PIPA In the News

Wed
08 Jun
2016

Property pundits shout louder against negative gearing reform as election looms

As the federal election nears, cries against proposed changes to negative gearing are getting louder. Property associations and pundits are banding together to warn against the Labor Party's controversial negative gearing tax reform.

Property Investment Professionals Australia (PIPA) char, Ben Kingsley, has claimed Labor's economic modelling underpinning its plan to limit negative gearing to new housing is "dangerously misleading".

"Such major reform requires comprehensive and detailed modelling. 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," Kingsley said.

Wed
08 Jun
2016

Opposition warned on negative gearing changes

Labor's proposed policy changes to negative gearing are based on inadequate economic modelling and should not be changed in isolation without a comprehensive review of the taxation policy.

That was the call from the peak body of the property industry, the Property Investment Professionals of Australia (PIPA), which said $6.5 trillion worth of Australians' wealth was in property, which was around three times the amount held in superannuation and equities.

The body's chair, Ben Kingsley, said: "Don't play with this unless you know what you're doing. Such major reform requires comprehensive and detailed modelling. 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".

Wed
08 Jun
2016

Negative gearing debate intensifies as industry leaders criticise labor's plans

With the federal election now less than a month away, the debate around negative gearing and housing affordability shows no sign of abating.

After an alliance of community housing and welfare groups last week derided negative gearing as “unfair” and claimed it is pushing up house prices, a number of the real estate industry's leading voices have criticised proposed changes to the tax break and have claimed they would do little to improve affordability.

The Labor Party is currently campaigning on a platform that from 1 July 2017 would see negative gearing restricted to new builds only and reduce the capital gains tax discount to 25%.

Labor have framed their policy as a means to boost the economy and improve housing affordability, but Property Investment Professionals of Australia (PIPA) chair Ben Kinglsey disagrees the policy will have benefits on either of those points.

Mon
23 May
2016

The 'little known' tax strategy some millennials use to amass large property portfolios

Anthony Java is just a few months away from his 30th birthday, but he has already accrued seven investment properties.

Four years ago, he bought his first home for less than $400,000. Now, he has a portfolio worth more than $2.5 million across Sydney, Brisbane and Melbourne and is set to utilise a little known tax advantage to sell his first property capital gains tax free.

Working as a salesman in Sydney, he was earning about $80,000 when he started his portfolio.

Having spent money every year on "fancy food and jewellery", he was shocked into the reality by his lack of assets by his accountant – 26-year-old Jeremy Iannuzzelli, who owns eight properties himself.

Mon
18 Apr
2016

Property spruiker sent to jail

Following an ASIC investigation, a former company director and property spruiker has been sentenced to two years and nine months' jail.

An ASIC statement announced that Steven William Hill has today been sentenced in the Sydney District Court to two years and nine months' imprisonment, with a minimum of one year and nine months to be served before becoming eligible for parole.

ASIC alleged that between January 2006 and February 2007, Mr Hill, through Hill Stephens & Associates Pty Ltd and International Finance Consortium (Aust) Pty Ltd induced various investors to pay approximately $618,000 to acquire interests in a 'house and land' property development located in Queensland.

Tue
12 Apr
2016

FBAA to represent brokers on negative gearing

The FBAA will today meet with a newly-formed national lobby group that plans to challenge the Labor Party’s proposed changes to negative gearing.

The Negative Gearing Action Group has been established by the directors of Property Investment Professionals of Australia, the nation’s peak body for property investors.

 

It will canvass industry stakeholders, including the FBAA, the Real Estate Institute of Australia and the Australian Bankers’ Association on the negative gearing issue.

Tue
12 Apr
2016

Be wary of property advice

If you are a property investor, you may be unaware of the fact that anything you do to invest in property, any move you make, any advice you take may leave you at greater risk than you thought. This is because the property investment Industry remains, to this day, unregulated.

Yes, you heard correctly, and to put it into perspective, let's think about this:

Imagine you had $250,000 to invest. Your visit to a financial planner will result in, firstly, a risk profile to determine just what asset class will be right for you. Next will be a financial plan, designed to take into account not only your present needs in terms of income and cash flow, but also your future financial needs, time till retirement and future expected net worth in terms of your assets. Then, a written recommendation, complete with projected outcomes, and a bold statement about risk is presented to you along with product disclosure statements about any chosen products. Since 1 July 2013, your adviser isn't allowed to take any commissions on any of these products, and so you will pay a fee to the adviser which must also be clearly disclosed.

Thu
24 Mar
2016

It's a mixed bag outlook for residential property

What's next for investors after a record run for Australia's residential property market?

Following one of the hottest property seasons on record in 2015, we have continued to see evidence of many property markets across the country cooling off this year, with ongoing global volatility, uncertainty over China and high volatility in the share market all contributing to investors' softening sentiment.

Auction clearance rates, a key indicator of property market buoyancy, have moderated somewhat throughout the early months in 2016. According to recent figures from CoreLogic RP data, the preliminary national clearance rate has come in below 70 per cent consistently over two months. It is still worth pointing out that levels around the 70 per cent mark still mean the market is active.

Wed
16 Mar
2016

Consumer protection body launches complaints register

A new initiative by one state's consumer protection body could be a step in the right direction in the effort to weed out unscrupulous operators within the property investment advice sector.

NSW Fair Trading this week announced that from 1 July it will start collecting data for its first ever complaints register that will be launched in August.

The register will provide information about businesses that are the subject of 10 or more complaints to NSW Fair Trading in a calendar month. The Complaints Register will be published on the NSW Fair Trading website in the second half of each month for the previous calendar month.

Rich Harvey, president of the Real Estate Buyers Agents Association of Australia (REBAA), which has been campaigning for stricter regulation property investment advice sector, said the complaints register is "small step" in helping people avoid operators who may not be above board.

Tue
15 Mar
2016

NSW Fair Trading Launches Complaints Register

A new initiative by one state's consumer protection body could be a step in the right direction in the effort to weed out unscrupulous operators within the property investment advice sector.

NSW Fair Trading this week announced that from 1 July it will start collecting data for its first ever complaints register that will be launched in August.

The register will provide information about businesses that are the subject of 10 or more complaints to NSW Fair Trading in a calendar month. The Complaints Register will be published on the NSW Fair Trading website in the second half of each month for the previous calendar month.

Rich Harvey, president of the Real Estate Buyers Agents Association of Australia (REBAA), which has been campaigning for stricter regulation property investment advice sector, said the complaints register is "small step" in helping people avoid operators who may not be above board.

 

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