This week we look at the data on the suburb in the Melbourne area that is experiencing high demand in the unit market.
And we speak with Morgan Green from Green Solar Group about the Rudd Government’s Solar Homes and Communities Plan and the rebate available if you install a solar power system in your principle place of residence.
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.
In the news this week, Australia has avoided a recession with the Australian Bureau of Statistics releasing data showing a 0.4 per cent rise Gross Domestic Product in the March quarter.
Housing Industry Association managing director Dr Ron Silberberg says the Federal Governments stimulus measures have clearly been effective boosting household consumption and generating improvement in housing conditions.
And also in the news this week, the Reserve Bank of Australia decide to keep the Official Cash Rate steady at 3 per cent for the second straight month.
This week we are continuing a series looking at the data on the metropolitan suburbs where properties are recording the least number of days on the market, which is an indicator of strong demand.
This week we look at Greensborough which is located about 22kms north east of Melbourne’s CBD. Greensborough is a middle class outer Melbourne suburb whish attracts families with its shopping and lifestyle facilities. As you will see in the data, the unit market is experiencing solid demand as units only spend about a month on the market and house prices are posting growth in the past 12 months, unlike many other property markets.
83% of Greensborough’s population was born in Australia. Almost a third of the population is aged between 20- 39 and another third are aged between 40 - 59 years old. 23% of the population is aged 5 - 19 years of age. 55% of homes are lived in by married couples and families. Stand alone houses account for 87% of dwellings in this area and rental properties make up just 13% of the housing market.
The median house price in Greensborough is $410,000 which is 2.5% higher compared to this time last year. The average growth rate over the last 5 years is 5.6% each year while over a ten year period it is 10%. Houses are staying on the market for around 58 days on average and are selling for a 5.6% discount to listing price. The weekly median advertised rent price is $350, which is an over 9% increase on the year before, bringing the rental yield to 4.4%. The median unit price in Greensborough is $330,750 dollars, which is a gain of 6.7% compared to a year ago. The average growth rate over the last 5 years is 5.4% each year while over a ten year period it is 10.4%. Units are taking only 33 days to sell. The weekly asking rent price is $295, which is a 7.3% jump from the year earlier, bringing the gross rental yield to 4.6%.
With only about 3 weeks until the end of the financial year, we are continuing to focus on property investor tax tips to help you do your tax return this year.
The ATO has said that one of the most common mistakes on a property investor tax return is claiming initial repairs as ordinary repairs and deducting the full cost. Initial repairs are when you repair damage or deterioration straight after purchase and before you lease the property out to a tenant. And although they are technically repairs, the ATO requires that these costs be depreciated like any capital expenditure because the repairs do not relate to a period of the property generating income.
There are a lot of first time home owners submitting their first tax return as a property investor this year and it is important to claim this correctly as the ATO could come back asking questions.
Your accountant or tax agent will be able to give you more information and consult about your specific situation.
