Next in our series looking at properties under $200k, located less than 250 kilometres from the CBD of the nearest capital city that may be of interest as a possible holiday home, is Western Australia.We speak with Matthew Bell from Australian Property Monitors, who talks to us about auction clearance rates for the last quarter.And we’ll look at how to claim on repairs and improvements to an investment property.
News
The Reserve Bank of Australia has warned that house prices and rents could rise further as the resources boom places a greater strain on the country’s housing needs.RBA assistant governor Philip Lowe says more to be done to tackle the skills shortage because it will hamper supply.The comments come as new figures show demand for new home loans fell 7.9% in January - the fourth monthly decline in a row.The Bureau of Statistics said that 51,056 loans were granted to owner-occupiers in January, while the number of loans granted to first homebuyers slipped to 20.5% compared to 21% in December.Meanwhile despite figures showing a cooling of interest from first homebuyers - an online survey has found there is interest still out there.A survey by mortgage broker Loan Market found that of 260 potential first time homebuyers, 33% were still looking to buy a property this year. 32% were still trying to save for a larger deposit, and that 28% had put off their home buying plans indefinitely.
Suburb in Focus
In our suburb in focus section, we’re continuing our holiday home series, this week looking at properties under $200k located less than 250km from Perth in Western Australia.
First up we look at Pingelly located approximately 182 km south east of Perth.
The town’s population was 992 in the last census. Around a 90 minute drive from Perth Pingelly is located in the heart of the state’s Central South. The Shire of Pingelly offers a unique insight into Western Australia’s colonial heritage. Visitors can enjoy the many historical buildings, walk and drive the heritage trails, or explore the scenic woodlands and reserves. Boyagin Rock Nature Reserve rises 50 metres above the surrounding countryside and is a popular scenic area for bbq’s and picnics. If you’re into star gazing the Pingelly Heights Astronomical Observatory has guided tours of space and the heavens.
Looking at the figures and the median house price in Pingelly is $175,000. There were 23 homes sold in the area in the 12 months to December. Currently there are around 21 properties listed for sale, starting from around $140,000.
And now let’s take a look at the town of Corrigin located 250 km east of Perth. The town’s population in the 2006 census was 903. Corrigin is located in the Central Wheatbelt around a 2.5 hour drive from Perth. There are many local attractions to enjoy including Kunjin Animal Farm where visitors can see and touch animals such as Alpacas, emus, deer, ostriches, miniature donkey’s and geese. Corrigin experiences some beautiful sights during wildflower season around September/October with The Lookout and Wildflower Walk some of the best ways to see these wonderful sights.
Turning to the figures, the median house price in Corrigin is $155,000. There were 12 homes sold in the 12 months to December 2009. Currently there are 10 properties listed for sale starting from $149,000.
Tax TipAnd now to the Tax Tip of the week from Depreciator. Tax Depreciation Schedule specialists.This week we're looking at how to claim on repairs and improvements to an investment property.The first thing to do is explain the difference between ‘repairs’ and ‘improvements’.Strictly speaking, a ‘repair’ means restoring something to the condition it was in when you bought it. Repairs can be claimed in full as a deduction.If you do work to a property soon after buying it, chances are that work would not be a repair. You are probably ‘improving’ it, rather than repairing it.Improvements need to be depreciated over a number of years.This is a grey area, so make sure you speak to your accountant.
And of course this is general information only and you should always speak to your accountant or tax professional before making any investment decision.
