NewsThe number of home loans taken out for investment rose in March, adding weight to the view that rising property prices are partly being driven higher by investors. The Bureau of Statistics says fixed investment home loans increased 3% seasonally adjusted in March.However not surprisingly, the number of owner occupied home loans fell 3.4% in March after a 1.8% fall in February – marking the sixth monthly decline in a row, in line with rising interest rates and a shortage of housing. The total value for all home loans eased 1.4% to around $20 billion last month. In its latest Statement of Monetary Policy, the RBA said, ''the divergence between aggregate national loan approvals and housing prices remains something of a puzzle.” The RBA has also speculated that more up-graders are buying without the need for loans.
Suburb in FocusIn our suburb in focus section, we are taking a look at two West Australian suburbs with the lowest days on market.First up, the house market in the suburb of Craigie - 24 kilometres north, north-west of Perth’s CBD. Located within in the City of Joondalup, the suburb’s population in the last census was 5,564. Craigie has a leisure centre, two public primary schools and a Catholic Primary School. The suburb also contains an area of native bushland called the Craigie Open Space and is close to the Westfield Whitford City shopping centre.For the 12 months to December 2009 Craigie recorded a median house price of $394,000. There were 128 homes sold in the area during the year, with the median price rising 3.7%. The median advertised weekly rent last year came to $330 with a gross rental yield of 4.4%. Houses on average spent around 43 days on the market.And now to our second suburb, the unit market in West Perth. Located over 2 kilometres from the heart of Perth, the suburb’s population in the 2006 census was 3,806. West Perth is part of the inner mixed zone, and has predominantly office blocks. There is a high proportion of miners and consultants, and particularly medical specialists located in the suburb.Turning to the figures, the median unit price in West Perth for the 12 months to December 2009, came to $399,000 with 49 units sold during the year. The median growth rate for units in the suburb during the 12 month period was 5.7%. The advertised weekly rent came to $450 taking the gross rental yield to 5.9%. A unit in the suburb of West Perth spent an average 38 days on the market in 2009.
Tax TipAnd now to the Tax Tip of the week from Depreciator. Tax Depreciation Schedule specialists. This week, we’ll look at another thing property investors should consider with the end of the financial year looming. Fixtures and fittings you add to your property that cost less than $300 can be claimed in full. These are items like ceiling fans, exhaust fans, rangehoods etc. So toward the end of the financial year is a good time to think about those purchases.Similarly, items valued between $300 and $1,000 can go into the Low Value Pool. Items in the Pool depreciate at 18.75% in the first part year - even if it’s only a couple of weeks. It’s always a good idea to talk to your accountant, or perhaps a quantity surveyor trained in tax, about the best time to spend money on a rental property.
