In the last installment of 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, we’re turning our focus to Tasmania.And in our tax tip we’ll look at claiming the cost of renovations (as opposed to repairs) on an investment property.
NewsStockland’s managing director Matthew Quinn has warned of a housing affordability ''time bomb'' in Australia if measures aren’t taken to deal with a chronic undersupply of homes, and unrealistic expectations from buyers.Mr Quinn recently told a gathering in Sydney that Australia's current shortage of 200,000 homes and an annual shortfall of 60,000, would balloon to 800,000 by 2020, unless reforms were taken.His comments come as the Australian Bureau of Statistics said the December quarter of 2009 had the strongest quarterly increase in new home starts since 2001.New home starts rose nationally by a seasonally adjusted 15.1% to 40,022.The result builds on an 11% jump in the September quarter, and in the year to December 2009 total dwelling commencements rose by 26%, seasonally adjusted.
Suburb in FocusIn our suburb in focus section, finishing up our holiday home series, this week looking at properties under $200k located less than 250km from Hobart in Tasmania.
First up we look at Queenstown located approximately 250 km north west of Hobart.The town’s population was 2,117 in the last census. Queenstown is the largest town in the West Coast region of Tasmania. It is located in a valley on the western slopes of Mount Owen on the West Coast Range which are often snowcapped through winter. There are many wilderness walks to be enjoyed in the area that take you to lookouts and waterfalls including Tasmania’s highest Montezuma Falls. Visitors can also enjoy trout fishing in several surrounding lakes or venture underground to explore the town’s rich mining history.Looking at the figures and the median house price in Queenstown is $81,250. There were 52 homes sold in the area in the 12 months to December. Currently there are around 109 properties listed for sale, starting from just $55,000.
And now let’s take a look at the town of New Norfolk located 35 km north west of Hobart. The town’s population in the 2006 census was 5,230. About a 30 minute drive from Hobart, New Norfolk sits on the banks of the beautiful Derwent River, a great place to relax and enjoy the scenic views of the river, mountain and valley. New Norfolk is a good base from which to explore the rugged natural beauty of Mount Field National Park.Turning to the figures, the median house price in New Norfolk is $195,000. There were 106 homes sold in the 12 months to December 2009. Currently there are 104 properties listed for sale starting from $145,000.
Tax Tip
And now to the Tax Tip of the week from Depreciator. Tax Depreciation Schedule specialists.Today we are having a look at claiming the cost of renovations (as opposed to repairs) on an investment property. This is an area where many people get caught out.Make sure you keep a detailed list of all of the expenses that you incur when doing your own renovations. These are used to calculate your depreciation claim.Some people think that you are able to include your time as part of the cost of renovation, but the ATO won’t allow this. You can only claim for costs that you actually paid. This also means that if you get your friend who is a plumber to do your plumbing work, you can only claim depreciation on the amount you paid them, not the market value of their work. And if you paid them in cash with no receipt, you both might come unstuck.
Of course, this is general information only and you should always speak to your accountant or tax professional before making any tax related decisions.
