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 the Northern Territory. We speak with Real Estate Institute of Queensland about the impact of the Queensland floods and in our tax tip we look at keeping receipts for property expenses to maximise allowable deductions.
News
Capital city home prices have risen by 0.2 per cent in seasonally adjusted terms for December according to the RP Data-Rismark Home Value Index. Capital city home prices are up 4.7 per cent on a year ago, it is the slowest rate of growth in 18 months. The rental yield across capital cities on houses stands at 4.0 per cent in December and apartments 4.7 per cent. Outside capital cities, prices fell by 0.3 per cent in December. The Reserve Bank has restored order to the housing market with the rate hikes of 2010 taking the heat out of the housing market. The RBA opted to maintain the interest rate at 4.75 per cent for February.
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 the Northern Territory First let’s look at Ludmilla, a council area located 7 kilometres north of Darwin’s central business district. With a population of 1,703 in the 2006 census Ludmilla borders Charles Darwin National Park and boasts the Northern Territory’s highest increase in median selling price in 2010. Development of the largely residential suburb began in the 1960s and has continued to this day to accommodate growing demand. Ludmilla’s blocks of land are spacious and suitable for families with children, while the majority of employees in the suburb are professionals who benefit from close proximity to the city. Residents are well serviced by with easy access to shops, transport and schools.
In 2010 houses in Ludmilla, recorded the highest increase in median selling price in the Northern Territory, rising 34 per cent in the twelve month period. 17 properties were sold in the year, with a median price of $630,000. Over the past 10 years, the median selling price has risen at an annual rate of 12.8 per cent.
Our next suburb is Alawa, located 12 kilometres of north of Darwin’s CBD. With a population of 2,126 in the last census, Alawa sits next to a nature reserve surrounding Rapid Creek that flows into the Beagle Gulf. The suburb is an established residential and commercial area in Darwin's northern suburbs and houses the Northern Territory’s largest shopping centre. Alawa is a garden suburb with abundant vegetation that thrives in Darwin’s tropical climate. Residents can escape to the nearby Casuarina coastal reserve with 8 kilometres of sandy beaches, walking and cycling tracks.
In 2010 houses in Alawa recorded the second highest increase in median selling prices in the Northern Territory, rising 29.1 per cent for the twelve months. 31 properties were sold in the year recording, a median price of $555,000. Over the past 10 years, the median selling price has risen at an annual rate of 13.2 per cent.
Tax Tip
The Tax Tip of the week from Depreciator - the Tax Depreciation Schedule specialists. A reminder to keep your receipts for property expenses for no less than five years. You must keep records of rental income and expenses for five years from the date your income tax return is lodged. You must also keep the records of ownership and all the costs of acquiring and disposing of your property for five years from the date you dispose of your rental property. As always, do remember to consult with a tax accountant or tax professional before making any tax related decisions.
