Grants Report - Pakenham Update 2nd Quarter 2016

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MAR - JUN 2016

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SECOND QUARTER 2016 EDITION

REPORT

2ND QUARTER 2016 EDITION THE GRANTS REPORT PAKENHAM & CARDINIA PROPERTY MARKET UPDATE

T

he potential changes to negative gearing suggested by the Labour Party would see many investors worse off - does this suggest you sell any investments properties now?

Probably not, as the proposal has suggested existing investments before July 1, 2017 would remain under the old rules.

However, negative gearing does seem to be under review from both sides of politics.

Whilst negative gearing remains one of the most important aspects and positives of investing in residential property and whilst currently still speculation, many commentators believe that if the changes are brought in there could be a rush of investors looking to buy prior to changes coming in.

The Labour plan is to reduce the negative gearing tax and capital gains tax breaks - primarily through reducing the capital

“Two million Australians own an investment property and, of those, 1.2 million negatively gear,” said the Property Council. “This policy will put rents at risk, risk jobs and make it so much harder for families to plan their economic futures.”

01 >>> THE GRANTS REPORT

gains discount from 50% to 25%, whilst also limiting negative gearing to newly built investment properties.

Modelling by tax accountant H&R Block of the impact of Labor’s proposed changes indicate a taxpayer earning above $80,000 with one or two investment properties would be worse off every year if these investments were made after July 1, 2017.

And if the same taxpayer sold one or both properties under Labor’s reduced capital gains tax regime (assuming they were bought after July 1, 2017 and held for at least 12 months) and derived a capital gain, its possible he or she could

be liable for additional income tax in the year of divestment.

Analysts warn that for landlords left with a cashflow shortfall, it would not be as easy as just putting up the rent. As both economist Saul Eslake and housing analyst Louis Christopher have pointed out, rents are a factor of supply and demand.

Investors who arbitrarily increase rents to make up the cashflow shortfall could risk losing tenants and be left with vacant properties.

Such fears might spark a sell-off of investment properties, another trigger for prices to fall.

ARE CHANGES TO NEGATIVE GEARING AHEAD? With both parties reviewing the future of negative gearing, is it time for investors to look at their portfolios with an eye to 2017 and beyond.

“In such a scenario, many investors would probably exit the property market or put up the rent,” says Mark Chapman, director of tax communications for H&R Block..”

The Tax Institute, the peak body for tax education, is firmly opposed to Labor’s plans, believing they will remove a key incentive to investment and create a rental crisis. More broadly, it believes any “piecemeal changes” to the tax system will create “distortions and deficiencies”.

In a statement this week, the institute said the debate about tax reform was important but urgued a comprenshive

approach designed to maintain incentives to investors to increase rental housing stock.

“While we welcome appropriate cuts to income tax and have suggested ways negative gearing could be reformed, cherry-picking reform options without looking at the complete package doesn’t assist the public to make an informed decision about tax reform,” Athanasiou said.

This view was echoed by the Reserve Bank of Australia, which in its submission to the Parliamentary Inquiry into Home Ownership last year said it believed there “is a case for reviewing neg-

ative gearing, but not in isolation”.

Opponents of Labor’s proposed changes argue that house prices would inevitably have to fall or rents increase (or both) to deliver a meaningful return to investors.

Negative gearing – which the Reserve Bank says gives investors the “ability to deduct legitimate expenses incurred in the course of earning income” – offsets the net returns from rental income. Average gross yields on houses are around 3.4 per cent and 4.1 per cent for units, according to CoreLogic RP Data figures for the major capital city markets.

THE GRANTS REPORT <<< 02

This quarter’s

SALE HIGHLIGHTS Sales data from 1st January 2016 to 31st March 2016 Street

12 LATTA RD, NAR NAR GOON SOLD FOR $733,000 Exceptional property in prized location.

33 VICTORY DVE, PAKENHAM SOLD FOR $410,000

Luxury home in desired pocket, close to shops, schools and transport.

