New data revealed the most in-demand streets in the country, which are predominantly found in Melbourne.
Sydneys property prices are generally higher than Melbournes. Nevertheless, Victorias capital is the home to eight of Australias 10 most popular streets for the three years up to March 31, according to data from realestate.com.au. Regent Street topped the list, followed by Perry Street, Joyce Street, and Jayson Avenue. The results suggested that walkability and the attraction of designer homes are important factors in property buying, according to realestate.com.au Chief Economist Nerida Conisbee. I think many of these streets really do have nice homes, and often they are streets where people are looking not just to buy, but for inspiration and ideas, she said. The idea that people are looking at our site for inspiration really becomes obvious when we look at the most popular streets. We cant really see it as much when we look at popular suburbs, because often in suburbs pricing becomes far more important. Cross Street, situated in Sydneys northern suburb Mosman, held the fifth spot. Melbournes Swinton Avenue, Forest Street, and Charlotte Place landed sixth, seventh, and eighth on the list, respectively. Dauphin Terrace in Queensland and Glen Drive in Victoria completed the roster. Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork plus there is no charge for this service. Get help from a local mortgage broker https://www.yourinvestmentpropertymag.com.au/news/buyers-snap-up-properties-on-these-streets-262326.aspx
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Home-sales activity in Perth dropped 9% during the week ending April 21. There were 464 transactions in total based on the data from Real Estate Institute of Western Australia (REIWA).
The decrease could be associated with the 12% decline in house and unit sales. However, land sales rose 12% during the week. Suburbs Canning Vale, Dianella, Thornlie, Maylands, and East Fremantle recorded the most sales. In terms of listings, the number of properties for sale slid by 1% to 16,922 compared to the previous week. House and unit listings declined by 1%, while listings for vacant land remained stable. The total figure during the week is 2% lower than four weeks ago and 1% higher than a year ago. REIWA members reported there were 7,044 properties for rent in Perth at the end of the week up by 1% compared to the preceding week. Rental listings trend upwards with the current figure being 5% higher than four weeks ago. This is an encouraging indicator after REIWA recently disclosed that there were 6,738 properties listed for rent in the market in the March quarter down 2% compared to the December quarter. The weekly result, though, is 22% lower than a year ago. Do you have more than $200k in your super fund? You could use your super to buy property - Find out how https://www.yourinvestmentpropertymag.com.au/news/perth-sales-activity-drops-weekoverweek-262390.aspx Dwelling commencements recorded a significant slowdown over the December quarter, according to the Australian Bureau of Statistics (ABS) quarterly building activity data for December.
House starts dropped by 7.6% to their lowest level (27,088) since March 2017. Unit commencements logged a much larger decline of 26.8% to 19,134 commencements the fewest over a quarter since September 2013 and the largest quarterly decline in commencements since September 1974, when they decreased by 32.5%. Both house and unit commencements, though, remained above their long-term average despite the slides. The movement in apartment starts their increase and their recent fall was identified as the most notable change in the landscape of dwelling commencements over recent years, said CoreLogic. The property information provider also found that the climb in higher-density construction has primarily been driven by the capital cities of the three most populous states. Over the past five years, every state and territory has seen unit commencements reach historic- high levels, demonstrating a clear shift towards higher density development (that isnt to say that detached housing construction hasnt also climbed significantly over the period). More recently, as the housing market has turned and values have started to fall, we can see there is a reduced preparedness of developers to commence new projects, CoreLogic Research Analyst Cameron Kusher said. Kusher forecasted that unit commencements would continue to record more declines over the coming quarters as falls in housing values persist, finance remains tight, and both domestic and foreign investors remain light on the ground. ABS showed that the number of annual unit commencements had risen significantly over recent years. However, commencements of units in a one to three storey block have been relatively steady. The demand/supply ratio of medium density dwellings, meanwhile, remains much healthier than high-density products. Commencements of taller buildings substantially rose over recent years but are now beginning to ease. The shift is a reflection of both the unit construction boom and the increase in the cost of acquiring sites. Developers have sought approvals for taller buildings to maximise their yield and to recoup acquisition costs and maximise profits, according to CoreLogic. With dwelling commencements expected to continue to fall, the decline doesnt negate the fact that many developers have paid high prices to acquire sites. As a result, we would expect that despite an expectation of fewer commencements going forward, those projects that do commence will largely be taller apartment projects, Kusher said. CoreLogic said, though, that there is a higher risk for developers when it comes to larger projects. It is also more difficult to achieve sufficient presales to commence a project when there are more units to sell. In order to maintain profitability of projects, it is highly likely that as values continue to decline that dwelling commencements will continue to fall, Kusher said. Can you afford to buy in this suburb? Find out how much you can borrow https://www.yourinvestmentpropertymag.com.au/news/home-construction-figures-fall-262325.aspx In 60% of the cases between 1992 and 2017, home buyers would have been better off renting and maintaining a leveraged ASX200 investment than purchasing a home, according to an analysis by the Australian Bureau of Statistics, Family & Community Services and Reserve Bank of Australia.
