This week we go to Melbourne and our series looks at suburbs home to a University.
And in our tax tip we look at your obligation to make GST adjustments where you have claimed GST credits and end up using your property differently from the way you originally planned.
NewsFollowing a lower than expected 0.6% increase of the consumer price index for June, expectations for an interest rate rise this week have eased. RBA will announce its decision Tuesday at 2:30pm
In other news, a report by credit agency Veda Advantage says that mortgage applications rose 2.3 per cent in the June quarter compared to March.
Compared to the same period last year, mortgage applications fell 20.3 per cent, as the Federal Government wound back first home owner grants.
Australian Property Monitors says the value of loans for buying investment properties increased 17.6 per cent across the country over the past 12 months.
The figures suggest that the property market is now being driven by investors.
Suburb in Focus
In our suburb in focus, we continue looking at suburbs that have a University. This week we focus on two Melbourne suburbs.
First up we take a look at the house market in the suburb of Bundoora, home to Latrobe University and a campus of RMIT. Bundoora is 15km North East of the Melbourne CBD. The suburb’s population in the last census was 26,087. Bundoora is well serviced by transport with both a tram and train line. Shopping is well catered for with Greensborough Plaza 5 mins to the east.Turning to the figures, the median house price in Bundoora for the year to March 2010 was $437,175, that’s up 14% for the year. The median weekly rent for a house was $330 bringing the average rental yield to 3.9%. 386 houses were sold in Bundoora during the 12 months to March, with currently 90 houses listed for sale.
And now to our second suburb, the unit market in Burwood 12km kilometres east of the CBD. Burwood is home to the Melbourne campus of Deakin University and adjoins the suburbs of Box Hill and Camberwell with good shopping and entertainment precincts. The suburb’s population in the 2006 census was 11,886. Looking at the figures now, the median unit price in Burwood for the year to March 2010 was $440,000 with unit prices up 9.3% for the that period.The median weekly rent for a unit in the suburb was $230 with an average rental yield of 2.7%. 75 units were sold in Burwood during for the 12 months to March, with 63 units currently listed for sale.
Tax Tip
This week’s tip relates to GST adjustments in relation to GST credits you have previously claimed on property where you used the property differently from the way you originally planned.
An adjustment is a change that increases or decreases your net GST liability for a reporting period.
For example if you rented out new residential premises that you originally planned to sell for which you had claimed GST credits you would need to make an adjustment. The GST credits you previously claimed in relation to the construction or development of the residential premises may have been too much in view of your actual use.
You will also have an adjustment if you originally planned to rent out but instead sold 'new residential premises'.
To be able to calculate change in use adjustments, you will need certain information including: the GST-exclusive value of each of your purchases, GST credits you claimed, details of you holding or marketing the property for sale and a reasonable estimation of the selling price - if the property has not sold. So the matter of GST adjustments on property needs to calculated with care and backed by evidence. And as always this is general advice only and you should always consult your accountant or tax professional before making any tax related decisions.
