PIPA In the News

Thu
08 Sep
2016

All eyes on ABS housing finance data: PIPA chair Ben Kingsley urges regulators to move cautiosly

The release tomorrow of Housing Finance data for July by the Australian Bureau of Statistics (ABS) will be an important economic indicator for the Reserve Bank of Australia (RBA) and the Australian Prudential Regulation Authority (APRA) in considering the need for further action on residential mortgage lending practices.

The Property Investment Professionals of Australia’s (PIPA’s) chair Ben Kingsley predicted a third consecutive rise in investment property lending[1] for July, given historically low interest rates and strong levels of market activity.

“All indications are that housing market activity during this period has been strong, especially in the unit space as completions start to gain in number. The Reserve Bank and APRA will naturally be watching this closely given the evidence of further price increases in most location across Australia.

Thu
01 Sep
2016

Signs of property oversupply

After record levels of planning approvals and construction, prices for medium and high-density apartments in several capital cities are starting to come under pressure.  There is potential oversupply developing, particularly in Brisbane and Melbourne and to a lesser extent in Sydney.

An out-of-balance supply-demand ratio can have an impact on buyer confidence and prices.  In a market with oversupply, investors will face possible extended vacancies, poor rental growth and lower capital growth in the short term.

Investors need to tread carefully in this sector and never speculate on quick gains in a low-interest rate environment.

Wed
24 Aug
2016

5 reasons property is still a good investment

Despite tougher lending rules and slowing price growth in some major cities, property remains a safe and stable investment. 

It’s been a whirlwind year for Australia’s property market. From the potential removal of negative gearing concessions, to weighty lending policy changes and warnings of a massive apartment over-supply in some cities, it’s been hard for investors to know where the market is heading.

Despite the uncertainty, property still makes for a good investment vehicle for many Australians. Well-selected residential real estate has proven to be one of the best ways of providing income and/or capital gains over the long term. And there are still opportunities to be found for the smart investor.

Yes, property is still a good investment from a long-term perspective. And here’s why:

Mon
22 Aug
2016

Victorian Government Announces Underquoting Crackdown

The Victorian government is moving to help property buyers by announcing a crackdown on underquoting in the state.

Announced late last week, the Victorian government has revealed a number of proposed changes to the Estate Agents Act 1980 aimed at clarifying the information buyers are presented with by agents.

Under the changes, agents would have to provide buyers with a comprehensive analysis including three recent comparable sales, an indicative selling price, and the median price for the suburb.

Advertising price ranges of more than 10% (e.g. $500,000-550,000) would be banned, as would words or symbols in advertising such as “offers above,” “from” or “+.”

Wed
20 Jul
2016

Property Investment Tips for 2016

Buying a property is one of the biggest financial decisions that a person can make in their lifetime. Here are some tips for property investment from the experts in the field.

With continued speculation of a property market bubble in the coming year, the following steps are recommended to successfully navigate the property market in 2016. The industry experts behind these property investment tips include the Property Investment Professionals of Australia (PIPA), the Real Estate Institute of Australia (REIA), and the Real Estate Buyers Association of Australia (REBAA).

Thu
07 Jul
2016

Will the tax on foreign investors also hit locals?

Life is getting more difficult for foreign investors seeking Australian residential property.

Following the lead of the Victorian government, which last year imposed a 3% stamp duty surcharge, due to increase to 7% from July 1, on foreign buyers (excluding New Zealanders), NSW announced that, effective from June 21, foreign investors will pay an additional 4% stamp duty on their purchases, plus an extra 0.75% in land tax from 2017.

The Queensland government also announced a 3% stamp duty charge for foreign buyers.

While the state governments claim their intentions are to improve housing affordability and supply, the disappointing reality is that imposing further surcharges on foreign buyers is unlikely to address either issue. What it will more likely do, however, is maximise tax revenues by monetising foreigners' healthy appetite for Australian property.

Fri
17 Jun
2016

Negative Gearing, Fact and Fiction

ABC Ben Picture

The Prime Minister has continued to ramp up his attack on Labor's commitment to roll back negative gearing. While the politicians trade blows investors groups are claiming the changes will hit the property market at the wrong time. Reductions to negative gearing and the capital gains tax concessions are due to take effect in twelve months, should Labor win government.

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.

 

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