This finding provides an opportunity to settle whether it is better to rent than to purchase a home, said Jo Masters, Ernst and Youngs (EY) chief economist. We would caution against just assuming that homeownership is the only way to create future wealth. The conversation needs to be broader and a consideration of alternatives needs to be a part of the conversation, she said. Its time to give up on the mindset that renting is dead money. Yes, when youre paying rent to a landlord, youre not investing in an asset that you own but with todays property prices you could be better off renting somewhere affordable and investing the cash youve saved. EY revealed that if property players purchased a unit in Woollahra, five kilometres east of the Sydney CBD, 15 years ago and sold in 2014, they would have been better off renting. While there are many factors to consider when purchasing a home, renters should consider whether they will be better off purchasing a home or becoming long-term renters. In addition to considering financial wealth, long-term renters can also enjoy significant lifestyle benefits particularly a mobility dividend from being able to easily relocate for work and no long-term maintenance and depreciation risk, said Masters. Home buyers in suburbs like Canterbury, the CBD and Waverly came off best, depending on the period examined. Renters in Hunters Hill, Ku-Ring-Gai, and Manly, meanwhile, came out better than homeowners. Can you afford to buy in this suburb? Find out how much you can borrow https://www.yourinvestmentpropertymag.com.au/news/to-buy-or-rent-in-sydney-262276.aspx Thousands of Aussies are at risk of missing out on lucrative tax deductions, with more and more owners opting to live in their investment property before renting it out, according to BMT Tax Depreciation.
Data relating to the 2018-2019 financial year to date showed that over one in four people had lived in their property before renting it out, representing a rise of nearly 2.3% over the previous financial year. Given the modifications to tax depreciation laws, many of these people could lose thousands of dollars in tax deductions at a time when the property market is weakening, Owners of income-producing investment properties can claim lucrative tax deductions for plant and equipment items in a property such as carpet or air conditioning units. However, under the new laws, if an investor is living in a property at the time the assets are installed, the items will be considered previously used and cannot be claimed, said Bradley Beer, chief executive officer of BMT. Our data suggest that a growing number of people are opting to live in a property while renovating and before renting it out. If they choose to make these types of additions to their property during this time, they could lose out on thousands of dollars of tax deductions. Beer advised investors who want to install new plant and equipment assets to execute their plans after they move out of the property and list it for rent. This simple approach could increase their depreciation deductions and improve the cash flow generated by the investment property each year, according to him. Capital works deductions for structural items, meanwhile, such as new walls, kitchen cupboards, toilets and, roof tiles are unaffected by the legislation changes and can be claimed by owners of income-producing investment properties. The tax depreciation company also reported that during the 2017-2018 financial year, 30.9% of requests for BMT depreciation schedules were for brand new properties. The figure is up from 26.4% of all depreciation schedule requests received during the 2015-2016 financial year. The new legislation does not affect buyers of new properties, so these properties typically hold the most lucrative value for investors from a tax perspective, said Beer. Beer said that this exemption and the new stock that has entered the market in recent years might be a factor in the increased demand for new investment properties over second-hand properties. While there were changes in the rules, BMT reminded investors that there are still lucrative tax deductions on offer for most investment properties. We found an average of $8,212 in deductions in the 2017-2018 financial year for all residential investment properties, said Beer. Do you have more than $200k in your super fund? You could use your super to buy property - Find out how https://www.yourinvestmentpropertymag.com.au/news/why-investors-miss-out-on-tax-deductions-262305.aspx One of the most important dates to be drawn into a property sales contract is the anticipated day the sellers are to vacate the premises and allow you to move into it or take possession as a landlord otherwise known as settlement day.
