NewsNew research suggests that the number of Australians intending to invest in property has almost doubled in the past year. According to Resi Mortgage Corporation, confidence is out there, with people noticing that yields are high and property has returned to being the 'new black' to invest in. Meanwhile Australian Property Monitors expects rents to increase in 2010, following relatively flat growth in 2009. APM predicts Sydney rents would increase by at least double the 2009 rate of 2.2 per cent later this year and Melbourne's rents should rise by 5 to 7 per cent.Perth's median house rents could climb 11 per cent this year, while Brisbane rents are expected to lift by about 8 per cent.
Suburb in FocusIn our suburb in focus section we continue a series looking at properties under $200k that are located within 250 kilometres from the CBD that may be of interest as a possible holiday house investment, this week’s focus is QLD.First up we look at Wallangarra a small town around 255 km south of Brisbane.The town’s population was just 385 in the last census. Wallangarra is located near the border of QLD and NSW and lies in a valley between two ranges of mountains, which each are branches of the Great Diving Range. A local attraction of the town is Beehive Dam which is in the mountains and fed by a spring and is a beautiful place for a picnic. Looking at the figures and the median house price in Wallangarra is $152,500. There were 12 homes sold in the area in the 12 months to December. Currently there are in around 14 properties listed for sale, starting from $130,000.And now let’s take a look at the town of Clifton located 158 km south west of Brisbane. The town’s population in the 2006 census was 1,067. Clifton is a town in the Darling Downs region of QLD. Bange’s Airfield just west of Clifton is a thriving centre for ultralight aircraft. An important cultural heritage feature of Clifton are the Boab trees which line the main street of the town. Called the tree of life some have been found to be over 2,000 years old and are usually found in the Kimberley region of WA and the savannah regions of Africa. Turning to the figures, the median house price in Clifton is $180,000 dollars, with 31 homes sold in the 12 months to December 2009. Currently there are 27 properties listed for sale starting from $112,000.
Tax TipAnd now to the investment property Tax Tip of the week from Depreciator, Tax Depreciation Schedule specialists.Today we are having a look at costs incurred in opposing a building development in the area around your investment property. Let's say that you own an investment house and the neighbour is applying to do renovations that would block some of the views from your house. To oppose the plans, you incur legal and other administrative costs. Does the ATO allow you to claim these costs as a tax deduction?Well, unfortunately for you, the ATO says that unless you are carrying on a business as a property investor, you cannot claim the legal costs as a deduction. The ATO does not deem the average property investor that owns one or two properties to be ‘running a business’. Of course, this is general information only and you should always speak to your accountant or tax professional for specific details.
