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 South Australia. In our tax tip we look at minimising tax using timing. News The Housing Industry Association National Outlook forecasts a soft residential building market for 2011. HIA’s chief economist Dr Harvey Dale says following a reasonable 2010, the new home building recovery will reverse in 2011. This is because of the triple negatives which include rising interest rates, tight credit conditions and a stalled housing policy reform program. The combined weight of these influences means that Australia is likely to endure a weakness in new home building conditions. 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 South Australia. 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 Port Augusta, a council area located around 300 kilometers north of Adelaide. With a population of 13,874 in the last census, Port Augusta rests on a natural harbor at the head of the Spencer Gulf and enjoys a warm climate. The regional council supports the second largest urban area after Whyalla on the Eyre Peninsula. Originally a pastoral service centre, residents are now mainly employed within mining, agricultural and community services. Port Augusta also houses the state's main power station, the Port Augusta powerhouse. Eco-tourism is increasingly popular as visitors flock to the nearby Flinders Rangers and the Wadlata Outback Centre. While the historic railway lines connect Port August to state’s capital city Adelaide, but also expand north to Alice Springs and west to Kalgoorlie. According to figures from RP Data, houses in Port Augusta recorded the largest increase in hold periods in South Australia for the five years to 2010. This year the average hold period is currently 7.2 years, up from 4.6 years in 2005. The median price of a house in Port Augusta is now $210,000 up 81 per cent in the five years to 2010. Our next council area is Walkerville, located 5 kilometers north of the Adelaide CBD. With a population of 6,964 in the last census, Walkerville is an established inner city council area of Adelaide and one of the smallest in the state. With tree lined streets, housing stock is predominantly single fronted cottages and mansions dating back to the mid 1800s, many of which are heritage listed. The largely residential council includes the suburbs of Medindie, Gilberton, Vale Park and Walkerville. Walkerville local council is cosmopolitan, surrounded by all the major services of Adelaide, with the Torrens River and surrounding parklands providing a retreat from the city. The area is well serviced with public transport and an established bike track along the Torrens, stretching to the Adelaide Hills. Taking a look at the figures, the average hold period for houses in Walkerville is currently 7.9 years, which compares with 5.7 years in 2005. The median price of a house in Walkerville has risen 50.9 per cent in the five year period, to $530,000 in 2010. Tax Tip And now to the Tax Tip of the week from Depreciator - the Tax Depreciation Schedule specialists. Expenditure incurred in June for example, is considered part of that financial year even where it relates to services in the new financial year starting on the 1st of July. So where your expenditure is tax deductible, it reduces your taxable income for the current year thus your tax payable is also reduced. If you lodge your tax return early in the new financial year then your tax saving can take effect as quickly as you receive your refund. Therefore the time taken between spending your money and getting a tax deduction is the smallest. This also helps your cash flow. As always, do remember to consult with a tax accountant or tax professional before making any tax related decisions.
