Archive | 2012

Rental income and deductions

Negative gearing and its impact on the housing market

In its most simplistic form, negative gearing for investment housing allows investors to deduct their losses against their personal taxable income.  These losses may occur when the investor incurs costs such as interest on a home loan as well as maintenance and other small expenses on an investment property. However, it is important to note […]

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Locations of projects at the committed stage

Resources sector propped up by eleven mega projects

With the mining sector and commodity prices such a topical issue at the moment (for all the wrong reasons), it’s worthwhile having a look at the latest statistics regarding Australia’s resources and energy sector.  As you can see from the Reserve Bank’s ‘Commodity Price Index’ below, non-rural commodity prices are down 21.6% since peaking in […]

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Wages and dwelling price comparison with Sydney market

Why does Sydney have the most expensive housing market?

Sometimes when people try to answer this question, they point out that more expensive property prices are offset by higher wages in Sydney; and this argument is, at least to some extent, true.  Sydney wages are higher, but not to the same extent as property prices compared with other cities.  Based on data released by […]

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Consumer sentiment v dwelling sales

Confidence in Australia’s housing markets is gathering pace

The confidence level amongst Australian consumers (as measured by the Westpac-Melbourne Institute Consumer Sentiment Index) has been on an upwards trend since April this year, and over November the Index recorded a sharp rise to reach the highest level since April 2011.  An easy way to interpret the index is when the reading is over […]

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Monthly number of first home buyer commitments, nataional

First home buyers prefer Western Australia and Queensland

First home buyers have been stepping up their activity in the market over recent months, with the Australian Bureau of Statistics housing finance commitments data showing a 14.3% jump in the number of first time buyer loans over the September quarter of 2012 compared with the September quarter of 2011.  First home buyers now comprise […]

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RP Data-Rismark Home value index v abs house price index

The ins and outs of indices

With the other major index providers now releasing their September quarter data, we can start to see a firm pattern of recovery emerging in Australia’s housing markets.  The ABS released their stratified median series on the 6th of November showing a 0.3% rise in capital city house values over the September quarter, following a 0.6% […]

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Annualised growth

Shares or Property – what’s the better performer?

Ahh, that old chestnut…  It’s a question that is often asked.  What performs better?  Shares or property? On a capital appreciation measure over the past decade, the past half-decade, and over the past three years, residential property has well and truly outperformed shares.  Over the most recent twelve month period shares have outperformed the housing […]

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Clearance rates with volumes

The BIG spring auction test

The housing market across Australia will be put to the test this weekend with one of the biggest auction week’s taking place since December 2010.  There are 2,353 auctions planned to be held this week, with the vast majority scheduled for Saturday, October 27th.  There have only been six other occasions since early 2008 where […]

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Has the market entered a recovery phase or are we seeing a temporary improvement in housing market conditions?

Based on daily movements in the aggregated RP Data-Rismark Home Value Index (updated daily at,, Bloomberg & Reuters) covering Australia’s five key  capital cities,  Australia’s housing market reached a recent trough on  May 30 of this year  after values peaked 1.5 years earlier and 7.7% higher.  Since the recent low point in the […]

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RBA Net interstate migration

Housing demand is rising at the fastest rate since December 2009

The latest demographic update released by the Australian Bureau of Statistics late last month  provides an overview on population growth and migration flows up to March 2012.  The data revealed the rate of population growth, at 1.49%, was the highest rate of growth since the last quarter of 2009 and net overseas migration was at […]

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