12 HILLVIEW PLC, BERWICK

SOLD FOR $650,000 Exceptional family home on Northside in quiet pocket.

3 >>> THE GRANTS REPORT

Suburb

Beds Bath Car Area

Price

12 ABBEY LANE

PAKENHAM

4

2

2

256

$405,000

10 ABBEY LANE

PAKENHAM

3

2

2

194

$406,000

13A ABECKETT RD

BUNYIP

3

1

946

$323,000

14 ABERDEEN HEIGHTS

PAKENHAM

4

2

4

742

$414,000

40 ABERDEEN HEIGHTS

PAKENHAM

5

3

2

650

$470,000

10 ABREHART RD

PAKENHAM

4

2

2

595

$431,500

18 ADRIATIC WAY

PAKENHAM

4

2

2

345

$396,000

1 ALBATROSS DR

PAKENHAM

3

3

2

263

$470,000

32 ARTHUR PHILLIP DR

PAKENHAM

3

2

2

757

$525,000

25 ATKINS RD

PAKENHAM

3

2

4

666

$340,000

20 ATKINS RD

PAKENHAM

5

3

3

751

$450,000

37/23 ATLANTIC DR

PAKENHAM

4

2

2

164

$396,950

22 AUDLEY ST

PAKENHAM

4

2

2

448

$485,000

LOT 324 AUSTEN AVE

OFFICER

3

2

1

57A BALMORAL WAY

PAKENHAM

3

2

2

490

$380,000

43 BALMORAL WAY

PAKENHAM

4

2

2

650

$407,000

50 BALMORAL WAY

PAKENHAM

4

2

2

755

$425,000

10 BARWON DR

PAKENHAM

3

2

2

448

$390,000

420 BELGRAVE-

GEMBROOK

3

1

1 18,085

$775,000

41 BELMONT CRES

PAKENHAM

5

2

2

337

$525,000

13 BELVEDERE CRT

GEMBROOK

4

2

2

1,149

$610,000

13 BEN DR

PAKENHAM

3

2

2

521

$328,000

32 BEN DR

PAKENHAM

4

2

2

578

$390,000

3 BENOR CRT

PAKENHAM

3

2

3

734

$393,000

5 BIRCH CRT

PAKENHAM

3

2

2

400

$390,000

6 BIRCH CRT

PAKENHAM

3

2

2

400

$420,000

172 BLUE HORIZONS WAY PAKENHAM

3

2

2

650

$372,000

42 BLUE HORIZONS WAY

PAKENHAM

4

2

2

530

$384,000

134 BLUE HORIZONS WAY PAKENHAM

4

2

2

440

$385,000

29 BOHEMIA CRES

PAKENHAM

4

2

2

375

$400,000

14 BONNEVILLE PDE

PAKENHAM

3

2

2

420

$390,000

7 BOTANIC DR

PAKENHAM

4

2

2

525

$475,000

9 BOTANIC DR

PAKENHAM

4

2

2

525

$550,000

21 CAREY CRES

PAKENHAM

4

2

2

570

$442,000

10 CASCADE WAY

PAKENHAM

3

2

2

314

$320,000

7 CASPIAN CH

PAKENHAM

4

2

2

467

$363,000

17 CATHERINE PL

PAKENHAM

3

1

1

312

$342,000

7 CATHERINE PL

PAKENHAM

3

1

1

313

$347,000

7 CAVERSHAM DR

PAKENHAM

3

2

2

528

$460,000

3 CELEBRATION CCT

PAKENHAM

4

2

2

390

$373,000

48 CENTRAL AVE

PAKENHAM

3

2

2

479

$390,000

$365,000

Sales data from 1st January 2016 to 31st March 2016 Street

Suburb

Beds Bath Car Area

Price

6 CERRETO MEWS

PAKENHAM

4

2

2

555

$381,000

11 CHARLOTTE PASS

PAKENHAM

4

2

2

564

$495,000

40 CHESTNUT CH

PAKENHAM

3

2

1

325

$325,000

12 CHRISTIE CRT

PAKENHAM

4

2

