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Sep 21, 2018
Owning Property: Tax-smart Tips for your Investment
The Australian Tax Office has published some tips regarding buying property. This is part of a three-part series summarising those tips, blog posts are also made on advice on buying property and selling a property. While lodging your tax return for the time you've owned an investment property make sure you: Include all your rental income in your tax return. You can claim immediate tax deductions for things such as: Loan interest. Rates and taxes, including council and water rates and land tax. Property management fees. Insurance. Body corporate fees. Cleaning and gardening. Repairs and maintenance relating to when your tenants were living in the property. You can claim tax deductions over several years for things such as: Capital works, otherwise known as building costs. Borrowing costs. When lodging your tax return make sure you: Include all your rental income. Only claim deductions for periods that your property is rented out or genuinely available for rent. Don’t claim deductions for periods that you use the property yourself. Scan copies of your receipts to make it easier to store and access them. Remember to ensure you can claim everything you are entitled to; you need to keep proof of all your income, expenses and efforts to rent out your property.
Sep 21, 2018
Buying Property: Tax-smart Tips for your Investment
The Australian Tax Office has published some tips regarding buying property. This is part of a three-part series summarising those tips, blog posts are also made on advice on owning property and selling a property. Your first priority should be to set up an easy-to-use record-keeping system. This can be as simple as a spreadsheet on excel or professional software. Keep records of every transaction over the period that you own the property. These records should include contracts of purchase and sale and conveyancing and loan documentation. Keep records of the costs of buying the property such as legal fees, stamp duty on the transfer and initial repairs. You can’t claim an immediate tax deduction for these, but they will reduce the tax you pay when you sell the property.
Sep 21, 2018
Five Common Mistakes Property Investors Make Come Tax Time
If you are a property investor, you might be prone to making a mistake while lodging for your tax return. Here are five common property investor pitfalls you should aim to avoid. 1. Not reporting all your rental income When lodging your tax return, you must include any income you receive from your rental property. You must also ensure that you include any bond payments you are entitled to keep and some insurance payouts. 2. Failing to keep records You must also keep records of your expenses for five years after they are claimed in your tax return. Therefore, if you are audited and required to provide proof of expense; you won't lose the ability to claim the expense as a deduction. 3. Confusing improvements with repairs Ensure that you understand the difference between initial repairs, improvements and repairs. Here is a list of repair types: Initial repairs: repairing an issue before any tenant can move in are not deductible as repairs for tax purposes. They are considered capital. Structural improvements: made after starting to rent, these repairs are not deductible as repairs and are treated as capital works. Ongoing repairs: classed as a repair for tax purposes and are immediately deductible. 4. Dividing income and expenses incorrectly on co-owned properties If you co-own your investment property, you need to divide the income and expenses according to your ownership share. This ownership share is based on your legal interest (tenants in common or joint ownership) in the property. It is not based on a verbal or written agreement that sets out a different proportion. 5. Costing yourself too much capital gains tax If you decide to turn your private residence into a rental property you should get a property valuation before you do so. This will ensure that if you make a profit when you sell only the capital gains on the property, based on the extent of any increase in value from which it became an investment property, will need to be paid.
Sep 21, 2018
Brisbane Owners are Holding their Properties for an Average of 11 years
REIQ’s Queensland Market Monitor June report has stated that the hold period for houses in all Australian capital cities have continued to trend upwards over the past 12 months. In the report, it was stated owners of houses in Greater Brisbane and Greater Canberra were holding onto their properties for an average of 11 years. Greater Melbourne and Sydney holding period had recently grown to an average of over 11.5 years. This longer period in comparison to other capital cities was reported to be due to affordability and high acquisition costs. Greater Perth reported the largest increase over the past year, reporting to have increased to 10.6 years in May 2018 from the holding period of 10.1 years in May 2017. This trend explained by the area's vendors’ decision to hold on to their properties until house prices commerce a recovery period, according to the report. Owners of houses in Greater Adelaide and Greater Darwin were holding on to their properties for 9 years, a shorter average period in comparison to other state's capitals.
