risen in the months of both September (+0.2 percent), based on the ‘final’ RP Data-Rismark index numbers, and in October (+0.4 percent) using the latest ‘indicative’ estimates.
Using Australia’s largest property database, the RP Data-Rismark Index results are reported by the RBA in its Statement on Monetary Policy and have recently been selected by the ASX as the basis for the ASX’s new residential property derivatives market. Moody’s and SIRCA have both independently concluded that the RP Data-Rismark Index results are the most accurate measures of house price change in Australia.
Based on RP Data-Rismark Index results, RP Data head of research Tim Lawless believes that the doom and gloom merchants have misunderstood the fundamentals and the diversity of the Australian residential property market by predicting that Australia was headed for a market-wide implosion in 2008.
“The facts are that over the past 12 months Australian property values have declined by just 0.8 percent which is a phenomenal result when compared to the S&P/ASX 200 index which reported a decline of 40.5 percent,” Mr Lawless said.
“The October RP Data-Rismark Index results reinforce my suggestion that the Australian property market has moved through the bottom of its cycle.”
“While we are likely to see property values remain relatively flat for the first half of 2009, it appears from the RP Data-Rismark Indices that Australian property values have proven to be remarkably resilient despite multiple interest rate hikes in early 2008 and the effects of the credit crisis.”
Rismark International managing director Christopher Joye said “The recent recovery is consistent with the big improvements in affordability brought about by the RBA’s decision to cut rates by 1.25 percent in September and October, combined with the government’s announcement that it would increase the first home owner’s grant as part of its $10.4 billion fiscal stimulus package.
“The RBA’s 0.75 percent rate cut in November has lent further support to the market with mortgage rates having fallen from a peak of 9.6 percent in August to around 7.7 percent today. Based on current futures market pricing, we should see mortgage rates fall below 6 percent during 2009,” Mr Joye said.
“The recent improvements in market conditions are also in line with housing finance volumes released by Australia’s largest mortgage broker, AFG, which announced that its October 2008 home loan volumes were the strongest since November 2007 rising by 18 percent in the month. Australia’s biggest property listings website, realestate.com.au, has also released data showing record increases for 2008 in home buyer activity during the months of September, October and November.”
“Recent dramatic improvements in affordability combined with Australia’s substantial housing supply shortages, low mortgage default rates and the absence of large volumes of distressed sellers will see the residential property market continue to deliver robust performance in 2009.

“With home loan rates likely to fall below 6 percent in 2009 and record low vacancy rates driving up rental yields, it is likely that more and more investors will begin to view the market in a positive light. For example, a recent report by RP Data identified 45 suburbs around Australia where the average rental property was likely to be cash-flow positive,” Mr Joye said.
For savvy investors the timing to enter the market is now better than ever according to RP Data’s Tim Lawless – “For investors who are willing to go against the flow, buying conditions are exceptionally strong and yields are improving every month,” he said.
“The fundamentals underlying the Australian property market are extremely robust. Investors need to take into account current supply constraints, infrastructure delivery, immigration, vacancy rates, rising rents and expectations that interest rates will continue to fall. These are the basics that should fuel capital gains for investors.”
“There is a very strong likelihood that more and more suburbs around Australia will move into the realm of positive cash flow.”
“With dwelling values flat, interest rates falling and rental rates increasing, yields are improving every month. These positive cash flow suburbs will be mostly concentrated in either the inner city unit markets or the regional townships driven by the mining sector or agriculture.” Mr Lawless said.

If you are looking for a well performing investment property, an addition to your existing property portfolio or a home to live in, We guarantee to save you money on your next real estate purchase. Go to http://www.directnegotiations.com.au/ , or give us a call on +61 8 84631997

Aussie Expats return to Adelaide

Over the last few months, Direct Negotiations have had a substantial increase in the number of clients from the UK, Europe and Asia purchasing homes and investment properties in Adelaide.
This is represented by an increasing number of Australian Expats who are looking to the resilient Adelaide market for investment and/or the next logical career move.

Low interest rates, stronger finance sector and job market, palleatable exchange rates and a First Home Owner Grant of up to $25,000 - not to mention the sun is shining!

There are a record number of Aussies leaving London to return home to Australia - 2700 individuals per month.

The global credit crisis has had at least one positive spin-off. The crisis is driving expatriate Australians home, pushing up interest in property in the resilient South Australia/Adelaide market. The demand for property buyers agents from expats had especially escalated in recent weeks.
There is strong interest from expatriate Australians, many of them banking and finance professionals, who are looking to return home to escape the credit crunch in places like London and Singapore. They want to secure property upon their return or even before they come back.

If you are considering purchasing property in Adelaide, your first point of contact should be http://www.directnegotiations.com.au/ Our team of buyer's advocates will take the time to understand your individual needs in order to find the right property to suit your requirements. We are business people ourselves, so we understand that different people have different needs. We can organise finance, property search , negotiation , conveyance/property settlement and even placement of tenants to provide income for investors. First Home buyers can take advantage of our preferred pricing and have (FHOG) money left in the bank after their purchase. We guarantee to save you money on your next real estate purchase.
Go to the website, or give us a call on +61 8 84631997

Keeping it real - Adelaide property prices.