2

479

$420,500

13 CIDER LINK

PAKENHAM

3

1

1

359

$330,000

14 CLEARWATER DR

PAKENHAM

4

2

2

749

$650,000

13 CORMORANT PDE

PAKENHAM

3

2

2

350

$625,000

16 CORNFLOWER ST

PAKENHAM

3

2

2

375

$368,000

4 CRYSTAL ST

PAKENHAM

3

2

2

497

$360,000

19 CURRAWONG CRES

PAKENHAM

4

22

447

$390,000

2 STIRRUP CRT, PAKENHAM

5 DAPHNE CRT

PAKENHAM

4

2

2

595

$450,000

Grand home for young family in a prized position.

3 DAPHNE CRT

PAKENHAM

4

2

2

560

$475,000

14 DARVELL CRT

PAKENHAM

3

2

4

525

$355,000

58 DIAMOND DR

KOO WEE RUP

3

2

2

571

$370,000

6 DIXONS RD

CARDINIA

3

1

8

1,938

$375,000

2 DOWD CRT

PAKENHAM

3

2

2

650

$360,000

2 DOWD CRT

PAKENHAM

3

2

2

650

$360,000

73 EBONY DR

PAKENHAM

3

2

2

562

$370,000

60 EBONY DR

PAKENHAM

4

2

2

588

$377,000

12 EDAN CRT

PAKENHAM

3

2

570

$312,500

6 ELRONA CRT

PAKENHAM

3

2

2

1,605

$519,000

21 ELWOOD AVE

PAKENHAM

4

2

2

448

$362,500

3 EVERLY CCT

PAKENHAM

3

2

2

575

$415,000

37 EVERLY CCT

PAKENHAM

4

2

2

560

$470,000

8 EYRE PL

PAKENHAM

4

2

2

722

$527,000

10 FALLINGWATER DR

PAKENHAM

3

2

3

680

$430,002

16 FALLINGWATER DR

PAKENHAM

4

2

2

646

$486,500

54 FLINDERS CH

PAKENHAM

3

2

2

400

$417,500

8 FLINDERS PARK DR

OFFICER

4

2

2

512

$520,000

27 GALLERY WAY

PAKENHAM

3

2

2

598

$430,000

10 GARFIELD RD

GARFIELD

4

1

4,221

$430,000

2701 GEM-LN PLC RD

GEMBROOK

5

3

8 11,000

$725,000

1 GILLIAN PL

PAKENHAM

3

2

2

544

$365,100

42 GLENVISTA RD

PAKENHAM

3

2

2

500

$360,000

190 GORDON RD

PAKENHAM UPPER

3

1

6 32,550

$620,000

3 GREENDALE BVD

PAKENHAM

4

2

2

697

$525,000

155 GUNN RD

GARFIELD

4

1

5

1,012

$625,000

7 GUS CT

PAKENHAM

3

2

1

512

$350,000

15 MANNA GUM DVE, PAKENHAM

10 HALF MOON CRES

PAKENHAM

3

2

2

462

$381,000

Well presented family home in sought after location.

29 HAMMOND CRES

OFFICER

3

2

2

214

$370,000

28 HARTLAND CCT

PAKENHAM

4

2

2

666

$427,000

4 SMITH ST, BERWICK

50$ - BUY 2 AND SAVE 10$ Asperum eatquas everior rovit, seniene cuptaecerit porion est id estia sequam.

Code: AB123

SOLD FOR $375,000

33 MAIN ST, GEMBROOK

SOLD FOR $455,000 Spacious home with generous block.

SOLD FOR $405,000

THE GRANTS REPORT <<< 4

This quarter’s

SALE HIGHLIGHTS Sales data from 1st January 2016 to 31st March 2016 Street

45 WAKENSHAW CRS, PAKENHAM SOLD FOR $315,000

Entry level family home in great location popular with family buyers.

