Long weekend sees an $11 million property sale

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The Easter long weekend meant people were busier eating chocolate than scouting out property, with total auction numbers across the combined capital cities falling to just 621 this week, compared to 3,476 last week.

Despite these modest auction volumes, the preliminary clearance rate across the combined capital cities was 79.3%, compared to 77.5% last week.

Weekly clearance rate, combined capital cities

20150407 - weekly clearance rateSydney dominated the auction market this week, holding 406 of the total 621 auctions nationwide. Sydney’s clearance rate was 85.2%, compared with 84.6% last week.

Australia’s other market leader, Melbourne, held just 56 auctions this week, with a clearance rate of 84.1%, compared to 78.5% last week.

Capital city auction statistics (preliminary)

20150407 - cap city auc statsAnd if you’re wondering what the high rollers are buying in property this week, research house Core Logic RP Data also released the top sales to the week ending 5 April, with a four-bedroom property in Mosman NSW going for an impressive $11,300,000.

20150407 - hosueNext on this list was a five-bedroom property in Docklands Victoria for over $6 million.

Seven of the top 10 sales were located in NSW, with values ranging from nearly $3 million to over $11 million. Victoria had two properties on this list, and South Australia one.

5 reasons to reshuffle your property portfolio

If you’re thinking about reshuffling your property portfolio, property expert Margaret Lomas last week listed five reasons to bite the bullet and sell.

Lomas suggests cutting your loses when your property is experiencing exceptionally low cash flows, and also if you’ve experienced a continual stream of difficult tenants. Accepting that you’ve bought a lemon can also be part of the harsh reality when contemplating a property reshuffle, but you must weigh up all the costs and benefits first.

“Remember that all investment property carries capital gains tax and unless it has not grown at all, you will have to pay it in the year it is incurred. You will be liable to pay tax on half of the difference between your cost base (that is the buy price plus all allowable costs) and your sale price, less allowable selling costs, at your highest marginal rate of tax, or in the case of super, at the applicable super tax rate.”

Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.

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