The Rise of Townhouses

Townhouses are proving to be an attractive option across Melbourne for both owner occupiers and investors alike. The demand for townhouses reflects the growing desire for new and low maintenance properties in convenient locations.

townhouse, owner occupied, investment, Melbourne

The availability of quality townhouses in inner city areas allows buyers who are looking for affordable options close to the city to purchase what is essentially a full-size home. Townhouses range in price depending on location and size of the building, but due to the smaller land quota the purchase cost is generally much lower than a full lot with a detached house. Townhouse developments tend to be in convenient locations with easy access to amenities such as public transport and shopping areas.

Data from the 2016 Census shows an increase in the number of townhouse development approvals. This reflects a definite shift towards denser housing. While we tend to think this means more high density apartments, it is actually medium density approvals that have shown the largest increase.

Less land available in close proximity to the city means whatever is on offer tends to be used to its full potential. While traditionally lots with a detached dwelling have seen a ratio of approximately 1:08 land to dwelling, townhouses being built over multiple levels allow for full-sized homes to be erected on much smaller lots. This usually means a significantly lower purchase price, and if the property is new, there can also be generous stamp duty savings for owner occupiers.

As long as we have underinvestment in infrastructure in outer suburbs, there will continue to be many benefits associated with living closer to the city and townhouses are proving to be an affordable way of accomplishing this. Well located townhouses will continue to do well value wise, due to their affordability and proximity to amenities.

There has also been an increase the number of townhouse approvals in Melbourne’s outer growth suburbs. With restrictions in the inner city sometimes affecting the number of dwellings, some developers are opting to build medium density properties in some outer suburbs. Developers are factoring in townhouses as part of the master planning of communities, to accomodate the needs of a growing population. These master plans include focuses on community areas such as parks, playgrounds and BBQs, as part of the total development.

When we are looking at affordability constraints and lifestyle choices, as well as a swelling population, we are likely to see continued growth in the townhouse market. According to the Urban Development Institute of Australia it is expected that in the coming years dwellings other than houses will be the majority of residential building commencements throughout Victoria.

As with any successful real estate purchase it is important to make an informed decision about where and what you are buying. Contact us to find out more about great townhouse options in popular locations.

What’s changing with Depreciation…

There has been some discussion & attempts at explaining the changes to be made this coming financial year for investors regarding depreciation claims.

So far this is what has been relayed to me via different property and tax experts…

In the May budget it was confirmed that investors will no longer be able to claim under Division 40.  This is the legislation that covers the depreciation of ‘plant & equipment’ in a property.  i.e. the removable fixtures & fittings within a property. e.g. hot water service, ovens, dishwashers, air conditioners etc…

This will only relate to established property that an investor may purchase from here on in.  If you buy off the plan or new you will still be able to claim under Division 40.

With stamp duty concessions ending in Victoria for off the plan purchases for investors on the 30th of June.  And now with depreciation changes being made if an investor decides to buy an existing property; it all points to the perfect time to buy off the plan. You have 6 weeks to get in and buy before these changes!

Developers are offering sensational incentives to get as much of their stock sold before the end of the financial year so let’s make the most of it.

Our objective is to find you the right investment property.  We know off the plan & new property!  The right property can make all the difference in how effective your investment will be in future years.

Click here to print article: What’s changing with depreciation

 

3 months to go Investors!

A reminder to investors looking to purchase “off the plan” in Victoria.

With stamp duty concessions ending for off the plan purchases for investors on the 30th of June anyone considering an investment property should make a move soon.

Developers are offering sensational incentives to get as much of their stock sold before the end of the financial year so let’s make the most of it.  Owner occupiers can take advantage of these incentives too.

Talk to your financial planner, your accountant, your mortgage broker, whoever it takes and then contact us and let’s find you the perfect property.

Tiago Investment Property Sourcing

An advisory service to assist individuals in selecting the RIGHT property for their needs.

  

STAMP DUTY CONCESSIONS TO END 30TH JUNE FOR INVESTORS

I am sure you are all aware, from July 1 there will be no stamp duty concessions available for investors.

The bonus at the moment is that in order to sell out developments under construction now, some developers are offering to pay the full stamp duty on all local sales up until June 30.  There are other incentives being offered as well.

This is a great opportunity for investors and owner occupiers alike to get out there and buy that property they’ve been contemplating!

Discussions from industry leaders are:  as 1st time buyers will not pay stamp duty up to $600,000, they believe this will put a high demand on established property up to this price point.  This can only increase the purchase price of those properties as the demand will outweigh supply.

 My company has stock all around Melbourne and we help investors and owner occupiers alike to find their perfect property & home.  Get in touch with us & see how we can help.

Greater demand for space within walking distance to the city.

Latest figures from REIV show that Melburnians are sacrificing home size to live closer to the city.  Most of the top ten suburbs are within 4kms of the city.  Re: link below.

What also makes these suburbs in high demand are they still have the ‘urban feel’ with parks, lakes or beaches nearby and then add the great amenities, good schools & ample public transport makes for expensive suburbs.

http://www.reiv.com.au/news/latest-news/every-metre-counts-south-melbourne-is-our-most-ex