This week we look at the data on a suburb in the Sutherland Shire of Sydney that is experiencing high demand in the unit market.
And we speak with Chris Lamont, from the Housing Industry Association, about the latest figures released by the ABS that show a sharp fall in new residential building work in the March quarter.
And in this week’s tip we continue our countdown until the end of the financial year and this week we focus on something the ATO will be looking out for this year - when your investment property is used for private purposes, even for a short period.
The Housing Industry Association has released its National Outlook for the March 2009 quarter, a report card on the residential sector, signalling a recovery for the housing industry over 2009/2010.
HIA chief economist Dr Harley Dale says the First Home Owner Boost, the lowest mortgage rates since the late 1960’s and the housing components of the Federal Government’s Nation Building and Jobs Plan will combine to generate a moderate recovery in residential activity.
However Mr Dale says the recovery will be constrained by economic uncertainty and increasing unemployment with the shortfall between dwelling completions and underlying demand to exceed 50,000 dwellings a year for some years to come.
This week we are beginning a series looking at the data on the metropolitan suburbs that are recording the least number of days on the market, which is an indicator of strong demand.
This week we look at Kirrawee in the southern suburbs of Sydney and located about 28kms south on the coast from Sydney’s CBD. Kirrawee is a family friendly suburb in the Sutherland Shire and is close to the water and has shopping centres and lifestyle advantages that attract its population. As you will see in the data, units are selling quickly in Kirrawee, boosted by first home owners.
32% of the population is aged 20 - 39 and 26% are aged between 40 - 59 years old. 18% of the population is aged 5 - 19 years of age. 53% of homes are lived in by married couples and families. Stand alone houses account for 72% of dwellings in this area and rental properties make up 22% of the housing market.
The median house price in Kirrawee is $556,000 which is just over 1% higher compared to this time last year. The average growth rate over the last 5 years is negative 1% each year while over a ten year period it is 6%. Houses are staying on the market for around 73 days on average and are selling for a 6.8% discount to listing price. The weekly median advertised rent price is $450, which is a 12.5% increase on the year before, bringing the rental yield to 4.2%. The median unit price in Kirrawee is $311,000 dollars, which is a gain of over 3.5% compared to a year ago. The average growth rate over the last 5 years is negative 3.1% each year while over a ten year period it is 5.8%. Units are taking only 36 days to sell. The weekly asking rent price is $310, which is a 5.1% jump from the year earlier, bringing the gross rental yield to 5.2%.
This week Chris Lamont from the Housing Industry Association speaks to us about what needs to be done to turnaround the decline in new home building activity.
With just a month until the end of the financial year, we are continuing a series of tax tips in the lead up to June 30 with a focus on the things that the ATO is looking out for this year.
The ATO has said that it is looking out for property investors that claim deductions during a time when the property has been used for private purposes. For example, if you have lived in the property for a period or just holidayed in the property, you need to only claim expenses that relate to the time when it was leased out to a tenant or genuinely available for lease. If this applies to you, make a record of the time that you used the property and let your accountant work out what your deductions should be.
Similarly there should be an adjustment made if you leased the property out to a friend or relative at a discount and your accountant will be able to advise on how to make this adjustment based on your unique situation. What makes these sorts of adjustments easy is good record keeping.
If you would like more information about the ATO’s rules for your situation, contact a tax agent or accountant and get the right advice - it could save you thousands of dollars down the track.
