This week we begin a series looking at capital city suburbs with the highest rental growth for units, starting with two suburbs in Brisbane. And in our tax tip we look at the Australian Tax Office’s free tax seminars for rental property owners.
It appears that the heat is continuing to come out of the Australian property market with the latest house price data showing that growth remains relatively flat across the country. The RP Data-Rismark Home Value Indices shows the value of house prices fell -1.2 per cent over the three months to August. Australian Property Monitors also reported that house price growth across the country rose by only 0.1 per cent for the September quarter. Prices fell in most capital cities with the exception of Sydney and Melbourne. In Sydney prices rose 0.7 per cent and by 1.2 per cent in Melbourne. Suburb in Focus In our suburb in focus section, we begin a series looking at suburbs with the greatest growth in median unit rents in Australia.
This week we look at two suburbs in Brisbane. First let’s look at the unit market in West End, an inner city suburb located 3 kilometers south west of Brisbane’s CBD. According to figures from RP Data, West End recorded the largest increase in unit rents in Australia for the year to 30 June, rising 26.3 per cent from $380 per week last year, to $480 per week in 2010. With a population of 6,206 in the last census, the centrally located eclectic suburb of West End is part of a peninsula with South Brisbane and Highgate Hill. The Brisbane River separates the suburb from Brisbane’s CBD, but is only a short walk across Victoria Bridge. West End is one of the oldest suburbs in the city and has a unique blend of cultures. A history of migrant and indigenous communities is reflected though the diverse array of restaurants and cafés. The area is well supplied with public transport, including a regular bus service, the Citycat ferry and South Brisbane Railway Station. West End’s primary school is located nearby its largest park, while the suburb also rests directly between the University of Queensland and Queensland Conservatorium Griffith University. Turning to the figures for the year to 30 June 2010. Rents in West End rose 26.3 per cent to $480 per week from $380 per week in 2009. Over the same period 303 rentals were advertised up from 129 the previous year. The median price of a unit in West End is $545,000. Our next suburb is the unit market in Loganlea, located 32 kilometers south of Brisbane’s CBD. RP Data figures reveal that the median rental for units in Loganlea increased by 12.5 per cent last year, from $240 per week to $270 per week for the year to 30 June 2010. With a population of 5,278 in the last census, Loganlea is located south of Brisbane centre along the corridor to the Gold Coast. The suburb is partly bordered by the Logan River and also, a rail line that offers access to frequent Citytrain services to Brisbane and the Gold Coast. Various parks are spotted through the suburb, with the Loganlea Golf Course and Gould Adams Park situated north of the Logan Motorway. The surrounding area is also well serviced with a broad range of shopping centre’s such as the Hyperdome and Marsden Park Shopping Centre. Taking a look at the figures, rents for units in Loganlea rose 12.5 per cent, from $240 per week in 2009, to $270 per week in the year to 30 June 2010. 46 properties were advertised over the year, up from 33 in 2009. The median price of a unit in Loganlea is $305,000. Tax Tip And now to the Tax Tip of the week from Depreciator - the Tax Depreciation Schedule specialists. You may be interested to know that the ATO is running a series of free tax seminars for rental property owners, or those thinking about obtaining an investment. The two-hour long seminars are run in all capital cities and some regional centres. Topics covered include: - purchasing a rental property and owning a rental property - deductible expenses - repairs, versus improvements - capital and private expenses - selling a rental property - capital gains tax - record keeping. Full details are available on the ATO website.
