The property market has so much to offer, but you have to be prudent in your understanding of the market-scene. The real estate world moves through a series of crests and troughs and hence it is in your best interest to diversify your property investment portfolio. Mark Armstrong for the Property Observer writes that you can do it in two ways.
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The best and the worst property investment advice
Property investment is not easy. If someone claims it is easy, he is lying through his teeth and it might just be the worst property investment advice that he has to offer, says Michael Yardney for the Property Update.
Australian landlords claim $38.6 billion as tax deductions
Australia’s army of 1.76 million landlords has made a cumulative claim for $38.6 billion in tax deductions for the tax year ending 2011. Larry Schlesinger for the Property Observer writes that the amount translates into a ballpark figure of $23,000 per landlord.
Comparing facts:
- For the tax year ending 2010, the figure was $32.8 billion. This implies a leap of 18%.
- Instead of $23000 per landlord this year, the figure was $19000 last tax year.
- Among the deductions claimed this annual, the largest kitty belonged to “deductions for interest paid on home loans”.
Australian landlords can make a deductions claim if they procure a property for creating assessable income for themselves.
An important pre-consideration: Landlords can claim deductions for the expenses on maintenance and repair-work of a property but not on the costs incurred on renovation or home staging.
Landlords can also seek further rental deductions for expenses which include, but are not limited to, legal costs, consultant’s fee, advertisement costs, realtor’s fee, property manager’s fee. You can read the full article here.
Increase of House Sales in March for NSW
February may have seen relatively low sales in housing but it seems that it has come to an end. In an article by Alistair Walsh for the Property Observer, the month of March saw a 4.2% increase of house sales. The figures that were seen in March were the same figures that were seen 12 months ago.
Although the sales are still relatively low, people are quite satisfied to see that it is on the rise again. If you are in the real estate market, this is very good news for you.
You can read the full article here.
Why Australians Are Not Selling Their House
Steven Cross’ news article on rebonline.com.au discusses the rate of Australians that hold onto their homes in the last ten years. The statistics show that the percentage of Australians not selling their house has increased due to several reasons.
One reason is that the cost of living in Australia has gone up so not many could really afford to buy a house every ten years. Another reason is that moving can also be very expensive. The third reason is that DIY projects have become really popular. Because of this, people have found out that renovating is a lot cheaper than moving.
Read the full article here.
Fewer People Living Alone In Sydney
Society is changing and houses have become really pricey. Together, these facts have helped reverse the long-term Australian mindset of living alone. Matt Wade for The Sydney Morning Herald writes that the number of people living alone in Sydney had escalated in a big way between 2006 and 2011 but it has come down remarkably ever since. Except for the age group 55-74, the trend is ever so manifest all across Sydney.
There are various reasons for the shift in paradigm.
As a first, young Sydneysiders do not find ‘living alone’ to be aligned with the concept of independence.
Secondly, houses have become less and less affordable for first time home buyers and this has convinced many to continue to live along with their parents and save some money in the process. This has given rise to many a renovation, creating more personal bedrooms with attached bathrooms in parental homes. This has also contributed to the reduction in the number of first home buyers.
You can read the whole article here.
