NewsThere are concerns that Australia’s housing shortage could become a deep-rooted social and economic problem. BIS Shrapnel Senior Economist Jason Anderson recently told the Australian newspaper that net migration will be about 230,000 this year, while housing starts are unlikely to rise above 160,000.In other real estate news... The Housing Industry Association said that final figures released by the Australian Bureau of Statistics show that new residential building activity did start to recover in the September quarter of last year. Seasonally adjusted work done on new residential dwellings increased by 2.8% in the September quarter to an annualised worth of $36.3 billion. This was 3.9% less than the previous corresponding period in 2008.Meanwhile seasonally adjusted new residential work commencing in the September quarter increased by 5.8% - the first rise since mid 2008.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 affordable unit markets in all the capital cities around Australia where the median unit prices are under $600,000 and where rental yields are solid. Both suburbs in focus this week have shown strong growth over last year.

This week the focus is Brisbane and we’re looking at the unit market in East Brisbane but first up is Woody Point which is located about 24kms north-north east of Brisbane’s CBD.

The suburb’s population was close to 3,800 in the last census. Woody Point is a beachside suburb located at the southern tip of the Redcliffe peninsula looking out to Moreton Island. Around 74% of the residents in Woody Point were Australian born according to the last census and English is spoken in around 91% of homes. 46% of properties in the suburb are rental properties. Approximately 63% of dwellings are houses, 29.5% are units and just over 7% are semis. The suburb’s population includes Technicians and trades workers as well as Clerical and administrative workers.

The median unit price in Woody Point is $395,000 which is an increase of close to 12% compared to a year ago. In 2008 the suburb experienced growth of 31%. There were 70 units sold in Woody Point in the 12 months to November 30. The median rental price is $270 bringing the gross rental yield to 3.55%.

Now let’s take a look at the unit market in East Brisbane which is located just 3km from the heart of Brisbane. East Brisbane is an inner suburb of the city of Brisbane which still has some original ‘Queenslander’ style homes, but with an increasing number of apartment blocks. East Brisbane’s population in 2006 was just over 5,200 people. Over 66% of residents in the suburb were Australian born. 77% of homes are English speaking. 50% of dwellings are rental properties. Houses make up 49% of properties, over 45% are units and another 5% are semis.

The median unit price in East Brisbane is $388,500 dollars, which is a 14.6% increase compared to a year ago. In 2008 the median unit price rose 5.9%. There have been 66 units sold in the last 12 months. The median rent price for a unit in the suburb is $340 which brings the gross rental yield to 4.55%.

Tax TipAnd now to the investment property Tax Tip of the week from Depreciator, Tax Depreciation Schedule specialists.Today we look at how to claim borrowing expenses.There is a lot of confusion around how these can be claimed. Typically, these fees relate to the loan and will include a loan establishment fee, stamp duty on the loan, and perhaps mortgage insurance.These can be claimed over 5 years. If you repay the loan before the 5 years is up, you can claim the balance of these loan expenses. Of course, this is very general information only and you should speak to your accountant or tax professional before making decisions about what expenses you can claim.