This week we continue our series looking at suburbs with the most affordable median prices in 2010, with a focus on two suburbs in Queensland. We speak with Chris Gray, CEO of Empire Property Consultancy and host of Your Money, Your Call on Sky News Business about the dangers of over or under capitalising. And in our tax tip we look at the capital gains tax implications of having a different home from your spouse.
News:
The Reserve Bank of Australia’s April monetary policy meeting minutes noted that conditions in the Australian housing market remain subdued. Last month the reserve bank kept the nation’s rates on hold at 4.75 per cent, and indicated they are unlikely to hike rates, at least for the next few months. A welcome reprieve for the housing industry, for, at the same time the latest Housing Industry Association - RP Data Quarterly Land Report revealed a fall in transaction volumes on higher prices for residential land. But, in some good news for property investors, RP Data reports capital city rents have increased at an average of 6.2 per cent for houses, and, 6.7 per cent for units in the five years to February 2011.
Suburbs in Focus
We continue our series looking at suburbs with the most affordable median prices in 2010, with a focus on two suburbs in Queensland.
First let’s look at Russell Island, a suburb located 57 kilometres south-east of Brisbane’s central business district. With a population of 1,779 in the last census, it is the largest of the Southern Moreton Bay Islands, between the mainland and North Stradbroke Island. The island is eight kilometres long and three kilometres wide. It has its own police station, supermarket, service station and bottle shop, as well as other services. Regular fast ferries and barges take passengers to the mainland at Redland Bay. There are four real estate agents on the island specialising in local sales. Vacant land is for sale and many of the houses boast waterviews. There’s a mix of classic Queenslanders and more modern homes.
Turning to the figures, houses in Russell Island recorded the capital’s most affordable median price in 2010 of $225,000. 68 properties were sold in the year.
Our next suburb is Dinmore, located 31 kilometres south-west of Brisbane’s CBD. With a population of 897 in the last census, Dinmore was partially affected by the flooding in January of this year, mainly along the Warrego Highway, the northern border of the suburb. Dinmore is known as the gateway to the city of Ipswich, the suburb is also the entrance to Brisbane from the west. Brisbane Road, running through the suburb has a few shops and restaurants and despite not being too far from the city, Dinmore still has the feel of a rural suburb. Dinmore railway station services the area. There’s a small selection of three and four bedroom new brick homes for sale and vacant land.
Turning to the figures, houses in Dinmore recorded the capital’s second most affordable median price in 2010 of $240,000. 11 properties were sold in the year.
Interview
We speak with Chris Gray, CEO of Empire Property Consultancy and host of Your Money, Your Call on Sky News Business about the dangers of over or under capitalising.
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 the capital gains tax implications of having a different home from your spouse. If you and your spouse have different homes for a period you must either choose one of the homes as the main residence for you both or nominate different homes for the period.
If you nominate different homes and you own 50 percent or less, you qualify for an exemption for your share. If you own more than 50 percent your share is exempt for half the period you and your spouse had different homes. The same applies to your spouse. This rule applies to each home spouses own, whether they have sole ownership or own the home jointly. For case studies please visit the ATO website.
As always, do remember to consult with a tax accountant or tax professional before making any tax related decisions.
