This week we continue our series looking at suburbs with the most affordable median prices in 2010, with a focus on two suburbs in Victoria. We speak with best selling property author and property advisor Margaret Lomas about investing in residential property. And in our tax tip we look at the property expenses for which you can claim an immediate deduction.
News:
Australia’s premium property market experienced demand and price growth in 2010, according to RPData. Despite a poorer performance from the Perth property market last year, the state is home to Australia’s most expensive suburb, Peppermint Grove. The average Peppermint Grove property will set you back $4.6 million, almost $1 million more than the second most expensive suburb in Australia, Sydney’s Vaucluse. The latest report has shown 212 suburbs across the country booked a median price of $1 million in the December quarter, with 56 per cent of those suburbs in New South Wales and 20 per cent in Victoria. Over last year houses with a $1 million price tag grew by 35 per cent, while over the past five years homes that fetch $1 million have soared by 172 per cent. RPData says more $1 million houses show residents are prepared to pay the price to secure property in premium locations.
Suburb in Focus
This week we continue our series looking at suburbs with the most affordable median prices in 2010, with a focus on two suburbs in Victoria.
First let’s look at Millgrove, a suburb located 75 kilometres east of Melbourne’s central business district. With a population of 1,576 in the 2006 census, it is bordered by Dee Rd in the West and the O’Shannassy Aqueduct to the north. The Warburton Highway runs through the suburb, with the neighbouring surburbs being Warburton and Wesburn. Warburton is a tourist destination with the Yarra River meandering through the suburb, it’s a picturesque destination with mountain views, cafes river walks and wineries. Millgrove itself is a scenic town often neglected by tourists in favour of its larger neighbour. The suburb has its own small shopping area including a general store, bakery, greengrocer and newsagent. It has a public reserve and a saw mill. Millgrove originally had its own trainline but it was closed in the 1960s. The railway line is now a walking and cycling track. The primary school shares campuses with Warburton East. There is also a Baptist church. The suburb is mainly made up of three bedroom timber houses, some are made of red cedar. Many homes boast Yarra Valley views and bushy outlooks. Less predominantly, there are a few full brick properties. Blocks of vacant land ready for building are in abundance. There is also a smattering of architecturally designed properties. Some, for example, have their own horse stables for recreational activities. Many refer to the suburb as having a ‘country lifestyle’.
Turning to the figures, houses in Millgrove recorded the capital’s most affordable median price in 2010 of $230,000. 53 properties were sold in the year.
Our next suburb is Melton South, it is located 48 kilometres north-west of Melbourne’s CBD. With a population of 8,800 in the last census, the area is serviced by the Melton railway station on the Ballarat line located within the suburb. Buses also service the area. Melton South has two shopping districts, one on Exford Road, the other on Station Road. Older style three and four bedroom brick veneer homes set on 600m2 blocks are characteristic of the suburb. There are also many house and land packages for sale. The suburb is well serviced with schools and educational institutions. There are two primary state schools and a catholic primary school. The state secondary school Staughton College and Victoria University Melton Campus are all located within the suburb. There is a nursing home on Exford Road that was originally a private hospital. There are numerous parks within the suburb including Blackwood Drive Reserve, Melton South Oval, and Mount Carberry.
Turning to the figures, houses in Melton South recorded the capital’s second most affordable median price in 2010 of $240,000. 222 properties were sold in the year.
Interview
This week we speak with best selling property author and property advisor Margaret Lomas about investing in residential property.
Tax Tip
And now to the Tax Tip of the week from Depreciator - the Tax Depreciation Schedule specialists.
This week we list the property expenses for which you can claim an immediate deduction.
These include: Advertising for tenants, bank charges, body corporate fees and charges, cleaning, council rates, electricity and gas, gardening and lawn mowing, in-house audio/video service charges, insurance including building, contents and public liability, interest on loans, land tax, lease document expenses including preparation, registration, stamp duty, legal expenses (excluding acquisition costs and borrowing costs), mortgage discharge expenses, pest control, property agent’s fees and commission, quantity surveyor’s fees, repairs and, maintenance, secretarial and bookkeeping fees, security patrol fees, servicing costs – for example, servicing a water heater, stationery and postage, telephone calls and rental, tax-related expenses, travel and car expenses including rent collection, inspection of a property and maintenance of a property and water charges.
You can claim a deduction for all these expenses, provided they are not paid by the tenant.
As always, do remember to consult with a tax accountant or tax professional before making any tax related decisions.
