This week we continue our series looking at suburbs with the highest median prices in 2010, with a focus on two suburbs in Tasmania. We speak with Stephen Davies, Director of Urbis Heritage about buying property that may be heritage listed in the future. And in our tax tip we look at claiming managing agent’s fees.

News
Australian construction activity picked up in the first three months of this year. The value of construction work done in the March quarter rose 0.7 per cent from the December quarter to $42.3 billion, according to the Australian Bureau of Statistics. The rise was underpinned by growth in engineering work, up 4.6 per cent largely due to projects and demand within the resource industry. The Housing Industry Association has welcomed the rise and reported that major renovations also started 2011 on brighter note. HIA says Australians are increasingly looking to improve their existing homes. In the March quarter new residential work done increased the most in the ACT, up 27.4 per cent, followed by New South Wales, Tasmania and Victoria.

Suburbs in Focus
This week we continue our series looking at suburbs with the highest median prices in 2010, with a focus on two suburbs in Tasmania.

First let’s look at Battery Point, a suburb located one kilometre south of Hobart’s central business district. With a population of 2,136 in the last census, Battery Point has many handsome stately homes with water views and some apartment blocks. The suburb has a large number of historic houses dating from the first European settlement of ‘Hobart Town’. Arthur’s Circus, a ring of old cottages surrounding the village green has several tearooms, restaurants, antique shops and pubs. Residents have been the centre of controversy in recent years regarding noise and other restrictions. Many of the homes in Battery Point are classified by the National Trust.

Turning to the figures, houses in Battery Point recorded the capital’s highest median price in 2010 of $860,000. 24 properties were sold in the year.

Our next suburb is Sandy Bay located 4 kilometres south of Hobart’s CBD. With a population of 11,332 in the last census, the suburb has many large houses and adjoins the waterfront Salamanca area and Battery Point. Sandy Bay has a very diverse range of architectural styles from newer homes to Californian bungalows to 1960s full brick homes. Sandy Bay Road is colloquially referred to as “millionaires’ row”. Much of the prime real estate is perched on the hill overlooking the city and the harbour. The University of Tasmania is located within the suburb. The suburb is home to Australia’s first legal casino. Sandy Bay is bounded by the Derwent River and the main beach is Nutgrove Beach.
Turning to the figures, houses in Sandy Bay recorded the capital’s second highest median price in 2010 of $680,000. 161 properties were sold in the year.

Interview
We speak with Stephen Davies, Director of Urbis Heritage about buying property that may be heritage listed in the future.

Tax Tip     
And now to the Tax Tip of the week from Depreciator – the Tax Depreciation Schedule specialists.

This week we take a look at claiming managing agent’s fees.

It’s common to claim the interest on an investment property but what about the fees paid to the agent who manages it? You can claim that cost too. The agent must be legitimate and you will need statements to prove that fees or commissions were paid. Management fees typically come to about 7.5 per cent of the rent, so don’t forget that this amount is tax deductible.

Additionally, the Australian Tax Office has highlighted three areas that people try to claim but shouldn’t.
They are:

–    Commission paid to an agent for the sale of a rental property
–    Fees paid for finding an investment property and
–    Poorly labelled fees that bundle up other charges
–    
These cannot be claimed.

As always, do remember to consult with a tax accountant or tax professional before making any tax related decisions.