This week we are continuing a series looking at high growth suburbs where median house prices are under $600,000 and rental yields are solid. This week’s focus is Adelaide. And in our interview this week Scott Brunsdon from Depreciator talks to us about what you can do when renovating to maximise your depreciation claim. In this week’s tip we look at something lenders look for in your credit worthiness when approving a loan.
NewsIn this week’s property news, the NSW Government has decided to extend its stamp duty concession for purchasers of a new home until the end of the current financial year. The concession cuts the stamp duty in half for buyers of a new home until December 31, however due to the lack of demand for the incentive it has been extended.
A report in The Australian says that just $14.8 million of the $64 million budgeted for the concession by the state government has been used, leaving close to $50 million in the budget. Housing starts in the September quarter grew by 3% in NSW, compared with a 22% increase in QLD, 14% in Western Australia and 8% in Victoria.
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. We have compiled a list of the top growth suburbs in the last 12 months in each capital city around Australia that also have median house prices under $600,000. This week the focus is Adelaisde - we’re looking at Largs Bay but first up is Stepney which is located just 3 kms from Adelaide’s CBD.
Stepney’s population 3 years ago was just under 1,000 people. It is a character filled suburb with many heritage properties and in days gone by it was a working class suburb and inhabited by European migrants. Today, its close proximity to the city makes it a popular suburb for city working professionals and property prices have been gaining as the demographic changes. Half of properties are lived in by families and 56% of these families contain children. 35% of dwellings are rental properties. Houses make up 65% of properties, 20% are terraces or semis and 13% are units.
The median house price in Stepney is $568,000 dollars, which is an enormous 27% jump compared to a year ago. 2008 growth was just 1 percent. There have been 14 houses sold in the last 12 months. The median rent price for a house in the suburb is $345 which brings the gross rental yield to a small 3.16%.
Now to the house market in Largs Bay which is located about a 17 km drive north of Adelaide’s CBD, near Port Adelaide. Its population was just under 4,000 people in 2006. The suburb is a residential suburb with a minor harbourside presence on the eastern shore of the suburb. Caltex, BHP and Mobil make part of the waterside industrial. Just 21% of homes in the suburb are rental properties and again the suburb has had a high number of European migrants and its population includes professionals and office workers.
The median house price in Largs Bay is just under $500,000, which is an increase of 14% compared to a year ago. In 2008 growth was 9%. There were 78 houses sold in Largs Bay in the 12 months to November 30. The median rental price is $320 bringing the gross rental yield to a modest 3.35%.
Tax TipA New Years tip for the first report of 2010 - get your credit card limit reduced. And it’s not just because of a new year’s resolution.
If you’re thinking of buying property this year, it’s a good idea to think about now. Lenders don’t look at credit card balances as much as credit card limits and that lower credit card limits mean higher borrowing capacity. Lenders see your credit card limit as the potential debt that you can get into. So pay off those Christmas and holiday purchases, reduce your debt limit and improve the amount you can borrow and increase your chances of getting finance approved.
