PIPA In the News

Fri
06 Oct
2017

70% of investors think now is a good time to buy property

PIPA survey suggests lender restrictions are creating major refinancing opportunities for brokers

70% of investors believe now is a good time to invest in residential property, according to a survey by the Property Investment Professionals of Australia (PIPA).

PIPA surveyed 742 investors, finding that 61% were looking to purchase a property in the next six to 12 months, up from 58% last year.

PIPA chair and broker Ben Kingsley wrote the results suggest that "investors have continued to shake off the noise about a property "bubble", concerns about oversupply of apartments and proposed changes to negative gearing to focus on the long-term benefits of property."

Investors have been hit by lending changes, however: 43% said these changes had made it harder for them to secure finance. Whilst interest-only loans have come into the spotlight from APRA and ASIC, more than half of investors with IO loans said they won't struggle to meet principal and interest repayments once their IO period expires.

Fri
06 Oct
2017

Aussie property investors remain bullish

Ben Kingsley from PIPA joins Kevin Turner to discuss the Property Investment Survey outcomes. 

How investors are shrugging off concerns over stricter lending conditions, property price bubbles and over supply.

Download the podcast here

Real Estate with Kevin Turner picture 

Tue
03 Oct
2017

RBA fears property investors could bring the market down

Given the high number of property investors in Australia, the Reserve Bank is worried that if capital growth slows, investors will put their properties on the market and hurt home owners in the process.

It's a logical argument in an environment where capital growth is becoming increasingly difficult to come by. What if investors take their gains and go?

Last week, during a panel discussion in Sydney hosted by Lander & Rogers and Westpac, Reserve Bank assistant governor Michele Bullock spoke about the "human costs" of financial instability, which has become one of the biggest concerns for the central bank.

"House prices aren't the issue," Ms Bullock said, adding that the behaviours driving market outcomes are what the RBA is looking at more closely.

Mon
02 Oct
2017

Spring market safe as houses

Buyers to hone in on Brisbane

CONFIDENCE in Brisbane's housing market has hit its strongest level in months amid growing belief that a rebalance against southern capitals is underway.

Buyers hit by affordability pains and capital growth slowdown in Sydney and Melbourne had already triggered a flight of capital north, according to experts.Property Investment Professionals of Australia chair Ben Kingsley said "Brisbane and Queensland is the next best bet" given its "affordable buying and good yields".

"Sentiment is definitely on the positive side and there is a sense of urgency," he said...

Sun
01 Oct
2017

Brisbane regains spring in its step as experts predict a rebalance against southern capitals

CONFIDENCE in Brisbane's housing market has hit its strongest level in months amid growing belief that a rebalance against southern capitals is underway.

Buyers hit by affordability pains and capital growth slowdown in Sydney and Melbourne had already triggered a flight of capital north, according to experts.

Property Investment Professionals of Australia chair Ben Kingsley said "Brisbane and Queensland is the next best bet" given its "affordable buying and good yields".

"Sentiment is definitely on the positive side and there is a sense of urgency," he said.

"I think it is real ... Whether they're owner occupiers or investors, they're now getting FOMO (fear of missing out) ... It's simply very difficult to get another million or more from the bank for a Sydney purchase, but to service $750-800,000 for Brisbane might be easier."

Sat
30 Sep
2017

Property investors admit that they need 'more education'

Australia's property investors have high hopes for the future, but admit that more education is needed around the risks and benefits of investing in this asset class.

The 2017 Property Investment Professionals of Australia (PIPA) investor confidence survey reveals that 84 per cent of respondents think property investors should have more education around "the risks and potential benefits" of property investment, despite 33 per cent of investors having a set strategy for investment in place.

Further, 90 per cent argue that all advisers in this space should be qualified, regulated and licensed.

"Unlike financial planning and mortgage broking, the provision of property investment advice still remains unregulated," PIPA chair, Ben Kingsley commented.

Fri
29 Sep
2017

John Kolenda: the lending landscape is turning for investors

Finsure and 1300HomeLoans's managing director on the resurgence of offers for property investors.

Investors are back in favour just a few months after a crackdown from banking regulators threatened to force them out of the property market.

Lenders who answered the call from APRA to make life difficult for investors by raising their interest rates and tightening eligibility criteria are now competing for their business again.

As we anticipated at 1300HomeLoan, investors were never going to disappear. We actually had a significant increase in enquiries from investors at the start of the APRA campaign earlier in the year and their interest has not waned.

After the hit to their own investor volumes, lenders have been offering investors more competitive interest rates to attract their business and the battle for the investor market is now fierce.

Fri
29 Sep
2017

Borrowers in the dark over rising rates

A mortgage market analyst has said that he is "astonished" that banks don't tell borrowers how much their repayments will be if rates were to rise.

More than half of borrowers have no clue what impact a 2 per cent rate rise will have on their home loan, according to Digital Finance Analytics principal Martin North.

"One of the things I'm amazed about is lenders don't actually tell people what their repayments will be if rates were to rise by 2 or 3 per cent — in other words, back to normal levels," Mr North told The Adviser.

"They do the calculations because of serviceability buffers, but that is not disclosed to consumers," the principal said, adding that borrowers have very little "feel" of how their mortgages will behave in a rising interest rate environment.

Fri
29 Sep
2017

Property investor confidence remains resilient despite pressures: PIPA national survey

Australian property investors remain bullish about the long-term benefits of residential real estate, shrugging off concerns about stricter lending conditions property price bubbles and oversupply, the third annual Property Investment Professionals of Australia (PIPA) Property Investor Sentiment Survey has found.

The national survey, which gathered insights from 742 property investors, shows that more than 70% of respondents think now is a good time to invest in property, with 61% looking to purchase a property in the next six to 12 months (up from 58% last year).

However, concerns over changes to investor lending policies are looming large, with 43% of respondents reporting an adverse impact in their ability to secure finance, compared to 32% in 2016.

Rising rates on interest only loans were also a key concern, though the majority of investors (55%) with interest only loans said they would not struggle to meet new principal and interest repayments.

Thu
28 Sep
2017

Bullish investors 'unsure' of P&I, refinancing challenges

The mettle of Australia's property obsession has withstood a barrage of forces that are failing to curb the enthusiasm of bullish investors across the nation.

According to the 2017 PIPA Annual Investor Sentiment Survey, 70 per cent of investors believe that now is a good time to invest in residential property.

Moreover, 61 per cent of investors are looking to purchase a property in the next six to 12 months (up slightly from 58 per cent last year) and 47 per cent purchased a property over the past year, up from 43 per cent in the prior survey.

However, more investors than last year (43 per cent in 2017 versus 32 per cent in 2016) said that changes to investor lending policies have impacted their ability to secure finance for an investment property.

 

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