NewsIn property news this week the Australian Bureau of Statistics released data showing prices have increased for established houses.For the March quarter prices rose an average 4.8% across the eight capital cities and a whopping 20% for the year – with Sydney and Melbourne the standouts. As expected the Reserve Bank lifted the official cash rate by 25 basis points to 4.5 per cent - the sixth rate rise since October. This means on a $300,000 mortgage the increase is likely to add another $50 per month.Meanwhile the latest building approvals data has added to hopes that inroads are being made to the nation’s housing supply shortage.ABS figures show building approvals were up 15.3% in March, driven by gains approvals for apartments and government housing.
Suburb in FocusIn our suburb in focus section, we are taking a look at two Victorian suburbs with the lowest days on market.First up, the house market in the suburb of Boronia - located around 40 kilometres east of Melbourne’s CBD.Boronia is a tree-lined suburb of Melbourne with views of the Dandenongs and the city. The suburb’s population in the last census was 20,447. The suburb includes part of the Dandenong Ranges foothills, and is quite hilly itself with many nature reserves and bike paths. Part of Knox City Council the area is one where development is very much pro the environment.For the 12 months to December 2009 Boronia recorded a median house price of $375,000. The suburb’s growing popularity is evident with a whopping 378 homes sold in the area during the year, with the median price rising 10.3%. The median advertised weekly rent last year came to $300 with a gross rental yield of 4.2%. Houses on average spent around 37 days on the market.And now to our second suburb, the unit market in Epping. Located 35 kilometres north of Melbourne, the suburb’s population in the 2006 census was 19,222. Epping has good views of the city and is bounded by Mill Park and Lalor to the south, Somerton to the west, and South Morang to the east. The majority of commercial activity in the suburb is located on High Street and Cooper Street, where Epping Plaza is located.Turning to the figures, the median unit price in Epping for the 12 months to December 2009, came to $300,000 with 54 units sold during the year. The median growth rate for units in the suburb during the 12 month period was 8.1%. The advertised weekly rent came to $260 taking the gross rental yield to 4.5%. A unit in the suburb of Epping spent an average 28 days on the market in 2009.
Tax TipAnd now to the Tax Tip of the week from Depreciator. Tax Depreciation Schedule specialists. Staying with investment loans this week, and bearing in mind the tax year is drawing to a close, we’ll look at prepaying next year’s interest on your rental property.Many investors bring forward next year’s interest payments and claim them on their tax this year. But you need to move on this pretty soon - don’t call the bank on June 30 and expect it to happen. You will also need to make sure your particular loan affords you this flexibility - not all do. Talk to your accountant about whether this option would be something you should consider. And then talk to your lender and see if it is possible.
