Taxation Revenue from Property, Continues to Rise

According to the recent data revealed by the Australian Bureau of Statistics (ABS), 46.4% of state and local government taxation revenue in the financial year 2012-2013 generated from property related taxes. Over the whole year, state and local government collected a sum of $35.931 billion as a property tax. This collection creates a new record in Australian property market. It clearly shows that property taxes are the largest source of revenue for local and state government.

The overall value of property related taxes is increased by 7.2% during the recent financial year. With home values beginning to rise nationwide from June 2012, it was already clear that state and local government would make the most of it. With higher home values, taxes such as taxes on land, municipal rates and stamp duty also increases. Here is the list of property related tax revenue that is collected under different categories during 2012-2013:

Category	Amount Collected	Percentage
Stamp duties on conveyances	$12,841 m	36% of the total revenue
Land Taxes	$6,192 m	17% of the total revenue
Municipal Rates	$14,192 m	40% of the total revenue
Government borrowing guarantee Levies	$1,063 m	3% of the total revenue
Other	$1,360 m	4% of the total revenue

(Source: RP Data, ABS)

Property related taxes are collected from those who own a property in order construct a home or for investment purpose. These taxes are typically payable by the owner of the property. It is obvious that every property is owned by someone, whether the person is an owner-occupier or an investor. However, those who choose to rent a property rather to own a property do not need to pay tax on the property. State and local government have experienced a significant boost due to continuous improvement in the residential housing market over the year, which is expected to continue with the same pace in the coming months.

Key Points to Consider While Hiring a Real Estate Lawyer

A real estate lawyer handles purchases and sales of condominium, apartments, commercial and real estate transactions, assignments of subleases and leases, co-operative apartments and homes. They also specialize in cases involving, real estate disputes and property claims. However, how would you know that you are dealing with a good lawyer that can easily handle all the real estate property related matters in an easy manner?

Here are some of the vital tips that you must consider before hiring a real estate lawyer:

• Check out their overall experience: Before assigning the task of all property matters to a real estate lawyer, make sure that he or she must have vast experience in this field. This is vital because zoning law and other real estate restrictions differ from state to state.

• Beware of Vague Answers: Ask your attorney about the detailed information about how they are going to represent you, including their strategic plan that they will implement to get the transaction off the ground. If they need some time, to develop an action plan, which is not a bad thing if they answer your all queries and make you understand about their approach.
• Get help and references: You should ask for real estate lawyers by consulting it with your neighbors or relatives who might have had dealing with attorneys.
• Keep an eye on your money: Be sure to ask about the fee of the attorney before you hire one of them. Most of the real estate lawyers charge their fees on an hourly basis, but their rates are negotiable depending on the case.
• Hire a real estate lawyer smartly and make sure which person is going to represent you actually: Confused? Allow me to explain you the whole concept. Well, it is not always necessary that the person you interview is going to attend your case all the time. They may hire a junior associate to handle the day-to-day work. Therefore, whenever you hire an attorney, you must be sure that he or she should handle your case itself.

Factors That Add Value to Your Investment Property

A property meant for investment should be about increasing your wealth. However, how effectively you will be able to maintain your property help you to determine to reach your financial goals. For those who want to achieve their financial goals with this - buy, hold and sell strategy, here are some of the vital tips that will definitely add value to a real estate property or an investment property:

• Renovate Wisely

First and foremost thing you have to do is renovating the house timely, as it is a simple thing that can often make a huge difference. Some of the valuable improvement includes fitting of new lights, wooden flooring, and fresh blinds, paint the house. If you can spend a little more then you should consider updating the bathroom, kitchen, adding more storage, providing off street parking, creating a garden area or outdoor living space. You can also opt for home renovation loans if required.

• Always use quality material

Whether you want to build a house for yourself or for rental purpose, always make sure that you must not compromise with substandard material. It would cost you even more. Therefore, avoid the installation of cheap appliances and invest in quality items that will last for long. Use durable material that will withstand with wear and tear.

• Don’t over capitalize

It is recommended that not to overspend on unnecessary items that will extend your budget. Make sure that you can easily recoup all your money while selling your property. Therefore, do not invest more than 5-10% of the property value on its renovation.

• Stick to basic

When renovating an investment property or a commercial building, it is recommended to spend on modest furnishings with universal appeal and stick to neutral colours and fittings. Renovation will not add any values if future buyers have to make an extra effort to suit their own requirements.

Therefore, following these four vital tactics will help you to add value to your property investment according to your needs.