PIPA In the News

Wed
14 Sep
2016

Almost 90 per cent of Australians believe the property investment industry should be regulated and licensed in the same way as financial planners, mortgage brokers, and real estate agents, according to a survey.

The Property Investment Professionals of Australia (PIPA) survey of 1004 respondents found 93 per cent believed a person providing information or advice on investing in property should at the very least have some level of formal property investment education or training.

Another 87 per cent believed property investors could do with more investment education about the risk and potential benefits of investing in property.

Wed
14 Sep
2016

After a period of growth, new research shows the number of investors using their SMSF to invest in property has steadied.

According to the Property Investment Professionals of Australia’s (PIPA) Property Investor Sentiment Survey, 84 per cent of investors hold their properties outside of their SMSF.

This is “virtually the same” as last year’s study, and potentially indicative of the complexities associated with using an SMSF to borrow funds, PIPA’s research said.

The report found investors remain bullish about their long-term investment prospects with the Australian residential property market.
 

Mon
12 Sep
2016

Despite favourable rates and market conditions in several capital cities, SMSF property investors are being cautioned about some upcoming pressures in the Australian market.

Some SMSF property investors have been caught by surprise in the current residential property market, with rental yields in particular delivering disappointing returns.

“In the short term the risks appear in softening rental yields and the potential of extended periods of vacancy in areas where there is an increase release of supply,” chair of the Property Investment Professionals of Australia, Ben Kingsley, told SMSF Adviser.

Thu
08 Sep
2016

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

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

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

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

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

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

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.