RENTAL YIELD: HOW TO CALCULATE INVESTMENT PROPERTY RENTAL YIELDHow to buy a House
The latest housing finance figures released today by the Australian Bureau of statistics (ABS) reflect continued declining lending activity.
The Real Estate Institute of Australia says the figures for July 2015 show, in trend terms, that the number of owner-occupied finance commitments fell by 0.2 per cent. This fall is the fourth consecutive monthly fall and follows eleven months of increases. If refinancing is excluded, in trend terms for July, the number of owner-occupied finance commitments fell by 0.2 per cent.
A new report released last week shows an improvement in overall housing affordability over the June quarter with the positive development seen in seven out of eight Australian states and territories.
The latest edition of the Adelaide Bank/REIA Housing Affordability Report, released last week by the Real Estate Institute of Australia, provides a comprehensive update for the sector using the latest data for the June Quarter 2015.
With interest rates at an all-time low – and unlikely to rise significantly for at least a few more years – commentators are going mad for the apparent affordability of home loans.
This is all very well if you have the cash or equity available to get a loan. But what if you’re still saving for your deposit? Where do you stand? Read more
The Real Estate Institute of Australia (REIA) says that Australia’s housing market continued its growth in the first quarter of 2015, according to the latest Bendigo Bank/REIA Real Estate Market Facts publication.
The REIA President Neville Sanders says, “The weighted average, capital city median price increased by 2.4% for houses and 1.5% for other dwellings.”
“The weighted average,median house price for the eight capital cities is now $658,608 and with exception of Brisbane and Perth all capitals contributed to the increase.
The Australian Greens push to remove negative gearing would make housing affordability worse, economists say.
Discouraging investment in property would reduce supply of new housing and increase rents.
“There’s no doubt if an existing benefit is taken away then landlords would logically recover that by putting up rents and that would be particularly so in markets where there are tight vacancy rates,” Domain Group senior economist Andrew Wilson says.
MORE than one million Australians are now embracing negative gearing to the tune of an $8 billion annual tax break.
But according to new research by the Australia Institute think tank, its use has spread from traditional Liberal seats to “battler” suburbs held by Labor, The Australian reports.
The single biggest group of people using negative gearing live in the Labor heartland of Canberra, including 18,200 voters in the electorate held by opposition assistant Treasury spokesman Andrew Leigh.
The heaviest users, however live in government electorates held by Tony Abbott and cabinet ministers including Joe Hockey and Malcolm Turnbull.
The report highlights the political challenge now facing both parties in any attempt to wind back negative gearing and an associated tax break on capital gains.
“People in Liberal Party seats on average were likely to get the largest benefit from negative gearing,” said Australia Institute senior economist Matt Grudnoff told The Australian.
“Those in Labor seats were second and significantly further back are those in Nationals seats.”
The research was conducted using calculations by the National Centre for Social and Economic Modelling, which matched postcode data from Australian Taxation Office statistics with electorates.
According to the research, more than half of the tax breaks by dollar value go to households in the top 10 per cent of the country when ranked by income.
Grattan Institute chief executive John Daley said: “Most of the benefits in financial terms and most of the cost to the government goes to high-income earners. The idea that you keep negative gearing to look after middle Australia, given where the cost goes, is bizarre.”
Story source: www.theaustralian.com.au