PIPA In the News

01 Apr

The Property Impact

The coming changes to the superannuation rules will impact on just about every aspect of SMSFs. 

Ben Kingsley takes a look at the implications for property investments.

Despite unease among some SMSF investors, talk of property price bubbles and tightening investor lending policies, Australian property investors remain bullish about the long-term merits of residential real estate.

27 Mar

How Hank 'The Bank' Hong broke out on his own

The Adviser talks to Hank Hong about the decision-making process behind choosing an aggregator for his new business, how keeping in touch over social media turned many of Hank's clients into life-long friends, and why he believes the emergence of online disruptors won't have as large an effect on brokers as many believe.

Find out how this broker:

  • Outsourced his support staff
  • Chose eChoice as his aggregator
  • Fosters clientele relationships through social media

27 Mar

ATO clear on tax avoidance schemes

PIPA lodged a complaint with the Australian Tax Office (ATO) recently regarding marketing material from a non-member which appeared to promote a tax avoidance scheme.

The advertisement appeared to be promoting the allocation of rent from an investment property to pay down one's owner occupier (non-deductable) debt and in return receive favourable tax advantages with regards to the higher interest deductions associated with the investment property.

In his response to PIPA, ATO Assistant Commissioner Michael Ingersoll said that the information provided was suggestive of a form of loan interest payment arrangement that may have similarities to arrangements on which the ATO has published its views.

14 Mar

Buying an investment property overseas

Jason Dunne is a concierge who dabbles in property.

Over the past two-and-a-half years, one of his investment properties has nearly doubled in value. You might think there's nothing noteworthy given Australia's turbo-charged property market. But Dunne's property is half a world away from Australia's booming capital cities.

"In mid-2014 I made the mistake of believing Sydney property prices were near their peak and sold a two-bedroom flat I owned in Lakemba [a western suburb of Sydney]," he says.

"Back then the Aussie dollar was around parity with the greenback. Plus, US property prices were still recovering from the crash of 2008. I used some of the money I made from the Lakemba sale to buy a four-bedroom house in Atlanta, which was a bank foreclosure."

08 Mar

Victoria axes stamp duty for first home buyers

Will stamp duty cuts in Victoria hike up prices?

The Andrews Government in Victoria has introduced a range of measures to help with the growing challenges around property price growth being driven by record low interest rates, strong population growth and supply not being able to keep up with demand.

07 Mar

When does it make sense to buy an apartment?

There's been plenty of talk recently about the dangers of buying an apartment – particularly those in large high-rise developments in the Melbourne, Sydney and Brisbane CBDs.

Recently, a majority of 26 housing experts and economists surveyed by comparison website Finder stated there was an oversupply of apartments in Melbourne and Brisbane, with experts predicting it would lead to a fall in property prices.

But are there some situations or locations – perhaps outside the CBD – where it still makes financial sense to buy an apartment?

03 Mar

Almost all tenancy complaints in Victoria and NSW come from landlords, not renters

In the last financial year, more than eight in every 10 official tenancy complaints in Victoria and NSW were not from tenants, but from landlords, an analysis of Australia's tribunal data shows.

In NSW, 83 per cent of almost 70,000 tenancy cases lodged to the NSW Civil & Administrative Tribunal in the 12 months to June 2016 were lodged by landlords, an analysis of tribunal data by comparison website Finder found.

And in the Victorian Civil and Administrative Tribunal, 93 per cent of cases were against tenants.

The main topic of dispute was bonds – making up about half of all complaints, Finder spokeswoman Bessie Hassan said.

02 Mar

Same game. New rules.

Investment lending continues to be a hot topic. The Adviser explores how the industry is navigating the changing landscape amid fears of further regulatory intervention.

A resurgence in investor lending towards the end of 2016 prompted a fresh round of fears that more regulatory measures could be on the way. According to the latest figures from the Australian Bureau of Statistics, investor lending is now up 21 per cent year-on-year after a 4.9 per cent surge in November – the fastest growth rate since the first half of 2015 when APRA implemented its macro prudential regulations.

A closer look at the RBA's Financial Stability Reviews and subsequent announcements from APRA provide a decent reading of how lending curbs reach the market. Take the RBA's September 2014 Review. The key phrase came when the central bank warned that "the composition f housing and mortgage markets is becoming unbalanced".

27 Feb

Property professionals "very optimistic" about business conditions this year

Property professionals throughout the country remain bullish on the year ahead, despite market uncertainties, states a new member survey from the Property Investment Professionals of Australia (PIPA).

More than half (54%) of surveyed property professionals are "very optimistic" about business conditions this year, while another 43% are optimistic"—despite challenges such as the tightening lending of policies, taxation changes, and potential interest rate increases.

PIPA's survey gathered insights from a range of professionals who form the peak association for property investment, including Qualified Property Investment Advisers (QPIAs), buyers agents, and mortgage brokers.

26 Feb

Property lease-back deals under ASIC scanner

Leaseback property deals, often targeted towards self-managed superannuation funds (SMSFs), are under the securities regulator's review.

The deals typically involve buying a residential investment property — house or apartment — with guaranteed tenancies that promise returns of around six percent, well above bank deposit rates or inflation numbers, according to a report in the Australian Financial Review.

The new owners lease back the properties to the developer who then acts as a landlord or engages a third party to rent and manage the property. Usually, these contracts are around three to five years and promise generous returns for the length of the contract.

Demand for the deals is growing among retirees looking for a regular, above-inflation income from the rent as well as the prospect of capital growth, the AFR reported.


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