Introduction:
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 Western Australia. And we conclude our interview with First National Real Estate, CEO, Ray Ellis where he provides their outlook for Hobart, Canberra and regional Australia in 2011. In our tax tip we look at some of the most common mistakes when claiming rental deductions.
News:
Home owners can breathe easy, the Reserve Bank of Australia deciding to keep interest rates on hold for another month. The period of stability looks set to provide a confidence boost to the residential housing sector. It’s widely tipped interest rates will stay put until the middle of the year. The Housing Industry Association applauded the decision to keep the cash rate steady for the fourth consecutive month. The Association says Australia’s new home building market needs an extended period of interest rate stability to lift confidence and activity. HIA reports they are seeing a lift in consumer interest for both new home building and renovations.
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 Western Australia.
First let’s look at Lathlain, a suburb located 6 kilometers south-east of Perth’s central business district. With a population of 2,742 in the 2006 census, the suburb was established in the 1890s. Lathlain is bordered by the Great Eastern Highway, Orrong Rd and Graham Farmer Freeway, Roberts Rd and the Armadale railway. Lathlain Park is in the south of the suburb, and is the home ground of the Perth Football Club the Phoenix Demons. It is mainly a residential area with many three to four bedroom houses and a few vacant plots of land for future development. The suburb has its own primary school, two hotels, local shops in Lathlain Place and a Scout Hall. The area is well serviced by public transport, the Victoria Park train station on the Armadale/Thornlie Line and numerous buses service the area.
Turning to the figures, houses in Lathlain recorded the capital’s highest increase in median selling price in 2010, rising 43.3 per cent in the twelve month period. 24 properties were sold in the year, recording a median price of $752,500. Over the past 10 years, the median selling price has risen 12.1 per cent each year.
Our next suburb is South Perth, located 7 kilometers south of Perth’s CBD. With a population of 11,301 in the last census, the locality was established in the 1830s. The suburb is bordered by two major arterial roads, the Canning Highway and Kwinana Freeway to the east and west, and Swan River and South Terrace to the north and south. South Perth is a desirable area to live due to its proximity to the river and the CBD. There are many highrise apartments near the foreshore. Along the foreshore there are two ferry terminals. The Sir James Mitchell Park is positioned between the jetties. There are also larger sought after mansions, as well as a significant number of townhouses and older style houses ready for redevelopment. South Perth is predominantly a residential area with some commercial land along the Canning Highway. Local attractions include the Perth Zoo, The Old Mill and The Royal Perth Golf Club. There is a café strip on Angelo Street. The suburb is also home to the South Perth Hospital. There are three schools, South Perth Primary School, St Columba’s Catholic Primary School and Wesley College.
Turning to the figures, houses in South Perth recorded the capital’s second highest increase in median selling price in 2010, rising 40.8 per cent in the twelve month period. 88 properties were sold in the year recording a median price of $1,350,000. Over the past 10 years, the median selling price has risen 13.4 per cent each year.
Interview
We speak with First National Real Estate, CEO, Ray Ellis and discuss the property outlook for 2011, with a focus on Hobart, Canberra and regional Australia.
Tax Tip
And now to the Tax Tip of the week from Depreciator - the Tax Depreciation Schedule specialists. The Australian Taxation Office says there’s a pattern of most common mistakes when claiming rental expenses. Some of the most common are:
- Claiming deductions for rental properties not genuinely available for rent.
- Not apportioning expense claims where the property is only available for rent part of the year, such as a holiday home.
- Overstating interest claims on loans taken out to purchase, renovate or maintain a rental property, and
- Claiming the full cost of a visit to inspect a property when it is combined with a private purpose, like a holiday.
As always, do remember to consult with a tax accountant or tax professional before making any tax related decisions.
