The combination of low interest rates, foreign buyers, upgrader enthusiasm and investor momentum saw 2013 emerge from its property holding pattern and the market become reinvigorated.
RP Data analyst Cameron Kusher said he believes momentum in property will continue into the new year, propelled by investors and upgraders.
He also believes values will climb further, though not as sharply in 2014. Another of his predictions is that gross rental yields in Sydney and Melbourne will continue the decline they commenced in latter 2013, leading investors to look at alternative growth zones. These are good tidings for the Far South Coast of NSW. The last few months of the year had seen keen interest in the area, with properties that were priced right being snapped up, some as soon as they came on the market.
However, Mr. Kusher issued a warning about other economic wild cards, like the unemployment rate, stating “If it reaches 6.25% it will be the nation’s highest unemployment rate since September 2002. If people start to become nervous about their job security it is likely to result in a lower level of demand for housing.”
Rates are at their lowest levels since the 1960s and inflation is currently at 2.2%. Keep in mind that the Australian interest rates don’t operate in a bubble – they respond to what’s happening in the global economy. The recent fall of the Australian dollar of 2.5 cents against the U.S. dollar as a result of the U.S. winding back its stimulus is a reminder that inflation could increase if the dollar keeps falling and the cost of imports increase. If inflation increases we could see a rise in interest rates. The all important question now is whether the RBA will increase or decrease rates, or leave them as is in the new year.
With keen interest from both local buyers and those from interstate in Merimbula, Bega, Tura Beach, Eden and Cooma and the current low interest rates together with confidence in the real estate market, vendors should not delay listing their properties for sale. Now is a prime time to sell.
For those of you who live in the Bega Valley Shire and those of you who are considering purchasing a property in the Bega Valley Shire here is some interesting information from the last census conducted in 2011. The population for the shire is 31, 950 made up of 50.1% females and 49.1% males. There are 16,866 dwellings in the shire. Breaking it down into the towns that Fisk & Nagle First Choice Real Estate sell real estate in we find that …..
Bega is thought to be named from an Aboriginal word meaning “big camping ground”.
It has a population of 5052 people and 2263 dwellings. Of the people living in Bega in those dwellings on census night in 2011 we find that 38.9% are families, 25.2% are couples without children and 28.5% are singles. Visitor only dwellings represent 1.4%.
Bega rural –
Has a population of 2082 with 770 dwellings. Within those dwellings we find that on census night 2011 43.4% were families, 33.9% were couples without children, 17.7% were singles and 7% were visitor only accommodation.
Eden Coast –
Eden is thought to be named after the family name of Baron Auckland, British Secretary for the Colonies. It has a population of 3758 with 1967 dwellings. On census night 2011 20.4% of those in the dwellings were families, 35.2% were couples without children and 26.3% were singles. Visitor only dwellings represented 3.9%.
Merimbula – Millingandi and district
Merimbula is thought to be named from an Aboriginal word meaning “big snake” or “place of two waters”. It has a population of 4172, being the highest density of population in the shire. There are 2726 dwellings and 21.5% of those domiciled in the dwellings on census nights 2011 are families, whilst 32.1% are couples without children and 31.1% are single. Visitor only accommodation is 7.1%.
Tura Beach – Mirador and district
Has a population of 3272 with 1706 dwellings. On census night 2011 26.8% of the population in dwellings were families, 47.2% were couples without children and 23.1% were singles. Whilst only 1.3% were visitor only dwellings.
Vendors and Purchasers will find these statistics of value as they paint a picture for each of the towns in the Bega Valley Shire. Further information available at http://profile.id.com.au/bega-valley?WebID=190
Purchasers and Property Investors keep an eye on Eden. With the announcement that the Port of Eden will receive a major upgrade to expand its capacity as the only safe deep water port between Sydney and Melbourne the community can expect a major boost to the economy. The Merimbula News reported this week that the Member for Eden-Monaro Dr Mike Kelly visited the port and said the upgrade would expand the port’s capacity to handle large cruise ships, more bulk freight and more supply vessels for the Bass Strait oilfields. He said that the upgrade would be a massive boost to the local economy and the wider region, with cruise ship arrivals expected to increase ten-fold to 50 every year. The expansion will go ahead thanks to a $10 million federal grant that forms a major part of the investment.
