PIPA In the News

Wed
05 Dec
2018

Most capital city markets are feeling the effects of the softening of the Sydney and Melbourne property markets—both of which have just come off an unprecedented property boom—Brisbane bucks this downward trend as it continues to thrive in the changing landscape through a strong local economy.

The Queensland capital's vacancy rates in the most recent quarter sits at 2.1 per cent for both houses and units, well below Sydney's rates at the moment.

According to economist Dr Andrew Wilson: "Overall, it has a strong local economy with a lifestyle and affordability advantage. Brisbane will continue to be at the top of the pack in terms of growth prospects."

"Even though we're only talking a rise of about one to two per cent because we don't have the low interest rate driver and incomes remain flat, there's no doubt that the Brisbane property market is pushing ahead with more demand than supply." 

Tue
04 Dec
2018

According to new research released today, around one-third of first-time buyers are opting to "rentvest" rather than be owner-occupiers.

Property Investment Professionals of Australia's (PIPA) latest survey data found that 36 per cent of first-time buyers in the past 12 months chose to invest in a property in a more affordable area and continue to rent.

According to PIPA chairman Peter Kouzilos, this is the first time the survey has asked this question of first home buyers. He says the results may indicate that rentvesting has been a popular choice for some time.

"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," he said. 

Mon
26 Nov
2018

A NEW report suggests negative gearing reform is needed more urgently now than when the last federal election was held in 2016, as the country inches closer to a vote that could bring about the changes, according to the McKell Institute.

The McKell Institute's Levelling the Playing Field report, authored by Professor Richard Holden, echoes the Institute's 2015 report that recommended grandfathering negative gearing arrangements for all currently using it, and restricting new negative gearing arrangements to new properties.

That policy was taken to the 2016 campaign by the federal Labor party, which is heavily favoured to win the next election, due in the first half of next year.

The government has suggested that a recent drop in property prices means negative gearing reform should be abandoned, while analysts including SQM Research, AMP Capital's chief economist Shane Oliver, and a number of industry groups have suggested the changes would be detrimental to the property market. 

Thu
15 Nov
2018

Rick Otton has been fined $6 million and his company We Buy Houses fined $12 million for misrepresentation. Both are record amounts.

We Buy Houses Pty Ltd, of which Rick Otton is the sole director, has been in operation for some years. Mr Otton would give free seminars, and conduct paid "boot camps" to teach people about how to invest in real estate.

 

Thu
15 Nov
2018

The Federal Court has imposed a record penalty against a property spruiker and his firm for false or misleading representations about how people could buy a house for $1, among other claims.

The $18 million fine consists of $12 million imposed against We Buy Houses and $6 million against its sole director Rick Otton, and are the highest ever imposed contraventions of Australian Consumer Law by a corporation and individual respectively.

In addition to the fines, the Federal Court also banned Mr Otton from managing a corporation for 10 years in Australia as well as permanently restraining him and We Buy Houses from any further involvement in the supply or promotion of services or advice related to property transactions or investment.

ACCC chair Rod Sims said We Buy Houses and Mr Otton were peddling false hope to people who were just trying to get a foothold in the housing market or into property investment. 

Thu
15 Nov
2018

 

A property spruiker and his company have been hit by the full force of the law and have been fined a record $18 million penalty for making false or misleading representations about how people might buy a house for $1, among other claims.

The Federal Court imposed the record penalty against We Buy Houses and its director Rick Otton, with the penalty made up by a $12 million fine to We Buy Houses and a $6 million fine to Mr Otton. These are the highest ever fines imposed for contraventions of the Australian Consumer Law.

In addition to the fines, the Federal Court also banned Mr Otton from managing a corporation for 10 years as well as permanently restrained him and We Buy Houses from any further involvement in the supply or promotion of services or advice related to property transactions or investment.

ACCC chair Rod Sims said that We Buy Houses and Mr Otton were peddling false hope to people who were just trying to get a foothold in the housing market or into property investment.

Thu
15 Nov
2018

A notorious property spruiker has been hit with $18 million in fines for peddling false and misleading claims through free seminars and paid investment "boot camps". 

On Tuesday the Federal Court imposed a fine of $12 million against property investment company We Buy Houses and $6 million against its sole director Rick Otton for making false or misleading representations about how people could create wealth through buying and selling real estate.

The fines are the highest ever imposed for contraventions of the Australian consumer law by both a corporation and an individual, and come after a long investigation by the consumer watchdog.

The Federal Court also banned Mr Otton from managing corporations for 10 years in Australia and permanently restrained him and We Buy Houses from further involvement in the "supply or promotion of services or advice" concerning real estate and investment. 

Wed
14 Nov
2018

The increasingly popular trend of short-term letting is having an impact on some of Sydney's visitor and investor favourites, and local auctioneers are seeing a considered change in market behaviours.

Auctioneer James Pratt of James Pratt Auctions is a long-time resident of Bondi Beach, and with eyes-on-the-ground experience, explained that he has seen Airbnb raise property prices.

"You can imagine the scenario of obviously someone who's got a two-bedroom apartment here and is able to Airbnb it over the summer," Mr Pratt said to Smart Property Investment.

"The profit they're able to generate through two months of summer for an investment point of view only increases the sale price. 

Mon
12 Nov
2018

New research from a major bank shows first home buyers are populating the investment market in bigger numbers than ever before.

According to Westpac's 2018 Home Ownership report, first-home buyers are becoming more confident with their prospects of home ownership.

There is a notable rise of confidence in property investment opportunities as well, as the report found 29 per cent of first-home buyers are considering both buying an investment property and an owner-occupier home – up 105 per cent from 2017.

For Lauren Fine, head of home ownership at Westpac, the rise of positive sentiment in first-home buyers was to be expected.

"This surge in confidence and positivity among first-home buyers is great to see, and not surprising considering house prices have on average dipped by 2.7 per cent over the past year to date, primarily driven by the Sydney and Melbourne markets," Ms Fine said. 

Mon
12 Nov
2018

Airbnb Australia has been quick to rebut a new report on how the short-term rental industry is unhinging the Australian housing market, the latest in a long list of them, calling it "deeply" flawed. 

As detailed in the Technological Disruption in Private Housing Markets: The Case of Airbnb by the Australian Housing and Urban Research Institute (AHURI), inner-city areas that rely on tourism are seeing a decline in rental properties.

In Sydney, these include the suburbs of Darlinghurst and Manly, with Airbnb-listed properties making up between 11.2 per cent and 14.8 per cent of the suburbs' rental stock.

This is also being felt in Melbourne, including central Melbourne, Docklands, Southbank, Fitzroy and St Kilda, which account from between 8.6 per cent and 15.3 per cent of the suburbs' rental stock.