This week we look at the data on the suburb in Brisbane that is recording the highest demand for units.
And we speak with Adir Shiffman, CEO of Help Me Choose.com.au about what factors property buyers should take into account when choosing a mortgage provider.
Last year the ATO contacted 64,900 of Australia’s 1.5 million landlords about their rental property claims and clawed back $9.2 million in unpaid tax. So in the lead up to June 30, we look at what the ATO says it will be targeting this year.
The Australian Bureau of Statistics has released data showing a rise in housing loans for the seventh straight month in April.
Total loans increased 0.9 per cent for the month, up 9.1 per cent on a year ago.
Loans for construction rose 1.3 per cent, with loans for established dwellings rising 1.1 per cent, while loans for the purchase of new dwellings fell 0.5 per cent in April, but was still 38 per cent higher than the same month a year ago.
The Housing Industry Association’s chief economist Dr Harley Dale says the HIA is forecasting a 15 per cent increase in housing starts by the December quarter this year, with new dwelling investment forecast to make a positive contribution to Australia’s economic growth in the 2009/1010 financial year.
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 can be an indicator of strong demand.
This week we look at Ashgrove which is located about 5kms north west of Brisbane’s CBD. As you will see in the data, the unit market has experienced solid growth in the last year, outperforming houses.
91% of Ashgrove’s population was born in Australia. 48% of homes are lived in by married couples and families. Stand alone houses account for 80% of dwellings in this area and rental properties make up 25% of the housing market.
The median house price in Ashgrove is $630,000 which is 1.6% higher compared to this time last year. The average growth rate over the last 5 years is 8% per annum while over a ten year period it is 11.5%. Houses are staying on the market for around 70 days on average and are selling for a 11.5% discount to listing price. The weekly median advertised rent price is $438, which is an almost 11% increase on the year before, bringing the rental yield to 3.6%. The median unit price in Ashgrove is $360,000 dollars, which is a gain of over 10% compared to a year ago. The average growth rate over the last 5 years is 5% each year while over a ten year period it is almost 9.5%. Units are taking only 42 days to sell. The weekly asking rent price is $330, which is a 4% decline from the year earlier, bringing the gross rental yield to 4.8%, which is better than the 3.6% houses are recording.
With only about 2 weeks until the end of the financial year, we are continuing to look at the ATO’s tax targets for this year. The ATO’s data matching and technology systems improve every year to assist it in targeting incorrect claims. It is now able to compare your claims against other tax payers in the same situation to find parts of your tax return that come in higher or lower than average, which highlight you for a review or audit.
The ATO has said that it will be looking out for under reporting of rental income, over reporting of rental deductions and claiming repairs that should be claimed as renovations.
So what are the common errors when reporting rental income? One of the most common omissions is not reporting income from withheld bond payments to tenants in the case of damage or unpaid rent. Similarly, some landlords fail to claim insurance payouts as income. While some of the most common mistakes in rental deductions include claiming the incorrect depreciation or interest on personal loan facilities.
If you would like more information, consult a property investor experienced accountant and consult about your specific situation - they can save you trouble down the track.
