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 Tasmania. In our tax tip we look at the difference deductions can make to your hip pocket.
News
House and unit sales in Australia's capital cities for November 2010 eclipsed those in the regions, with 75 per cent of all unit sales and 63 per cent of house sales occurring within capital cities according to RP Data. Two thirds of Australia's dwelling transactions were within a capital city. Sydney leads the charge with the greatest proportion of overall sales. Historically, the three largest cities - Melbourne, Brisbane and Sydney account for 50 per cent of the country's sales each month. There have been times when demand for capital city dwellings has fallen, most recently in the 2001 to 2004 national property boom.
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 Tasmania.
First let’s look at Hobart, the capital city of Tasmania. With a population of 1,745 in the 2006 census, the suburb of Hobart is the pocket of land bordering North and West Hobart along Brooker Avenue and Macquarie Street. Over 200,000 people live in the greater Hobart area, the financial and administrative core of Tasmania. The suburb of Hobart shows off some of Australia’s finest sandstone and colonial architecture, including Constitution dock and new low-rise apartments around Sullivan’s Cove. Hobart also provides the home port for both Australian and French Antarctic operations. Residents enjoy a cosmopolitan lifestyle, with a number of nature reserves, educational facilities, hospitals and public transport via the network of Metro Tasmania buses.
Turning to the figures, houses in the suburb of Hobart recorded the capital’s highest increase in median selling price in 2010, rising 36.3 per cent in the twelve month period. 14 properties were sold in the year, recording a median price of $490,500. Over the past 10 years, the median selling price has risen 15.3 per cent per year.
Our next suburb is Glebe, located 2 kilometres north-east of Hobart’s CBD. With a population of 597 in the last census, Glebe is a relatively small suburb compared to other suburbs in Hobart. The Royal Tasmanian Botanical Gardens bounds the north and east sides of the suburb, providing residents with an escape from inner city life. While Brooker Avenue stretches along the western boundary and the Tasman Highway reaches across the southern parameters. Glebe boasts some magnificent examples of Victorian and Federation style wooden terraced houses. The suburb also has sports facilities, including an indoor pool. Glebe is also widely tipped to undergo gentrification in the coming years.
Turning to the figures, houses in Glebe recorded Tasmania’s second highest increase in median selling price in 2010, rising 29.5 per cent in the twelve month period. 12 properties were sold in the year recording a median price of $511,000. Over the past 10 years, the median selling price has risen 14.1 per cent per year.
Tax Tip
The Tax Tip of the week from Depreciator - the Tax Depreciation Schedule specialists. Before you purchase a property, take into consideration the deductions... how they are calculated, and working out how much to allow before you buy is of great importance. You may find a property that at first appears to make a loss, but in fact will make a profit after-tax, once depreciation claims are lodged. Two properties that in the beginning seem similar, may be quite different in terms of leaving more money in your pocket week to week, based on what can be deducted. For example, if one property is newer than the other, you are likely to experience stronger rental returns as well as greater deductions. As always, do remember to consult with a tax accountant or tax professional before making any tax related decisions.
