PIPA In the News

Wed
27 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.

Wed
27 Sep
2017

Brisbane remains top pick for investors as confidence in the market stays strong

Brisbane remains the top capital city pick for Australian property investors, a survey has found.

The national survey, conducted by Property Investment Professionals of Australia (PIPA), found investors are bullish about the long-term benefits of residential real estate and shrugging off concerns about stricter lending conditions, property price bubbles and oversupply.

More than 70 per cent of respondents think now is a good time to invest in property, with 61 per cent looking to purchase a property in the next six to 12 months (up from 58 per cent last year).

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

Wed
27 Sep
2017

Investors have their say: confidence high, most popular capital city, and better regulation

An investor survey has revealed how Australian property investors feel about their confidence levels in their decision to invest, what the most popular capital city is for investors to invest in, as well as more calls for better regulation in the industry.

Confidence

The results of the third annual Property Investment Professionals of Australia (PIPA) Property Investor Sentiment Survey has found 70 per cent of investors believe right now is still a good time to invest, with 61 per cent looking to purchase a property within six to 12 months' time.

From a sample size of 742 respondents, the majority of investors are not troubled by issues restricting investors from investing, but the minority who are troubled are rising, as 43 per cent of respondents reported on an adverse impact on being able to secure finance, up from 32 per cent in 2016.

Mon
18 Sep
2017

What to look for when buying off the Plan

Investing in luxury off-the-plan properties can make a lot of financial sense, especially if you're savvy about the developers you choose and know they have a proven track record.  Rakhee Ghelani asked some experts in the field to highlight what to look for before signing on the dotted line. 

Ensure your rental return isn't soaked up by exorbitant fees by considering boutique properties."

 

Sun
17 Sep
2017

Sydney buyers showing their appetite for environmentally-friendly apartments

Sydney's home buyers are showing their green side as the appetite for environmentally-friendly apartments grows, experts say. And it's not just owner-occupiers behind the trend.

Unlike most investors, who purely chase financial returns, Blue Mountains couple Owen and Kerrie Sargeant, have a rather different plan for how they're spending their money.

"When I look at the type of buildings being constructed in many suburbs, it's just high-rise after high-rise," Mr Sargeant said.

Thu
14 Sep
2017

Using equity loans to expand your portfolio

More than half of all property investors are using equity in their homes or other investments as a means of paying for a deposit on another property. This is creating significant risks for investors and the broader economy, warns Lindsay David, founder of LF Economics.

"The Australian house of cards has ballooned through the use of issuing new loans against the unrealised capital gains of other properties in a portfolio," David said in his new report, The Big Rort. "This approach allows lenders to report the cross-collateral security of one property, which is then used as collateral against the total loan size to purchase another property. This approach substitutes as a cash deposit."

David said this practice places investors at a higher risk of default. His research indicates that those with an "officially listed [loan-to-value ratio] in the 50 per cent to 70 per cent bracket" are more likely to be close to default than those with a loan size that is at least 90% or larger.

Thu
07 Sep
2017

Why property investors aren't necessarily as rich as you think they are

Investors have surged in the Sydney and Melbourne property markets at record levels over the past few years, with many amassing significant property portfolios.

Many Gen Y investors have made headlines for having a large number of investments to their name, often worth millions of dollars.

But are they really as wealthy as they appear?

Answering this question is about understanding how they have managed to buy properties in the first place.

Tue
05 Sep
2017

'Risks magnified' when investors use equity loans to buy multiple properties

A common strategy used by property investors around Australia to amass large portfolios of real estate is potentially very risky, experts warn.

More than half of all property investors are using equity in their homes or other investments as a way to pay for a deposit on another property, with lenders allowing them to tap into house price growth seen during the property boom.

While this strategy is popular with property investors as it doesn't require them to cough up any savings, some commentators are raising the alarm, including LF Economics co-founder Lindsay David, whose newly published report The Big Rort points to significant risks for investors and the housing market generally.

Fri
30 Jun
2017

WA broker 'happy' to move to fee-for-service

A Perth-based mortgage broker has explained why he would be comfortable charging a fee-for-service as the broking industry evolves, given the additional services he offers his clients.

Few Australian mortgage brokers currently charge a fee-for-service, but the contentious remuneration model has been under the spotlight following ASIC's review of broker commissions.

In its report, ASIC noted that UK mortgage brokers are paid by either an upfront commission by the lender or a fee for service from the consumer, or a combination of both.

Sat
10 Jun
2017

Why negative gearing into property is still worth it

Treasurer Scott Morrison kept his word last month and resisted calls from economists and Labor to remove or water down negative gearing, handing a gift to the one million Australians who run a property investment at a loss. Or did he?

In the May budget Morrison may have left the negative gearing rules intact but he banned the ability to claim travel expenses for landlordsinspecting their properties and limited the ability to claim depreciation deductions on fixtures and fittings.

For properties purchased after budget night, investors can depreciate new fixtures and fittings, but subsequent owners are unable to claim deductions unless they buy these fixtures and fittings themselves.

It isn't just the Treasurer who is trying to spoil the property party for investors. The banks are too. Forced by the prudential regulator to curb property lending to investors, the majors have lifted rates on investment mortgages as a deterrence.

 

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