PIPA In the News

Fri
07 Dec
2018

First time buyers choosing to invest

New research has found that a third of first-time buyers are choosing to invest rather than buy a home.

The 2018 Property Investment Professionals of Australia (PIPA) Investor Sentiment Survey found that over the past 12 months, 36% of first-time buyers had chosen to invest in property while they continued to rent.

PIPA chairman Peter Koulizos said while it was the first time that specific question had been asked in the annual survey, one could presume that rentvesting as an investment strategy had been a trend for some time.

He said, "What this insight shows us is that first-time property buyers generally have probably been more active over recent years than official statistics originally recorded. 

Thu
06 Dec
2018

Property investing interests first-time buyers

A significant portion of first-time buyers (36%) opted to invest in property and continue to rent instead of purchasing a home for residence over the past year, according to the 2018 Property Investment Professionals of Australia (PIPA) Investor Sentiment Survey.

PIPA Chairman Peter Koulizos said that while it was the first time that respondents were asked about the particular topic in the annual survey, one could presume that rentvesting as an investment strategy had been practised for a while now.

He focused the attention on the possibility that first-time property buyers have been more active over recent years than official statistics originally recorded.

The Australian Bureau of Statistics (ABS) publicly confirmed that there have been issues with first-home buyer statistics from 2012 to 2016, partly because some lenders only report loans to first-home buyers who received a First Home Owner Grant. In its latest statistics, ABS indicated that about 18% dwellings financed in Australia were sold to first-time buyers in September. 

Thu
06 Dec
2018

What is included in a depreciation schedule

A depreciation schedule prepared by BMT Tax Depreciation helps to maximise the cash return from your investment property each financial year.  

To ensure that you claim the maximum depreciation deductions, a BMT Tax Depreciation Schedule lasts for the life of the property or forty years as specified by the Australian Taxation Office (ATO). 

A BMT Tax Depreciation Schedule also provides you with a breakdown of the deductions for the two depreciable elements found in the property as explained below:

Thu
06 Dec
2018

Rentvesting gains traction amongst first-home buyers

A growing group of first-home buyers is found to prefer investing in a home to buying one — a trend known as rentvesting. 

A new research by the Property Investment Professionals of Australia (PIPA) revealed that one in three first-home buyers had opted to invest in property while renting over the past year.

PIPA chairman Peter Koulizos said the results of the study show that first-time property buyers generally have probably been more active over the recent years than official statistics originally recorded.

"The Australian Bureau of Statistics (ABS) publicly admitted issues with first-home buyer statistics from 2012 to 2016, in part due to some lenders only reporting loans to first-home buyers who received a First Home Owner Grant," he said. 

Wed
05 Dec
2018

FHB activity underreported with 1 in 3 opting to invest

First home buyers could be more active than reported in official statistics, with over a third choosing to purchase an investment property, new research from PIPA has revealed.

According to the Property Investment Professionals of Australia's (PIPA) 2018 Investor Sentiment Survey of 820 Australians nationwide, over the past 12 months, 36 per cent of first home buyers (FHBs) opted to "rentvest" rather than buy an owner-occupier property, with a further 63 per cent noting that they would consider rentvesting as a property investment strategy.

PIPA chairman Peter Koulizos said that the research suggests that FHB activity may be underreported, with the latest data from the Australian Bureau of Statistics (ABS) reporting that FHBs represented 18 per cent of loan approvals in September. 

Wed
05 Dec
2018

1 in 3 first home buyers opting to invest

The Property Investment Professionals of Australia (PIPA)'s 2018 Investor Sentiment Survey revealed approximately 36 per cent of first-time buyers are looking to invest in property rather than purchase a home.

PIPA chairman Peter Koulizos said that given such popularity, so-called 'rentvesting' will be here to stay for the foreseeable future.

"What this insight shows us is that first-time property buyers generally have probably been more active over recent years than official statistics originally recorded," Mr Koulizos said.

"The Australian Bureau of Statistics (ABS) publicly admitted issues with first home buyer statistics from 2012 to 2016, in part due to some lenders only reporting loans to first home buyers who received a First Home Owner Grant. 

Wed
05 Dec
2018

Property market update: Brisbane, November 2018

Most capital city markets are feeling the effects of the softening of the Sydney and Melbourne property markets—both of which have just come off an unprecedented property boom—Brisbane bucks this downward trend as it continues to thrive in the changing landscape through a strong local economy.

The Queensland capital's vacancy rates in the most recent quarter sits at 2.1 per cent for both houses and units, well below Sydney's rates at the moment.

According to economist Dr Andrew Wilson: "Overall, it has a strong local economy with a lifestyle and affordability advantage. Brisbane will continue to be at the top of the pack in terms of growth prospects."

"Even though we're only talking a rise of about one to two per cent because we don't have the low interest rate driver and incomes remain flat, there's no doubt that the Brisbane property market is pushing ahead with more demand than supply." 

Tue
04 Dec
2018

One-third of first-time buyers choose to invest

According to new research released today, around one-third of first-time buyers are opting to "rentvest" rather than be owner-occupiers.

Property Investment Professionals of Australia's (PIPA) latest survey data found that 36 per cent of first-time buyers in the past 12 months chose to invest in a property in a more affordable area and continue to rent.

According to PIPA chairman Peter Kouzilos, this is the first time the survey has asked this question of first home buyers. He says the results may indicate that rentvesting has been a popular choice for some time.

"What this insight shows us is that first-time property buyers generally have probably been more active over recent years than official statistics originally recorded," he said. 

Mon
26 Nov
2018

Negative gearing changes needed more than ever, says McKell

A NEW report suggests negative gearing reform is needed more urgently now than when the last federal election was held in 2016, as the country inches closer to a vote that could bring about the changes, according to the McKell Institute.

The McKell Institute's Levelling the Playing Field report, authored by Professor Richard Holden, echoes the Institute's 2015 report that recommended grandfathering negative gearing arrangements for all currently using it, and restricting new negative gearing arrangements to new properties.

That policy was taken to the 2016 campaign by the federal Labor party, which is heavily favoured to win the next election, due in the first half of next year.

The government has suggested that a recent drop in property prices means negative gearing reform should be abandoned, while analysts including SQM Research, AMP Capital's chief economist Shane Oliver, and a number of industry groups have suggested the changes would be detrimental to the property market. 

Thu
15 Nov
2018

Property spruiker Rick Otton fined a record $18 million

Rick Otton has been fined $6 million and his company We Buy Houses fined $12 million for misrepresentation. Both are record amounts.

We Buy Houses Pty Ltd, of which Rick Otton is the sole director, has been in operation for some years. Mr Otton would give free seminars, and conduct paid "boot camps" to teach people about how to invest in real estate.

 

 

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