In our series looking at capital city suburbs with the longest hold periods, we take a look at two suburbs in Darwin. And in our tax tip we look at co-ownership of rental properties and how this is treated when doing tax.
News
Following the RBA’s decision to keep interest rates on hold, the Housing Industry Association has called on nation’s banks to follow suit.
HIA cautions that the recent news of a fifth consecutive monthly fall in home building approvals shows new housing activity is quickly losing momentum.
Underpinning the association’s views is its National Outlook report that forecasts the current financial year will see a four per cent decline in housing starts to just under 160,000.
In other news, The Australian Bureau of Statistics reports housing finance commitments for owner-occupiers increased one per cent to 47,540 in August.
Suburb in Focus
In our suburb in focus section, 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 Darwin.
First let’s look at the house market in Nightcliff, located ten kilometres north of Darwin’s CBD. According to figures from RP Data, properties in Nightcliff are held for six years. The picturesque seaside suburb of Nightcliff is situated directly on the Timor Sea foreshore and has a population of 3,356 according to the last census. Established in the late 1800s, Nightcliff has grown from a popular day trip spot with residential development expanding from the 1960s. The coastline is particularly popular for walking and cycling, as well as utilising the Nightcliff jetty and swimming pool. The suburb also boasts an oval, sporting complex and Nightcliff High school. Nightcliff is often associated with its easterly neighboring suburb Rapid Creek, which is boarded by the Jingili Rapid Creek Water Gardens.
Turning to the figures, the median house price in Nightcliff in the year to May 2010 was $665,000. The average hold period for a house in the suburb was 6 years. 39 properties were sold in Nightcliff for the 12 month period.
Our next suburb is the house market in Nakara, located just over 14 kilometers north east of Darwin’s CBD. RP Data figures reveal that properties in Nakara are held, on average, just under six years before being sold. The mostly residential suburb of Nakara was established before Cyclone Tracey in 1974 and remains one of the older suburbs in the region. The last census showed 1,915 people lived in Nakara, with the area ideally positioned just five minutes from the Royal Darwin Hospital, Charles Darwin University and Darwin’s major shopping centre, Casuarina Square. The suburb is also home to the Nakara Primary School which is located just next to Nakara Park.
Taking a look at the figures, the median house price in Nakara for the year to May 2010 was $546,000. The average hold period for a property in the suburb was 5.8 years with 31 houses sold in the 12 month period.
Tax Tip
And now to the Tax Tip of the week from Depreciator - the Tax Depreciation Schedule specialists.
This week we look at co-ownership of rental property and how this should be treated when doing tax. The way that rental income and expenses are divided between co-owners varies depending on whether the co-owners are joint tenants or tenants in common or there is a partnership on a rental property business.
Co-owners who are not carrying on a rental property business must divide the income and expenses for the rental in line with their legal interest in the property. If they own the property as: Joint tenants, they each hold an equal interest in the property. Tenants in common, they may hold unequal interests in the property, for example one may hold 20% while the other holds an 80% interest.
Rental income and expenses must be attributed to each co-owner according to their legal interest in the property, despite any agreement between co-owners, either oral or in writing, stating otherwise.
Where you are carrying on a rental property business in partnership with others, you must divide the net rental income or loss according to the partnership agreement. If you do not have a partnership agreement, you should divide your net rental income or loss between the partners equally.
And as always, remember to consult with a tax accountant or tax professional before making any tax related decisions.