Sep 12, 2018
Brisbane's Unit Market Sees Growth
According to the Queensland Market Monitor by REIQ, Queensland’s unit market continued facing more challenges than the house market. The Queensland unit median price slipped the small amount of 0.1% in the June quarter, to $394,500. The good news was that the Queensland unit market held steady over the past year at an annual median price of $400,000. The Gold Coast, the Sunshine Coast, Redland, Logan, Townsville. The Report declared there was good news for the Greater Brisbane unit market as it grew over the June quarter by 1.3 per cent, to a median of $405,000. Over the medium term, the Greater Brisbane unit prices grew a modest 5.4 per cent, from $388,900 in June 2013 to $410,000 in June 2018. Greater Brisbane median days on market for units increased slightly for the past year, to 63 days in May 2018. This was a sign that the unit market continued working in favour of buyers. Brisbane CBD median unit price has seen a 0.7% increase over the period, a 2.2% decrease since 2017 and an increase of 7.6% since 2013. West End’s unit market has seen a 15% decrease in median unit price over the quarter despite a 3.8% increase over the annual period and 3.5% increase over five years. South Brisbane’s median unit price has seen a 9.6% decrease over the recent quarter despite a 16.2% increase over the year and 30.8% increase over five years. Highgate Hill have seen a 16.1% annual decrease in the median unit price, while achieving a 3.1% increase since 2013.
Sep 12, 2018
Queensland Capital Leads in Auction Success
Although the preliminary clearance rates of auctions in Australia show week-on-week improvements, it is likely that as the final results are collected the weighted average will fall to remain within the low-mid 50% range which it has sat for some time. Last week it was recorded that a slightly lower 1,748 auctions were held with a final clearance rate of 55%. This in comparison to results over the same week last year, which saw a higher 66.9 per cent success rate, across a higher volume of 2,258 auctions. Results show that the unit market outperformed houses this week, with preliminary results show that 63.9% of units were sold, while houses achieved a lower 57.1%. However, houses did account for a much larger proportion of overall auctions. Queensland This week, there were 159 auctions held in Brisbane, returning a preliminary auction clearance rate of 49.4 per cent. This expresses growth when compared to last week where there were 112 auctions held and the final auction clearance rate was 45.9%, and one year ago where 139 Brisbane homes went to auction, and a 38.8% clearance rate was achieved. New South Wales This week, there were 654 auctions held in Sydney, returning a 57.8% preliminary auction clearance rate. This has shown a decrease when compared to last week, when there were 664 auctions held and 53.8% clearance rate, and one year ago when 826 Sydney homes went to auction, which achieved a 65.8% clearance rate. Victoria In Melbourne, there were 894 auctions this week, returning a 62.4% preliminary auction clearance rate. This saw an increase from last where there were 805 auctions and 57% clearance rate. However, in comparison to last year the Melbourne market has decreased as 1,111 actions saw a clearance rate of 71.8%.
Sep 12, 2018
Brisbane Median House Price See Strong Growth
Due to its 30% market growth seen in the past five years, Brisbane’s median house price has hit a new high. The most recent Real Estate Institute of Queensland Market Monitor reveals that Brisbane’s median house price has increased by 2.5% in the past year resulting in a record-breaking $673,000. REIQ chief executive Antonia Mercorella said the market in the Brisbane local government area (LGA) had grown almost 30 per cent over the past five years, thanks to “steady, sustainable growth’’ giving buyers confidence. House prices in the Greater Brisbane market, which includes Brisbane, Ipswich, Logan, Moreton Bay and Redland, rose 2.8% in the past year and 1% in the June quarter to see the median house price of $524,000. West End and Highgate Hill's median house prices have both seen decreases over the past year while showing strong growth over the past 5 years overall.
Sep 12, 2018
First Home Buyer's Not Deterred by Decrease in Grant
First home buyers are not being deterred to enter the property ladder, despite the five-thousand-dollar reduction in the Queensland First Home Owners Grant that occurred in July. The Queensland First Home Owners Grant, which only applies to new builds up to $750,00, dropped from $20,000 to $15,000 on the 1st of July. ABS data shows that nationally, the number of finance approvals for first home buys is at its highest level in eight years. Queensland alone has seen an almost 10% increase in the number of approvals. Suggesting that the state’s decreased grant does not frighten buyers from buying their first home. REA Group chief economist Nerida Conisbee said while the number of finance approvals for investors and upgraders had dropped, first home buyers were opposing the trend. “We are now seeing the highest level of first home buyers since 2010,” she said. She said while Albion and Gold Coast's Tugun are two suburbs within the reach of first home buyers, where the median prices are $750,000 and $647,000, there is more value in the Brisbane market.