This week we look at the data on a suburb in South Australia that is showing strength in the unit market.

And we speak with Phil Naylor from the Mortgage and Finance Association of Australia who talks to us about the importance of and working with your lender or broker, if as a borrower you find yourself in financial difficulty.

And in this weeks tax tip we look at what kinds of expenses can be prepaid by a landlord before the end of the financial year.

The ABS has released figures showing a 4 per cent drop in dwelling-unit starts in the March quarter.

Detached house starts fell by 4.2 per cent for the quarter with multi-unit starts declining by 3.4 per cent.

However the Housing Industry Association believes we may be seeing the bottom of the housing cycle with building approvals, housing finance and first home buyer grant numbers having already turned the corner and growing in strength in response to government action.

This, senior economist Ben Phillips says, will start to flow into housing starts over the remainder of 2009, saying the HIA forecasts a 15 per cent boost to starts by the end of the December quarter.

This week we are looking at a South Australian suburb where the strong unit market is out performing the housing market and recording solid growth. The suburb is Daw Park and properties in this area are also recording some of the lowest time on the market.

Daw Park is located about 8.5kms south of Adelaide’s CBD. 82% of Daw Park’s population was born in Australia. 51% of homes are lived in by married couples and families. Stand alone houses account for 79% of dwellings in this area and rental properties make up just 19% of the housing market.

The median unit price in Daw Park is $281,100 dollars, which is a gain of 10% compared to a year ago. The average growth rate over the last 5 years is over 11% each year while over a ten year period it is over 13%. Units are taking about 56 days to sell. The weekly asking rent price is $250, bringing the gross rental yield to 4.6%, which as you’ll see is better than the 3.8% houses are recording. Let’s look at houses…..

The median house price in Daw Park is $427,250 which is 4.7% higher compared to this time last year. The average growth rate over the last 5 years is over 8% per annum while over a ten year period it is 12.6%. Houses are staying on the market for almost 70 days. The weekly median advertised rent price is $310, which is an almost 11% increase on the year before, bringing the rental yield to 3.8%. Prepaying expenses before the 1st July allows you to claim the deduction in your 2009 tax return which could be as soon as a couple of weeks away so this week we are looking at prepaying expenses. The tax rates are changing after 1st July 2009, and assuming your taxable income remains the same, if you prepay this year, you will be claiming the deductions in a year when you are paying more tax.You are able to claim expenses that relate to up to 12 months in advance so you would be allowed to prepay all of next year’s interest, if you were able to although it is not possible with some loans. It is also a good idea to think about which other costs can be brought forward such as your accountant’s fees, insurance, or the cost of getting a Tax Depreciation Schedule and pay these before June 30th.It is also a good idea to get repairs done before the end of the financial year, and buy Depreciating Assets that cost under $300 as these will be able to be claimed as a deduction immediately.