We continue our series looking at suburbs with the highest median prices in 2010, with a focus on two suburbs in the Northern Territory. We speak with Jim McKerlie, Chairman of Onthehouse about his vision for the property website. And in our tax tip we look at the compulsory flood levy and how this may reduce the profit you make on an investment property.
News
Last year’s interest rate rise in November and this year’s Queensland floods have been partially attributed for a drop in finance for home loans in March. The Australian Bureau of Statistics has shown housing finance approvals fell 1.5 per cent in the month to a seasonally adjusted 44,968 units. However, depending on how you look at the property market, RP Data says it could be a great time to buy with buyers holding the power to negotiate and pick up property at a reduced price. As the market slows vendor discounting has increased. RP Data reports Brisbane posted the greatest discounts in the March quarter, with vendor discount levels down by 7.9 per cent. The only exceptions to the discounting trend in Australia were units in Sydney and Hobart.
Suburbs in Focus
We continue our series looking at suburbs with the highest median prices in 2010, with a focus on two suburbs in the Northern Territory.
First let’s look at Fannie Bay, a suburb located 5 kilometres north of Darwin’s central business district. With a population of 2,432 in the last census, the suburb is bordered by Fannie Bay in the west. Fannie Bay has a broad mix of housing stock from architecturally designed villas, newly built freestanding townhouses, apartments and elevated family homes equipped for living in the tropics. The suburb is home to the Darwin Blues Festival and Darwin Cup Carnival at the Fannie Bay Racecourse track. Adjoining the suburb is East Point Reserve, with Lake Alexander and a military museum.
Turning to the figures, houses in Fannie Bay recorded the capital’s highest median price in 2010 of $930,000. 19 properties were sold in the year.
Our next suburb is Bayview, located 5 kilometres north-east of Darwin’s CBD. With a population of 1,226 in the last census, the suburb is bordered by Tiger Brennan Drive, the bay area and Charles Darwin National Park. There are prestigious town houses on the waterfront overlooking the marina. Some come with their own berths. The suburb also has larger older style houses and opulent newly built residences, many with their own swimming pools.
Turning to the figures, houses in Bayview recorded the capital’s second highest median price in 2010 of $837,500. 30 properties were sold in the year.
Interview
We hear again from Jim McKerlie, Chairman of Onthehouse about his vision for the property website, and what it will do for the real estate sector.
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 compulsory flood levy and how this may reduce the profit you make on an investment property.
Next financial year the government’s flood levy will be paid through tax taken out of regular pay, in the same way the Medicare levy is paid.
The flood levy applies to taxable income, including salary and wages, but also investment income, such as money earnt from a positively geared investment property.
Anyone earning under $50,000 will not pay the levy. People earning between $50,000 and $100,000 will pay 0.5 per cent of taxable income in excess of $50,000. If you earn over $100,000 you will pay 0.5 per cent of taxable income in excess of $50,000 and 1 per cent of taxable income in excess of $100,000.
So for example, someone earning $60,000 a year will pay 96 cents per week, but this of course rises considerably if you earn more in wages and investments.
As always, do remember to consult with a tax accountant or tax professional before making any tax related decisions.
