PIPA In the News

05 Sep

'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.

30 Jun

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.

10 Jun

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.

02 Jun

Investor shares his approach on 'asset protection'

Ben Kingsley is regarded an expert in the field of property investment, having spent years not only as a successful investor but also as a trusted adviser.

However, Ben admits that like most investors, he still worries over his action plan and strategies, and whether they are working to help him maximise the benefits he could reap from his investments.

Aside from continuous education, he cites his wife and financial professionals as vital factors in his asset protection.

30 May

Fractional investing brings new opportunities

While the federal government's First Home Super Saver Scheme formed the centrepiece of the 2017 budget in terms of its implications for younger Australians, the emergence of fractional property investment platforms represents an altogether different solution for addressing the issue of housing affordability.

That is the view of Property Investment Professionals of Australia (PIPA) chair Ben Kingsley.

Speaking to financialobserver, Kingsley said the rise of fractional investment groups such as DomaCom and BrickX represented a compelling proposition for Australian retail investors when it came to tapping into the property market as first homebuyers.

25 May

Bank disruption, merger mayhem and the craziness of negative gearing

It's a troublesome time for banks. And it's not just because of the proposed bank levy. Banks are ripe for disruption and the disrupters are coming.

Neo-banks are popular in the UK and the US. Eric Wilson is at the helm of Xinja, a neo-bank that allows users the security and top-notch customer of the real deal but everything is within an app.

If that wasn't enough of a challenge to the banks, Alex Pollak explains the Revised Payments Service Directive that's already set for the UK and Europe from next year. It forces banks to open their platforms to non-bank competitors and it's sure to make it's way here before long.

Now that Fairfax has a for sale sign, it seems more mergers and acquisitions are popping up on a daily basis, but is it merger mayhem or all in our minds?

And using negative gearing as an investment strategy sounds like a great idea (think of all those tax cuts) but property expert Ben Kingsley says it's just crazy.

22 May

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.

In November 2016, legislation was passed that will reform Australia's superannuation sector from 1 July this year.

According to Treasury, the Superannuation (Objective) Bill 2016 sets out a clear objective for superannuation "to provide income in retirement to substitute or supplement the age pension".

Some of the measures reduce previous concessions for super account holders with high balances, while others are designed to assist low-income earners, the partially self-employed and retirees.

15 May

PIPA: New housing measures are "well-considered"

The Property Investment Professionals of Australia (PIPA) has welcomed the federal government's "well-considered" measures to addressing the housing supply and demand-side issues, as revealed in the 2017-18 federal budget.

As the premier body for the property investment industry, PIPA has long campaigned for greater education around property investment, as well as the regulation of property investment advice. PIPA remains dedicated to "supporting a healthy, sustainable property investment industry" in Australia.

Benjamin Kingsley, chair of PIPA, said the association welcomed the federal government's decision to continue the sensible approach to negative gearing and retain capital-gains tax discounts for Australians.

10 May

Will budget super saver scheme push up property prices?

Will the first-home super saver scheme push up prices?
Ben Kingsley, chair of Property Investment Professionals of Australia and founding director of Empower Wealth

First-home buyers should welcome the federal government's new superannuation savings scheme, which will provide income tax reductions to help them save a deposit for their first home. From July 1 this year, aspiring buyers can contribute up to $15,000 a year into their super accounts. The maximum for each first-home buyer will be set at $30,000, with the first withdrawals permitted from July 1, 2018.

But what will happen to house prices? Given the large focus on our two biggest markets – Sydney and Melbourne – some commentators will argue that this will add to the demand side of the ledger and push prices higher.

10 May

PIPA welcomes housing affordability package in Federal Budget

The Property Investment Professionals of Australia (PIPA) welcomes the federal government's well-considered measures to addressing housing supply and demand side issues as revealed in the 2017-18 Federal Budget.

As the peak body for the property investment industry, PIPA has long campaigned for greater education around property investment as well as regulation of property investment advice and remains dedicated to supporting a healthy, sustainable property investment industry.

PIPA chair Ben Kingsley said the association welcomed the federal government's decision to continue the sensible approach to negative gearing and retain capital gains tax discounts for Australians.


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