However, the process can sometimes throw errors, causing a delay to occur, even despite both parties having already signed off on the agreed date the keys will be handed over. From the seller waiting on the bank to discharge their mortgage, and problems with paperwork, to the buyer discovering a problem in the final inspection of the property, and unforeseen life hurdles getting in the way the reasons for why settlement delays can occur are wide-ranging and often stress-inducing. It is especially stressful if you are a proactive investor who has lined up a tenant to move into the property, as the delay has the potential to impact the new renters. Fortunately, there are a few legal rights the buyer is disposed to if the seller delays settlement day, whilst of course, also keeping in mind that some problems cant be helped. There should exist a level of understanding from the buyer depending on what has caused the delay however, if a delayed settlement truly doesnt suit you, there is recourse available. The right course of action all depends on the state youre purchasing in but also keep in mind that settlement laws can change and its always best to team with a professional conveyancer or solicitor throughout the buying process. For the full story of how to manage the situation if the seller has delayed settlement, including a state-by-state guide to your legal rights, including proven strategies to get back in control of your financial future, read the complete feature article in the May 2019 edition of Your Investment Property magazine. On sale at news agencies and Coles supermarkets 11th April to 9th May or download the magazine now. With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now https://www.yourinvestmentpropertymag.com.au/news/what-are-your-rights-as-a-buyer-when-settlement-is-delayed-261812.aspx Choosing whether to invest in a house or an apartment is one of the tricky topics in the property industry.
Hidden costs, personal goals, location, and land size all needed to be taken into consideration when making the decision, according to a report by news.com.au. Things to consider, specifically when purchasing apartments, include the number of units in the complex, the body corporate fees, hidden maintenance costs that may increase the dropping fund costs, rental vacancy rates for the area, and the number of other units competing for renters locally. The other thing we would consider, even with units, is how much land content can be attributed for a single unit. Generally, the land component appreciates, and the building component depreciates so this is definitely something that needs to be considered if long term capital growth is the desired outcome, Melinda Jennison, Streamline Property qualified property investment advisor, told news.com.au. Land holding is also essential when buying a house and when considering the appeal for resale. (Owner-occupiers) make up 65-70% of all buyers in Australia and investors make up the balance so we always like to ensure that the house has owner-occupier appeal, Jennison said. The advisor said that it is also important to consider the demographic of the suburbs resident, as well as to understand the zoning of the land and how much of the purchase value could be attributed to the land. Presenting another perspective, news.com.au reported that houses and land have traditionally outperformed apartments in the country. Theres a lot of unknowns in the unit department; when you buy one, whats to say they dont build another 100 next door? Jonathan Bell, Bell Estate Agents managing director, told news.com.au. He also said that that there are advantages for investing in apartments, specifically for first homeowners. Theres a time and a place for a unit, and a first homeowner could potentially avoid stamp duty, and get the first homeowners grant if it was new, Bell said. Can you afford to buy in this suburb? Find out how much you can borrow https://www.yourinvestmentpropertymag.com.au/news/investment-choice-house-or-apartment-262245.aspx Long-time investor Phillip King encountered the negative gearing setback that would end up crippling his residential investment goals so, he turned to commercial property.
