PIPA In the News

Wed
15 Jun
2016

Foreign property investors pay the price

From June 21, following the release of the NSW state budget, foreign property investors will be hit with a 4% stamp duty surcharge on residential property purchases. The NSW government will also introduce a 0.75% land tax surcharge for foreign investors, but that won’t come into effect until 2017.

Is this the best move for the state?

We get three expert opinions on what the outcome could be when these changes come into effect.

Fri
10 Jun
2016

Labor's negative gearing model 'dangerously misleading'

As the federal election draws closer, an industry lobby group for property investors has warned that the Labor Party's proposed policy changes to negative gearing are hinged on insufficient economic modelling and broad assumptions.

Ben Kingsley, chairman of Property Investment Professionals of Australia (PIPA), said Labor's negative gearing model is "dangerously misleading", and that such major reform requires a comprehensive and detailed strategy.

"Until there is real evidence to support such a policy, which industry experience tells us doesn't exist, the opposition should be very careful about changing negative gearing and capital gains tax provisions," he said.

Thu
09 Jun
2016

Australians are entering twilight years with $150,000 of mortgage debt: ING Direct

Australians are failing to pay off their homes by retirement and facing their twilight years with growing sums of mortgage debt, new research shows.

Those in the 65 to 80 age bracket owed an average $158,500 on their mortgage in 2015, according to ING Direct figures based on several thousand Australia-wide customers. In 2013, the average debt was $156,000.

Much of this increase is due to housing becoming more expensive, requiring borrowers to take on higher debt and purchase later in life, ING Direct head of product Tim Newman said.

There was a 7 per cent ramp up in the debt held by Australians aged 35 to 54, which would have a knock-on effect into later age brackets.

Wed
08 Jun
2016

Property pundits shout louder against negative gearing reform as election looms

As the federal election nears, cries against proposed changes to negative gearing are getting louder. Property associations and pundits are banding together to warn against the Labor Party's controversial negative gearing tax reform.

Property Investment Professionals Australia (PIPA) char, Ben Kingsley, has claimed Labor's economic modelling underpinning its plan to limit negative gearing to new housing is "dangerously misleading".

"Such major reform requires comprehensive and detailed modelling. Until there is real evidence to support such a policy, which industry experience tells us doesn't exist, the opposition should be very careful about changing negative gearing and capital gains tax provisions," Kingsley said.

Wed
08 Jun
2016

Opposition warned on negative gearing changes

Labor's proposed policy changes to negative gearing are based on inadequate economic modelling and should not be changed in isolation without a comprehensive review of the taxation policy.

That was the call from the peak body of the property industry, the Property Investment Professionals of Australia (PIPA), which said $6.5 trillion worth of Australians' wealth was in property, which was around three times the amount held in superannuation and equities.

The body's chair, Ben Kingsley, said: "Don't play with this unless you know what you're doing. Such major reform requires comprehensive and detailed modelling. Until there is real evidence to support such a policy, which industry experience tells us doesn't exist, the opposition should be very careful about changing negative gearing and capital gains tax provisions".

Wed
08 Jun
2016

Negative gearing debate intensifies as industry leaders criticise labor's plans

With the federal election now less than a month away, the debate around negative gearing and housing affordability shows no sign of abating.

After an alliance of community housing and welfare groups last week derided negative gearing as “unfair” and claimed it is pushing up house prices, a number of the real estate industry's leading voices have criticised proposed changes to the tax break and have claimed they would do little to improve affordability.

The Labor Party is currently campaigning on a platform that from 1 July 2017 would see negative gearing restricted to new builds only and reduce the capital gains tax discount to 25%.

Labor have framed their policy as a means to boost the economy and improve housing affordability, but Property Investment Professionals of Australia (PIPA) chair Ben Kinglsey disagrees the policy will have benefits on either of those points.

Mon
23 May
2016

The 'little known' tax strategy some millennials use to amass large property portfolios

Anthony Java is just a few months away from his 30th birthday, but he has already accrued seven investment properties.

Four years ago, he bought his first home for less than $400,000. Now, he has a portfolio worth more than $2.5 million across Sydney, Brisbane and Melbourne and is set to utilise a little known tax advantage to sell his first property capital gains tax free.

Working as a salesman in Sydney, he was earning about $80,000 when he started his portfolio.

Having spent money every year on "fancy food and jewellery", he was shocked into the reality by his lack of assets by his accountant – 26-year-old Jeremy Iannuzzelli, who owns eight properties himself.

Mon
18 Apr
2016

Property spruiker sent to jail

Following an ASIC investigation, a former company director and property spruiker has been sentenced to two years and nine months' jail.

An ASIC statement announced that Steven William Hill has today been sentenced in the Sydney District Court to two years and nine months' imprisonment, with a minimum of one year and nine months to be served before becoming eligible for parole.

ASIC alleged that between January 2006 and February 2007, Mr Hill, through Hill Stephens & Associates Pty Ltd and International Finance Consortium (Aust) Pty Ltd induced various investors to pay approximately $618,000 to acquire interests in a 'house and land' property development located in Queensland.

Tue
12 Apr
2016

FBAA to represent brokers on negative gearing

The FBAA will today meet with a newly-formed national lobby group that plans to challenge the Labor Party’s proposed changes to negative gearing.

The Negative Gearing Action Group has been established by the directors of Property Investment Professionals of Australia, the nation’s peak body for property investors.

 

It will canvass industry stakeholders, including the FBAA, the Real Estate Institute of Australia and the Australian Bankers’ Association on the negative gearing issue.

Tue
12 Apr
2016

Be wary of property advice

If you are a property investor, you may be unaware of the fact that anything you do to invest in property, any move you make, any advice you take may leave you at greater risk than you thought. This is because the property investment Industry remains, to this day, unregulated.

Yes, you heard correctly, and to put it into perspective, let's think about this:

Imagine you had $250,000 to invest. Your visit to a financial planner will result in, firstly, a risk profile to determine just what asset class will be right for you. Next will be a financial plan, designed to take into account not only your present needs in terms of income and cash flow, but also your future financial needs, time till retirement and future expected net worth in terms of your assets. Then, a written recommendation, complete with projected outcomes, and a bold statement about risk is presented to you along with product disclosure statements about any chosen products. Since 1 July 2013, your adviser isn't allowed to take any commissions on any of these products, and so you will pay a fee to the adviser which must also be clearly disclosed.

 

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