Move along to save

Bendigo Weekly | Bendigo Weekly | 17-Nov-2017

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Deals can be had along the line.
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New Real Estate Institute of Victoria data reveals regional buyers can save more than $350,000 by buying a home in the next town along the train line.

Significant savings of more than $170,000 were also possible for those who purchased a home in Kangaroo Flat ($293,375) instead of the previous station on the Bendigo line, Castlemaine ($465,000). 

Also on the Bendigo service, buyers could save a considerable sum of $140,000 by purchasing in Kyneton ($495,000) instead of nearby Woodend ($635,000).

Investment and infrastructure commitments in regional Victoria by both the state and federal governments will drive price growth in many areas, with buyers increasingly looking for affordable alternatives to enter the market. 

V/Line’s Geelong service recorded the state’s largest median house price difference between neighbouring stations with commuters able to save $374,500 by uying in Lara ($455,500), rather than the previous station, Little River ($830,000). 

Lara is just 11km further from Melbourne.

Buyers willing to spend an extra 12 minutes on the Traralgon line could save $151,000 by purchasing in Moe ($189,000), rather than nearby Trafalgar ($340,000).

Meanwhile, savings were also evident on the Ballarat line with a $123,000 difference in the median house price between Ballan ($460,000) and the following station Ballarat ($337,000).

Homebuyers looking to purchase in a regional centre were also able to save a similar amount by purchasing one stop further along the train line in South Geelong ($597,000), rather than Geelong ($720,000).

More moderate savings were also recorded on the Bairnsdale service with Bairnsdale ($270,000) offering a more affordable alternative than the previous town on the train line, Stratford ($320,500).

Savings were also possible on the Warrnambool service with Colac’s median house price $37,500 more expensive than the following station Camperdown. 

For more information on median house prices by town or region, visit reiv.com.au/market-insights 

– Gil King

CEO, REIV 

Changes to depreciation legislation announced in the federal government’s May budget and detailed in Treasury Laws Amendment (Housing Tax Integrity) Bill 2017, have been passed.

The amendment to depreciation rules mean that property investors can no longer claim depreciation for plant and equipment assets, such as air conditioning units, solar panels or carpet, in second-hand residential properties (where contracts were exchanged after 7:30pm on the 9th of May 2017).

BMT Tax Depreciation chief executive officer Bradley Beer said the new law would result in an average loss of around $4,236 in depreciation deductions each year for those impacted, however, even these investors would still be able to claim substantial deductions.

The new rules apply to only a portion of the market, specifically, those investors who purchase a second-hand residential property after 7.30pm on the 9th of May 2017. 

Previously existing legislation will be grandfathered, and investors who purchase brand new residential properties and commercial owners or tenants, who use their property for the purposes of carrying on a business, are also unaffected. 

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