PIPA In the News

Wed
03 Apr
2019

Even if you’re one of the fortunate few who seems innately talented at everything you attempt, there are many aspects of property investing that require a professional eye.

It takes years, sometimes decades, of professional practice to acquire the skills necessary to be the best.

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Dream team experts work hard to bring about the best possi­ble outcome for you when you are on your investing journey. They are beholden only to you – their client.

Selecting the best team early in your investment journey is paramount. It takes work to build the right team of mentors and paid advisers, but if you make the effort to surround yourself with the best possible posse now, it will pay off handsomely in the long run.

Fri
29 Mar
2019

After much speculation and investor angst, shadow treasurer Chris Bowen has announced when the Labor party, if elected, would look to enact its controversial negative gearing policy. What would this mean for property investors?

Mr Bowen announced on Twitter that if the ALP is elected at the upcoming federal election, his party would look to axe negative gearing for new investors from on 1 January, 2020.

“New data out today shows under the Liberals, the number of people with [five] properties has grown nearly [six] times the rate of people with one property,” Mr Bowen tweeted.

“Effective 1 Jan next year, Labor will reform negative gearing. All existing investments made before then are quarantined.”

Wed
27 Mar
2019

Recent signs that can give borrowers confidence interest rates will remain at record lows will boost investment in commercial property but won't be enough to kick-start the residential market, industry experts say.

After hiking interest rates seven times across 2017 and 2018, the US central bank last week abandoned plans to push rates higher in 2019, keeping them at 2.25 to 2.5 per cent. The change in sentiment and pause on US interest rates will make it harder for the RBA to lift rates in Australia.

While the availability of cheap money in most scenarios would boost a lacklustre property market, there are other hurdles preventing an immediate turnaround.

"Lower interest rates from the Reserve Bank will be fruitless unless the assessment lending rate is reduced by APRA," Property Investment Professionals of Australia chair Ben Kingsley said.

In 2014, APRA announced that as well as an interest rate buffer of at least 2 per cent more than the actual interest rate of a loan, banks had to assess a borrower's ability to repay a loan based on a minimum mortgage rate of 7 per cent.

Wed
27 Mar
2019

A government-financed mortgage deposit fund for first home buyers has been proposed as an alternative to the federal Labor opposition’s housing affordability policy.

The chairman of Property Investment Professionals of Australia (PIPA), Peter Koulizos, has flagged policy alternatives to the Australian Labor Party’s (ALP) proposal to limit negative gearing to new housing and halve the capital gains tax discount to 25 per cent.

Mr Koulizos acknowledged the need for government policy designed to assist first home buyers (FHBs) into the property market but warned against changes designed to reduce property prices.

“I truly believe that first home buyers must get assistance to get into the property market because it is good for them, good for the property market, good for the economy and good for the whole community,” he said

Wed
27 Mar
2019

For as little as $200,000, you can buy yourself a bolthole in St Kilda, a petite retreat in Petrie Terrace or student digs in Ultimo. Outlay double that and you can pick up a harbourside hideaway in Rushcutters Bay or Potts Point.

But while studio apartments may be affordable, their suitability as an investment depends on many factors.

Wed
27 Mar
2019

Five of the top 10 areas with the lowest rental vacancy rates in 2018 were in Tasmania—where the market has been holding up in recent years. Three areas in the top 10 were in Canberra, one Queensland and the other in the Northern Territory, according to figures from SQM Research.

Renters in Tasmania are having the hardest time looking for a dwelling, but the low rental vacancy rates should not be enough to woo investors, according to a report by The New Daily.

“Tasmania has a low vacancy rate, but I think that is set to change because in the last few years it has attracted a lot of investor interest, maybe too much. It’s had a lot of growth, and that’s been underpinned not by locals, but investors from interstate. For every five people that move to the state one job is created, so the fundamentals aren’t strong, because it has been so attractive. So I would expect vacancy rates to increase significantly,” Anna Porter, property advisor and principal of Suburbanite, told The New Daily.

Wed
27 Mar
2019

SQM Research’s flawed and debunked analysis of Labor’s negative gearing policy looks to have united Australia’s property parasites.

The Real Estate Institute of Australia (REIA) has warned of economic Armageddon from Labor’s policy:

“The losers are mum and dad investors, home owners, renters, the construction industry, state governments and the economy”…

“There are no winners. Even first home buyers will face a faltering economy with lower employment prospects,” the REIA president concluded.

Tue
26 Mar
2019

Keeping first home buyers afloat means protecting the one source of growth in the Australian property market at present, but the federal opposition’s tax changes could soon change this. One property expert explains there’s five better ways to help these buyers.

Current data from the Australian Bureau of Statistics (ABS) puts the proportion of first home buyers above its historical average, currently sitting at 17.9 per cent as of January 2019 – consistent with the average proportion of properties financed to first home buyers over 2018 (also 17.9 per cent).

Peter Koulizos, chairman of the Property Investment Professionals of Australia (PIPA), said that with strong first home buyer activity propping up the struggling property market, the federal opposition’s proposed changes to negative gearing and Capital Gains Tax could make property even more affordable for first home buyers, but would do so at the expense of the rest of the market.

Mon
25 Mar
2019

NSW Premier Gladys Berejiklian is set to remain in power for another term, so what does that mean for property investment in NSW?

The impact of this win on investors’ portfolios however largely depends where the investments are located, as the party did not have any policies directly related to property, but many infrastructure-related policies which could impact values of neighbouring properties.

Fri
22 Mar
2019

As house prices fall across the country, investors are eyeing off key areas where they can snag a bargain as the market swings clearly in buyers’ favour.

While price is one lure for investors, rental vacancy rates are another key measure to consider.

Figures provided exclusively to The New Daily by SQM Research show the areas which had the lowest rental vacancy rates over the last year.

Expressed as a percentage, the rental vacancy rate indicates the proportion of dwellings available to rent in an area at that time. A vacancy rate of 3 per cent is generally considered to be the equilibrium point for supply and demand in a rental market.

Perhaps unsurprisingly, across the country, five of the top 10 areas with the lowest rates were in Tasmania, where the market has been hot in recent years. Three were in Canberra, one in far north Queensland and the other in the Northern Territory.