Last financial year (2015/2016) Australians spent a record $7.7 billion on home renovations according to the latest ABS figures.This represents a jump of $1 billion in home renovations spending over the previous two financial years. Back in 2013/2014, national expenditure on home renovations totalled $6.7 billon.Overall, Australians are now spending on average $150 million every week on home renovations.
Perth is one of the best placed property markets in Australia to take advantage of the latest cut in interest rates by the RBA.The decision by the RBA to cut interest rates at its August meeting will give a boost to the Perth property market and help underpin home prices during the coming year.Property prices in Perth have undergone a major market correction over the past two years. The latest REIWA figures for the June 2016 quarter show that the median house price in Perth fell by 4.7% to $522,500.
The capital cities of Perth and Darwin have been the hardest hit nationally by the recent down turn in the rental market.This trend is underlined by the latest Core Logic rental figures which show that median weekly rents in Darwin have fallen by a whopping 16.2% over the year ending June 2016 and by 8.6% in Perth over the same period. In comparison, the overall median weekly rent for the combined capital cities fell by just 0.4% during the past year.
When Scottish playwright and novelist J.M. Barrie introduced the world to Peter Pan back in 1904, he would have had no idea that more than a century later his much loved character would be used to describe a new breed of property owners in Australia.New research by the Commonwealth Bank has identified ten new social groups in society who will become a dominant force by 2030. Among these emerging social groups are the “Peter Pan’s”.This social group were born between 1954 and 1965 and this generation of Baby Boomers will be aged between 65 and 76 in 2030.
The latest ABS figures for building approvals reveals that New South Wales (NSW) leads the boom in apartment living that is currently becoming increasingly popular throughout Australia.Overall, the figures show that during May 2016, there were nearly as many building approvals for apartments in Australia than traditional stand alone houses.They revealed that there were 9,190 building approvals for higher density homes such as apartments and units in May 2016 compared to 10,515 for houses.
July 1 heralded the start of the new financial year and it is effectively the starting gun for tax payers throughout Australia to prepare and submit their tax returns for 2015/2016.It is an unfortunate fact that a large number of tax payers who own investment properties will collectively miss out on millions of dollars in tax depreciation benefits over the coming weeks simply because they do not fully claim them through lack of knowledge.
Melbourne is set to continue as one of the strongest performing property markets in Australia due to its booming population growth rate.ABS figures show that Melbourne recorded the biggest population growth rate of any capital city in Australia last financial year increasing by 2.1%.This is not a once off because over the past ten years, Melbourne average population growth rate has also been 2.1% per annum.
Buying a house and land package has become increasingly popular with Australian property investors during recent year. With the start of the new financial year just days away, there is expected to be a surge of activity by investors purchasing house and land packages especially in outer suburbs of capital cities.Property investors should consider the following tips before making a decision to purchase: