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 Queensland. And in our tax tip we look at prepaying expenses to help increase your deductions and reduce your tax.
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 Queensland. 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 Whitsunday, a council area located over 1,000 kilometers up the Queensland coast from Brisbane. With a population of 16,955 in the last census, the Whitsunday council area is surrounded by the Coral Sea... off Queensland’s coast. Defined by 74 tropical islands, the region’s natural splendour supports the Whitsunday economy, attracting a steady inflow of tourists. Residents also benefit from the white sands, clear waters and relaxed lifestyle, with the population predicted to grow. The region’s agricultural industry is driven mainly by vegetables and sugar, while aquaculture and mining industries are also advancing. Major airlines fly in and out of the Whitsunday Coast Airport daily, and the area is also serviced by bus, rail, ferries and even helicopters or seaplanes to ensure a view is always on hand.
According to figures from RP Data, houses in Whitsunday recorded the largest increase in hold periods in Queensland for the five years to 2010. This year the average hold period is currently 7.8 years, up from 5.7 years in 2005. The median price of a house in Whitsunday has climbed 56.3 per cent in the five year period, to $375,000 in 2010.
Our next council area is Sunshine Coast, located around 100 kilometers north of Brisbane. With a current population of 323,423, Sunshine Coast council is on the Pacific and stretches from the Gympie region in the north to Moreton Bay in the south. Locals enjoy a favorable climate with a wide range of community services, around 70 per cent of Sunshine Coast residents being families. The sun-soaked region is a renowned destination for visitors, with tourism propelling the local economy. Closely linked to the region’s growth is native vegetation, making up around one third of the landscape. Locals work to sustain the construction, marine and mining industries while an emerging arts scene is gaining broader recognition.
Taking a look at the figures, the hold period for houses in Sunshine Coast is currently 7.4 years, up from 5.6 years in 2005. The median price of a house in Sunshine Coast has risen 24.4 per cent in the five year period, to $485,000 in 2010.
Tax Tip And now to the Tax Tip of the week from Depreciator - the Tax Depreciation Schedule specialists.
Prepaying expenses up to 12 months ahead of time are permitted and are a popular means of reducing your tax. Most people prepay expenses such as rates, council and water, interest and strata levies. Before prepaying any deductible property expenses, review your personal circumstances as it is prudent to check how your tax return may look for that financial year.
As always, do remember to consult with a tax accountant or tax professional before making any tax related decisions.
