The End of Financial Year is near and it is time to plan and prepare not only tax though best strategy and plan toward building wealth through an investment property portfolio.

In This Issue:

• Victorian Real Estate Market Update, How to Grow and Protect Your Portfolio & Legally Reduce Your Tax – Seminar 29 June 2016
• Melbourne has a new record house price! 4 Roberts Street Toorak
• Real Estate Institute of Victoria Market Overview and Property Data Update
• Core Logic RP Data Update
• Chan & Naylor Tax Accountants – Comments by Ed Chan and David Naylor on Negative Gearing and the forthcoming Election

Victorian Real Estate Market Update, How to Grow and Protect Your Portfolio & Legally Reduce Your Tax – Seminar 29 June 2016

Only 11 days to go, now is your chance to register or share this event registration with someone that may be interested in attending to benefit from an unbiased, informative Property & Tax Seminar!

Chan & Naylor Accountants in association with Master Advocates Real Estate Services

Register and purchase your ticket for the event now via the Eventbrite Link below, seats are limited:

REGISTER NOW – PLEASE CLICK HERE 

Register and purchase your ticket for the event now via the Eventbrite Link below, seats are limited:

REGISTER NOW – PLEASE CLICK HERE 

Event Organiser:

Chan & Naylor Accountants in association with Master Advocates Real Estate Services

Chan & Naylor Accountants in association with Master Advocates Real Estate Services are proud to be hosting an Inaugural Real Estate and Property Tax Seminar and Education evening to provide information, advice and guidance to property investors and home buyers in Victorian who wish to benefit from the knowledge of our expert speaker presentations relating to a current Real Estate Market Update, Best Property Selection and Investment Strategy, How to Grow and Protect an Investment Portfolio & Legally Reduce Tax.

Melbourne has a new record house price!

Melbourne has a new house price record, 4 Robertson Street Toorak. Congratulations to Marcus Chiminello and Marshall White for selling the 7 bedroom, 7 bathroom Mansion. The property featured a grand entry hall, a sweeping staircase, movie theatre, nanny’s quarters, a dance studio, art studio, library, 25m pool and a five-car underground garage and was positioned on 1,767 sqm of prime residential land. Expressions of Interest was the preferred method of sale. Selling for an undisclosed amount above $24,000,000.

4 Robertson Street Toorak
http://www.realestate.com.au/property-house-vic-toorak-122672038

Source Real Estate Institute of Victoria [REIV]

Real Estate Institute of Victoria Market Overview and Property Data Update:

Following its June 2016 meeting, the RBA decided to leave cash rate at 1.75 per cent following on from several months at 2.0 per cent. According to the RBA, the decision was made due to inflation being low and overall growth in Australia continuing. The Westpac-Melbourne Institute Consumer Sentiment Index has dipped slightly following May’s large increase, and now stands at 102.2.

The interest rate is currently at the lowest it has been on record and this should help maintain a steady flow of credit, which should in turn lift demand from both consumers and investors. Victoria continues to maintain a strong credit profile with its AAA credit rating reaffirmed by Moody’s Investors Service in February 2016 and by Standard & Poor’s in August 2015. Low interest rates have been supporting domestic demand and helping the traded sector. There have been about 14,300 auctions held in Victoria in the first five months of 2016 with 73 per cent selling. The number of auction sales from January to May 2016 is 5.3 per cent lower than the same period in 2015, where the clearance rate was 77 per cent. The middle Melbourne region had the highest number of properties sold by auction this year so far, with around 4,100 sales, and a clearance rate of 75 per cent. Vacant space across Melbourne dropped by 10 basis points to 2.9 per cent in May. The vacancy rate in regional Victoria rose to 2.8 per cent over the month. The REIV House Price Index (HPI) for Melbourne fell by 0.6 per cent over May to 184.5, and the index is currently 6.2 per cent higher than its value a year ago. The HPI for regional Victoria was 3.9 per cent higher than its value a year ago, now at 138.6. There were an estimated 9,400 house and unit sales transacted in Victoria in May 2016, and about 46,600 sales in 2016 thus far. REIV estimates 131,700 total house and unit sales in Victoria in the 12 months leading to May 2016. Based on these estimates, the share of auctions sold as a percentage of overall sales was 22.9 per cent in January to May 2016.

Core Logic RP Data Update

Following the 1.7% rise in capital city dwelling values in April, the May numbers were almost as strong, with our Hedonic Home Value index rising a further 1.6% over the month.

Strathmore, Victoria and the 3041 Postcode

Market Insights for postcode: 3041

Median Value $923,744 Average Time on Market 65 days Median Value $433,415 Average Time on Market 53 days

Chan & Naylor Tax Accountants – Comments by Ed Chan and David Naylor on Negative Gearing and the forthcoming Election

Chan & Naylor Property Tax Accountants, National Property, Business, Tax-Accounting & Wealth Advisory Group, BRW 2013 Top 100 – #39 Accounting Firms and Fastest Growing Accounting Firm.

• Ed Chan –  Pull out Negative Gearing….then what? Ed weighs in with his thoughts, do we need to wait for a healthier economy?

On the 28^th April 2016 the Property Observer wrote that the majority of property investors would pull out of property investment should negative gearing be removed which would lead to a drop in property prices.

http://www.propertyobserver.com.au/forward-planning/investment-strategy/property-news-and-insights/53060-reiq-survey-79-of-investors-will-abandon-property-if-negative-gearing-is-abolished.html

Whilst the Labor party will allow negative gearing to new homes which constitute only around 7% of the market it fails to see how that will impact the market.

What will in fact impact the economy is if the other 93% dropped in value. There will be a huge domino effect as so many industries rely on the property market to do well.

If it’s about making housing affordable than its not negative gearing that will make an impact on housing affordability as only around 20% of the property market is negatively geared, but it’s supply that will impact on housing affordability.

• David Naylor –  Battle lines have been drawn with the Budget – Negative Gearing, Super and Lessons we can learn.

By now you would have read all the technical commentary around the 2016 Budget and who were the winners and losers…sometimes you have to read between the lines so what are the REAL lessons we have learnt from this latest Budget delivered by Treasurer Scott Morrison .

1. The Government realise that they need to make up ground in the polls before the next election

Make no mistake about it this budget was designed simply with the next election in mind, it has been designed to give Morrison and the Liberals the best chance of delivering another Budget in 12 months time…and that Budget… because they will have a further three years to implement the policy will be more critical to the future of Australia .

2. Targeting Superannuation for the wealthy, increasing tobacco excise, cracking down on Multi nationals and tax avoidance by shifting offshore is easy pickings and less political

Its less controversial and has less political impact to go after the Wealthy via superannuation, Multi nationals that structure themselves to avoid paying tax in this country and smokers, it impacts less voters and is seen by the majority as good policy. This is not to say the government shouldn’t attack these areas but these are soft targets .

Supportive information sources: Core Logic RP Data, REIV, Chan & Naylor Accountants with Master Advocates Real Estate Services published June 2016