The ABS has released figures showing a 5.1% rise in housing finance for September compared to the previous month. New housing loans have now increased 12 out of the last 13 months. Housing Industry Association senior economist Ben Phillips says the result was boosted by first home owner’s who rushed in to beat the September 30 deadline. Trade-up buyer loans continue to improve however, rental investment loans remain subdued, with a flat September result.
In other news, the Federal Government has reduced the insulation rebate and introduced new regulation as a result of the dodgy behaviour of some installers. As of November 1 the insulation rebate was reduced from $1,600 to $1,200. Environment Minister Peter Garrett says demand for the rebate is still strong. More than 500,000 Australian households have already installed ceiling insulation putting them on the path to reductions in their heating and cooling costs of up to 40%. New regulation to be introduced includes a ‘name and shame’ list for any business struck from the installer register as a consequence of failure to meet program guidelines including dodgy behaviour.
this week we speak with Peter Chapman from Propel National Valuers about the importance of getting a professional valuation report when buying, selling or for property portfolio valuation purposes rather than relying on real estate agents to provide estimates.
Suburb in FocusIn our suburb in focus section each week, we look at property markets around Australia that could be of interest to property investors and this week we are looking at two very affordable Launceston suburbs that are offering solid growth AND good rental yields. We’re looking at Waverley but first up is Mayfield which is located 7km north of the centre of Launceston.
3 years ago Mayfield had a population of just over 1,500. 67% of dwellings contain families and the most common family type is a single parent family unit. 89% of properties are stand alone houses and 47% are rental properties. Mayfield is just 5 minutes away from the centre of Launceston and is also near the University of Tasmania, making it a popular affordable first home owner suburb and also an area that is convenient for students to live in. The median dwelling price in Mayfield is $159,000 dollars, which is an increase of over 10% compared to a year ago while the 3 year growth is over 27%. The median rental price is $185 bringing the gross rental yield to a healthy 6.05%.
Now to the property market in Waverley which is located about a 6 km drive east of Launceston’s centre and had a population of 1,550 in 2006. Stand alone houses accounting for 86% of properties. 66% of properties are families and again, the most common family unit is single parent families. 38% of homes in the suburb are rental properties. The median house price in Waverley is $168,000 dollars, which is 8.39% higher compared to a year ago and the three year growth is over 30%. The median rent price for a house in the suburb is $195 which brings the gross rental yield to 6.04%.
Tax Tiplast week we looked at how much to spend when you are planning on renovating your investment property and this week we look at the tax implications of a property investor demolishing or throwing out parts of their investment property. If you have been leasing out your property and then decide to throw out or remove assets, you are entitled to claim a 100% tax deduction for the remaining value of those assets. This applies to small items like an oven that you may want to upgrade but also applies to bigger items such as a deck, pergola or even a whole house.
Of course if the asset has no residual value in it, which is the case for any structures built before 18th July 1985, there will be no tax deduction. So if you throw out your carpet or kitchen appliances during a renovation, make sure to value them and be able to substantiate your values with other similar assets for sale so that you can claim a tax deduction for their value at the time of disposal.
