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MAR - JUN 2016
LATEST > PROPERTY > PRICE > INFORMATION > 2016 >
SECOND QUARTER 2016 EDITION
REPORT
2ND QUARTER 2016 EDITION THE GRANTS REPORT PAKENHAM & CARDINIA PROPERTY MARKET UPDATE
T
he potential changes to negative gearing suggested by the Labour Party would see many investors worse off - does this suggest you sell any investments properties now? Probably not, as the proposal has suggested existing investments before July 1, 2017 would remain under the old rules. However, negative gearing does seem to be under review from both sides of politics. Whilst negative gearing remains one of the most important aspects and positives of investing in residential property and whilst currently still speculation, many commentators believe that if the changes are brought in there could be a rush of investors looking to buy prior to changes coming in. The Labour plan is to reduce the negative gearing tax and capital gains tax breaks - primarily through reducing the capital
“Two million Australians own an investment property and, of those, 1.2 million negatively gear,” said the Property Council. “This policy will put rents at risk, risk jobs and make it so much harder for families to plan their economic futures.” 01 >>> THE GRANTS REPORT
gains discount from 50% to 25%, whilst also limiting negative gearing to newly built investment properties. Modelling by tax accountant H&R Block of the impact of Labor’s proposed changes indicate a taxpayer earning above $80,000 with one or two investment properties would be worse off every year if these investments were made after July 1, 2017. And if the same taxpayer sold one or both properties under Labor’s reduced capital gains tax regime (assuming they were bought after July 1, 2017 and held for at least 12 months) and derived a capital gain, its possible he or she could
be liable for additional income tax in the year of divestment. Analysts warn that for landlords left with a cashflow shortfall, it would not be as easy as just putting up the rent. As both economist Saul Eslake and housing analyst Louis Christopher have pointed out, rents are a factor of supply and demand. Investors who arbitrarily increase rents to make up the cashflow shortfall could risk losing tenants and be left with vacant properties. Such fears might spark a sell-off of investment properties, another trigger for prices to fall.
ARE CHANGES TO NEGATIVE GEARING AHEAD? With both parties reviewing the future of negative gearing, is it time for investors to look at their portfolios with an eye to 2017 and beyond.
“In such a scenario, many investors would probably exit the property market or put up the rent,” says Mark Chapman, director of tax communications for H&R Block..” The Tax Institute, the peak body for tax education, is firmly opposed to Labor’s plans, believing they will remove a key incentive to investment and create a rental crisis. More broadly, it believes any “piecemeal changes” to the tax system will create “distortions and deficiencies”. In a statement this week, the institute said the debate about tax reform was important but urgued a comprenshive
approach designed to maintain incentives to investors to increase rental housing stock. “While we welcome appropriate cuts to income tax and have suggested ways negative gearing could be reformed, cherry-picking reform options without looking at the complete package doesn’t assist the public to make an informed decision about tax reform,” Athanasiou said. This view was echoed by the Reserve Bank of Australia, which in its submission to the Parliamentary Inquiry into Home Ownership last year said it believed there “is a case for reviewing neg-
ative gearing, but not in isolation”. Opponents of Labor’s proposed changes argue that house prices would inevitably have to fall or rents increase (or both) to deliver a meaningful return to investors. Negative gearing – which the Reserve Bank says gives investors the “ability to deduct legitimate expenses incurred in the course of earning income” – offsets the net returns from rental income. Average gross yields on houses are around 3.4 per cent and 4.1 per cent for units, according to CoreLogic RP Data figures for the major capital city markets. THE GRANTS REPORT <<< 02
This quarter’s
SALE HIGHLIGHTS Sales data from 1st January 2016 to 31st March 2016 Street
12 LATTA RD, NAR NAR GOON SOLD FOR $733,000 Exceptional property in prized location.
33 VICTORY DVE, PAKENHAM SOLD FOR $410,000
Luxury home in desired pocket, close to shops, schools and transport.
