PIPA In the News

Thu
24 Mar
2016

It's a mixed bag outlook for residential property

What's next for investors after a record run for Australia's residential property market?

Following one of the hottest property seasons on record in 2015, we have continued to see evidence of many property markets across the country cooling off this year, with ongoing global volatility, uncertainty over China and high volatility in the share market all contributing to investors' softening sentiment.

Auction clearance rates, a key indicator of property market buoyancy, have moderated somewhat throughout the early months in 2016. According to recent figures from CoreLogic RP data, the preliminary national clearance rate has come in below 70 per cent consistently over two months. It is still worth pointing out that levels around the 70 per cent mark still mean the market is active.

Wed
16 Mar
2016

Consumer protection body launches complaints register

A new initiative by one state's consumer protection body could be a step in the right direction in the effort to weed out unscrupulous operators within the property investment advice sector.

NSW Fair Trading this week announced that from 1 July it will start collecting data for its first ever complaints register that will be launched in August.

The register will provide information about businesses that are the subject of 10 or more complaints to NSW Fair Trading in a calendar month. The Complaints Register will be published on the NSW Fair Trading website in the second half of each month for the previous calendar month.

Rich Harvey, president of the Real Estate Buyers Agents Association of Australia (REBAA), which has been campaigning for stricter regulation property investment advice sector, said the complaints register is "small step" in helping people avoid operators who may not be above board.

Tue
15 Mar
2016

NSW Fair Trading Launches Complaints Register

A new initiative by one state's consumer protection body could be a step in the right direction in the effort to weed out unscrupulous operators within the property investment advice sector.

NSW Fair Trading this week announced that from 1 July it will start collecting data for its first ever complaints register that will be launched in August.

The register will provide information about businesses that are the subject of 10 or more complaints to NSW Fair Trading in a calendar month. The Complaints Register will be published on the NSW Fair Trading website in the second half of each month for the previous calendar month.

Rich Harvey, president of the Real Estate Buyers Agents Association of Australia (REBAA), which has been campaigning for stricter regulation property investment advice sector, said the complaints register is "small step" in helping people avoid operators who may not be above board.

Thu
25 Feb
2016

Are property prices really going to drop by 50%?

An American researcher's prediction that Australia's real estate prices are headed for a dramatic decline has been met with scepticism from a key member of the property industry.

Australian investors have little to fear over predictions of a 30 to 50 per cent decline in property values, according to the director of Empower Wealth and chair of the Property Investment Professionals of Australia, Ben Kingsley.

US researcher Jonathan Tepper, founder of Variant Perception, made the prediction in a 60 Minutes segment broadcast on Sunday night. The segment also featured failed Moranbah, Queensland investor, Kate Moloney.

Wed
17 Feb
2016

How to spot a property spruiker

Property as an investment choice is going through the roof among Australians, including SMSF trustees, attracted to potential capital growth prospects and passive income in retirement, in the form of rent.

It goes without saying that SMSF property investment is unlocking great opportunities for savvy investors. However, unlike other asset classes, it's important to be aware that the property investment advice sector is unregulated. Anyone is free to don a shiny suit and spruik properties for investment

Just as SMSF trustees have been quick to explore the opportunities that SMSF property investment presents, so too have unscrupulous operators, out to make a quick buck at the expense of innocent trustees - a daunting thought.

Tue
09 Feb
2016

Brokers the best bet for investors

While restrictions on investor lending have clearly slowed down property investment activity, the investor market still represents a wealth of opportunity for the savvy broker.

Mortgage brokers play a key role as providers of finance to investors. This was recently reaffirmed by PIPA's 2015 Investor Sentiment Survey, which gathered insights from more than 1,000 property investors. The survey results showed that two thirds (66 per cent) of property investors secured finance for their last investment property through a mortgage broker.  An even greater number (72 per cent) plan to seek finance through a broker for their next investment loan.

These results are a great endorsement of the outstanding service proposition mortgage brokers offer. There are a number of key reasons driving investors to brokers, and in the complex borrowing environment we are now facing, that proposition is stronger than ever.

Wed
27 Jan
2016

PIPA calls for minimum property investment advice standards

While the Federal Government is considering making financial advisers hold degree level qualifications before they can operate, property investment professionals should not yet be held to the same standards according to one industry body.

A report in Fairfax media outlets earlier this week claimed the government has drafted legislation that will require those entering the financial advice industry from 2017 onwards to hold a degree, pass an exam and undertake a year of professional development before they can operate.

Existing financial advisers would be given to 2019 to complete a bridging course and hold a degree or an approved equivalent.

Ben Kingsley, chair of the Property Investment Professionals of Australia (PIPA), said while the government's plans would be a step forward for the financial advice sector, smaller steps should be taken to better regulate the property investment advice industry.

Mon
04 Jan
2016

Top five tips for buying well in 2016

Restrictions on bank lending are having an impact on the market, as is continued speculation of a property market bubble, so property buyers need to be astute in 2016.

Buying a property is one of the biggest purchases most people are likely to make and many still view property as the key vehicle for their retirement savings nest-egg. For savvy investors who do their due diligence and seek advice from professionals, property continues to present a sound investment choice.

In spite of APRA's clampdown on investor lending, investment loans remain affordable on an historic basis, so opportunities are there for the taking.

Property investors need to be guided by sound information to make the best decisions possible in a complex borrowing and investment environment.

Mon
07 Dec
2015

Get set for life

Australians are increasingly realising they may not be able to rely on the government to fund their retirement. Property gives people the option to continue their current lifestyle well into their old age - but can the average Australian build a retirement-ready portfolio? Smart Property Investment crunches the numbers and looks at what's involved in generating a passive income through property.

With recent speculation that the pension age is going to keep rising and constant reminders from finance experts that Australians are approaching retirement woefully underprepared, many people are wondering how they can take control of their financial future.

Australians are increasingly realising they are unlikely to be able to rely on the government for financial assistance in their old age. Indeed, director of wHeregroup Todd Hunter says it's time for a wake-up call.

Thu
19 Nov
2015

Investors upbeat despite tightening

In spite of challenges posed by the tightening of lending by banks, and ongoing fears of a housing bubble, Australian property investors remain reasonably upbeat.

According to the Property Investment Professionals of Australia's (PIPA) 2015 Property Investor Sentiment Survey, which gathered insights from more than 1,000 property investors, well over half of investors (63%) believe now is a good time to invest in property and 60% are looking to purchase a property in the next 6-12 months.

Only 20% of investors say that concerns over a property bubble have caused them to put their property investment plans on hold.

PIPA Chair Ben Kingsley said the survey results confirmed that investors are taking a long-term, more sophisticated approach to property investment.

 

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