1 BALCOMBE CRT, NARRE WARREN

SOLD FOR $488,000 Exceptional home renovated throughout.

8 MARTIN PLACE, PAKENHAM

SOLD FOR $395,000 Spacious family home in ideal location popular with family buyers.

5 >>> THE GRANTS REPORT

Suburb

Beds Bath Car Area

Price

15 HOME RD

NAR NAR GOON

3

2

915 $360,000

5 HONEYEATER WAY

PAKENHAM

4

2

2

646 $498,500

22 HONEYSUCKLE CL

PAKENHAM

4

2

2

448 $440,000

3/11 HOWQUA PL

PAKENHAM

3

2

2

150 $352,000

36 INSPIRATION CCT

PAKENHAM

4

2

2

400 $420,000

13 JEMIMA CRT

GARFIELD

4

2

24 JOSEPH BANKS DR

PAKENHAM

4

2

2

1,201 $460,000 400 $406,000

19 JOSEPH BANKS DR

PAKENHAM

4

3

2

560 $675,000

27 KILLARNEY CRES

PAKENHAM

4

2

2

406 $340,000

3 LAUREL LANE

PAKENHAM

3

2

2

307 $325,000

33 LEIGH DR

PAKENHAM

4

2

2

652 $367,500

8 LEVENS WAY

OFFICER

240 LONE PINE RD

GARFIELD

4

2 10 79,176 $780,000

10 LONGMEADOW RD

OFFICER

3

2

2

313 $382,500

12 LORDS LANE

OFFICER

3

2

2

174 $405,000

623 $345,000

2 LORDS LANE

OFFICER

3

2

2

231 $430,000

43 MACKELLAR ST

PAKENHAM

4

2

2

740 $561,000

21/1 MALOUF CRT

PAKENHAM

2

2

2

256 $390,000

105 MANN RD

PAKENHAM UPPER

5

2

3 84,000 $880,000

36 MANNA GUM DR

PAKENHAM

3

2

2

401 $345,000

51 MANNA GUM DR

PAKENHAM

3

2

2

609 $381,000

21 MANNA GUM DR

PAKENHAM

3

2

3

757 $420,000

12 MARKBEECH CRES

OFFICER

4

2

2

337 $450,000

44 MARY ST

OFFICER

3

2

2

430 $425,000

21 MCGARVIE CRES

PAKENHAM

4

2

2

853 $556,000

38 MCGARVIE CRES

PAKENHAM

5

2

3

802 $590,000

3 MELALEUCA PL

PAKENHAM

3

2

1

508 $365,500

29 MELISSA WAY

PAKENHAM

3

2

2

500 $386,000

13 MELISSA WAY

PAKENHAM

4

2

2

486 $404,000

460 MT EIRENE RD

GEMBROOK

3

2

2 22,198 $540,000

4 MURRAY AVE

PAKENHAM

3

2

3

899 $587,500

3 PINE WAY

PAKENHAM

3

2

2

169 $376,000

16 NAPLES WAY

PAKENHAM

3

2

2

709 $325,000

24 NATANYA DR

PAKENHAM

4

2

2

558 $375,000

3 OLIVIA CRT

PAKENHAM

4

2

3

600 $460,000

12 PARAMOUNT WAY

PAKENHAM

3

2

4

693 $360,500

35 PARAMOUNT WAY

PAKENHAM

3

2

4

785 $370,000

3 PINE WAY

PAKENHAM

3

2

2

169 $376,000

Sales data from 1st January 2016 to 31st March 2016 Street

Suburb

Beds Bath Car

Area 650

Price

10 POMMEL ST

PAKENHAM

3

2

4

$355,000

36 PORCHESTER BVD

OFFICER

4

2

2

11 RADIATA CCT

PAKENHAM

4

2

2

8 RED CHERRY CRT

PAKENHAM

5

2

2

8 REDCHERRY CRT

PAKENHAM

4

8 REDCHERRY CT

PAKENHAM

5

2

2

19 REIDEL AVE

PAKENHAM

3

2

2

490

$420,000

15 RIVER RED GR

PAKENHAM

4

2

2

585

$395,000

17 RIVIERA DR

PAKENHAM

3

2

2

869

$341,000

27-29 ROGERS ST

PAKENHAM

3

1

1

1,677

$330,000

$460,000 615

4 SMITH ST, BERWICK

50$ - BUY 2 AND SAVE 10$ Asperum eatquas everior rovit, seniene cuptaecerit porion est id estia sequam.

