We continue our series looking at suburbs with the most affordable median prices in 2010, with a focus on two suburbs in the ACT. We speak with Jo Brown, Director of NRAS Real Estate about the National Rental Affordability Scheme investment opportunities. And in our tax tip we look at how the Australian Taxation Office tracks capital gains tax avoidance.
News:
The latest report on Australia’s rental rates has delivered good news for property investors. According to RPData’s March quarter Rental Review, weekly rates increased 1.4 per cent across the nation, and, 2.7 per cent in capital cities over the last 12 months. The Pilbara in Western Australia recorded the most expensive rents of all markets at $1,650 per week for houses, underpinned by strong demand from resource sector workers. While the cheapest capital city rents for houses are in Adelaide at $325 per week. Based on median weekly advertised rents, RP Data says capital city house rents are now $380 per week, with the median rate for units $375 per week. Nationally, the median rent for a house is $360 per week, while a unit rents for $355 per week. RPData forecasts that rental demand will continue to rise throughout the year, resulting in more increases in rental rates.
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 the ACT. First let’s look at Crace, located 10 kilometres north of Canberra’s central business district, the suburb is on the fringe of the inner north. It is a new suburb nestled between the existing suburbs of Giralang and Palmerston, bordered by Nudurr Drive, the Barton Highway and Gundaroo Drive. Crace has been awarded the title of most affordable because 15% of dwellings built in the new suburb are designated to be low cost, affordable housing. These affordable dwellings are being released for sale every few months. Construction in Crace started in 2009 and currently 90 homes have been built. 1800 dwellings in total will be sold in the next three years, including 1300 suburban lots, 300 terraces and 200 apartments. Turning to the figures, houses in Crace recorded the capital’s most affordable median price in 2010 of $379,000. 14 properties were sold in the year.
Our next suburb is Charnwood, it is located 16 kilometres north-west of Canberra’s CBD. With a population of 3,017 in the last census, the suburb is bordered by Ginninderra Drive, Tillyard Drive and Kerrigan Street. The suburb has many three and four bedroom freestanding houses as well as two bedroom townhouses. Because of the way the suburb was initially planned for every house to face common parklands, many of the streets are cul-de-sacs. Pedestrian bridges can be used to cross the few major streets. Charnwood is home to Charnwood-Dunlop Primary School and the local Catholic primary school. There is also a local shopping centre. Turning to the figures, houses in Charnwood recorded the capital’s second most affordable median price in 2010 of $385,000. 51 properties were sold in the year.
Interview
We speak with Jo Brown, Director of NRAS Real Estate about the National Rental Affordability Scheme investment opportunities.
Tax Tip
And now to the Tax Tip of the week from Depreciator - the Tax Depreciation Schedule specialists. This week we ask the question – how does the ATO track the capital gains tax owing on a property? The answer is data matching. Last September the tax office requested that state and territory authorities provide updated identity and transaction details relating to property title transfers for the past eleven years. This updated information is then matched to identify non-compliance with capital gains tax, income tax and goods and services tax obligations.
As always, do remember to consult with a tax accountant or tax professional before making any tax related decisions.
