August report.
Our values. Our purpose. To create a place where we can facilitate our people’s growth. Family. Our colleagues are our broader family, assist when needed and when in need. Realising potential. Unlock your full potential, encourage and support colleagues.yourwouldRespectMutuality.ourcolleaguesandourclientsasyouliketoberespected. Embrace change. Strive for excellence; be open minded and willing to embrace change. Health and energy. Work towards being well balancedyourself.within
August report.
So if your are looking to increase your portfolio or wanting to talk to one of our professional team about what we can do to help you with an equity check or purchase another investment please reach out.
DeanRegardsO’Brien
From our directorcorporate
“This is the second-steepest quarterly rise on record and resulted in the sharpest annual increase since 2008 if rents keep rising at the current pace, by next quarter we will have unit rents at a new record high overall.”
The past year has seen brisk growth in advertised rents, with prices nationally growing by 7% amid tight markets, limited supply, and low vacancy rates.
Rental prices in some outer south-eastern suburbs have experienced strong growth in the last 12 Thatmonths.isan increase of nearly 9.5 per cent in the past 12 months, according to data from blow to tenants struggling with the rising cost of living, large winter energy bills, high petrol prices and grocery price inflation, with little respite in sight.
Therealestate.com.au.increasesarea
Domain chief of research and economics Dr Nicola Powell said Melbourne’s market had changed from one where tenants had a choice of rentals and could negotiate on price to one where landlords were far more in “control.It’sdefinitely become a landlord’s market,” Powell said.
Dean O’Brien Hi All, It is slim pickings for those looking for land in Melbourne’s inner suburbs. Buyers wanting to purchase land in Melbourne will need to look further out at newer developing suburbs and housing estates. Rarely will there be vacant land to purchase in Melbourne suburbia, and when the odd chance of a unicorn does pop up, it is usually a knocked down dwelling or a larger lot that has been subdivided. These subdivided lots are often in the backyard and sold as a battle-axe shaped block or smaller than a traditional lot of land. Due to this shortage, the most accessible areas for vacant land would be in the outer suburbs in Melbourne’s south-east and west. Both ends of Melbourne boast estates with plenty of newly developed lots of land, ready to be built on. In saying this, the construction industry in Australia is under a lot of pressure with the limited and expensive supply of materials and labour inhibiting the confidence of those looking to buy new land to build on. Many prospective home builders are turning from building their dream home from scratch to purchasing a recently renovated or ready to move into home to avoid the stress and headache of this construction crisis. As it is a risky time to build, the vacant land market isn’t in as high demand as it used to be.
We sell more. Number of soldsuburbsin. Average sale price. $745,029 SaleHigh.price. $1.7M Low. $292K 25 A snapshot of last months sales. Sale PriceSuburbAddress 123/542443569161/116/9713241/1318578878/40-46124/6271/8TraceyStreetMoutainHighwayOzoneRoadElmhurstRoadGallowayGroveAugustusDriveSingCrescentBountyWayShaftsburyAvenueConstitutionRisePheasantCourtShuteAvenueQueensCourtWillardCourtGenistaAvenueTormoreRoadMedwayCrescentMorindaDriveJasellaDriveOramaAvenueGreenGullyRoadGilcambonWayTaylorStreetAverneStreet CranbourneCranbourneClydeClydeCarrumBotanicBotanicBoroniaBoroniaBoroniaBerwickBerwickBerwickBerwickBerwickBerwickBerwickBerwickBerwickBayswaterBayswaterBayswaterBayswaterBayswaterNorthNorthRidgeRidgeDownsNorth 3 1 1 2 2 1 3 2 2 2 1 1 3 1 2 3 2 1 3 2 2 4 2 2 4 2 2 4 2 2 4 2 2 4 2 5 5 2 1 4 2 3 2 2 1 3 2 2 3 1 6 4 2 2 4 2 2 3 2 2 4 2 2 4 2 2 2 1 1 Land $1,005,000$1,080,000$550,000$700,000$705,000$938,000$715,900$625,000$691,000$811,000$845,000$870,000$1,700,000$801,000$585,000$698,000$775,000$942,500$920,000$703,000$840,000$742,000$450,000$561,000
