This week we conclude 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 the Northern Territory. And in our tax tip we look at the importance of dating your property purchase contract.
News The number of new home loans increased slightly in November 2010 for the third consecutive month. The Australian Bureau of Statistics data shows the number of loans for construction increased by 2.7 per cent. Loans for the purchase of new homes increased 9.7 per cent. In seasonally adjusted terms, in November last year the total number of owner occupier loans increased in every state and territory except for Tasmania which fell by 1.9 per cent. Loans increased the most in the Northern Territory by 7.4 per cent and 3.7 per cent in the Australian Capital Territory. New South Wales wasn’t too far behind in third place at 3.3 per cent, South Australia 2.3 per cent, followed closely by Western Australia and Victoria with a 2.2 per cent increase.
Suburb in Focus This week we conclude 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 the Northern Territory. 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 the council area of Darwin, the central business district and capital of the Northern Territory. With a population of 66,291 in the 2006 census, the relatively flat Darwin council area rests on a bluff over-looking Darwin Harbor and is the Northern Territory’s regional centre with the largest concentration of people. Extensive coastal areas define the landscape of Darwin, often described as Australia’s gateway to South East Asia. Almost completely rebuilt after Cyclone Tracy in 1974, locals now enjoy a modern metropolitan lifestyle filled with abundant nature and wildlife that thrives in the tropical climate. An influx of newer residents has seen a rise in modern medium density apartment blocks, catering for a growing younger population. Darwin’s economy is driven by its fast-developing mining and tourism industries, as well northern Australia’s military base.
According to figures from RP Data, houses in Darwin recorded the largest increase in hold periods in the Northern Territory for the five years to 2010. Last year the average hold period was 5.3 years, up from 3.3 years in 2005. The median price of a house in Darwin has climbed 93.3 per cent in the five year period, to $550,000 in 2010.
Our next council area is Litchfield, located on the eastern and southeastern outskirts of the state’s capital Darwin. With a population of 15,554 in the last census, residents of the Litchfield Municipality largely reside in tropical rural bush land which is bound by the Adelaide River. On its doorstep is also World Heritage-listed Kakadu National Park and Litchfield National Park. The area supports booming horticultural, agricultural and industrial industries, all within close proximity to Darwin’s increasing employment opportunities. Litchfield is a mainly residential suburb, with homes boasting large blocks on wide streets. The houses reflect a tropical style, elevated with framed openings from floor to ceiling to encourage air circulation and combat the Northern Territory’s heat.
Taking a look at the figures, houses in Litchfield recorded the second largest increase in hold periods in the Northern Territory for the five years to 2010. Last year the average hold period was 4.8 years, up from 3 years in 2005. The median price of a house in Litchfield has soared just over 100 per cent in the five year period, to $520,000 in 2010.
Tax TipNow to the Tax Tip of the week from Depreciator, the Tax Depreciation Schedule specialists. If you’re hoping to gain a tax advantage by purchasing a property this financial year – make sure the contract is dated and signed before June 30th. The date the property is sold is the date the contract is dated and signed by all parties. The settlement and completion date are irrelevant in this case. And as always, remember to consult with a tax accountant or tax professional before making any tax related decisions.
