NewsNew figures confirm that investors haven’t been put off by talk of further interest rate rises later this year.A Bureau of Statistics report shows that lending to property investors rose 11.6%, while loans for owner occupied homes fell by a seasonally adjusted 10.8% from December 2009 till April. In the month of April, the value of commitments for the purchase of property for rent or resale increased in trend terms by 1.9% compared to a 2.4% fall in owner occupied home loans.In the year to April, home loans to investors rose 30% and interestingly in April 2009, the RBA’s official cash rate stood at an historic low of 3% compared with 4% at the start of April 2010. Lower interest rates have clearly had a positive impact on investment growth in the housing market, suggesting that investors are keen on have renters pay off their home loans rather than doing the bulk of that themselves. And why wouldn’t you? But with more rates rise on the cards this year, it will be interesting to watch if this continues.
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 Perth.First up we take a look at the unit market for the suburb of Perth.The suburb’s population in the last census was 6,341. Perth is bounded by the Swan River to the south east and Kings Park on the western side. Kings Park contains over 1,000 acres of parkland, botanical gardens and natural native bushland, with panoramic views of Swan River and Darling Range. Hay St and Murray St in Perth’s CBD are the places to go for retail and entertainment facilities. Perth is also home to the oldest international arts festival in Australia. Created by the University of Western Australia it attracts artists from around the world each year. Perth’s CBD has undergone significant growth as a result of the mining boom in WA, with several commercial and residential projects due for completion.Turning to the figures, the median unit price in Perth for the 12 months to March 2010 was $432,500 with an average rental yield for a unit of 5.3%. Perth currently has 88 units on the market.And now to our second suburb, the unit market in West Perth located just under a kilometre from the CBD. The suburb’s population in the 2006 census was 3,806. West Perth is part of the inner mixed zone made up of a mix of residential buildings and office blocks. There are a high proportion of miners, consultants and medical professionals in the suburb. The harbour town factory outlet complex near the eastern edge of the suburb and the City West complex are the suburb’s retail hubs. West Perth is also home to the original Perth Observatory.Looking at the figures now, the median unit price in West Perth for the 12 months to March 2010, came to $430,500 with units in the suburb posting an average rental yield of 5.5%. There are 46 units currently for sale in West Perth. Tax TipAnd now to the Tax Tip of the week from Depreciator. Tax Depreciation Schedule specialists.As the financial year rolls over, it’s time to get ready to see your accountant. Remember, the more organised you are, the easier it will be for your accountant to do your tax return. And reduced time spent with your accountant should result in a reduced fee.As a property investor, you will need to supply a number of documents to your accountant to help work out your income & deductions for your investment property. This includes:An annual statement from your real estate agent showing total rent received and any repairs and agent fees.A Depreciation Schedule, the total interest paid on any loan, council and water rates, travel expense details, insurances and any other property related expenses. And of course, find a good accountant or tax professional to assist you to make the right decisions this year - it could save you thousands of dollars.
