In the next installment of our series looking at capital city suburbs with the longest hold periods, we take a look at two suburbs in Perth.And in our tax tip of the week, we look at prepaying interest on your loan and how this can significantly reduce your taxable income.
News
The impact of a strong Aussie dollar on inbound tourism is being attributed to a slow-down in coastal property markets. According to RP Data, many of the country’s coastal property markets have not seen the same increases in value experienced in capital cities. Data released shows the average rate of growth in capital cities last year was 10.5 per cent.
The surging Aussie dollar has put pressure on overseas tourists coming to Australia and how much they spend when they are here. As a result coastal communities are feeling the economic pinch. For example, the Sunshine Coast recorded a mere 2.1 per cent increase in value, while the value of Fraser Coast properties dropped 1.6 per cent.
Suburb in Focus
In our suburb in focus, we continue a series looking at suburbs with the longest hold periods in capital cities around Australia. This week we look at two suburbs in Perth.
First let’s look at the unit market in Safety Bay, located around 51.5 kilometres south of Perth’s CBD. According to figures from RP Data, units in Safety Bay are held for just over 11 years, one of the longest hold periods of any suburb in Perth. The suburb’s population in the 2006 census was 7,305. Safety Bay is an outer-southern suburb of Perth. The name ‘Safety Bay’ was given to the suburb by surveyor-general John Septimus Roe in 1837 after being considered a safe, well protected boat anchorage. Today the suburbs sheltered kid-friendly beach is a popular family holiday destination. Boat launching facilities are regularly utilised by sailors and anglers. The bay also lies within the Shoalwater Islands Marine Park, where an abundance of bird and marine life flourish. The suburb is served by a road network including the nearby Kwinana Freeway by which Perth can be reached by car in 45 minutes. Buses also frequently run.Turning to the figures, the median unit price in Safety Bay in the year to May 2010 was $329,000. The average hold period for a unit in the suburb is 11.1 years. 16 units were sold in Safety Bay for the 12 month period.
Our next suburb is the unit market in Bibra Lake, located around 22.5 kilometres south of Perth’s CBD. RP Data figures reveal that properties in Bibra Lake are held, on average, just over 10 years before being sold.With a population of 6,072 Bibra Lake gets its name from the extensive lake found within the suburb. The lake is part of a string of lakes which form the Beeliar Regional Park, and has a cycle path and spots to observe the varied birdlife that can be found in the park. Bibra Lake is also home to a number of recreational facilities including Adventure World theme park, a bungee jumping tower, paint ball and laser tag. Taking a look at the figures, the median unit price in Bibra Lake for the year to May 2010 was $333,500. The average hold period for a property in the suburb was 10.2 years with 24 units sold in the 12 month period.
Tax TipAnd now to the Tax Tip of the week from Depreciator - the Tax Depreciation Schedule specialists.
This week we look at pre-paying interest on your investment property loan and how this can substantially reduce your taxable income. By pre-paying the interest on your loan for next year, you can bring forward your tax deduction and significantly reduce your taxable income for the current tax year. As long as the loan is used for investments that generate assessable income, you are entitled to claim a tax deduction for the interest payable on your loan while continuing to receive rent throughout the year. However, remember you can only repay one year's interest in advance, as this is all that can be claimed as a tax deduction.
And as always, remember to consult with a tax accountant or tax professional before making any tax related decisions.