Dr Kelly said “The Port of Eden is a fantastic asset for us, the best deep water port in Australia, and we will finally be taking advantage of its potential.” Dr Kelly said the project would generate 45 new jobs in its construction phase and 151 ongoing jobs upon completion.
As part of the $24.5 million project, a fixed panel wave attenuator will control the waves to protect a 150 metre-wide navigation channel into the port, and a 500-metre pedestrian boardwalk will connect the port with the tourist and community precincts of Snug Cove and Cattle Bay. 2000 passengers are expected to land in Eden every week and more small boats are expected to arrive at the port as recreational sailors will get safe moorings in Eden.
House prices are currently very competitive in Eden and with a development boost of this size potential purchasers and property investors should seriously consider the town of Eden for their next purchase. Call Fisk & Nagle First Choice Real Estate on 1800 For Sale to arrange an inspection of suitable properties in Eden.
Fisk & Nagle First Choice Real Estate welcomes infrastructure upgrades to the region. With Real Estate offices in Bega, Cooma, Eden, Merimbula and Tura Beach they fully appreciate the flow on effect to property values, real estate enquiry from purchasers and improved confidence for vendors the recent and upcoming upgrades to infrastructure create.
The recent State Budget delivered $169 million in funding to the Princes Highway for upgrades to this vital link between the far south coast and major cities such as Melbourne and Sydney. The current upgrade to the Merimbula Airport that is still a work in progress at a cost of $5.7 million will ensure the continued safety of the runway and extra lighting will allow for low visibility departures allowing planes to take-off in fog. The latest news on Sydney Airport is that regional airlines will continue to have access to the airport and reasonable pricing arrangements capped at CPI for the next three years. This ensures continued services from Sydney by the current carrier, Rex Airlines to Merimbula Airport.
The new South East Regional Hospital in Bega, which is currently being built, has already had an impact on real estate enquiry in Bega, particularly for properties in the Glen Mia estate, which is situated opposite the hospital site. The Minister for Health Jillian Skinner MP has stated that the new hospital will meet the growing demand for health and hospital services in this thriving regional area and that the expansion of services that will be delivered will help attract and retain a highly skilled and motivated workforce. Together with the $60 million Bega Bypass , the Member for Eden Monaro reports that there have been other upgrades in the region such as the Port of Eden development, upgrade of the Merimbula Jetty and an upgrade of the Merimbula Causeway.
Home owners and property investors alike can take heart at these infrastructure improvements and look forward to reaping the rewards. To list your property or enquire about purchasing a property in the area call 1800 For Sale.
Real Estate Sales in the Merimbula and Tura Beach area of the far south coast of NSW are quite active at present, particularly in residential housing. David Dwyer, Property Sales Representative at Fisk & Nagle First Choice Real Estate reported that the price range is creeping up with the majority of homes selling in the price bracket up to $500,000 and with a few selling at over $600,000. He advises potential vendors that winter is a good time to sell property as there is more competition on the market in spring. “Many vendors think that spring is the best time to sell property and hold off putting their house on the market, but in reality there are still the same number of buyers looking to purchase a home in winter. If you list your home for sale now, with less competition, you will find it easier to sell and more likely to achieve your selling price” .
David noted many purchasers of residential homes are from outside the area, Canberra being a big growth area for real estate sales in Merimbula and Tura Beach and many purchasers are looking to buy a three bedroom, two bathroom home. Vendors note that property buyers from outside the area will search the internet for potential properties for purchase and Fisk & Nagle have a strong online presence, appearing near the top of the first page for most searches for real estate in Merimbula, Tura Beach, Eden, Bega and Cooma.
David’s advice for selling your home is to present the property well. A property that is presented as a tidy, neat, clean home is more likely to sell quicker and for the price the vendor is seeking. It is important to de-clutter the home, clean up the garden, mow the lawns, get windows cleaned and keep the house clean and well maintained for inspections. Call 1800 367 7253 to talk to David about listing your property.
Real estate sales in the Bega Valley Shire may be positively affected by the new upgrade to the local airport at Merimbula. Ian Baker, Airport manager/leaseholder says the work has gone without a hitch and there had been no disruptions to flight schedules since the $5.7 million renewal works on the 1602-metre-long Merimbula Airport runway commenced on April 15. The works involve building a 300mm overlay on the 55-year-old runway with shape correction, widening the taxiway and apron and the installation of a new runway lighting system and drainage reports the local newspaper, Merimbula News this week.