12 HILLVIEW PLC, BERWICK
SOLD FOR $650,000 Exceptional family home on Northside in quiet pocket.
3 >>> THE GRANTS REPORT
Suburb
Beds Bath Car Area
Price
12 ABBEY LANE
PAKENHAM
4
2
2
256
$405,000
10 ABBEY LANE
PAKENHAM
3
2
2
194
$406,000
13A ABECKETT RD
BUNYIP
3
1
946
$323,000
14 ABERDEEN HEIGHTS
PAKENHAM
4
2
4
742
$414,000
40 ABERDEEN HEIGHTS
PAKENHAM
5
3
2
650
$470,000
10 ABREHART RD
PAKENHAM
4
2
2
595
$431,500
18 ADRIATIC WAY
PAKENHAM
4
2
2
345
$396,000
1 ALBATROSS DR
PAKENHAM
3
3
2
263
$470,000
32 ARTHUR PHILLIP DR
PAKENHAM
3
2
2
757
$525,000
25 ATKINS RD
PAKENHAM
3
2
4
666
$340,000
20 ATKINS RD
PAKENHAM
5
3
3
751
$450,000
37/23 ATLANTIC DR
PAKENHAM
4
2
2
164
$396,950
22 AUDLEY ST
PAKENHAM
4
2
2
448
$485,000
LOT 324 AUSTEN AVE
OFFICER
3
2
1
57A BALMORAL WAY
PAKENHAM
3
2
2
490
$380,000
43 BALMORAL WAY
PAKENHAM
4
2
2
650
$407,000
50 BALMORAL WAY
PAKENHAM
4
2
2
755
$425,000
10 BARWON DR
PAKENHAM
3
2
2
448
$390,000
420 BELGRAVE-
GEMBROOK
3
1
1 18,085
$775,000
41 BELMONT CRES
PAKENHAM
5
2
2
337
$525,000
13 BELVEDERE CRT
GEMBROOK
4
2
2
1,149
$610,000
13 BEN DR
PAKENHAM
3
2
2
521
$328,000
32 BEN DR
PAKENHAM
4
2
2
578
$390,000
3 BENOR CRT
PAKENHAM
3
2
3
734
$393,000
5 BIRCH CRT
PAKENHAM
3
2
2
400
$390,000
6 BIRCH CRT
PAKENHAM
3
2
2
400
$420,000
172 BLUE HORIZONS WAY PAKENHAM
3
2
2
650
$372,000
42 BLUE HORIZONS WAY
PAKENHAM
4
2
2
530
$384,000
134 BLUE HORIZONS WAY PAKENHAM
4
2
2
440
$385,000
29 BOHEMIA CRES
PAKENHAM
4
2
2
375
$400,000
14 BONNEVILLE PDE
PAKENHAM
3
2
2
420
$390,000
7 BOTANIC DR
PAKENHAM
4
2
2
525
$475,000
9 BOTANIC DR
PAKENHAM
4
2
2
525
$550,000
21 CAREY CRES
PAKENHAM
4
2
2
570
$442,000
10 CASCADE WAY
PAKENHAM
3
2
2
314
$320,000
7 CASPIAN CH
PAKENHAM
4
2
2
467
$363,000
17 CATHERINE PL
PAKENHAM
3
1
1
312
$342,000
7 CATHERINE PL
PAKENHAM
3
1
1
313
$347,000
7 CAVERSHAM DR
PAKENHAM
3
2
2
528
$460,000
3 CELEBRATION CCT
PAKENHAM
4
2
2
390
$373,000
48 CENTRAL AVE
PAKENHAM
3
2
2
479
$390,000
$365,000
Sales data from 1st January 2016 to 31st March 2016 Street
Suburb
Beds Bath Car Area
Price
6 CERRETO MEWS
PAKENHAM
4
2
2
555
$381,000
11 CHARLOTTE PASS
PAKENHAM
4
2
2
564
$495,000
40 CHESTNUT CH
PAKENHAM
3
2
1
325
$325,000
12 CHRISTIE CRT
PAKENHAM
4
2
2
479
$420,500
13 CIDER LINK
PAKENHAM
3
1
1
359
$330,000
14 CLEARWATER DR
PAKENHAM
4
2
2
749
$650,000
13 CORMORANT PDE
PAKENHAM
3
2
2
350
$625,000
16 CORNFLOWER ST
PAKENHAM
3
2
2
375
$368,000
4 CRYSTAL ST
PAKENHAM
3
2
2
497
$360,000
19 CURRAWONG CRES
PAKENHAM
4
22
447
$390,000
2 STIRRUP CRT, PAKENHAM
5 DAPHNE CRT
PAKENHAM
4
2
2
595
$450,000
Grand home for young family in a prized position.
