NewsIn property news, according to data released by the ABS, housing finance commitments rose 1.9% in May, following a 1.8% drop in April. The result was driven by a 2.6% rise in investment loans for the month to $7.66 billion.The ABS says the number of investment loans have risen 35% since the start of 2009. Total housing finance by value rose 0.7% in May to $21.36 billion. The bureau also reported that the average loan size for owner occupied housing fell by $3,800 in the month to $283,100.
Suburb in FocusIn our suburb in focus section, we continue a series looking at suburbs that have a University. This week we focus on two suburbs in Adelaide. First up we take a look at the house market in the suburb of Magill, just over 8 kilometres east of Adelaide’s CBD.Magill is home to a campus of the University of South Australia, the largest uni in the state and houses the South Australian School of Arts. The suburb’s population in the last census was 7,735. Located at the base of Adelaide’s eastern foothills, Magill is part of the City of Burnside, a primarily residential area it is considered one of the greenest areas in Adelaide due to the amount of area dedicated to parks and reserves. Magill is also home to one of Australia’s oldest wineries, Penfolds. The suburb has a shopping centre, a primary school and a high school. Turning to the figures, the median house price in Magill for the year to March 2010 was $475,000 with house prices up 4.4%. The median weekly rent for a house was $320 with an average rental yield of 3.5%. 152 houses were sold in Magill during the 12 months to March 2010, currently there are around 67 houses on the market.And now to our second suburb, the unit market in the suburb of Adelaide, home to a campus of the University of Adelaide including the Universities Little Theatre. The suburb’s population in the 2006 census was 10,229. A coastal city, Adelaide is situated on the eastern shores of Gulf St Vincent and at the foot of the Mount Lofty Ranges. The city is known for its many festivals, sporting events, food, wine and culture. Adelaide is entirely surrounded by parkland and considered one of the most livable cities in the world.Looking at the figures now, the median unit price in Adelaide for the year to March 2010 was $399,250 with unit prices up 17.4% for the 12 months. The median weekly rent for a unit in the suburb was $390 with an average rental yield of 5.1%. 480 units were sold in Adelaide during the 12 months to March 2010, currently there are 180 units on the market.
Tax TipAnd now to the Tax Tip of the week from Depreciator. Tax Depreciation Schedule specialists. This week we look at whether you can claim a capital gains tax exemption on both properties where you are selling your home and buying another property to live in before your home sells.Usually you are only entitled to treat one property as your main residence for any particular period.
If for a period you have two homes that could be regarded as your main residence, you usually need to choose which one of the properties to claim the main residence exemption for during the period you own both. However, if you purchased a new home before you disposed of your old one, you may be able to claim the exemption on both properties up to a maximum of six months.
As always consult your accountant or tax professional before making any tax related decisions.
