Why trying to time the market can cost you dearly

Why trying to time the market can cost you dearly

Media Release: 9 September 2019

New research from the Property Investment Professionals of Australia (PIPA) has found that investors who try to time the market could lose hundreds of thousands of dollars.

The analysis looked at every capital city market over the past 15 years to determine whether time in the market or timing the market produced the best capital growth.

The results show that an investor who tried to time the market could potentially lose nearly $140,000 over the 15-year period.

PIPA chairman Peter Koulizos said most investors simply don’t have the skills or knowledge to expertly select the best markets to invest in over the short-term.

“Trying to time the market is not only extremely difficult for most investors, the transactional costs of buying and selling multiple times, including stamp duty and Capital Gains Tax, eat up a significant chunk of your potential profit,” he said.

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Six signs you’re about to get stung by a spruiker

Six signs you’re about to get stung by a spruiker

Media Release: 15 July 2019

The Property Investment Professionals of Australia (PIPA) is warning consumers about the risks of property investment spruikers as interest rates hit record lows.

PIPA Chairman Peter Koulizos said a confluence of factors was likely to reignite spruiker activity in property markets in the months ahead, which had the potential to financially devastate the unwary.

“Interest rates are rock bottom, lending is loosening up, plus first home buyers have been given a helping hand from the government deposit guarantee,” he said.

“While all of these factors are much-needed good news for the property sector generally, they also create the ideal conditions for unscrupulous operators to potentially entrap novice buyers and investors.”

Mr Koulizos said spruikers were increasingly cunning when it came to convincing buyers about investment ‘opportunities’, including enticing people more easily online.

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PIPA looks forward to working with government on much-needed legislation

PIPA looks forward to working with government on much-needed legislation

Media Release: 20 May 2019

The Property Investment Professionals of Australia (PIPA) is looking forward to working with a Coalition Government on behalf of its members and the wider property investment sector to secure vital legislation for the sector.

PIPA chairman Peter Koulizos said the association would seek to sit down with government representatives in coming months to discuss much-needed regulation in the property investment advice space.

“PIPA was formed by industry practitioners with the objective of representing and raising the professional standards of all operators involved in property investment,” Mr Koulizos said.

“One of the association’s long-standing aims has been securing regulation to drive out spruikers from our sector and to protect consumers from dodgy operators.

“We look forward to discussing this important issue with the government in due course.”

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Labor policy to flood market with spruikers

Labor policy to flood market with spruikers

Media Release: 6 May 2019

Labor’s proposal to restrict negative gearing to new property will flood the market with spruikers and endanger the financial lives of thousands of Australians, according to the Property Investment Professionals of Australia (PIPA).

PIPA chairman Peter Koulizos said the policy would encourage unscrupulous operators into the market looking to take financial advantage of everyday investors.

“When you financially incentivize people to buy a particular product, spruikers are not far behind because they see an opportunity to make a lot of cash very quickly,” he said.

“PIPA was created more than a decade ago to lobby for regulation in the property investment advice space to drive out crooks from our sector and to protect consumers.

“However, there is currently no legislation to protect consumers from dodgy operators pretending to be property investment experts.”

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5 ways to help first home buyers into the market

5 ways to help first home buyers into the market

Media Release: 26 March 2019

First home buyers have always been a vital cog in the health of any property market, however, claims they are currently struggling to get on the ladder are not supported by official statistics, according to the Property Investment Professionals of Australia (PIPA).

Australian Bureau of Statistics (ABS) data shows the percentage of first home owners in the market is higher than the historical average.

According to the latest data from the ABS, the percentage of properties financed to first home owners was 17.9 per cent in January this year.

Over 2018, the average percentage of properties financed to first home owners was also 17.9 per cent, which was slightly higher than the 10-year average of 17.6 per cent.

PIPA Chairman Peter Koulizos said property tax changes proposed by the Federal Opposition were seemingly developed to help first home buyers into the market, however, these figures show they are already active.

“The proposed changes may have the desired effect in improving housing affordability – but at what cost?” Mr Koulizos said.

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Labor set to lose $32 billion by limiting negative gearing

Labor set to lose $32 billion by limiting negative gearing

Media Release: 6 March 2019

Proposals to limit negative gearing and reduce capital gains tax concessions will cost a Labor Government $32 billion over just 10 years, according to new research.

Modelling by the Property Investment Professionals of Australia (PIPA) has found that limiting negative gearing to brand new investment properties as well as reducing the capital gains tax discount will drive investors out of the market in droves and leave a gaping hole in government coffers.

PIPA chairman Peter Koulizos said the research showed that Labor’s assertion that their policy would save $32 billion over a decade was a flight of fancy when it was actually set to lose that amount because of drastically fewer investors in the market.

“Not only that, investors already pay almost four times in capital gains tax what they receive in negative gearing benefits over a 10-year period, so the government is already ahead financially,” he said.

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