We sell more. Sale PriceAddress Suburb 6186/542/6256111135242141836222730-325/133205432723630HarryStreetDuffStreetMarylynPlaceBarklyStreetHuntClubBoulevardPeverilCrescentMarinerClosePrincesHighwayWorthingRoadPeachtreeDriveChaucerWayWattletreeRoadPiperitaRoadRedwoodCourtRossiterRoadDibaRiseTrentwoodRoadEppalockCourtEgretWayPinnacleDrivePearceCourtHeathmontRoadMccormicksRoadWalmacCloseBunyaStreet WarragulTooradinSkyeRingwoodPearcedalePakenhamPakenhamNobleNarreNarreKooJunctionFerntreeFerntreeDrouinDrouinDevonDandenongCranbourneCranbourneCranbourneCranbourneCranbourneCranbourneCranbourneEastNorthNorthMeadowsGullyGullyVillageWeeRupWarrenWarrenParkNorth 3 1 1 3 1 2 3 2 2 4 2 2 4 3 4 4 2 2 4 2 2 1 1 1 3 2 3 Land 4 2 2 2 1 1 4 3 2 3 1 3 3 1 1 3 2 2 4 2 1 3 1 4 3 2 2 3 2 1 4 2 2 3 1 1 3 2 2 5 2 4 Land $1,000,000$608,000$621,000$665,000$670,000$700,000$705,000$292,000$1,380,000$365,000$600,000$715,000$900,003$662,000$530,000$660,000$700,000$700,000$635,000$600,000$850,000$780,000$652,500$910,000$352,500
We lease more. Rental price p/w. High Low Leased price p/w Leased price p/m Number of leasedsuburbsin. A snapshot of last months leases. $850 $300 Average weekly rent. $474 Average monthly rent. $2,061 26 Address Suburb 1925776718Unit365243/20Unit1/125Unit47400Unit13101/1FinchStreetRowanPlaceCarramarCourt3/306CanterburyRoadRixRoadFieldstoneBoulevard2/53CollinsCrescentMansfieldStreet4/1MillerStreetInglisRoadShaftsburyAvenueLawrenceDriveEarlsfieldDrive1/6TyrellPlaceShaftsburyAvenueAprilCloseMansfieldStreetGladysCourtMontpelierDriveRomeoAvenue BerwickBerwickBerwickBerwickBerwickBerwickBerwickBerwickBerwickBerwickBerwickBerwickBerwickBerwickBeaconsfieldBeaconsfieldBayswaterBayswaterBayswaterBayswaterNorth 2 1 1 2 2 1 3 1 2 3 2 2 4 2 1 3 2 2 2 1 1 2 1 1 3 3 1 2 2 2 3 2 2 3 2 2 4 2 2 3 2 1 4 2 2 3 2 2 4 2 2 4 2 2 4 3 2 4 2 2 $560$550$520$350$420$470$450$460$570$365$380$415$420$450$470$470$480$525$540$580 $2,520$2,085$2,042$2,042$2,042$1,520$1,825$1,955$1,998$2,476$1,586$1,651$1,803$1,825$1,955$2,259$2,281$2,346$2,389$2,433
We lease more. priceLeasedp/w Leased price p/mAddress Suburb 34A11/3119185922/9102914/18-2037262593844153916619MountViewRoadBanksideDriveSmileyWayCottleDriveFooteWayAdriaticCircuitVentassoStreetNunkeriCourtFranklandStreetVentassoStreetParidotBoulevardHamiltonStreetSouthGippslandHighwayHoundsforthStreetCherryplumCourtGippsCrescentMountainviewBoulevardMarnieDriveStudRoadWorthingRoad DevonDandenongCranbourneCranbourneCranbourneCranbourneCranbourneCranbourneCorinellaClydeClydeClydeClydeClydeClydeClydeClydeBotanicBotanicBoroniaRidgeRidgeNorthNorthNorthNorthNorthEastNorthNorthNorthWestMeadows 4 2 1 4 2 2 4 2 2 3 2 1 3 2 2 4 2 1 3 2 1 3 2 2 4 2 2 3 2 2 4 2 2 3 2 2 3 1 2 3 2 1 2 1 1 3 2 2 4 2 2 3 1 0 1 1 1 2 1 2 $420$300$440$550$420$380$420$450$450$570$480$450$425$410$470$440$400$595$560$650 $1,825$1,303$1,911$2,389$1,825$1,651$1,825$1,955$1,955$2,476$2,085$1,955$1,846$1,781$2,042$1,911$1,738$2,585$2,433$2,824
We lease more. priceLeasedp/w Leased price p/mAddress Suburb 3465362282191331122103428497115326RossiterAvenueBitternDriveKenningtonParkDriveBurwoodHighwayPlateauCrescentPhilipRoadStationStreetDarcyNilandCrescentFranleighDriveWestleighCrescentBarondiAvenueSalignusCourtArdenneCourtButcherCourtLassiterCourtImperiaCloseBarratCourtGoldenGreenStreetLewisRoadDarnleyGrove WheelersWantirnaPakenhamNobleNarreNarreNarreNarreNarreNarreNarreNarreLynbrookLangKnoxfieldHamptonFerntreeEndeavourEndeavourEndeavourHillsHillsHillsGullyParkLangWarrenWarrenWarrenWarrenWarrenSouthWarrenSouthWarrenSouthWarrenSouthParkSouthHill 3 2 2 4 2 1 3 2 4 3 1 2 3 1 2 4 2 2 6 3 6 3 2 2 3 1 2 3 1 4 4 2 2 3 2 2 4 2 2 3 1 2 3 1 2 5 2 2 4 2 2 4 3 2 3 1 2 4 2 6 $560$590$460$460$475$420$410$850$480$400$450$450$460$450$400$430$550$550$510$380 $2,085$2,063$1,998$1,998$1,825$1,781$2,563$3,693$1,738$1,955$1,955$1,998$1,955$1,738$1,868$2,389$2,389$2,216$1,651$2,433