3 DAPHNE CRT
PAKENHAM
4
2
2
560
$475,000
14 DARVELL CRT
PAKENHAM
3
2
4
525
$355,000
58 DIAMOND DR
KOO WEE RUP
3
2
2
571
$370,000
6 DIXONS RD
CARDINIA
3
1
8
1,938
$375,000
2 DOWD CRT
PAKENHAM
3
2
2
650
$360,000
2 DOWD CRT
PAKENHAM
3
2
2
650
$360,000
73 EBONY DR
PAKENHAM
3
2
2
562
$370,000
60 EBONY DR
PAKENHAM
4
2
2
588
$377,000
12 EDAN CRT
PAKENHAM
3
2
570
$312,500
6 ELRONA CRT
PAKENHAM
3
2
2
1,605
$519,000
21 ELWOOD AVE
PAKENHAM
4
2
2
448
$362,500
3 EVERLY CCT
PAKENHAM
3
2
2
575
$415,000
37 EVERLY CCT
PAKENHAM
4
2
2
560
$470,000
8 EYRE PL
PAKENHAM
4
2
2
722
$527,000
10 FALLINGWATER DR
PAKENHAM
3
2
3
680
$430,002
16 FALLINGWATER DR
PAKENHAM
4
2
2
646
$486,500
54 FLINDERS CH
PAKENHAM
3
2
2
400
$417,500
8 FLINDERS PARK DR
OFFICER
4
2
2
512
$520,000
27 GALLERY WAY
PAKENHAM
3
2
2
598
$430,000
10 GARFIELD RD
GARFIELD
4
1
4,221
$430,000
2701 GEM-LN PLC RD
GEMBROOK
5
3
8 11,000
$725,000
1 GILLIAN PL
PAKENHAM
3
2
2
544
$365,100
42 GLENVISTA RD
PAKENHAM
3
2
2
500
$360,000
190 GORDON RD
PAKENHAM UPPER
3
1
6 32,550
$620,000
3 GREENDALE BVD
PAKENHAM
4
2
2
697
$525,000
155 GUNN RD
GARFIELD
4
1
5
1,012
$625,000
7 GUS CT
PAKENHAM
3
2
1
512
$350,000
15 MANNA GUM DVE, PAKENHAM
10 HALF MOON CRES
PAKENHAM
3
2
2
462
$381,000
Well presented family home in sought after location.
29 HAMMOND CRES
OFFICER
3
2
2
214
$370,000
28 HARTLAND CCT
PAKENHAM
4
2
2
666
$427,000
4 SMITH ST, BERWICK
50$ - BUY 2 AND SAVE 10$ Asperum eatquas everior rovit, seniene cuptaecerit porion est id estia sequam. Code: AB123
SOLD FOR $375,000
33 MAIN ST, GEMBROOK
SOLD FOR $455,000 Spacious home with generous block.
SOLD FOR $405,000
THE GRANTS REPORT <<< 4
This quarter’s
SALE HIGHLIGHTS Sales data from 1st January 2016 to 31st March 2016 Street
45 WAKENSHAW CRS, PAKENHAM SOLD FOR $315,000
Entry level family home in great location popular with family buyers.
1 BALCOMBE CRT, NARRE WARREN
SOLD FOR $488,000 Exceptional home renovated throughout.
