NewsIt seems that Australia’s much needed housing recovery hasn’t arrived just yet.
The latest Australian Bureau of Statistics figures show that building approvals fell by a significant 3.3 per cent in February, after a 5.5 per cent slide the month before.
A big drop in units and other dwelling building approvals was largely behind the fall. And to put that into perspective ‘other dwelling’ approvals which described semi-detached homes are down 27 per cent on December 2009 figures.
The Housing Industry Association however makes the point despite the poor start to 2010, building approvals overall are still 47 per cent higher than 12 months ago. Meanwhile figures from RP Data and Rismark show that property prices are in the country’s capital cities continue to rise.
House prise grew 1.4 per cent in February, with the median house price at $455,000. That result comes on top of a 2 per cent increase in house prices in January. House prices increased in all capital cities, with the exception of Perth and Hobart, while Melbourne house prices grew the most up 5.4%.
Suburb in FocusIn our suburb in focus section, we continue a series looking at suburbs with the lowest days on market for each state and territory. This week we’re taking a look at house and unit markets in NSW.
First up we look at the house market in the suburb of Denistone East located approximately 19 kilometres from the CBD of Sydney. Located in Ryde in Sydney’s north-west, Denistone East’s population in the last census was 2,032. About a 10 minute drive from the heart of Sydney, Denistone East is a pleasant and leafy suburb just a short distance from Macquarie Centre, a large regional shopping centre, and a stone’s throw away from the larger commercial areas of Eastwood and West Ryde.
For the 12 months to 2009 Denistone East recorded a median house price of $750,000. There were 33 homes sold in the area, with the median price for houses rising a whopping 19% for the year. The median advertised weekly rent of a property in the suburb is $450 with a gross rental yield of 3.1%. Houses on average spend around 22 days on the market, the lowest in the region and for the state.
And now let’s take a look at the unit market in the suburb of Kirrawee in the Sutherland Shire, 25 kilometres south of the Sydney CBD. The suburb’s population in the 2006 census was 8,944. Kirrawee lies between Sutherland, to the west and Gymea, to the east. While north Kirrawee is predominantly a commercial/industrial zone, the suburb is bordered to the south by The Royal National Park and has many houses on quiet roads with beautiful bush outlooks. Turning to the figures, the median unit price in Kirrawee is $328,750 with 82 units sold in the 12 months to December 2009. The median 12 months growth rate for unit’s in Kirrawee is 12.2%. The advertised weekly rent is $320 taking the gross rental yield to just over 5%. A unit in the suburb of Kirrawee spends an average 29 days on the market.
Interview Now let’s turn to our interview, and this week Kristy Sheppard from Mortgage Choice discusses key findings of the 2010 Mortgage Choice First Homebuyer’s Survey, in particular looking at what they are buying, price limit and motives.
Tax TipAnd now to the Tax Tip of the week from Depreciator. Tax Depreciation Schedule specialists.This week we are looking at claiming the costs associated with bank guarantees. The bad news is that the ATO deems the cost of getting a bank guarantee to be related to securing the right to purchase a property for future income producing purposes, not to be a deduction. The ATO does not see a bank guarantee as a deductible cost incurred in actually deriving income from the property. However, if you were to get a loan to finance the payment of a deposit, it is considered deductible. This is because the deposit, unlike a bank guarantee, is also a partial payment of the purchase price. It’s worth talking to your accountant BEFORE buying a property to work out the best way in which to go about it.