• Licences and contractual rights
A CGT event is when a transaction or event leads to either a capital gain or capital loss. Selling an asset or transferring it to another person are the most common kinds of CGT events, but they’re not the only ways a CGT event can occur.
• It’s worth noting that you don’t pay CGT on your main residence –with a few exceptions. You may only get a partial CGT exemption if your main residence is on more than two hectares of land, if you rent out part of it or if it’s also used for business. You also don’t need to pay CGT on your car or motorcycle, or any wins you make via prizes or gambling. Assets you acquired before 20 September 1985 are also not subject to CGT.
Other examples of CGT events include losing or having an asset destroyed; cancelling, surrendering or redeeming shares; no longer being an Australian resident; and many others.
Capital gains tax is a term often thrown around when discussing the sale of assets like shares or property. But if you’re new to the concept, you might be wondering exactly what it is, how much capital gains tax you have to pay, and in what circumstances.
•
To help you navigate this slightly tricky tax, here are a few capital gains tax basics.
You can learn more about working out CGT by reading our article on how to calculate capital gains tax.
And finally, your marginal tax rate can affect how much tax you pay because your capital gains are usually added to your taxable income for that financial year.
What you need to know about capital gains tax (CGT)
•
When it comes to property specifically, such as an investment property, expenses like stamp duty, agent fees, land tax and even improvements you make to the property can be deducted from the sale price to help calculate CGT.
There are also different rates of CGT depending on whether you’re an individual, company or self-managed super fund (SMSF).
1. Move out of the home This is where you move out of your home and continue to treat it as your main residence – either indefinitely or for up to six years if you decide to rent it out during your absence
Selling shares or your investment property? Don’t forget about capital gains tax, which you may have to pay after the sale.
That first one is important because it canimpact the amount of tax you have to pay. If you own the asset for at least 12 months, you may be eligible for a CGT discount of 50%.
What is capital gains tax? Capital gains tax, also known as CGT, is a type of tax paid when you sell an asset for more than you bought it for. Conversely, a capital loss occurs when you sell an asset for less than what you paid. CGT is often associated with buying and selling property, but it can also apply to other kinds of assets including: Shares Cryptocurrency Foreign currency Items for personal use – such as boats, furniture, electrical goods and other household objects – if you bought the item for more than $10,000 Collectable items including artworks, jewellery and antiques, if you paid more than $500 for the item
2. Keep the asset for at least 12 months
Now for the good news: you may actually be able to lower the amount of CGT you pay upon the sale of an asset – or even avoid it entirely.
Don’t forget that owning an asset for more than 12 months could result in a CGT discount of 50% – be it property, shares or something else entirely
•
3. Offset your gains with losses Any capital losses you make can help reduce your net capital gains and, consequently, the amount of CGT you have to pay. Plus, you can actually use capital losses from previous financial years to offset capital gains in current or future financial years.
