NewsIn property news, the Housing Industry Association and RP Data released their Residential Land Report which showed that the volume of land sales fell 40% in the March 2010 quarter compared to the same time last year.However the report showed that weighted median land values for Australia were steady in the first quarter of 2010.In other news, The Reserve Bank of Australia released the minutes of its July 6 monetary policy meeting.
The central bank says its decision to leave interest rates on hold this month was because the global economy was growing at around trend pace, despite Europe’s debt woes and concerns of a slowing US economy.
The RBA says official inflation data, due out at the end of the month, will influence its decision on rates next month.
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 Hobart.First up we take a look at the house market in the suburb of Hobart, the capital city of Tasmania.Hobart is home to the University of Tasmania’s Conservatorium of Music, Tasmanian School of Art, the University’s School of Medicine and the Menzies Research Institute. The suburb’s population in the last census was 1,745. A coastal city, Hobart is centred around Sullivans Cove, between Mount Wellington and the Derwent River estuary. A busy seaport, Hobart has a variety of shopping outlets, cafe’s and restaurants as well as a vibrant music scene and nightlife. The huge weekend market in Salamanca Place is a big drawcard for visitors to the city.Turning to the figures, the median house price in Hobart for the year to March 2010 was $457,551 with house prices up 1.7%. The median weekly rent for a house was $365 with an average rental yield of 4.1%. 28 houses were sold in Hobart during the 12 months to March 2010, currently there are around 10 houses on the market.And now to our second suburb, the unit market in the suburb of Sandy Bay located just over 4 kilometres south of Hobart’s CBD. Sandy Bay is home to the main campus of the University of Tasmania. Also found in Sandy Bay is The Hutchins School and Mount Carmel College. The suburb’s population in the 2006 census was 11,332. Sandy Bay is considered an up-market suburb with some homes stretching from the Derwent River waterfront up to the hill, giving them fantastic views of the eastern shore of Hobart. The suburb is also renowned for its stylish boutiques and gift shops.Looking at the figures now, the median unit price in Sandy Bay for the year to March 2010 was $380,000 with unit prices up 14.8% for the 12 months. The median weekly rent for a unit in the suburb was $278 with an average rental yield of 3.8%. 81 units were sold in Sandy bay during the 12 months to March 2010, currently there are 10 units on the market.
Tax TipAnd now to the Tax Tip of the week from Depreciator. Tax Depreciation Schedule specialists.If you own a block of land and are thinking of subdividing it into two or more separate blocks, this can affect the amount of capital gains tax (CGT) you pay when you dispose of the subdivided blocks.
Subdivision will not result in any CGT as long as you continue to own the subdivided blocks. However, you may make a capital gain or loss when you sell or give away any of the blocks.
You can apportion the costs incurred in acquiring and subdividing the land across the subdivided blocks on a reasonable basis. Your home is usually exempt from capital gains tax due to the main residence exemption. If you subdivide land surrounding or adjacent to your home, it does not qualify for the exemption if you sell it separately from your home.
And as always this is general advice only and you should always consult your accountant or tax professional before making any tax related decisions.