This week we take a look at two more Melbourne suburbs with capital growth that also have auction clearance rates over 80%, signaling a strong buying market.
And in this week’s tip we look at things to think about as a property owner if you are planning on reducing your income in the future.
NewsTaking a look at the latest property news; and according to a report in The Australian, developer Australand in partnership with Citta Property Group is looking to remodel and develop a public housing estate in the Melbourne suburb of Carlton.
What could potentially be Victoria’s largest public-private housing project, worth $300 million, the two companies are to develop the site with 500 private and 240 public apartments to be built.
The two companies built the athletes village for the 2006 Commonwealth Games.
And in other news, it appears that popular holiday destination Noosa is feeling the effects of a property slump after a $400 million luxury residential development in the seaside destination was recently handed over to receivers.
It is not the only luxury development to fall into receivership, a report in The Australian indicates that an estimated 200 dwellings priced at over $1 million have hit the market recently.
According to the report Colliers International apartment sales residential managing director Grant Dearlove says the volume of properties for sale in Noosa has skyrocketed by 378 per cent in 12 months.
And now taking a look at upcoming events in the property arena. The Home Buyer Show is on at the Sydney Convention and Exhibition Centre from Saturday the 31st of October to Sunday the first of November.
Suburb in FocusIn our suburb in focus section each week, we focus on property markets around Australia which could be of interest to property investors and this week we are looking at suburbs that have solid growth and very high auction clearance rates. As we saw last week, Melbourne suburbs are currently recording some of the strongest clearance rates in Australia and this week we are focusing on two Melbourne property markets that have recorded strong capital growth in the last year as well as auction clearance rates that are over 80%. These are markets with strong buying demand and a liquid market. We’re looking at the unit market in Caulfield North but first up is the house market in Box Hill which is a suburb located about a 20km drive from Melbourne’s CBD.
Box Hill has the second largest retail and office precinct outside the Melbourne CBD and is a very multicultural area with a diverse range of restaurants and retail outlets. This is a mid range priced suburb where family suburb with 66% of homes containing families and 43% of these families contain children. 43% of dwellings are rental properties. Houses make up 43% of properties while flats and units make up 38% with the remainder being semis. Box Hill’s residents most commonly work in trades and hospitality.
The median house price in Box Hill is $675,000 dollars, which is 16.2% higher compared to a year ago. There have been 89 houses sold in Box Hill in the 12 months to September 30 and auction clearance rates are currently 82% for houses, which is one of the strongest rates in the country. The median rent price for a house in the suburb is $370 which brings the gross rental yield to a modest 2.85%.
Now to the unit market in Caulfield North where auction clearance rates are again very strong at 83%. Caulfield North is located 10 kms south east of Melbourne’s CBD and is an upmarket suburb. 47% of properties are separate houses and units make up 35%. 59% of properties are lived in by families while 29% are single person dwellings. 32% of homes in the suburb are rental properties.
The median unit price in Caulfield North is $456,000 dollars, which is an increase of almost 10% compared to a year ago. There were 113 units sold in Caulfield North in the 12 months to September 30. The median rental price is $330 bringing the gross rental yield to 3.76%.
Tax TipAnd this week we are looking at planning for your negatively geared property if you are planning on stopping earning an income or reducing your income for any reason. For example, if you own a negatively geared rental property and are planning on taking time off work for maternity leave, your rental property losses may well be wasted because you don't have any income to offset. If this happens to you, it is a good idea to plan ahead to see what can be done to not lose the benefits of negative gearing. Depending on how long you plan on being off work, it could be a good idea to have the major income earner be the legal owner of the property. Another idea is to see what expenses can be paid in the year before your income reduces like paying interest in advance. Of course, this is very general information only and you should always consult an accountant or tax planner before making decisions about your specific situation.
