PIPA In the News

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.

Wed
20 Mar
2019

Recently, I was privileged to be a member of a roundtable conference in Canberra chaired by Treasurer Josh Frydenberg to discuss the implications of Labor’s housing policy. The Treasurer said he had no specific agenda, and he had gathered together some of the most experienced property and finance people in the country to hear their candid views.

There were 12 guests at the meeting. They included executives from the Property Council, the Urban Development Institute of Australia (UDIA), Master Builders Australia, the Real Estate Institute of Australia, Adept Economics, Wizard Home Loans, property guru Margaret Lomas and Peter Koulizos, Chairperson of Property Investment Professionals of Australia.

The material in this article is based on the opinions from the people who were present. The implications of the major changes proposed by Labor will depend almost entirely on the reaction of the home buying and investor public.

It would be an entirely different matter if we were discussing Labor’s franked dividend policies because I could say with almost perfect certainty that I can predict exactly what strategies will be put in place by those who will be affected by them.

Since that roundtable conference, I have been coming to terms with what the proposed changes may mean to Australia. To be frank, I’m scared.

Tue
19 Mar
2019

One of Australia’s capital cities set for high growth this year is seeing a large amount of infrastructure expenditure on all levels of government, and it means good news for property prices.

The federal government, South Australian government and the City of Adelaide council signed the Adelaide City Deal, a $551 million agreement designed to boost economic growth and tourism as well as innovation potential, according to a joint release by Prime Minister Scott Morrison, premier of South Australia Steven Marshall, the minister for immigration, citizenship and multicultural affairs David Coleman and lord mayor of Adelaide Sandy Verschoor.

As part of the deal, the Lot Fourteen area located in Adelaide’s north-eastern corner is set to be renovated into a “renovation precinct”, where it will base the headquarters of the Australian Space Agency and its mission control facility, the Australian Space Discovery Centre and other cultural attractions, businesses and education facilities.

The deal will also provide funding for Adelaide’s cultural environment through an Aboriginal art and cultures gallery as well as an international centre for tourism, hospitality and food studies at Lot Fourteen.

Thu
14 Mar
2019

Proposals to limit negative gearing and reduce capital gains tax concessions could cost a Labor government up to $32 billion over 10 years and disincentivise investors, according to research by a property investment body.

Modelling by the Property Investment Professionals of Australia (PIPA) has found that limiting negative gearing to new investment properties as well as reducing the capital gains tax discount will drive investors out of the market and leave a hole in government coffers.

PIPA chairman Peter Koulizos said the research showed that Labor's assertion that their policy would save $32 billion over a decade was a flight of fancy when it was actually set to lose that amount because of fewer investors in the market.

"Not only that, investors already pay almost four times in capital gains tax what they receive in negative gearing benefits over a 10-year period, so the government is already ahead financially," he said.

Thu
14 Mar
2019

The lead candidate for a political party in NSW has announced a policy advocating for the removal of stamp duty in the state if elected.

David Leyonhjelm, former senator and lead candidate for the Liberal Democrats party announced a policy to remove all kinds of stamp duties, if successful at the upcoming NSW election, including stamp duties on property transactions.

This equates, when looking at the median cost of a property, to approximately $43,000, he said.

“Abolishing stamp duties in NSW would be a $9 billion annual tax cut. Each year the NSW government collects more stamp duty per person than other state governments: $1,100 instead of $1,000,” Mr Leyonhjelm said.

Sat
09 Mar
2019

Proposals to limit negative gearing and reduce capital gains tax concessions will cost a Labor Government $32 billion over just 10 years, according to new research.

Modelling by the Property Investment Professionals of Australia (PIPA) has found that limiting negative gearing to brand new investment properties as well as reducing the capital gains tax discount will drive investors out of the market in droves and leave a gaping hole in government coffers.

PIPA chairman Peter Koulizos said the research showed that Labor’s assertion that their policy would save $32 billion over a decade was a flight of fancy when it was actually set to lose that amount because of drastically fewer investors in the market. Negative Gearing

Fri
08 Mar
2019

Fresh data suggests the big four are in for a challenging year when it comes to attracting borrowers, and experts have weighed in on what this means for the mortgages market.

A survey by comparison website finder found 33 per cent of Australia's leading economic experts predict home loans with the big four banks will decline.

Graham Cooke, insights manager at Finder said people will move away due to trust issues in the post Royal Commission world, and the tightening finance environment.

“As a result, what we can expect to see is more borrowers turning to smaller and online lenders, which typically offer lower rates to lure in new customers,” Mr Cooke said.

Fri
08 Mar
2019

The latest GDP data from the Australian Bureau of Statistics show Australia's economic growth falls short of the RBA's expectations. With a looming election, what does this sluggish period mean for investors?

The Australian economy grew by 0.2 of a percentage point over the December quarter, below the Reserve Bank of Australia’s (RBA) expectation of 0.5 of a percentage point growth.

Fri
08 Mar
2019

Being an active property investor involves making decisions about everything from asset selection and finance, through to tenant types and repair priorities.

Making the right choices is imperative because poor decisions in real estate can be expensive.

Perhaps the most crucial conclusions an investor needs to reach revolve around property value and rental assessment.

Get these two elements right and you can maximise your results. Muddy these numbers and a very costly result is on the cards.

Of all the inputs you must draw upon when assessing property value and rental return, selecting appropriate, comparable evidence is the most important.

However, locating, selecting and analysing your comparables isn’t as easy as it first seems.