This week we continue our series looking at council areas with the greatest increase in hold periods over the last five years, with a focus on two council areas in New South Wales. In our tax tip we look at claiming the depreciation of your investment property against your taxable income. News New figures from the Housing Industry Association show that expenditure on new housing and on alterations and additions fell in the September quarter of 2010. HIA’s senior economist Andrew Harvey says the outcome was not unexpected and was largely due to the lagged effects of earlier interest rate rises coupled with tighter credit conditions. New housing expenditure fell by 1.3 per cent in the September quarter and expenditure on alterations and additions fell by 2.5 per cent. Suburb in Focus This week we continue our series looking at looking at council areas with the greatest increase in hold periods over the last five years, with a focus on two council areas in New South Wales. A hold period represents the time between when a property is bought and sold, and can be an indication of the appreciation rates and desirability of the area. First let’s look at Tumut Shire, a council area located south of Sydney, and around 200 kilometers west of the Canberra. According to figures from RP Data, houses in Tumut Shire recorded the largest increase in hold periods in New South Wales for the five years to 2010. This year the average hold period is currently 9.3 years, up from 5.7 years in 2005. With a population of 10,801 in the last census, the picturesque Tumut Shire stretches from the small towns of Brungle in the north to Tumut, after which the Shire takes its name, and Cabramurra in the south. The regional area is dotted with small towns and living in the shire offers good sized blocks with a variety of housing types, some dating as far back as the early 1900’s. Surrounded by a number of rivers and state forests including Australia’s highest mountain, Mt Kosciusko, the area is close to Australia’s premier ski resorts and national parks. The region is supported by forestry and agricultural industries, such as the Visy Board operations in Tumut. Nature based recreational activities are popular, from camping to canoeing or fishing for trout in the Blowering Dam. Further west along the Snowy Mountains Highway lies the old gold mining town of Ade-long, that is now supported by the pastoral industry- both the history and landscape are popular draw-cards for visitors. According to figures from RP Data, houses in Tumut Shire recorded the largest increase in hold periods in New South Wales for the five years to 2010. This year the average hold period is currently 9.3 years, up from 5.7 years in 2005. The median price of a house in Tumut Shire has risen 24.5 per cent in the five year period, to $215,000 in 2010. Our next council area is Kempsey, located north of Sydney and around 50 kilometers north of Port Macquarie. RP Data figures reveal houses in Kempsey recorded the second largest increase in hold periods in New South Wales for the five years to 2010. This year the average hold period is currently 10.1 years, up from 6.6 years in 2005. With a population of 27,387 in the last census, Kempsey Shire sits next to the coast of the Pacific Ocean and includes the towns of South West Rocks, Oceanside and Crescent Head. Known for its beaches and relaxed sea-side lifestyle, the shire enjoys a subtropical climate. The town of Kempsey rests around the Macleay River, where the Pacific Highways meets the North Coast railway line, providing access to a network of transport options. As the town sits atop of a flood-plain, many houses have been moved to higher ground. Initially supported by the logging and sawmilling industry, locals have now moved to farming and tourism to generate income. The landscape of Kempsey Shire encourages a range of outdoor activities. Bushwalking and forest drives offer a taste of the region’s unique flora and fauna, while the expansive coast line naturally lends itself to water activities such as surfing, kayaking and boating. Taking a look at the figures, houses in Kempsey recorded the second largest increase in hold periods in New South Wales for the five years to 2010. This year the average hold period is currently 10.1 years, up from 6.6 years in 2005. The median price of a house in Kempsey has lifted 11.1 per cent in the five year period, to $216,000 in 2010. Tax Tip And now to the Tax Tip of the week from Depreciator - the Tax Depreciation Schedule specialists. As a home owner you can claim the depreciation of your investment property against your taxable income. There are two types of allowances available; depreciation on plant and equipment, and depreciation on building allowance. Plant and equipment includes items within the building such as dishwashers, ovens, carpets and blinds., Whereas building allowance refers to the construction costs of the building itself, such as brickwork and concrete. Both these costs can be offset against your assessable income. As always, do remember to consult with a tax accountant or tax professional before making any tax related decisions.
