Working at the coal face, dealing with buyers, sellers, solicitors, financiers and in experiencing all of the elements – we see and feel market trends as they happen. The purpose of this video? To give you an insight into what the past financial year was like within the property market and a snapshot of what we can expect during the 2017 / 2018 financial year.
There’s no doubt that Real Estate is a great way of creating wealth, however there are a number of recent legislative changes - at both a State and Federal level - that property investors need to be aware of. Firstly, if you have an investment property and you want to ensure you keep as much of the income it produces as possible, it’s important that you have a deprecation schedule. However, the financial year ending 2017 will be the last time you will be able to claim deprecation on items that you did not purchase yourself.
From July 1, depreciation on purchases such as dishwashers, ceiling fans and dryers can only be claimed if the investor paid for them, themselves. Therefore to enjoy this tax benefit, you’ll need to either buy new or give your investment property a nice little update. Before rushing into your nearest appliance superstore, keep in mind these changes have been “grandfathered”. What this means, is they only apply to investors that have purchased a property after 9 May, 2017. Another significant change, is investors will no longer be able to claim travel expenses for trips to inspect their investment homes.
With that, let’s look at how the market has performed during the financial year? Property owners and investors alike will be pleased. The Brisbane market has remained consistent with around four per cent growth and a median price currently sitting around the $650,000 mark. In some big news, this new world city now has its first $2 million dollar suburb in Teneriffe - a median house price milestone. Within the Brisbane LGA, there is now a total of 17 suburbs with a median price in excess of $1 million dollars. This is up from only 7 as at the end of the 2015 financial year, with an increasing number of $1 million dollar suburbs each quarter.
Although these numbers sound huge, in Sydney there is currently a whopping 14 suburbs with a median price of over $2 million dollars. Making Brisbane one of the nation’s most affordable and liveable capital cities.
In our slice of heaven here in Brisbane’s West, we’ve seen Chelmer, Fig Tree Pocket, Brookfield, Pullenvale and Paddington all become a part of the Million Dollar club, alongside existing member St Lucia. While on the Western suburbs, Place Graceville is super excited about our latest team member to join, Georgina. As our new Digital Content Product, Georgina will bring you the latest and greatest on the Western Suburbs and share with the world just why this is the best place in Brisbane. If you haven’t already, search the hashtag #myplaceourplace or head to Place Graceville on Facebook to read some of the amazing local stories.
A number of factors are influencing this growth, however one of the key drivers is a distinct lack of homeowners selling. One of the most consistent trends of 2016-17 was low levels of homes coming to market. We anticipate this may change in the year ahead, due to one of the legislative changes around super contributions for Sellers over 65.
That’s all for our end of financial year wrap up but if you have any questions or there’s anything we can do to help, please don’t hesitate to contact one of the hard working and dedicated team members here at Place Graceville on 3379 4311.