PIPA In the News

Thu
23 May
2019

The Property Investment Professionals of Australia (PIPA) said on Monday that is looking forward to working with a Coalition Government to secure vital legislation for the sector.

The association plans to discuss regulation in the property investment advice space to government representatives in coming months, according to PIPA Chairman Peter Koulizos.

“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,” he said.

Wed
22 May
2019

Housing affordability has seen a rapid improvement over the March quarter, with one association labelling it the fastest improvement since 2013.

According to the Housing Industry Association (HIA), the HIA Affordability Index rose by 2.2 per cent over the March 2019 quarter, which Tim Reardon, chief economist of the HIA, called “the most significant improvement” in housing affordability since September 2013.

“The improvement in housing affordability has been experienced across the country, with the exception only of Tasmania and the ACT, where ongoing house price growth has seen affordability remain static,” Mr Reardon said.

Of those that improved, Sydney saw the greatest improvement, with the index rising 12.4 per cent, followed by Melbourne at 9.6 per cent, Perth at 7.7 per cent, Darwin at 5.9 per cent and Brisbane at 2.5 per cent.

“The improvement in affordability is most significant in east coast capital cities,” Mr Reardon said.

Tue
21 May
2019

The property industry has welcomed the re-election of the Coalition government, declaring that concerns over the opposition’s proposed changes to negative gearing and the capital gains tax were key drivers of the result.

The Coalition is set to form government for the third consecutive term, despite some indicators pointing to a Labor victory.

Following the election result, property industry stakeholders have pointed to Labor’s proposed changes to negative gearing and the capital gains tax (CGT) as key determinants of the election result.

The opposition had proposed to limit negative gearing to new properties and halve the CGT to 25 per cent, which according to CEO of the Property Council of Australia Ken Morrison, influenced the decisions of many voters, particularly in light of weakening housing market conditions.

“The election result shows that Australians have rejected risky taxation changes at such an uncertain time in the property cycle,” he said.

Tue
21 May
2019

Scott Morrison isn’t the only one celebrating his campaigning success this week.

Adrian Kelly, the president of the Real Estate Institute of Australia, might not be as well known as the Prime Minister, but he’s the man behind the effective campaign that shredded Labor’s negative gearing policies.

“I have no doubt that it made a difference,” he told The New Daily.

The Grattan Institute labelled it a “breach of trust”, tenants’ advocates slammed it for being “dirty”, but the REIA claims their campaign on Labor’s negative gearing policy helped hand the Coalition government.

“We ended up reaching 11 million Australians – I have no doubt that it had an effect on the election,” he said.

Mon
20 May
2019

Various figures in the property industry have reacted to the results of the federal election, with some welcoming the prospect of a Coalition win.

Last weekend’s federal election saw the Coalition government returning to power in an election that saw policy on property taxation a hotly debated topic between the Liberal Party’s insistence of maintaining the status quo and the Labor Party’s intention to reform the taxation process.

As a result, with the Coalition government’s win, many in the property industry welcomed the result, as it meant that Labor’s negative gearing and capital gains tax proposals would not be able to come to fruition.

Ken Morrison, CEO of the Property Council of Australia, called the election result “extraordinary”.

Mon
20 May
2019

Prime Minister Scott Morrison has led the Coalition to a surprise win in the federal election over the weekend, meaning negative gearing remains unchanged.

Making massive changes to negative gearing and Capital Gains Tax was a key platform for the Australian Labor Party, which many expected to win at the polls on May 18.

However, this election result “shows that Australians have rejected risky taxation changes at such an uncertain time in the property cycle”, said Ken Morrison, Chief Executive of the Property Council of Australia.

“A key plank of the Opposition’s policy agenda were big changes to negative gearing and big increases to capital gains tax, and the election result can only be seen as a repudiation of this policy,” he said.

“Construction activity is falling sharply, house prices are declining and economic growth is slowing – this was the wrong policy and the wrong time.”

Sat
18 May
2019

Unfinished homes needing major work have been streaming onto the market as renovators and home builders abandon ambitious projects they started during the housing boom.

Many of the projects were works the owners undertook with the hope of making a killer profit when prices were still skyrocketing.

But with Sydney home prices now falling, many of these property owners have decided to cut their losses midway through completion.

Incomplete homes recently listed for sale included an Ermington house still requiring about $200,000 in building work to be completed, including work on the bathrooms and living areas.

An under construction house in Kirrawee is also up for sale after the owner abandoned plans to convert the existing three-bedroom house into a duplex.

Mon
13 May
2019

With the Coalition government announcing a new scheme for first home buyers and then the Labor Party agreeing to match the scheme, there could be new players in the property market soon. What does this mean for the property market?

No matter which major party wins the next federal election, first home buyers are expected to see a boost, and it is something that is being appreciated by the property industry.

Announced first on Sunday by Prime Minister Scott Morrison, if elected the Coalition will implement the First Home Loan Deposit Scheme, which will see selected private lenders offering first home buyers home loans with only a 5 per cent deposit upfront, while also eliminating lenders’ mortgage insurance.

The scheme will be made available to individuals earning up to $125,000 annually or couples up to $200,000, with the scheme available for homes at a pricepoint determined on a regional basis.

Later that afternoon, the Labor Party agreed to match the scheme if it wins the election, essentially guaranteeing the scheme’s future.

Thu
09 May
2019

The Property Investment Professionals of Australia has expressed concerns about the planned changes to the negative gearing rules, saying that the Australian Labor Party's plans could expose property buyers and investors to spruikers.

PIPA chairman Peter Koulizos said the Labor's proposals would encourage "unscrupulous operators into the market" who might take advantage of investors and homebuyers. 

"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.

Labor plans to limit negative gearing to newly-built properties if it wins the upcoming federal elections. This policy aims to level the competition between investors and homebuyers and to boost housing supply and jobs.

Wed
08 May
2019

The Labor Party’s plan to restrict negative gearing on newly built properties could lure in spruikers to the market, according to Property Investment Professionals of Australia (PIPA).

“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,” said PIPA Chairman Peter Koulizos.

Koulizos is concerned that there is currently no legislation to protect consumers from dodgy operators pretending to be property investment experts.

Koulizos said that industry research indicates that Labor’s policy is based on incorrect modelling when it comes to the number of investors who already buy new property as well as the revenue it believes it will raise.