This week we continue our series looking at suburbs with the highest median prices in 2010, with a focus on two suburbs in the ACT. We speak with Doug O’Mara, founding director of GetRealty Cooperative Limited and the chief executive officer of Ray White Canberra about the Canberra suburb of O’Malley. And in our tax tip we look at declaring rental-related income.
News
The housing industry has been spared another interest rate rise with the Reserve Bank of Australia deciding to keep rates on hold at 4.75 per cent in June for a seventh straight month. It’s a welcome reprieve for many, with Australian Industry Group’s director, Peter Burn, warning that the construction sector remains highly vulnerable to any further interest rate hikes. Both AIG and the Housing Industry Association this week reported that, the index that measures Australia’s performance of construction, rose by a seasonally adjusted 1.7 points to 39.6 in May. However the read was still under 50, the level that separates expansion from contraction. Mr Burn says, as a result of the withdrawal of stimulus measures in the period.
Suburbs in Focus
This week we continue our series looking at suburbs with the highest median prices in 2010, with a focus on two suburbs in the ACT.
First let’s look at Forrest, a suburb located 5 kilometres south of Canberra’s central business district. With a population of 1,191 in the last census, Forrest is one of the few Canberra suburbs built to the original city plans by Walter Burley Griffin – with the streets configured around circular and geometric patterns. The majority of the suburb was built in 1926 and 1927 for public servants who urgently needed accommodation. There are also a small number of architecturally significant dwellings, designed by Canberra’s early local architects including Kenneth Oliphant. Forrest Primary is situated on Hobart Avenue. The suburb includes part of the Manuka shopping centre.
Turning to the figures, houses in Forrest recorded the capital’s highest median price in 2010 of $1,900,000. 59 properties including units were sold in the year.
Our next suburb is O’Malley, located 12 kilometres south of Canberra’s CBD. O’Malley had a population of 684 in the last census.
Now we hear from the experts, Doug O’Mara, founding director of GetRealty Cooperative Limited and the chief executive officer of Ray White Canberra on the profile of the suburb.
Turning to the figures, houses in O’Malley recorded the capital’s second highest median price in 2010 of $1,425,000. 24 properties in total were sold in the year.
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 declaring rental-related income. There are many examples of rental-related income that must be declared, which may not be obvious to some investors. For example, you must include rental bond money as income if you keep it. If you retain the money when your tenant damages your property this must be declared.
Additionally, if you receive an insurance payout, this payout may need to be declared as income. For example, if you receive an insurance payout to compensate for lost rent.
If you receive a letting or booking fee that too must be included as part of your rental income. Another example might be a government rebate – for example, solar hot-water system rebates. This money you receive back from the government must be declared at tax-time.
As always, do remember to consult with a tax accountant or tax professional before making any tax related decisions.