It has not interfered with flight schedules as planes have been able to land safely within the restricted space. It has meant though that Rex Airlines, the aircraft carrier for the Merimbula route, has had to operate seven short of a full passenger list.“We’ve been able to keep all flights going and had no delays to the flights,” Mr Baker said, “and it has worked really well.”
The Merimbula airport will have a short shutdown period from June 14 to 28. This will allow for the centre section of the runway to be replaced. Assurances have been made that the contractors will work 24/7 to get the job done in this period. Meanwhile the installation of the new runway lighting is underway. It will allow for low visibility departures and aircraft will be able to take off in fog, another excellent improvement, Mr Baker said.
Property investors in the Bega Valley Shire will be relieved to hear that the airport runway renewal works will “ensure the safety of the operation, in other words we won’t have failures in the runway. That is probably the biggest single issue solved. Every time we got high rainfall we would get failures on the runway because the sub structure underneath would give way.” said Mr. Baker “The airport is now geared for the next 20 or 30 years giving the runway a depth of strength that will allow it to accommodate heavier aircraft should that need arise in the future. The old runway was past its use by date.”
The investment in the area of $5.7 million will underpin the ongoing development and growth of the area and, as Mr. Baker said, it was “a brilliant investment – not only in our community, but long term what it will bring to the shire.” Investors in real estate in the areas of Merimbula, Eden, Bega and Tura Beach will be encouraged by this upgrade to the airport and the ensuing benefits to the area.
If you are thinking of purchasing property or selling property in Merimbula, Eden or Tura Beach on The Sapphire Coast you will welcome a plan hatched during a visit to China that could see the Sapphire Coast become the wedding capital of NSW, boosting overseas tourism to the area.
The plan, that could see 100 Chinese couples visiting the local area to get married, is under consideration by Chinese officials after a visit to China by a Bega Valley Shire Council delegation which included representatives from local chambers of commerce reported the Merimbula Weekly News this week. A photographer in the delegation, Robert Hayson who is from Bega,came across a bride in China who had no one to take her photo. Mr Hayson said that after he had taken photos for the bride it occurred to him that there might be an opportunity to encourage bridal tourism to the Sapphire Coast with its spectacular scenery that is ideal as a backdrop for wedding photos.
The idea is that the Bega Valley would host 100 brides and their families in either May or October which are considered the most auspicious months to be married in China. Michael Guo, CEO of the Australia International Trade Association, Australia China Sister City Summit & Australia China Business Summit was enthusiastic about the concept and many discussions were held in China. After some discussion it was suggested that October 2014 would be the first possible date.
This can only be good news for home owners in Merimbula, Eden and Tura Beach looking to sell, as they will benefit from the boost to the economy brought about by increased overseas tourism to the Sapphire Coast. Potential property buyers will look more intently at purchasing investment properties on the Sapphire coast as they see the opportunity for accommodation for bridal parties and the general flow on effect created by this type of tourism.
Fisk & Nagle are leading Real Estate Agents in the region and will assist those wishing to sell their houses or apartments and those looking to purchase in Merimbula, Eden, Tura Beach or Bega. With offices in all these towns and a range of listings on their books, they are the go to Real Estate Agents on the Sapphire coast. Call 1800 For Sale or 1800 367 7253 to inspect your potential new property on the Far South Coast of NSW.
17 year old Molly Campbell of Pambula Beach on the Far South Coast was announced the winner of the Lions “Youth of the Year” as well as the winner of the “Lions Public Speaking Competition” held in Canberra on Saturday April 27th at the Lions Convention. Molly’s winning speech was about the Australian agricultural industry and the monopoly large companies hold over the industry, as reported by Denise Dion of the Merimbula News Weekly.
Molly attends one of the local secondary schools in the area, Lumen Christi College situated at Pambula Beach. Last year the winner of the Public Speaking Competition was also a local resident, Nathan Barnden of Bega. This is a great achievement for the area, illustrating the level of education children receive in the region is at a competitive standard nationally. Those considering purchasing property in Merimbula, Tura Beach, Eden or Bega who have a young family will be delighted at Molly’s and Nathan’s achievements.
