Winning without selling / Upside in all market conditions
Tax time is a reminder that there are benefits to property investing that go beyond capital growth.
As a property owner, it’s easy to think about capital growth as the key measure of the success of your investment.
But tax time is a reminder that there are benefits to owning property as an investor that apply no matter what the market is doing. And unlike capital growth, you don’t need to sell the property to take advantage.
The ability to claim tax deductions for some of the costs of an investment property is one of the great benefits of owning property in Australia. And while there was a lot of talk about changes to negative gearing before the recent federal election, the Coalition’s win means these changes are unlikely in the near future.
In this RAMS Talk, we look at how you can make the most of your tax return if you own an investment property, plus the tax implications for renovating your property as an investor or owner-occupier.
Of course, market values are always important, particularly if you’re thinking of selling or buying an investment property. So what has the market been doing?
Average dwelling prices have continued to decline in recent months, with the average house price in our capital cities down by 8.4 % in the 12 months to May 2019. That includes above-average falls in Sydney (-10.7 %) and Melbourne (-9.9%) and gains in only Adelaide (+0.4%), Hobart (+3.4%) and Canberra (+2.4%) .
Importantly, the rate of the decline in property prices has eased in Sydney and Melbourne compared to this time last year, suggesting we may have moved through the worst of the downturn2.
We’ll be keeping a close eye on the property market this winter and look forward to updating you again next quarter.
Median dwelling (house/unit) prices at 31 May 20191
| City |
Median dwelling price (house and units) |
Capital growth last 12 months |
| Sydney |
$776,135 |
-10.7% |
| Melbourne |
$619,804 |
-9.9% |
| Brisbane |
$484,882 |
-2.3% |
| Adelaide |
$431,702 |
0.4% |
| Perth |
$436,090 |
-8.8% |
| Darwin |
$393,298 |
-8.6% |
| Hobart |
$445,235 |
3.4% |
| Canberra |
$587,583 |
2.4% |
| Combined capitals |
$592,135 |
-8.4% |
1CoreLogic Home Value Index, 3 June 2019
2 CoreLogic 1 May 2019