•
Say you sell a bunch of shares and lose money on them, but also make a profit on the sale of your investment property. The loss you incur may reduce how much CGT you pay on your property sale.
Capital gains is calculated using a few different factors: the length of time you’ve owned the asset, if you’ve incurred any capital losses and your marginal tax rate for the financial year.
•
When it comes to capital losses, you might be able to use any losses you make to lower the amount of CGT you have to pay in that financial year.
How do you reduce capital gains tax?
How much is capital gains tax and how is it calculated?
• Improvements or additions to your property if you bought the property before 20 September 1985
article source : www.realestate.com.au
There are several ways to reduce capital gains tax. These include: Relying on the main residence exemption. For the most part, your main residence isn’t subject to CGT – aside from a few particular circumstances, such as using your home to earn an income
Find out more about avoiding capital gains when selling property
What is a CGT event?
4. Put your money in super Investing in your superannuation fund may offer a discount on the CGT you have to pay
Does CGT apply if you transfer or gift a property? Property can also be passed to family members or friends while a person is still alive. So if the property is transferred into someone else’s name or a gift, are you still charged capital gains tax?
The receiver isn’t liable for CGT, unless of course they decide to sell the property. However, other property and land taxes may apply.
• If the asset is obtained or owned through a self-managed super fund (SMSF), the asset is sold post-retirement, and all SMSF members are in the pension stage
The fair market value approach is used in cases where both parties are not dealing with each other at arm’s length. In layman’s terms, ‘at arm’s length’ means the parties are unrelated and don’t have any control over one Soanother.forfair market value to apply, the giver and receiver would have to be related in some way – such as being a family member, partner, shareholder in a company, trust beneficiary and many other examples.
• If they purchased the asset before 20 September 1985
While retirees and pensioners are free from a number of costs, unfortunately capital gains tax isn’t one of them. Retirees and pensioners are still subject to CGT, unless they qualify for an exemption. These include:
It depends. If the property is a main residence, it’s exempt from CGT. If not, CGT may very well apply. Here’s how CGT can affect the giver and receiver.
For receivers
Like selling your property to someone else, inheriting a property can prompt a capital gain or capital loss – even though no money has changed hands. This is because ownership is transferred from one person to another. So, do you have to pay CGT on inherited properties?
CGT may apply based on:
• If they’re selling their main residence, or if they only lived outside their main residence for up to six years
But in the case of transferring or gifting a property, the seller may receive a lower sale price for their property – such as parents selling a unit to their kids for a significantly reduced amount. Alternatively, they may gift the property and receive no money at all.
Even though it might appear as a separate tax, capital gains tax isn’t an isolated payment you make whenever you sell something for a profit. Instead, any capital gains are added to your taxable income.
article source : www.realestate.com.au
• Whether the property was sold while you were an Australian resident
• Whether they were an Australian resident when they died
When you’re reporting your income for the financial year, you’ll be asked to detail any capital gains, capital losses and exemptions.
• Whether it was their main residence or an investment
When do you pay capital gains tax?
For givers
Under normal sale circumstances, the capital gain would be calculated by deducting the sale price from the purchase price.
Is capital gains tax direct or indirect? Capital gains tax is a direct tax. This means it’s based on the income or gains of the person paying it. Conversely, indirect taxes are added to goods and services and are paid by the consumer. GST is an example of an indirect tax.
Do retirees pay capital gains tax in Australia?
If you’ve inherited a property from a deceased estate, you don’t have to pay capital gains tax. But you might be liable for it if you decide to sell the property –depending on a few circumstances.
As with income tax, CGT is a federal rather than state tax.
This is where CGT events become important. The year the CGT event happened determines which income year the capital gains will be applied. So if you sell an investment property in the financial year 2022/23 and make a profit, the capital gains will be added to your 2022/23 income.
• When the deceased obtained their property
Does CGT apply on inherited properties?
Regardless of whether or not any money was involved in the sale, the giver can still be liable for capital gains tax. In both cases, if the giver receives less for the property than it’s worth, CGT would be calculated using the property’s fair market value on the day it’s passed on. The capital gain would be the fair market value less the purchase price.
• When the deceased passed away
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