This month we have seen quite an increase in first home buyer activity in the Adelaide market. It makes sense. There is a good supply of stock- good entry level homes, that have been on the market and overstayed the anticipated duration of their marketing campaigns initiated before our 2% interest rate decrease and then suffered a long wait while the global financial instability was being reported.
The Adelaide market has enjoyed 16-18% growth 2007-2008. The market has levelled in recent months, which means it is an excellent time for a first home owner to buy quality property and enter the market. The government has put a time limit to their FHOG increase, so we expect to see strong activity and competition in this sector after Jan-Feb if buyers are to settle their purchases in time.
Not every house is going to be a good, long term investment and it is essential to identify several aspects that determine value in today’s market. Times have changed.
Properties in the $200k-upper $300’s will hold their values in the medium term. Why? The government is injecting funds in order to boost first home ownership in a tough market. If they buy well, they could, subject to serviceability, purchase their first home using the government’s recent windfall, and have money left over after purchasing costs. Effectively this is real estate, “no money down”...but you must buy well.
We have recently been purchasing quality properties in the $400 – $700K at very good prices. The properties being sold in this price range are typically heavily mortgaged, so there are pressures to retain as much equity as possible for the vendors. Negotiations are taking longer and must be handled carefully in order to buy these homes well.
The $950k- $1.2 million is where there is room for price reduction. The pressure is on. Owners here are exposed to the stock market, SME’s and the govt is taking more rather than handing is over as in the case of the First Home buyer category.
You make your money in real estate when you Buy as opposed to when you Sell. If you are looking for a well performing investment property, an addition to your existing property portfolio or a home to live in, We guarantee to save you money on your next real estate purchase. Go to http://www.directnegotiations.com.au/ , or give us a call on +61 8 84631997

If you haven't purchased a house before... all your Christmas's have come at once.

On 14 October 2008, the Australian Government announced that it was introducing the First Home Owners Boost, which together with the current $7,000 First Home Owner Grant (“FHOG”) will provide first home buyers with up to $21,000 on houses purchased before 30 June 2009.
The Boost applies to contracts entered into on or after 14 October 2008 and will leverage off the administration of the current FHOG scheme (Noting that some details are yet to be finalised with the Commonwealth).
The First Home Owners Boost will provide an additional $7,000 to first home buyers purchasing an established home before the end of June 2009. First home buyers purchasing a newly-constructed home will receive an additional $14,000 on contracts signed before the end of June 2009.
Time limits will apply on the building and completion of the newly-constructed home in order for first home buyers to qualify for the First Home Owners Boost. A newly-constructed home means a property that has never been sold by the builder/vendor, or been occupied as a residence by a tenant or other occupant. The purchaser must have proof, such as a statement from the vendor or other evidence, that the property meets these requirements for them to be eligible for the higher level of the First Home Owners Boost.
The FHOG eligibility criteria are generally that:
the applicant be a natural person;
the applicant be at least 18;
the applicant be an Australian citizen or permanent resident;
the applicant or their spouse must not have received an earlier grant;
the applicant or their spouse must not have had a prior interest in residential property;
the applicant must occupy the home to which the application relates as the applicant’s principal place of residence for a continuous period of at least 6 months (or a shorter period approved by the Commissioner) commencing within 12 months of completion of the eligible transaction (or within a longer period approved by the Commissioner).
If you are looking for a well performing investment property, an addition to your existing property portfolio or a home to live in, We guarantee to save you money on your next real estate purchase. Go to http://www.directnegotiations.com.au/ , or give us a call on +61 8 84631997

South Australian major projects and investment opportunities

South Australia has traditionally enjoyed steady growth and the indicators tell us that this will continue with our mining, exploration, defence contracts as well as unprecedented skilled immigration levels.
South Australia is currently undergoing the largest injection of funds and infrastructure since its founding history.
Adelaide, South Australia is Australia’s least costly place to set up and do business, and has been rated as one of the world's most cost-competitive locations for aerospace.
South Australia supports many complementary aviation/defence projects, including $8 billion Air Warfare Destroyer Contract ;10-year $1 billion deal to maintain and upgrade the AP-3C Orion aircraft fleet; multi-billion Collins class submarine through-life support contract; relocation of Australia’s new Mechanised Battalion Group to Adelaide, (capital construction commencing in late 2008)
South Australia is a key minerals supplier, with almost 40% of the world’s known recoverable uranium reserves and significant volumes of copper, gold and silver. Oxiana’s Prominent Hill project ;Iluka Resources' Jacinth/Ambrosia Heavy Mineral Sands project; Terramin Australia’s Angas Zinc project ; Uranium One’s Honeymoon uranium mine; Exco Resources’ White Dam gold mine

Adelaide residential rental yields above 6% in select areas.

Adelaide and South Australian real estate has again shown resilience in a tough economic climate.
If you are looking for reassurance, here are 5 solid reasons that Adelaide has again been the top performer for property investors.

1. Over the last 120 years property prices have risen on average 10% per year -despite wars, droughts, Asian meltdowns, 20% interest rates in the late 80’s, the recession we had to have etc. On a $300,000 property compounded at 10% a year the value the property would double in just 7 years that’s $42857 a year -more than some people get paid at their full time job.

2. Supply of residential housing in Australia is at an all time low, down from 17000 dwellings a month to 13000 dwellings per month and continuing to fall, with no foreseeable supply meeting demand according to the HIA (housing industry of Australia) . The calculated total undersupply right now 190,000 homes!

3. Adelaide had its biggest net population increase last year and is on track for an even bigger increase this year! People need somewhere to live!

4. Interest rates are coming down fast - which is great because…

5. Rents are going up fast - with rates coming down and rents going up there are some amazing rental yields in selected areas!

If you are looking for a well performing investment property, an addition to your existing property portfolio or a home to live in, We guarantee to save you money on your next real estate purchase. Go to http://www.directnegotiations.com.au/ , or give us a call on +61 8 84631997