This week we continue our series looking at suburbs with the most affordable median prices in 2010, with a focus on two suburbs in Tasmania. We speak with the President of the Real Estate Institute of Western Australia, Alan Bourke about the Perth suburbs to watch out for this year. And in our tax tip we look at construction expenditure that can be claimed as a deduction.
News
The latest Housing Industry Association-Jeld-Wen New Home Sales Report has shown the impact of Australia’s wet weather conditions. After rising 2.5 per cent in January, new home sales across the nation edged up a mere 0.6 per cent in February. The lift was underpinned by a 0.9 per cent rise in sales in New South Wales, while Victorian sales increased 2.9 per cent over the month. In Queensland sales fell 13.3 per cent, with the natural disasters in the state no doubt having a significant impact, according to HIA. The association says the year has begun with volumes well down on stimulus-driven highs of 2009 and early 2010, and has forecast that the year ahead may be weaker. HIA chief economist Harley Dale has confirmed interest rates are on hold for now, and says that is a tick in the box for the housing industry.
Suburbs 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 Tasmania.
First let’s look at Gagebrook including the area of Herdsmans Cove, within the suburb of Gagebrook. Herdsmans Cove is technically the most affordable, and may be locally classified as a suburb, but strictly speaking it is in fact officially a part of the suburb of Gagebrook, and Gagebrook is classified as the second most affordable suburb. So let’s focus on the suburb of Gagebrook, including within it, Herdsmans Cove. Gagebrook is located 22 kilometres north of Hobart’s central business district. The suburb has a population of 2,877 in the 2006 census. Gagebrook is located on the eastern shore of the Derwent River between the suburbs of Bridgewater and Old Beach. The suburb has many dwellings built in the 1970s for public housing, many have now been sold privately. The majority are three bedroom brick veneer houses. The suburb has two primary schools, Herdsmans Cove Primary School and Gagebrook Primary School.
Turning to the figures, houses in Herdsmans Cove recorded the capital’s most affordable median price in 2010 of $140,000. 21 properties were sold in the year. Houses in Gagebrook recorded the capital’s second most affordable median price in 2010 of $146,000. 30 properties were sold in the year.
Our next suburb is Clarendon Vale, it is located 15 kilometres east of Hobart’s CBD. With a population of 1,464 in the last census, it was also originally a public housing area in the 1970s. Today, just like Gagebrook much of the housing stock has been sold to private owners. The older stock is made up of three bedroom brick veneer houses, many have been rendered. The area also has a mix of newer stock in private housing areas. Clarendon Vale Public School is within the suburb and Rokeby High School is nearby.
Turning to the figures, houses in Clarendon Vale recorded the capital’s third most affordable median price in 2010 of $169,000. 23 properties were sold in the year.
Interview
We speak with the President of the Real Estate Institute of Western Australia, Alan Bourke about the Perth suburbs to watch out for this year.
Tax Tip
And now to the Tax Tip of the week from Depreciator - the Tax Depreciation Schedule specialists.
This week we look at construction expenditure that can be claimed as a deduction. A deduction is allowed for expenditure as a result of a building if you contract a builder to construct the building on your land.
Some costs that you may include in construction expenditure for a deduction are:
- Preliminary expenses such as architects’ fees, engineering fees and the cost of foundation excavations
- Payments for the construction of retaining walls, fences and in-ground swimming pools
- Payments to carpenters, bricklayers and other tradespeople for construction of the building
As always, do remember to consult with a tax accountant or tax professional before making any tax related decisions.