Other secondary schools on the Far South Coast are Bega High School situated in Bega, Sapphire Coast Anglican College also in Bega and Eden Marine High School in Eden. Primary education is well catered for with both Lumen Christi College and Sapphire Coast Anglican College also offering primary education; other private primary schools are Mumbulla School for Rudolf Steiner Education, St. Patricks Primary School and Thomas More Christian Montessori School . The towns of Eden, Merimbula, Tathra , Pambula and Bega all have Government primary schools.
Families considering purchasing property in Merimbula, Bega, Eden or Tura Beach have a choice of educational facilities as well as sporting activities, sporting facilities and other extra curricula activities in the region such as ballet, dance, gymnastics and drama classes.
The Bega Valley Shire has had much discussion about the proposition of extending the runway at the airport at Merimbula. Currently 1600 metres, discussion has centred around adding another 200m to the runway. At a council meeting five months ago it was resolved to go ahead with repairs to the runway required by CASA but not to extend. The extra cost for an extension appeared to be the main reason the council rejected the proposal.
At a recent council meeting it was mentioned again, apparently the contractors currently undertaking repairs to the existing runway had offered an extension of 200m at a discounted price. The ensuing debate in council was intriguing, as it centred around the need for an extension to the runway, would it make a difference to the size of planes and amount of traffic the shire could expect?
Property owners and people considering purchasing property in Merimbula, Eden, Bega, and Tura Beach will be watching this debate with keen interest. Ensuring the airport is capable of accommodating larger planes and an increase in the amount of aircraft visiting the area is of utmost importance to the continual growth of the area. Growth in tourism will in turn affect the value of holiday rental properties and even property values in general.
The councillors voted 4 for and 5 against the motion to extend the runway after considering the facts and arguments presented. One of the councillors reported that Qantas had said “The length of the runway is not a limitation for the Q400 and the aircraft can easily manage it. “ She also mentioned that the airport has a Code C classification and can take 72 seat aircraft. The Bombadier Dash 8 Q400 specifications on the Airlines Inform website states that the aircraft can carry 76-84 economy seat passengers and take off field length is 1300 with a landing field length of 1290. One visitor to the site stated in October 2012 “I was impressed with the performance of this aircraft on short field take off.”
Property owners, property buyers and vendors will be hoping the council has got it right and that larger aircraft will begin to use Merimbula airport, bringing more visitors to the area. Perhaps Qantas will bring in the Dash 8 Q400 several times a day from Melbourne, Sydney and Canberra – now wouldn’t that be excellent for growth?
It is not long until tax time and you may be wondering what claims you can make on your investment property. Here are some ideas to ponder.
The ATO website reports that “Certain types of construction costs – including extensions, alterations and structural improvements – can be claimed as capital works deductions. However, the purchase cost of the land on which a rental property is constructed cannot be claimed. Instead, the land forms part of the cost base for capital gains tax purposes.
Deductions can be claimed for the decline in value of some types of depreciating assets in residential rental properties – for example, curtains, blinds, dishwashers, refrigerators, stoves, television sets and hot water systems. However, construction costs are not depreciating assets.”
If you have a holiday rental property it is possible to rent it out but use it for yourself, family and friends for some of the time and still make taxation claims. The ATO allows you to claim some expenses incurred in running your holiday home or unit against your accessible income. Accessible income is derived from commercial renting whereas a minimal rent received from friends and family is considered reimbursement for out-of-pocket expenses. Expenses incurred whilst renting to friends and family cannot be claimed as the ATO considers it personal use at these times.
For your property to be considered an investment property, you need to prove you are actually trying to rent it commercially. You can show this by engaging a holiday rental agent, such as Getaway for Merimbula and Eden holiday rental properties. Listing on a holiday rental site such as Getaway will also help show you are serious about rentals, as well as helping you gain tenants. http://www.getawaymerimbula.com.au/holiday/Merimbula
The general rule with any tax deduction is that it must be relevant to an income-producing activity. Common deductions made on rental investment properties are: advertising for tenants, body corporate and strata fees, gardening, maintenance, cleaning, insurance and land tax. With thanks to Bina Brown of the SMH.
For full and professional advice on your investment property taxation claims see your Accountant. For advice on purchasing an investment property call Fisk & Nagle on 1800 For Sale.