NewsThe most controversial property news this week concerned Environment Minister Peter Garrett’s surprise revamp of the government’s home insulation scheme. It follows the deaths of four installers carrying out work as part of the program, and at least 87 house fires.Mr Garret has closed the scheme - replacing it with a new renewable energy program, which includes a lower rebate on ceiling insulation and places greater safety demands on installers.And in other property news - Higher house prices, rising interest rates, and the reduction of the first home buyers’ boost have had a negative impact on housing affordability. The HIA-CBA First Home Buyer Affordability Report found housing affordability dropped by 18.4 per cent in the December quarter of 2009 - that’s down 22.3 per cent on the same period in 2008. Affordability fell in all capital cities and regional areas with the largest falls recorded in Sydney, Brisbane, Hobart, and Canberra.
Suburb in FocusIn our suburb in focus section we continue our 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 South Australia.First up we look at Berri located approximately 235 km north-east of Adelaide.The town’s population was 4,330 in the last census. Berri is located on the banks of the Murray River in the heart of Riverland, providing an abundance of areas to enjoy a picnic or play sport. The town is surrounded by over 3,000 hectares of fruit orchards and is home to the famous juice company Berri. There are many things to do in Berri including fishing, riverside walks, scenic flights, you can climb the water tower lookout or visit Berri Estates - Australia’s largest winery - or the Big Orange. Nearby is Murray River National Park a popular area for camping, bird-watching and canoeing.Looking at the figures and the median house price in Berri is $195,000. There were 75 homes sold in the area in the 12 months to December. Currently there are around 87 properties listed for sale, starting from just $99,000.And now let’s take a look at the town of Jamestown located 208.5 km north of Adelaide. The town’s population in the 2006 census was 1,407. Jamestown sits in the scenic Clare Valley on the banks of Belalie Creek and is a good base from which to explore Bundaleer Forest. The forest area has a picnic spot and some interesting historical and botanical walks with various cultural and sporting events held in the forest. Dry stone walls built by early stonemasons can be found for many kilometers across the ridges of the forest. The town also hosts the Jamestown Fly In and Air Spectacular, recognized as one of Australia’s best air shows. Turning to the figures, the median house price in Jamestown is $165,000 dollars, with 43 homes sold in the 12 months to December 2009. Currently there are 32 properties listed for sale starting from $79,000.
Tax TipAnd now to the investment property Tax Tip of the week from Depreciator, Tax Depreciation Schedule specialists.
Most people when they buy an investment property get a pest and building inspection done. Then they wonder how they can claim the cost back. The ATO says that if they were done before you bought the property, they are not able to be claimed as a deduction. Rather they form part of the purchasing costs and these are factored into the capital gain calculation when you sell the property. Of course, if you have a pest inspector check the property to maintain its condition while you own it, the cost would be deductible. This is general information only and you should always speak to your accountant or tax professional for specific details.