Now boasting a multi-million dollar portfolio with substantial equity, he shares his top tips for those keen to break into non-residential investing: 1. Search for shops in the middle of an ant nest. Commercial ventures thrive where there are customers to be had. You need lots of people surrounding the shop to ensure the tenants business is busy and well-supported, Phillip says. 2. Choose in-demand service businesses. Phillips favourite tenants are hairdressers, cafs, bottle shops, restaurants and medical centres, which are generally supported by either a loyal consumer base or cater to a neighbourhoods basic needs. 3. Ensure all outgoings/expenses are accounted for. A shop for sale should detail all the outgoing expenses in the sellers Information Memorandum. This ensures the net rent figure stated is inclusive of all outgoings, Phillip advises. 4. Charge sustainable for that business type: To avoid having your tenant request a rent reduction or default on the lease, research the rents paid for neighbouring shops to ensure the current rent is sustainable. 5. Prioritise newly built properties over older ones. The newer building will have less maintenance, and most importantly, it will provide a better depreciation schedule for taxation benefits. It will also have better capital growth potential! For the full story of how Phillip built his substantial wealth using commercial property, read the complete feature article in the May 2019 edition of Your Investment Property magazine. On sale at news agencies and Coles supermarkets 11th April to 9th May or download the magazine now. With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now https://www.yourinvestmentpropertymag.com.au/news/how-to-succeed-as-a-commercial-property-investor-261809.aspx The Australian Taxation Office (ATO) announced that it would double the number of audits scrutinising rental deductions.
ATO has made rental deductions a top priority in 2019, according to Assistant Commissioner Gavin Siebert. A random sample of returns with rental deductions found that nine out of 10 contained an error. We are concerned about the extent of non-compliance in this area and will be looking very closely at claims this year, he said. ATOs detection methods have become more advanced. We use a range of third-party information including data from financial institutions, property transactions and rental bonds from all states and territories, and online accommodation booking platforms, in combination with sophisticated analytics to scrutinise every tax return, Siebert said. Once a claim of concern is identified, ATO staff will investigate and prompt taxpayers to change unjustifiable claims. If necessary, the government agency will commence audits. We expect to more than double the number of in-depth audits we conduct this year to 4,500, with a specific focus on over-claimed interest, capital works claimed as repairs, incorrect apportionment of expenses for holiday homes let out to others, and omitted income from accommodation sharing, Siebert said. Once our auditors begin, they may search through even more data including utilities, tolls, social media, and other online content to determine whether the taxpayer was entitled to claims theyve made. ATO said that no penalties would apply for taxpayers who amend their returns due to genuine mistakes, but deliberate attempts to over-claim can attract penalties of up to 75% of the claim. In 20172018, ATO audited over 1,500 taxpayers with rental claims, and applied penalties totalling $1.3 million. A sample case involved a taxpayer who was penalised over $12,000 for over-claiming deductions for their holiday home when it was not made genuinely available for rent, including being blocked out over seasonal holiday periods. This tax time, our message to taxpayers is clear. If you are renting out a room or a property, any money you earn must be declared as income and any deductions you claim may need to be apportioned for private use, Siebert said. With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now https://www.yourinvestmentpropertymag.com.au/news/ato-to-double-audits-of-rental-deductions-262246.aspx The Reserve Bank of Australia (RBA) said in the minutes of its April monetary policy meeting that a decrease in interest rate would likely be appropriate if inflation does not increase and unemployment tracks upward.
Economists who have been forecasting a rate cut read the statement as a suggestion for a higher probability of slashes in the interest rate. "[The minutes] provided the clearest signal yet that the Bank would be prepared to cut the cash rate, Westpac Chief Economist Bill Evans told The Sydney Morning Herald. Evans has beend predicting that rates would fall in both August and November. JP Morgan Securities Australia Chief Economist Sally Auld also said the minutes backed her forecast of a half a percentage point drop in rates this year. The change is predicted to start in July. A bigger or earlier drop was possible considering the recent discussion of the central banks board, according to Auld. The effect on the economy of lower interest rates could be expected to be smaller than in the past, the RBA said in a statement. Nevertheless, a lower level of interest rates could still be expected to support the economy through a depreciation of the exchange rate and by reducing required interest payments on borrowing, freeing up cash for other expenditure. The countrys unemployment rate slid to an eight-year low of 4.9% in February its lowest in nearly eight years. RBA has kept the cash rate unchanged at 1.50% since August 2016. Do you have more than $200k in your super fund? You could use your super to buy property - Find out how https://www.yourinvestmentpropertymag.com.au/news/rba-entertains-possibility-of-rate-cut-262241.aspx |
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