This week we continue our series looking at suburbs with the highest increase in median selling prices in 2010, with a focus on two suburbs in Victoria. And in our tax tip we look at transferring real estate to family or friends.
News House prices are expected to remain flat over the next year according to the NAB’s residential property survey. National house prices look set to ease 0.5 per cent over the next 12 months, according to the poll of more than 200 property professionals. The NAB survey adds weight to expectations that house prices may have plateaued, with the ANZ also predicting a flat outlook for 2011. Countering any likely fall in house prices is an increase in rental returns. Darwin is now the most expensive capital city in the country to rent a house, with a median weekly rent of $520. Canberra records a median rental rate of $490 week and Sydney at $450 per week.
Suburb in Focus This week we continue our series looking at suburbs with the highest increase in median selling prices in 2010, with a focus on two suburbs in Victoria.
First let’s look at Research, a council area located 30 kilometers north east of the Melbourne CBD. With a population of 2,379 in the last census, Research was settled in the 1850s and originally filled with orchards, later becoming an area for prospectors during the gold rush era. Today it is an ecologically protected zone. Locals enjoy a semi rural lifestyle with an abundance of space and native vegetation, such as eucalyptus and wattle trees. South of Main Road large blocks of land house mostly unsewered homes beside dirt roads, while north of Main Road modern two-story houses have been erected. Research residents can also take advantage of the suburbs two schools and theatre as well as sports facilities such as an indoor pool, tennis courts, parks and oval.
Turning to the figures, and in 2010 houses in Research recorded highest increase in median selling price in the nation, rising 49.7 per cent in the twelve month period. 26 properties were sold in the year, recording a median price of $748,500. Over the past 10 years, the median selling price has risen 9.6 per cent.
Our next suburb is Gardenvale, located 12 kilometers south of Melbourne’s CBD and the smallest in metropolitan Melbourne by area. With a population of 987 in the last census, Gardenvale was originally privately owned land used as a polo ground before being subdivided in 1908. The largely residential suburb is bound in the west by the Nepean Highway, stretching into the CBD and in the south by North Road, linking residents Port Phillip Bay. Residents have train access from Gardenvale railway station, while the centrally positioned Gardenvale Road is the main spot for local shopping. Homes in Gardenvale mainly sit on medium sized blocks with front and back gardens and tree lined streets, and are a popular choice for families and retirees.
Turning to the figures, in 2010 houses in Gardenvale recorded Victoria’s second highest increase in median selling price, rising 49.6 per cent in the twelve month period. 14 properties were sold in the year recording, a median price of $1,252,500. Over the past 10 years, the median selling price has risen 13.6 per cent.
Tax Tip And now to the Tax Tip of the week from Depreciator - the Tax Depreciation Schedule specialists.
The Australian Tax Office says selling or gifting property is a capital gains tax event and your liability for capital gains tax arises when a CGT event happens to your property. Usually your capital gain or loss results in the difference between what owning the property cost you, and, what you received when you sell your property. But, if you receive nothing in exchange for your property the ATO deems the market value of the property at to be its value at the time of the transaction. The ATO also deems you to have received the market value if your capital proceeds, what you receive when you dispose of the property, are more or less than the market value of the property. Such transactions could include transferring houses, units, apartments, holiday houses, blocks of land and rental properties to family members or friends. So if you do choose to transfer real estate, make sure you obtain the market value first, ideally from a professional valuer.
As always, do remember to consult with a tax accountant or tax professional before making any tax related decisions.
