PIPA In the News

Fri
11 May
2018

"A good budget for investors"

With the budget's guts now laid bare, property experts have had time to think about what it means for investors. As it turns out that, for the most part, it is a good one.

After last year's budget that saw investors reeling with the loss of asset claiming and travel expenses, they were able to catch a breath with this year's budget.

However, this is because there were no measures that directly targeted property investors at all.

Wed
09 May
2018

Land banking tax incentives axed

Accountants with clients currently holding vacant land may be caught off guard by a new tax integrity measure to deny deductions as the government seeks to free up land in a housing affordability play.

The government has proposed that from 1 July 2019, deductions for expenses associated with holding vacant land will be denied to address concerns that deductions are being improperly claimed for expenses, such as interest costs, related to holding vacant land, where the land is not genuinely held for the purpose of earning assessable income.

This measure will not apply to expenses associated with holding land that are incurred after a property has been constructed on the land, it has received approval to be occupied and is available for rent; or the land is being used by the owner to carry on a business, including a business of primary production

Wed
09 May
2018

Budget 2018 - 'A good budget for investors'

With the budget announced in its entirety, property experts have had time to think about what it means for investors; it turns out that, for the most part, it is a good one. Here's what the experts are saying about this year's budget.

After last year's budget that saw investors reeling with the loss of asset claiming and travel expenses, they were able to catch a breath with this year's budget.

However, this is because there were no measures that directly targeted property investors at all.

Wed
09 May
2018

Budget 2018 - Why you should care about the 'unfair' vacant land tax changes

While on the whole, this year's budget was good for property investors, there's one little thing nestled away in one of the budget papers — changes to vacant land tax. Here's what it means for investors.

The one singular change that could see property investors that develop or build to rent getting riled up are the changes to vacant land tax, which will now see deductions not available to those who own vacant land with the intent to build straight away.

Peter Koulizos, chairman of the Property Investment Professionals of Australia, said that this change could actually work against what the government has set out to do and may deter investors who build to rent.

Mon
07 May
2018

Budget 2018-19: What the experts are expecting

Depending on what comes out of the yearly budget, investors could see sweeping changes, or they might not be affected at all. Here's what some experts are expecting to see, and what they want to see.

Last year, the 2017–18 budget removed tax depreciation on established properties as well as travel deductions and introduced measures to combat housing affordability, the former shocking investors, and the latter being viewed as a "sledgehammer approach" when the related legislation was released.

What some experts are currently saying is that we can expect to see no changes targeting investors at all, with some indirect changes that can work in the investors' favour.

Fri
04 May
2018

Mortgages are more affordable now than nearly 30 years ago

Mortgages are more affordable now than they were in 1990, according to recent analysis by the Property Investment Professionals of Australia (PIPA). Yet there are those who still argue that there's a lack of property affordability.

"Many commentators use just two indicators to measure housing affordability – income and house prices," PIPA chairman Peter Koulizos said. Koulizos sees them as good measures to predict how expensive a house is, but he believes it's also important to considering mortgage repayments in order to analyse affordability.

To come up with its analysis, PIPA examined the average size of a home loan, the standard variable rate, principal and interest loan payments, and the annual average wage from 1990 to present day.

Fri
04 May
2018

From Bali to Barcelona: the perks and perils of an overseas holiday home

Cheap flights, beautiful beaches and warm tropical weather make Bali a popular destination for Australian tourists. But what if you want to establish a more permanent base on the island paradise?

Perth-based real estate agent Greg Smith is senior director of Elders Bali which opened a Bali office three years ago when the popular tourist destination was in the midst of a property boom.

According to Mr Smith, there are three distinct groups of Australian buyers in Bali: single male, fly-in fly-out mining workers with high disposable incomes; regular holidaymakers; retirees looking to take advantage of the low cost of living.

"It's a lifestyle decision, [as] the cost of living is much lower," Mr Smith says.

Fri
04 May
2018

Property investment advice should be regulated

The Royal Commission has highlighted the need for property investment advice regulation, amidst the myriad revelations of dodgy operators and unsound financial advice, according to the Property Investment Professionals of Australia (PIPA).

While planners are subject to regulation, the provision of property investment advice generally remains a free-for-all, according to PIPA chairman Peter Koulizos. In fact, anyone can set up shop as a property investment "adviser" without any qualifications whatsoever.

"While professionals such as buyers' agents, property accountants and mortgage brokers operate within regulated environments, property investment advice does not," Koulizos said.

"Not many Australians understand that, which is why so many continue to be the victims of property investment 'advice' from unscrupulous fly-by-nighters.

Wed
02 May
2018

Royal commission highlights drastic need for property investment advice regulations

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 myriad of revelations about unsound financial advice and dodgy operators came an example of a former planner who allegedly directed clients to purchase property from an 'advocacy service' of which he was the majority owner, but never disclosed.

According to PIPA, the planner was found to have not acted in the clients best interests during an audit and while subject to regulation, the provision of property investment advice generally remains a free-for-all.

PIPA chairman Peter Koulizos said anyone can set up shop as a property investment 'advisor' with no qualifications needed and don't need to worry about adhering to legislation - because there isn't any.

Tue
01 May
2018

Dodgy property investment advisers run rampart, but there's hope

Recent events in the real estate space have highlighted the need for properly regulated advice. Here's the current climate, and here's how it can change.

The royal commission into banking has highlighted the need for properly regulated advice, the Property Investment Professionals of Australia (PIPA) has stated.

During the course of the royal commission, one example highlighted of a dodgy dealing was that of a former planner who allegedly pointed their clients to an "advocacy service" for property. That former planner was the majority owner, but he did not disclose this.

After a company audit, the planner was said to not have acted in the client's best interest. PIPA chairman Peter Koulizos said this example highlights the need for property advice regulation, as the former planner ignored what regulation he was subjected to.

 

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