Brisbane’s housing affordability has improved over the most recent quarter due to increasing household incomes rising faster than dwelling values.
Over the past decade, affordability has improved because household incomes have increased by 31.2 per cent while median values have increased by a lower 25.8 per cent,” the report notes. The overall household increase in incomes has been more than house prices in real terms. This is great news for first home buyers.
It also found Darwin is now the most affordable capital city for buyers, and Hobart is the nation’s least affordable capital city for renters.
Source:- ANZ-Corelogic & The Urban Developer
Brisbane’s House Prices has had one of the most modest increases over the last decade at 25.8%, compared to Sydney at 88.3%, Melbourne at 67.9%. Comparing that household incomes increases of Brisbane at 31.2%, Sydney at 41.2% and Melbourne at 37.5%, the overall affordability of house’s Brisbane has increased the most of the three cities of Australia’s Eastern States.
There is some concerns that investors from Southern States will look to the SEQ Market chasing value and higher rental yield than what is typically offered down south.
According to CoreLogic, Melbourne’s gross rental yields are now only 2.7%, the lowest in the country, with Sydney at 2.9%.
Brisbane and SEQ rental yield in the 5% range are not hard to find
First Home Deposit Scheme which starts on January 1 2020, eligible first home buyers earning up to $125,000 or couples earning up to $200,000 will be able to lend up to 95 % of the purchase price of a property, provided they have already saved an initial 5% deposit. Which at a time of increased affordability in the property market will ensure First Home Buyers can get a foot on the Property Ladder.
APRA, which dictates lending standards is reducing the current 7% stress test buffer used by banks to assess serviceability for loans.
Negative Gearing for Property Investors will remain, allowing losses to be offset against other incomes.
Tax Advisor fees in excess of $3K will continue to be tax deductible.
50% CGT discount on investment properties held over 12 months remains unchanged.
If you would like any property related advice, please feel free to contact us.
Principal Place of Residence Exemption Loss if Sold While Overseas Summary of how the Principal Place of Residence (PPR) Exemption is impacted by moving overseas. When Australian homeowners move overseas and become non-residents for tax purposes, selling their...
Having an investment property prior or posted to it being a principal place of residence has tricky CGT Calculations. Capital Gains Tax (CGT) is an essential consideration for property owners when selling a property used for different purposes over time. This blog...
Picture of a vacant block of land to illustrate it may be subject to land tax What is Land Tax? Land tax is a state and territory-imposed tax on the unimproved value of taxable land owned by individuals, companies, and trusts. It is calculated annually based on a...
What are the tax and investment considerations for a Granny Flat above versus a Tiny Home below? Income Tax Return Reporting - Income Streaming Tiny Homes Tiny home ownership does not have to follow the ownership interest of the underlying property ownership. For...
Secondary Dwelling From December 2023 the Victorian Government has passed planning changes to make it easier to build Granny Flats - or "small secondary dwellings", on existing homes. The Victorian Premier Jacinta Allan revealed that planning permits will no longer be...
The ATO is particularly targeting property investors that are not using the help of a specialist property tax accountant like Umbrella Property Accountant, due to the high error rate being discovered from ATO Audits. The ATO Audits into self-preparers have uncovered...
Gold Coast - Example of the Housing Rental Competing Forces Many Apartments are sitting empty most of the year, including an entire beachfront tower. Gold Coast mayor Tom Tate cited an entire high-rise sitting empty in the triple tower Jewel development at Surfers...
Victoria was the most locked-down state in Australia, if not the world during Covid, resulting in the Victorian Government accruing over $30 Billion in debt to keep the doors closed. Victorian Statement Government wants to raise $8.6 Billion over the next 4 years by...
Joint Venture tax understanding for property developers in Australia Joint Venture Agreement What is a (JV) for Property Development A joint venture (JV) is a cooperative agreement between two or more parties in which all parties contribute their resources (such as...
When the deceased person's home has a mixed history of being a principal home and a rental, combined with the fact the estate sells the otherwise principal home after 2 years, the CGT is not so easy to understand for the family left to deal with how and if CGT is...
