NewsWinter auctions clearance rates appered to have cooled in Sydney but not in Melbourne, Brisbane and Adelaide.In Sydney, around 61% of the 549 homes listed were sold at auction over the weekend, down slightly on last week's result. In Melbourne 63% of 960 homes sold compared to 62% last week, but down from the 80% of homes sold at auction on the same weekend a year earlier. In Brisbane, auction sales jumped to 42% out of the 59 properties listed at the weekend, compared with an 11% clearance rate last week. The clearance rate for Adelaide rose to 50% versus 46% last week.Australian Property Monitors reports that the total value of property sold at auction last weekend across the nation was up $97 million. And Real Estate Institute of Australia president David Airey thinks the property market could be adversely affected by the Rudd Government’s resource super-profits tax. He’s told the Australian newspaper that the tax could dampen the appetite of investors if jobs in the mining sector are put at risk.
Suburb in FocusIn our suburb in focus section, we are starting a new series looking at house and unit markets of suburbs that have a University. This week we focus on two suburbs in Canberra.First up we take a look at the house market in the suburb of Watson, 6.7 kilometres north of Canberra’s CBD.Watson is home to the Australian Catholic University and a campus of Canberra’s Institute of Technology. The suburb’s population in the last census was 4,188. The former Watson High School now houses the Canberra Technology Park which includes the Academy of Interactive Entertainment. The suburb has a local shopping centre, several schools and television studios including the Southern Cross Ten and Prime television studios. Watson is serviced by ACTION bus routes, a public bus service operated by the Department of Territory and Municipal Services.Turning to the figures, the median house price in Watson for the year to March 2010 was $557,000 with house prices growing 13.7% during the 12 month period. The median weekly rent for a house in the suburb was $450 with an average rental yield of 4.2%. 73 houses were sold in Watson during the 12 months to March 2010, currently there are around 12 houses on the market.And now to our second suburb, the unit market in Bruce located 7 kilometres north, west of Canberra’s CBD. Bruce is home to the University of Canberra and the Bruce Campus of Canberra’s Institute of Technology. The suburb’s population in the 2006 census was 3,387. Also located in Bruce is the Australian Institute of Sport and the Canberra Stadium, home to the Canberra Raiders rugby league and Brumbies rugby union sides. Bruce is also relatively well-serviced by public transport with ACTION’s Intertown Public Transport route running through the suburb. Bruce has seen significant residential development in the last decade, ranging from detached houses through to three storey apartment buildings.Looking at the figures now, the median unit price in Bruce for the year to March 2010 was $384,500 with unit prices up 1.9% for the 12 months. The median weekly rent for a unit in the suburb was $400 with an average rental yield of 5.4%. 128 units were sold in Bruce during the 12 months to March 2010, currently there are 14 units on the market.
Tax TipAnd now to the Tax Tip of the week from Depreciator. Tax Depreciation Schedule specialists.This week’s tip relates to claiming deductions on investment property being built or renovated where no income has been received. You can claim deductions such as interest, rates, and insurance provided your intention is to rent it out when the work is complete.Regardless of whether you use a tax agent to prepare your tax return or you do it yourself. You must keep records of the rental income you receive and the deductible expenses you pay -for five years from 31 October or, if you lodge later, for five years from the date your tax return is lodged.
For this reason the use of an accountant is recommended.
