We are continuing a new series looking at unit markets with a median price between $350,000 and $450,000 where there are more than 50 units up for sale. This week our focus is on QLD.And in our tax tip this week we’ll look at turning your home into an investment property.
NewsThe amount of construction work completed across the country increased in the first quarter of this year, suggesting that the economy is indeed growing, albeit slowly.
The ABS says construction work rose 1.9% in the March quarter to $39.5 billion, less than the ambitious 4% expected by analysts. Overall residential construction grew 0.9%, seasonally adjusted to $10.6 billion.
Looking around the country - Construction work done in Queensland however fell for the fifth quarter in a row. Construction work in Western Australia also fell 0.5% following 24 quarters of growth. In a further comparison construction work increased in all other states including the ACT with the exception of the Northern Territory where it fell.
AND briefly in other property news, research firm IPD says that returns on Australian property were positive in March - for the first time since September 2008.
Total returns, which include income and capital growth for all property types grew 1%.
Suburb in FocusIn our suburb in focus section, we are looking at capital city unit markets with a minimum 50 units for sale and a median price between $350,000 and $450,000. This week our focus is Brisbane.
First up is the unit market in the suburb of Spring Hill - 1.5 kilometres north of Brisbane’s CBD.An inner-city suburb with a population of around 4,835 at the last census, Spring Hill is one of the oldest residential neighbourhoods in Brisbane with many of the dwellings dating back to the nineteenth century. However in recent decades a lot of these older style buildings have been replaced with more modern apartment blocks and office space. The suburb has a vibrant nightlife and is known for its live music scene and art galleries. Spring Hill is served by the Inner-Northern Busway via the Normandy bus stop.Turning to the figures, the median unit price in Spring Hill for the 12 months to March 2010 was $392,500 with an average rental yield for a unit of 5.2%. Spring Hill currently has 56 units on the market.
And now to our second suburb, the unit market in Chermside, 11 kilometres north of Brisbane’s CBD. The suburb’s population in the 2006 census was 6,348. Chermside is a key destination along the Queensland Transport’s future Northern Busway. This busway is designed to allow buses to travel north and south through the city without encountering traffic. Chermside has the largest shopping centre in Queensland with a three storey Myer store and 16 screen cinema complex, and many outdoor recreational facilities including two large parks.Looking at the figures now, the median unit price in Chermside for the 12 months to March 2010, came to $411,000 with units in the suburb posting and average rental yield of 4%. Like Spring Hill, there are 56 units currently for sale in Chermside.
Tax Tip
And now to the Tax Tip of the week from Depreciator. Tax Depreciation Schedule specialists.This week we are discussing turning your home into an investment property.Did you know that the ATO requires you to get an independent valuation of your property at the time you move out to work out your capital gain should you sell the property in the future? Also, if you live in your principle place of residence and lease out bedrooms within your house, you are effectively turning part of the property into an investment property. This could lead to capital gain liabilities down the track. Remember, this is not intended as advice and you should always consult a tax professional before making decisions.
