PIPA In the News

Mon
18 Jun
2018

Next big property markets set for high levels of demand

Looking to find the next up-and-coming suburbs? New data from the Property Investment Professionals of Australia has identified which suburbs will see a makeover in the near future.

The research, according to PIPA chairman Peter Koulizos, identified four demographic factors to determine if an area is in the early stage of gentrification.

"If you had this knowledge a few decades ago, you would have bought in suburbs such as Balmain and Paddington in Sydney before they became highly sought-after and expensive," Mr Koulizos said.

"Likewise in Melbourne, where you would have invested in Richmond or Collingwood before they became really popular and pricey."

Mon
18 Jun
2018

Online dangers for property investors

I understand the irony of writing an online article about the dangers of internet information, but bear with me, because property investors need to heed some advice about self-education via the internet.

The net has heralded a brave new world in all aspects of life, and the trading of real estate is no exception. Most property pundits love having easy access to a wide range of data and opinion, but if you park your scepticism entirely and walk blindly into cyberspace, there are hazards afoot.

Fri
15 Jun
2018

'No pets' rental rules forcing owners to give up their animals

It started with a rude note slipped under her door and neighbours complaining in the hallway and it ended up with Stephanie Warzecha giving up her cat.

"I got some very rude notes and they were threatening my cat," said Ms Warzecha.

Despite having her landlord's permission to have pets in her apartment, the 32-year-old felt bullied by the strata committee and neighbours so she gave away her cat before eventually leaving the apartment. She now rents a converted garage studio from friends, so she can keep her dog Falkie.

"If you can find a good tenant then I don't understand why you can't let them have pets. It would make them a lot happier. Why would you take someone's happiness away?" she said

Finding an affordable, pet-friendly rental property was difficult for Ms Warzecha who is on a single, low income, and she's not alone

Wed
13 Jun
2018

Consumers vulnerable to real estate 'double agents'

Growing concern consumers are increasingly vulnerable to conflicts of interest due to major selling agencies opening "buyer's agency" services, has been voiced by leading industry heads.

The concern comes after major real estate brands have launched their own dedicated buyer advisory division, which the Real Estate Buyers Agents Association described as creating the potential for "double agents" acting on behalf of both the seller and purchaser.

REBAA president Rich Harvey said these scenarios make it possible to mislead clients in believing they're receiving independent real estate advice.

"An independent advisor cannot operate on both sides of the transaction," Harvey said.

"Professional advisors, such as licensed independent buyer's agents, have a fiduciary duty to put their clients' interest first."

Tue
12 Jun
2018

How to double the power of your deposit

In modern Australia, the housing affordability musings attract more newspaper column inches than a royal wedding.

For most, the biggest challenge isn't being able to afford the mortgage repayments – it's putting together a deposit for the purchase. Let's face it, if you're trying to save a ten to twenty per cent deposit to buy a median-priced house ($1,033,892) or apartment ($878,325) in Sydney, you've got your work cut out for you.

But for those who reside beyond the Harbour City and / or are prepared to explore the increasingly popular rentvestingstrategy, the options to purchase a piece of Oz are well and truly on hand for those with an open mind.

Fri
08 Jun
2018

Ask the experts: How can young parents get ahead financially

NAME: Jennifer and Toby

STATUS: 32-year-old married couple with a two-year-old daughter, Emily.

QUESTIONS: How do we accelerate our wealth? Should we continue to build our savings in our 100% mortgage offset account or should we invest in a portfolio of listed shares, ETFs and bonds? What is the outlook for our two Perth properties?

ANSWERS: Pay down your property debt and diversify your wealth into other investments. Don't sell your Perth properties and you can consider buying a Hobart property.

Mon
21 May
2018

Help! My property manager is stealing rent

The banning of a Sunshine Coast property manager for stealing nearly $47,000 in rent has raised questions around what investors can and should do in similar situations.

We asked an expert to find out.

Elizabeth Anne Provan, director and former principal licensee of Dicky Beach Real Estate Pty Ltd, was found guilty of wrongfully converting trust money and acting as unlicensed property agent after charges were brought by the Office of Fair Trading (OFT) for breaching the Property Occupations Act 2014.

Ms Provan, who did not appear at the Caloundra Magistrates Court, was fined $25,000 after converting rent money for her own use and asking tenants to place rent money into her own personal account, which totaled $46,793, from January to July 2017. She was also banned for 10 years.

Thu
17 May
2018

This is why housing is more affordable now than in 1990

Is there really a housing affordability crisis?

Now I'm not arguing that it's hard to get into the housing market - it is, but maybe it's no harder than before. 

According to the Property Investment Professionals of Australia (PIPA) those arguing property's lack of affordability haven't studied the numbers properly.

In fact their research suggests that mortgages are more affordable now than they were in 1990...

"Many commentators use just two indicators to measure housing affordability – income and house prices," PIPA Chairman Peter Koulizos said.

"This is a good measure to indicate how expensive housing is, but if you want to analyse affordability, you must also consider mortgage repayments."

PIPA examined annual figures looking at the average size of a home loan, the standard variable rate, principal and interest loan repayments and the annual average wage from 1990 to today.

Wed
16 May
2018

Property advisers need regulation

The banking royal commission has highlighted the drastic need for property investment advice regulation, according to the Property Investment Professionals of Australia (PIPA).

Among the revelations about dodgy operators and unsound financial advice was the example of a former planner who allegedly directed clients to purchase property from an advocacy service of which he was the majority owner, a fact he did not disclose.

The planner was found to have not acted in the client's best interests during a company audit.

PIPA chairman Peter Koulizos said that while that planner was also subject to regulation, the provision of property investment advice generally remains largely a free-for-all and that anyone can set up shop as a property investment 'adviser' without any qualifications.

Fri
11 May
2018

Rent stealing PM fined $25K, banned for 10 years

A Sunshine Coast property manager has been fined $25,000 and banned for 10 years after stealing nearly $47,000 in rent. If you find yourself lumped with a PM like this, what can you do? We asked an expert to find out.

Elizabeth Anne Provan, director and former principal licensee of Dicky Beach Real Estate Pty Ltd, was found guilty of wrongfully converting trust money and acting as unlicensed property agent after charges were brought by the Office of Fair Trading (OFT) for breaching the Property Occupations Act 2014.

Ms Provan, who did not appear at the Caloundra Magistrates Court, was fined $25,000 after converting rent money for her own use and asking tenants to place rent money into her own personal account, which totaled $46,793, from January to July 2017.

 

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