NewsAccording to Australian Property Monitors’ Quarterly Housing report, the December quarter of 2009 delivered the strongest house price growth since 2003. For that period, the Australian property market posted a 4.8% increase in median house prices, with a 12.1% rise overall for the year.
The standout was Melbourne, which recorded the country’s strongest housing market growth rate of 18.5% for the second consecutive quarter. Meanwhile as Sydney’s property market was found to have grown by the national average of 12.1% - the country’s most populated city has also been listed as the second least affordable city in the world.
The result was detailed in the sixth annual Demographia International Housing Affordability Survey, which ranked cities and towns between three (affordable) and 5.1 (severely unaffordable) based on median house prices and gross annual median household incomes. Sydney ranked second worst with a score of 9.1, behind only Vancouver on the international table.
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’re taking a look at 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. Our two suburbs this week both have a median unit price of around $220,000 to $225,000 and have experienced gross rental yields up near 5%.
Both suburbs are in Adelaide. We’re looking at the unit market in Kilburn but first let’s take a look at the suburb of St Marys, located about 10kms south of Adelaide’s CBD.
The suburb’s population was just over 2,500 in the last census. St Marys is a suburb located within the City of Mitcham. 63% of the residents in St Marys were Australian born according to the last census and English is spoken in around 70% of homes. 35% of properties in the suburb are rental properties. Approximately 72% of dwellings are houses, 23% are units and close to 5% are semis. The suburb’s population includes Technicians and trades workers as well as Professional workers and labourers.
The median unit price in St Marys is $220,000 which is an increase of 13.4% compared to a year ago. In 2008 the suburb experienced growth of 14%. There were 27 units sold in St Marys in the 12 months to November 30. The median rental price is $200 bringing the gross rental yield to close to 5%.
Now let’s take a look at the unit market in Kilburn which is located just under 10km north of Adelaide’s CBD. The suburb is well serviced by public transport with a number of bus services and a train station with services to and from the city. Kilburn’s population in 2006 was around 4,300 people. Close to 55% of residents in the suburb were Australian born in the last census. 54% of homes are English speaking, with Vietnamese spoken in close to 8% of homes in the suburb. About 54% of dwellings are rental properties. Houses make up 52% of properties, over 15% are units and another 33% are semis.
The median unit price in Kilburn is $225,000 dollars, which is a 19.4% increase compared to a year ago. In 2008 the median unit price increased 7.7%. There have been 13 units sold in the last 12 months. The median rent price for a unit in the suburb is $220 which brings the gross rental yield to just over 5%.
Tax TipAnd now to the investment property Tax Tip of the week from Depreciator, Tax Depreciation Schedule specialists.With the number of property seminars and courses starting to increase again, we thought it timely to look at whether education expenses related to being a property investor can be claimed. Basically, if you attend seminars that help you manage your existing properties, it is a claimable expense. Though if you have only one of two investment properties, claiming a very expensive seminar as an expense could be a bit aggressive.
