PIPA In the News

Fri
21 Dec
2018

The banking regulator's move to lift its cap on interest-only loans is unlikely to see banks up their intake of the popular investment loan choice, according to AMP Capital's chief economist, Shane Oliver.

Mr Oliver dismissed suggestions of a resurgence in interest-only lending, following the Australian Prudential Regulation Authority's announcement that its 30 per cent cap on interest-only loan growth will be scrapped as of 1 January.

When asked if he believes the scrapping of the IO benchmark would trigger a rebound in banks' appetite for such loans, Mr Oliver said that with most lenders already "well below" the 30 per cent cap, the latest announcement would not serve as an opportunity for a resurgence in interest-only lending.

"Removing the cap doesn't mean interest-only lending is going to take off again, because banks are already well below the cap." 

Thu
20 Dec
2018

Housing affordability and property taxes will be big policy items for the 2019 federal budget, and there are some key policies property experts are pushing the government for.

Both sides of government have got property in the hot seat for 2019. The current Liberal government has heralded since 2017 that housing affordability is one of its headline priorities across Australian residential property markets. Further, the federal opposition has announced a range of policy proposals that would impact property investment significantly, such as negative gearing changes and incentivising property investors to offer new properties at rent below market rate.

Peter Koulizos, chairman of the Property Investment Professionals of Australia, and Adrian Kelly, president of the Real Estate Institute of Australia, have some things on their wish lists for 2019, which are being flagged with government as it starts to accept pre-budget submissions.

Tue
18 Dec
2018

The Opposition is "shooting itself in the foot" with its new housing affordability policy, the chairman of a leading property investment body has said, as its set of housing reforms may work to lose money for a Labor-led government.

Peter Koulizos, chairman for Property Investment Professionals of Australia, says the opposition's proposed measure of targeting housing affordability through incentivising invetors may prove to hinder a Labor government by focusing on new properties.

"What they're trying to do here is incentivise investors to buy brand new property, which doesn't grow much in value," Mr Koulizos told Nest Egg.

"They're really shooting themselves in the foot.

"What will happen in the end is they will give out more negative gearing benefits [to investors involved in the scheme], because brand new property has more depreciation benefits." 

Mon
17 Dec
2018

On 16 December, Bill Shorten announced a $6.6 billion plan to address housing affordability, which directly involves incentives. 

Mr Shorten said that under the policy, if investors construct new properties and place them for rent at 20 per cent under market value, a subsidy of $8,500 a year for 15 years would be available for the investor.

While the policy was welcomed by many property experts, one thing was clear: there is still more that needs to be done.

Speaking to Smart Property Investment, Peter Koulizos, chairman of the Property Investment professionals of Australia, said that it was a good step in the right direction, but it was a policy that bore a similarity to the Rudd government's National Rental Affordability Scheme programme, which incentivised property investors to build new properties and offer rents at 20 per cent below market rent. 

Fri
07 Dec
2018

New research has found that a third of first-time buyers are choosing to invest rather than buy a home.

The 2018 Property Investment Professionals of Australia (PIPA) Investor Sentiment Survey found that over the past 12 months, 36% of first-time buyers had chosen to invest in property while they continued to rent.

PIPA chairman Peter Koulizos said while it was the first time that specific question had been asked in the annual survey, one could presume that rentvesting as an investment strategy had been a trend for some time.

He said, "What this insight shows us is that first-time property buyers generally have probably been more active over recent years than official statistics originally recorded. 

Thu
06 Dec
2018

A significant portion of first-time buyers (36%) opted to invest in property and continue to rent instead of purchasing a home for residence over the past year, according to the 2018 Property Investment Professionals of Australia (PIPA) Investor Sentiment Survey.

PIPA Chairman Peter Koulizos said that while it was the first time that respondents were asked about the particular topic in the annual survey, one could presume that rentvesting as an investment strategy had been practised for a while now.

He focused the attention on the possibility that first-time property buyers have been more active over recent years than official statistics originally recorded.

The Australian Bureau of Statistics (ABS) publicly confirmed that there have been issues with first-home buyer statistics from 2012 to 2016, partly because some lenders only report loans to first-home buyers who received a First Home Owner Grant. In its latest statistics, ABS indicated that about 18% dwellings financed in Australia were sold to first-time buyers in September. 

Thu
06 Dec
2018

A depreciation schedule prepared by BMT Tax Depreciation helps to maximise the cash return from your investment property each financial year.  

To ensure that you claim the maximum depreciation deductions, a BMT Tax Depreciation Schedule lasts for the life of the property or forty years as specified by the Australian Taxation Office (ATO). 

A BMT Tax Depreciation Schedule also provides you with a breakdown of the deductions for the two depreciable elements found in the property as explained below:

Thu
06 Dec
2018

A growing group of first-home buyers is found to prefer investing in a home to buying one — a trend known as rentvesting. 

A new research by the Property Investment Professionals of Australia (PIPA) revealed that one in three first-home buyers had opted to invest in property while renting over the past year.

PIPA chairman Peter Koulizos said the results of the study show that first-time property buyers generally have probably been more active over the recent years than official statistics originally recorded.

"The Australian Bureau of Statistics (ABS) publicly admitted issues with first-home buyer statistics from 2012 to 2016, in part due to some lenders only reporting loans to first-home buyers who received a First Home Owner Grant," he said. 

Wed
05 Dec
2018

First home buyers could be more active than reported in official statistics, with over a third choosing to purchase an investment property, new research from PIPA has revealed.

According to the Property Investment Professionals of Australia's (PIPA) 2018 Investor Sentiment Survey of 820 Australians nationwide, over the past 12 months, 36 per cent of first home buyers (FHBs) opted to "rentvest" rather than buy an owner-occupier property, with a further 63 per cent noting that they would consider rentvesting as a property investment strategy.

PIPA chairman Peter Koulizos said that the research suggests that FHB activity may be underreported, with the latest data from the Australian Bureau of Statistics (ABS) reporting that FHBs represented 18 per cent of loan approvals in September. 

Wed
05 Dec
2018

The Property Investment Professionals of Australia (PIPA)'s 2018 Investor Sentiment Survey revealed approximately 36 per cent of first-time buyers are looking to invest in property rather than purchase a home.

PIPA chairman Peter Koulizos said that given such popularity, so-called 'rentvesting' will be here to stay for the foreseeable future.

"What this insight shows us is that first-time property buyers generally have probably been more active over recent years than official statistics originally recorded," Mr Koulizos said.

"The Australian Bureau of Statistics (ABS) publicly admitted issues with first home buyer statistics from 2012 to 2016, in part due to some lenders only reporting loans to first home buyers who received a First Home Owner Grant.