8 MARTIN PLACE, PAKENHAM
SOLD FOR $395,000 Spacious family home in ideal location popular with family buyers.
5 >>> THE GRANTS REPORT
Suburb
Beds Bath Car Area
Price
15 HOME RD
NAR NAR GOON
3
2
915 $360,000
5 HONEYEATER WAY
PAKENHAM
4
2
2
646 $498,500
22 HONEYSUCKLE CL
PAKENHAM
4
2
2
448 $440,000
3/11 HOWQUA PL
PAKENHAM
3
2
2
150 $352,000
36 INSPIRATION CCT
PAKENHAM
4
2
2
400 $420,000
13 JEMIMA CRT
GARFIELD
4
2
24 JOSEPH BANKS DR
PAKENHAM
4
2
2
1,201 $460,000 400 $406,000
19 JOSEPH BANKS DR
PAKENHAM
4
3
2
560 $675,000
27 KILLARNEY CRES
PAKENHAM
4
2
2
406 $340,000
3 LAUREL LANE
PAKENHAM
3
2
2
307 $325,000
33 LEIGH DR
PAKENHAM
4
2
2
652 $367,500
8 LEVENS WAY
OFFICER
240 LONE PINE RD
GARFIELD
4
2 10 79,176 $780,000
10 LONGMEADOW RD
OFFICER
3
2
2
313 $382,500
12 LORDS LANE
OFFICER
3
2
2
174 $405,000
623 $345,000
2 LORDS LANE
OFFICER
3
2
2
231 $430,000
43 MACKELLAR ST
PAKENHAM
4
2
2
740 $561,000
21/1 MALOUF CRT
PAKENHAM
2
2
2
256 $390,000
105 MANN RD
PAKENHAM UPPER
5
2
3 84,000 $880,000
36 MANNA GUM DR
PAKENHAM
3
2
2
401 $345,000
51 MANNA GUM DR
PAKENHAM
3
2
2
609 $381,000
21 MANNA GUM DR
PAKENHAM
3
2
3
757 $420,000
12 MARKBEECH CRES
OFFICER
4
2
2
337 $450,000
44 MARY ST
OFFICER
3
2
2
430 $425,000
21 MCGARVIE CRES
PAKENHAM
4
2
2
853 $556,000
38 MCGARVIE CRES
PAKENHAM
5
2
3
802 $590,000
3 MELALEUCA PL
PAKENHAM
3
2
1
508 $365,500
29 MELISSA WAY
PAKENHAM
3
2
2
500 $386,000
13 MELISSA WAY
PAKENHAM
4
2
2
486 $404,000
460 MT EIRENE RD
GEMBROOK
3
2
2 22,198 $540,000
4 MURRAY AVE
PAKENHAM
3
2
3
899 $587,500
3 PINE WAY
PAKENHAM
3
2
2
169 $376,000
16 NAPLES WAY
PAKENHAM
3
2
2
709 $325,000
24 NATANYA DR
PAKENHAM
4
2
2
558 $375,000
3 OLIVIA CRT
PAKENHAM
4
2
3
600 $460,000
12 PARAMOUNT WAY
PAKENHAM
3
2
4
693 $360,500
35 PARAMOUNT WAY
PAKENHAM
3
2
4
785 $370,000
3 PINE WAY
PAKENHAM
3
2
2
169 $376,000
Sales data from 1st January 2016 to 31st March 2016 Street
Suburb
Beds Bath Car
Area 650
Price
10 POMMEL ST
PAKENHAM
3
2
4
$355,000
36 PORCHESTER BVD
OFFICER
4
2
2
11 RADIATA CCT
PAKENHAM
4
2
2
8 RED CHERRY CRT
PAKENHAM
5
2
2
8 REDCHERRY CRT
PAKENHAM
4
8 REDCHERRY CT
PAKENHAM
5
2
2
19 REIDEL AVE
PAKENHAM
3
2
2
490
$420,000
15 RIVER RED GR
PAKENHAM
4
2
2
585
$395,000
17 RIVIERA DR
PAKENHAM
3
2
2
869
$341,000
27-29 ROGERS ST
PAKENHAM
3
1
1
1,677
