We continue our series looking at suburbs with the most affordable median prices in 2010, with a focus on two suburbs in Western Australia. We speak with Archicentre State Manager, Ian Agnew about what to look out for when buying off the plan. And in our tax tip we look at registering for GST when dealing in property.
News:
The lead up to Easter wasn’t quite as sweet as some property investors were hoping for... with one of biggest weeks of the year for residential auctions delivering a lacklustre result in Australia’s two largest cities. The Real Estate Institute of Victoria and Australian Property Monitors reported that Melbourne had a clearance rate of 60 per cent on the weekend before Easter. In Sydney, the clearance rate was slightly lower at 55 per cent. AMP senior economist Andrew Wilson says, “With Easter being the first major selling period of the year, there are now clear signs we’re still in a buyers market”. The reluctance of buyers was also confirmed with the latest residential land report from the Housing Industry Association and RP Data, that revealed land sales fell to their lowest level in years on the back of higher prices. RP Data says, a lower number of sales would often suggest demand is drying up, but, with land prices continuing to rise, the fall in sales is supply related.
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 Western Australia.
First let’s look at Camillo, a suburb located 32 kilometres south-east of Perth’s central business district. Camillo was a part of Kelmscott until the late 1970s. The suburb was known as Westfield until mid 2008. There are many three bedroom houses, often with an additional study or smaller fourth bedroom made of brick or brick veneer. The houses are generally on 600 to 700 square metre blocks. Three bedroom duplexes are also characteristic of the suburb. Schools in the catchment area include Kelmscott Senior High School, John Wollaston Anglican Community School and Westfield Primary. Kelmscott and Stargate Shopping Centres are also nearby. The area is serviced by Kelmscott and Challis train stations.
Turning to the figures, houses in Camillo recorded the capital’s most affordable median price in 2010 of $289,500. 74 properties were sold in the year.
Our next suburb is Armadale, it is located 5 kilometres south of Camillo and 37 kilometres south-east of Perth’s CBD. With a population of 12,019 in the last census, Armadale is an urban centre and transport hub for surrounding districts. Armadale Shopping City is located near the Armadale Train Station, the terminus of the Armadale railway line. The suburb and surrounding catchment area is home to two state high schools, four state primary schools and three independent schools, a trades college and a campus of Polytechnic West. The suburb is undergoing redevelopment with a number of new villas for sale under the National Rental Affordability Scheme, which offers annual tax free incentives to property investors. There are also a few older properties on the market, many listed for their development potential.
Turning to the figures, houses in Armadale recorded the capital’s second most affordable median price in 2010 of $290,000. 197 properties were sold in the year.
Interview
We speak with Archicentre State Manager, Ian Agnew about what to look out for when buying off the plan.
Tax Tip
And now to the Tax Tip of the week from Depreciator - the Tax Depreciation Schedule specialists. This week we take a look at registering for GST when dealing in property. For example, if you buy a property as an investment, and make a profit selling it, you may be liable to pay GST. It’s a common mistake to not register and the threshold is $75,000. This is a common trap many property investors fall into. For full details visit the ATO website and see the “Common GST errors and property” document. As always, do remember to consult with a tax accountant or tax professional before making any tax related decisions.
