The growing popularity of home renovations in Melbourne is highlighted by the latest ABS figures on building approvals which show that during the first nine months of this financial year Melbourne residents spent $1.39 billion on home renovations.
It has been very well publicised over recent months that property investors are now very active in the Australian property market due to rising property prices and future expectations of capital growth.
Figures produced by the Australian Bureau of Statistics reveals that during the 2011/2012 financial year nearly 2 million taxpayers in Australia owned investment properties.Many of these taxpayers are middle to higher income earners who use negative gearing and depreciation benefits to reduce their tax and generate wealth through property investment.
A Property blog by DEPPRO - The Depreciation Specialists.
RP Data have released their monthly snapshot of the median values and property growth within Australia. As expected the growth in house prices has continued throughout February with 29,552 new houses up for sale.
With the housing market looking to only strengthen over the next few years supported by the rise in infrastructure and fall in interest rates, home ware giants such as Harvey Norman are seeing an increase in sales.
The reserve bank’s announcements of rates cuts to an all time low of 2.25% is set to have an impact on Australia’s housing market. The drop is the first announced by the Reserve bank with the last rate of 2.5% set 18 months ago in August 2013. This drop saw a massive increase in housing purchases however; with house prices at a high this might not have the same impact this time around.