$330,000
$460,000 615
4 SMITH ST, BERWICK
50$ - BUY 2 AND SAVE 10$ Asperum eatquas everior rovit, seniene cuptaecerit porion est id estia sequam. Code: AB123
$506,000 $375,000
517
$375,000 $375,000
5 ROMINA ST
PAKENHAM
3
2
2
336
$350,250
27 ROSELLA AVE
PAKENHAM
4
2
2
452
$460,000
85 SANDALWOOD DR
PAKENHAM
4
2
2
647
$416,000
7 SARTON LINK
PAKENHAM
4
2
2
448
$442,500
10 SHERRIFF RISE
PAKENHAM
4
2
2
763
$350,000
2/41 SILVER GUM DR
PAKENHAM
4
2
2
316
$325,000
23 SILVER GUM DR
PAKENHAM
5
2
3
668
$450,000
15 SIR THOMAS DR
PAKENHAM
3
2
1
504
$340,000
37 SPRING CCT
PAKENHAM
4
2
2
672
$437,000
15 ST LEONARD WAY
PAKENHAM
3
2
2
640
$475,000
5 STABLE ST
PAKENHAM
4
2
4
427
$390,642
85 STOREY DR
PAKENHAM
4
2
2
594
$400,100
8 STRICKLAND CRT
PAKENHAM
4
2
4
594
$568,000
33 STRINGY BARK CCT
PAKENHAM
3
1
1
400
$340,000
4 TAREE CL
PAKENHAM
4
2
2
732
$490,000
23 THE CCT
PAKENHAM
4
2
2
668
$510,000
17 THE PKWY
PAKENHAM
3
2
2
417
$440,000
17 THOMAS ST
PAKENHAM
3
2
7
615
$380,000
230 TOOMUC VALLEY RD PAKENHAM
3
1
6
2,986
$408,000
16 VIOLA AVE
PAKENHAM
4
2
2
619
$395,000
45 WAKENSHAW CRES
PAKENHAM
3
2
1
425
$315,000
23 WARBLER ST
PAKENHAM
4
2
2
400
$359,001
24 WATERSIDE DR
PAKENHAM
4
2
2
502
$560,000
34 WEBSTER WAY
PAKENHAM
3
2
2
708
$373,000
4 WEDGEWOOD DR
PAKENHAM
3
2
2
420
$351,000
9 WILD CHERRY AVE
PAKENHAM
4
2
2
534
$376,000
92 WINDERMERE BVD
PAKENHAM
3
2
2
529
$405,000
5 WINDMILL CRT
OFFICER
4
2
2
576
$530,000
56 EBONY DVE, PAKENHAM SOLD FOR $365,500
Exceptionally presented home in popular area.
10 HALF MOON CRS, PAKENHAM
SOLD FOR $510,000 Immaculate family home with plenty of space and appealing floorplan.
6 KERRY PLACE, GARFIELD
SOLD FOR $581,500 One of Garfields finest home in quiet location preferred by local buyers.
THE GRANTS REPORT <<< 6
Berwick Sales
Pakenham Sales
Narre Warren Sales
Property Management
berwick@grantsea.com.au www.grantsea.com.au
pakenham@grantsea.com.au www.grantsea.com.au
narrewarren@grantsea.com.au www.grantsea.com.au
rentals@grantsea.com.au www.grantsea.com.au
Grants Estate Agents 3a Gloucester Ave BERWICK VIC 3806 9707 5555
Grants Estate Agents 3/51 John St PAKENHAM VIC 3810 5940 2555
Grants Estate Agents 9 Webb St NARRE WARREN VIC 3805 9704 8899
Grants Estate Agents 1/5 Gloucester Ave BERWCK VIC 3806 98762 6900