Code: AB123

$506,000 $375,000

517

$375,000 $375,000

5 ROMINA ST

PAKENHAM

3

2

2

336

$350,250

27 ROSELLA AVE

PAKENHAM

4

2

2

452

$460,000

85 SANDALWOOD DR

PAKENHAM

4

2

2

647

$416,000

7 SARTON LINK

PAKENHAM

4

2

2

448

$442,500

10 SHERRIFF RISE

PAKENHAM

4

2

2

763

$350,000

2/41 SILVER GUM DR

PAKENHAM

4

2

2

316

$325,000

23 SILVER GUM DR

PAKENHAM

5

2

3

668

$450,000

15 SIR THOMAS DR

PAKENHAM

3

2

1

504

$340,000

37 SPRING CCT

PAKENHAM

4

2

2

672

$437,000

15 ST LEONARD WAY

PAKENHAM

3

2

2

640

$475,000

5 STABLE ST

PAKENHAM

4

2

4

427

$390,642

85 STOREY DR

PAKENHAM

4

2

2

594

$400,100

8 STRICKLAND CRT

PAKENHAM

4

2

4

594

$568,000

33 STRINGY BARK CCT

PAKENHAM

3

1

1

400

$340,000

4 TAREE CL

PAKENHAM

4

2

2

732

$490,000

23 THE CCT

PAKENHAM

4

2

2

668

$510,000

17 THE PKWY

PAKENHAM

3

2

2

417

$440,000

17 THOMAS ST

PAKENHAM

3

2

7

615

$380,000

230 TOOMUC VALLEY RD PAKENHAM

3

1

6

2,986

$408,000

16 VIOLA AVE

PAKENHAM

4

2

2

619

$395,000

45 WAKENSHAW CRES

PAKENHAM

3

2

1

425

$315,000

23 WARBLER ST

PAKENHAM

4

2

2

400

$359,001

24 WATERSIDE DR

PAKENHAM

4

2

2

502

$560,000

34 WEBSTER WAY

PAKENHAM

3

2

2

708

$373,000

4 WEDGEWOOD DR

PAKENHAM

3

2

2

420

$351,000

9 WILD CHERRY AVE

PAKENHAM

4

2

2

534

$376,000

92 WINDERMERE BVD

PAKENHAM

3

2

2

529

$405,000

5 WINDMILL CRT

OFFICER

4

2

2

576

$530,000

56 EBONY DVE, PAKENHAM SOLD FOR $365,500

Exceptionally presented home in popular area.

10 HALF MOON CRS, PAKENHAM

SOLD FOR $510,000 Immaculate family home with plenty of space and appealing floorplan.

6 KERRY PLACE, GARFIELD

SOLD FOR $581,500 One of Garfields finest home in quiet location preferred by local buyers.

THE GRANTS REPORT <<< 6

Berwick Sales

Pakenham Sales

Narre Warren Sales

Property Management

berwick@grantsea.com.au www.grantsea.com.au

pakenham@grantsea.com.au www.grantsea.com.au

narrewarren@grantsea.com.au www.grantsea.com.au

rentals@grantsea.com.au www.grantsea.com.au

Grants Estate Agents 3a Gloucester Ave BERWICK VIC 3806 9707 5555

Grants Estate Agents 3/51 John St PAKENHAM VIC 3810 5940 2555

Grants Estate Agents 9 Webb St NARRE WARREN VIC 3805 9704 8899

Grants Estate Agents 1/5 Gloucester Ave BERWCK VIC 3806 98762 6900