The Australian property market is currently in a very stable phase. While there is no recession or bust phase in sight, it will be fruitful to learn the right ways of making profits in today’s market. Pete Wargent for Property Update suggests how it may not be the best idea to buy property in your own backyard.
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8 tips to ensure a stress-free holiday
Ideally, holidays should mean a small time-warp free from the stress of everyday life. However, leaving behind an unattended home is in itself a stress-inducing factor. Hence, the idea is to take a few smart precautions before setting out on your pleasure trip. I read an engaging article which suggests 8 tricks to keep your home safe in your absence. Disclaimer- Some of these tips are only for your greater peace of mind and not related to burglary in any way.
SMSF can help save tax payments on capital gains
Self-Managed Super Funds (SMSFs) are making headlines and for all the right reasons too. Kate Farelly in one of her more recent articles suggests how property investments in SMSFs are increasing by the day. Investors are wary of managed-funds are not willing to put their money in share market either despite its steadiness (old memories are playing on their minds).
Investment in SMSF can save on 15% of tax that is otherwise incurred on capital gains and rental income. If you can hold your property till the superannuation phase, you are exempted from paying any tax at all. Of course, there are disclaimers- 1) none of your friends or family should live in the family. 2) You cannot perform Home Staging on the property with borrowed funds.
If you are in your youth and looking to improve on your asset base, SMSFs may not be your best bet, argues Farelly. After all, the working legislation in this country does not permit refinancing and subsequent equity building for the task of purchasing new property.
House prices to remain steady in near future says HIA
Australian property market is going through one of its more stable phases. It is running close to long-term moving averages and thus it may not witness large price swings anytime soon, says Larry Schlesinger in an article for the Property Observer. Australia is well-placed on the stability slope because it has its basics in the right place. The prime determinants- house prices- earnings- mortgage repayments form a healthy graph.
Owing to weak volumes of transaction, house prices have not got the necessary momentum in the past but things have changed lately. Already, the residential constructors are laughing all the way to the bank, given the steady price movement.
Women outnumber men in terms of home-ownership
Women have skipped past men in terms of home ownership, suggests ABS reports based on 2011 census data. Diane Leow in an article for the Property Observer shows how the percentage of women vying for home-ownership has clearly edged ahead of men. 61% of women are proud homeowners while only 58% of men have invested in properties. Among the singles, the trend is even more distinct with over 65% of women being homeowners as against 55% of men.
Vendors are actually cashing on this trend and investing in more frequent home staging. Display-worthy properties catch the fancy of female buyers a lot more. Women also accord a lot of importance to kitchens. It is their point of focus during home inspections. 59% of them feel that it is the most significant room. This figure is quite in contrast to 37% of men who give maximum importance to kitchen. Men have traditionally been more inclined towards the living room and 56% of them feel this is the most important area.
Buyers care less for pre-existing features and more for the ease with which they can revamp or renovate a home. If they see a lot of opportunities towards improving a home (according to their taste), they are automatically driven towards it.
Sandstone masterpiece Bomera sells for $12.5 million
Bomera, the Italianate sandstone mansion at Potts Point has sold for $12.5 million, says Jonathan Chancellor while writing for the Property Observer. With a clear view of the Woolloomooloo Bay, this powerful piece of architecture encompasses 2150 square meters. Jorge Fernandez, an expatriate real estate developer has fetched a reasonable price for the deal. Having undergone an intensive revamping in 2003 (Graham Brooks & Associates), the property was listed with very high hopes in the year 2011. It aimed to fetch about $25 million but has procured only half of the expected price.
Bomera is the more illustrious half of the Bomera-Tarana combo. While it is spread over 2150 square meters, Tarana takes up 1550 square meters of space.
