PIPA In the News

Thu
15 Sep
2016

Residential property investors remain confident about the long-term prospects of the Australian property market, despite the impact of lending restrictions and the continued debate over negative gearing and apartment oversupply.

Released yesterday, the results of the Property Investment Professionals of Australia's (PIPA) second annual Property Investor Sentiment Survey revealed that 71% of the 1,000 investors surveyed believe now is a good time to invest in property, up from 63% a year ago.

According to the survey, 58% of investors are looking to secure their next property within the next six – 12 months.

Thu
15 Sep
2016

Despite talk of property price bubbles, tightening investor lending policies and ongoing debate about the future of negative gearing, Australian property investors remain optimistic about the long-term merits of residential real estate according to a new survey.

The second annual Property Investment Professionals of Australia (PIPA) Property Investor Sentiment Survey gathered insights from more than 1000 property investors.

PIPA chair Ben Kingsley says the survey results confirm that property investors remain focused on the long-term benefits of property investment.

“Similar to last year, most property investors are looking past short-term challenges, remaining focused on the long-term wealth benefits that are available from residential real estate, including the potential for capital growth and rental income,” he says.

Wed
14 Sep
2016

Investors should avoid medium and high density apartments in most Australian markets, a property investment expert warns.

Property Investment Professionals of Australia (PIPA) chair Ben Kingsley says one and two bedroom units are facing headwinds from potential tenant shortages and large amounts of supply coming onto the market in the next 18 to 24 months.

He says houses, townhouses and villas in Brisbane, Adelaide, Canberra and Hobart, and some properties in Melbourne, offer much better potential returns on investment.

"I'd be avoiding apartments in medium and high-rise complexes in pretty much most of those areas," Mr Kingsley told AAP.

Wed
14 Sep
2016

A majority of investors still believe it’s a good time to invest in residential property, a survey has found.

The Property Investment Professionals of Australia (PIPA) Property Investor Sentiment Survey found that 58% of investors say they are looking to buy within the next six to 12 months, while 71% said now was a good time to invest in property. This is in spite of 32% of respondents saying changes to lenders’ investment policies have impacted their ability to secure finance.

Investors also seem unconcerned about the future of negative gearing. The survey found 72% of respondents were not worried about the potential removal of the concession, and only 2% said the current negative gearing arrangements were the key attraction of real estate investment.

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: