This week we start our new series looking at suburbs with the highest median prices in 2010, with a focus on two suburbs in South Australia. We speak with Anthony Bell, CEO of Bell Partners, property advisor and member of the BRW Young Rich about what makes a good property investment. And in our tax tip we look at bringing forward property repairs and maintenance.
Australia’s top building and population hot spots have been revealed in the latest Housing Industry Association-Jeld-Wen report with Victoria taking the top position. A hot spot is defined as, “a local area where population growth exceeds the national rate of 1.7 per cent, and, where the value of residential building work approved is more than $100 million”. In the 2010 financial year, Victoria registered nine of the national twenty spots followed by Queensland with five, Western Australia with four and New South Wales with two. Whittlesea North in Victoria scored the highest spot, generating $660 million of approved residential work and a population growth rate of 21.8 per cent in the year. In other news, the latest HIA report has shown new home sales rose for the third straight month in 2011. In March new sales jumped 4.3 per cent, from a lift of 0.6 per cent in February. The result was underpinned by detached house sales, up 5.8 per cent in the month and also, according to HIA, an ongoing pause in interest rates and fewer severe weather conditions.
Suburbs in Focus
We start our new series looking at suburbs with the highest median prices in 2010, with a focus on two suburbs in South Australia.
First let’s look at Unley Park, a suburb located 4 kilometres south of Adelaide’s central business district. With a population of 1,494 in the last census, the suburb is bordered by Cross Road and Unley Road. Unley Park boasts stately homes in the Queen Anne style as well as early 1900s sandstone villas, some with swimming pools and tennis courts. There are cafes, restaurants and boutique shops along Unley Road and King William Road. The South Australian government is expecting the City of Unley, which includes Unley Park, to have a population growth of 560,000 people and the construction of almost 260,000 new dwellings in thirty year’s time. It’s part of the vision for the Greater Adelaide 30 year plan launched last year.
Turning to the figures, houses in Unley Park recorded the capital’s highest median price in 2010 of $1,490,000. 17 properties were sold in the year.
Our next suburb is Rose Park, located 2 kilometres east of Adelaide’s CBD. With a population of 1,293 in the last census, the suburb is bordered by Fullarton Road in the west, Dulwich Avenue in the south, Prescott Terrace in the east and Kensington Road in the north. Rose Park is situated in Adelaide’s prestigious eastern suburbs. It is a leafy, tree-lined, wealthy inner suburb. Many of the houses built in the 1800s are heritage protected. Rose Park Primary School is within the suburb.
Turning to the figures, houses in Rose Park recorded the capital’s second highest median price in 2010 of $1,330,000. 17 properties were sold in the year.
Interview
Let’s now turn to our interview. This week We speak with Anthony Bell, CEO of Bell Partners, property advisor and member of the BRW Young Rich about what makes a good property investment.
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 bringing forward property repairs and maintenance.
We all know the old adage ‘a stitch in time saves nine’ but there’s an additional incentive to doing repairs to your investment property now, rather than putting it off, and it’s not only because your tenants will love you.
If you’re considering doing repairs to your investment property, do them before June 30th and claim then now, rather than waiting until June next year.
Examples of repairs and maintenance include:
- Replacing guttering if damaged in a storm
- Painting a rental property
- Maintaining the plumbing
But be careful about what you consider to be a repair or maintenance. If the damage didn’t relate directly to renting out your property, the work may be considered a capital expense, which must be claimed over a number of years.
As always, do remember to consult with a tax accountant or tax professional before making any tax related decisions.
