PIPA In the News

Fri
01 Mar
2019

Following the push for tenancy reform in NSW back in October 2018, victims of domestic violence can now break a tenancy lease without incurring any penalties.

From 28 February, 2019, the changes to tenancy law, as referred to in Residential Tenancies Amendment (Review) Act 2018, are now enacted, which allows for tenants who are suffering domestic violence to be able to break a tenancy lease without incurring any financial penalty.

For a tenant to give a domestic violence termination notice and break a lease without penalty, there must be some proof that the tenant or co-tenant has a legal document detailing the domestic violence.

If landlords or co-tenants have questions regarding the validity of a domestic violence termination notice, they can apply to NCAT to dispute this.

Wed
27 Feb
2019

In the heady days of the property boom, as big city house prices jumped ahead in leaps and bounds, investors reigned supreme, swatting away first home buyers with their superior purchasing power.

It was a win-win for the investing class. They had willing banks and favourable tax laws working for them, pumping up property prices and capital gains in a virtuous circle.

According to property investor Michael Ilieff, who arrived in Australia as a Bulgarian refugee almost 30 years ago with $8 in his pocket, the tables have well and truly turned.

A combination of hard work, negative gearing and interest-only borrowing helped Mr Ilieff build a life through property, but right now his investment record spanning decades counts for nothing.

Wed
27 Feb
2019

BrickX is launching one of the first Perth property at $82/'Brick'

BrickX is breaking down barriers to residential property investment by allowing Australians to purchase fractions of property, or ‘Bricks’, now across 19 properties in Australia with their new Perth launch.

Rapidly growing fintech, BrickX, is now giving Australians direct access to the Perth residential property market for less than $100 in a process that takes less than five minutes.

Founded in 2014, BrickX has $18.7 million in assets under management from more than 12,900 members. The funds are invested in 18 other properties across New South Wales, Victoria and South Australia. Founder Markus Kahlbetzer said BrickX is now targeting Perth as the firm believes it represents value for investors and allows them to further diversify across the Australian property market.

Tue
26 Feb
2019

It was her family that ultimately got Melinda Jennison started on her journey from first home buyer to investor and finally property professional. Like many young couples in Australia, Melinda and her husband wanted to get started by owning their own home from day one and were prepared to jump straight into the market as property owners instead of tenants.

So, I had this thing in my head that I shouldn’t rent. Instead, when I decided to move out of home, and that was at the same time I met my now husband, we bought our first property together. I was 18 years old at that time.”

When buying her first property, Melinda was never really thinking about the capital growth that she could achieve from the property. But after a few years, she quickly saw the power that property investing could deliver.

“We sold our first home about six years later, having done a little bit of renovation work on the property, and made a huge profit. We were able to upgrade our home and obviously that set us up for the future. That first property purchase was probably the best move that I ever made.”

Tue
26 Feb
2019

RiskWise Property Research CEO Doron Peleg was invited to Canberra this month (February) to join a round table discussion with the PM, Treasurer and Assistant Treasurer, and other property heavyweights including Yellow Brick Road, hedge fund VGI Partners Global Investments, REIA, the Master Builders Association, the Urban Development Institute of Australia, the Real Estate Institute of Australia, Property Investment Professionals of Australia and the Property Council.

The topic being the nation’s housing policy. He writes:

Attending this meeting to share our research regarding the property market with such high-level decision-makers really brought home the impact Labor’s proposed taxation changes has already had and will continue to have both on the broader economy and, in particular, GDP growth.

I attended the round table discussion to talk about our research and insight but also to listen to the concerns of the others and join in a dialogue with them.

The attendees expressed their concerns regarding the impact of the proposed taxation changes on housing prices, dwelling commencements and GDP growth.

Fri
22 Feb
2019

Following months of questions, the final report into Sydney’s Opal Tower has been released by the NSW government, and while those with property in the complex have suffered value loss, the bittersweet ending means good things for the property industry.

Since the end of last year, the Opal Tower at Sydney Olympic Park has faced intense scrutiny following structural damage; this has shone a light on build quality across Australia.

On Friday, the NSW Department of Planning released their final report into the Opal Tower, identifying the cause of structural damage, how the damage can be repaired and how to avoid this from happening again.

Fri
22 Feb
2019

Property investors will lose a key partner in strategy and experience, and end up paying more, should the recommendations to change mortgage broker remuneration go through, experts fear.

The Property Couch co-host Ben Kingsley, who is also chair of the Property Investment Professionals of Australia, said that if Commissioner Hayne’s recommendation for a borrower to pay the broker a flat fee for arranging a loan kicks in, there would be a significant lack of competition for the banks because consumers would be driven away from paying more.

“It’s as clear as day in terms of the cost-effectiveness of having competition in a marketplace meant that borrowers pay less. That’s a great consumer outcome,” said Mr Kingsley on the Smart Property Investment Show, sister publication of Nest Egg.

Wed
20 Feb
2019

For the last few months, the news of the banking royal commission has been dominating the news. If you're currently in the market for a new property, or you're keen to sell your own home, you need to read this...

It might seem like there's never the right time to buy or sell your property, but this notion is especially relevant, given the recent findings from the banking royal commission.

With prices dropping in suburbs all over the country, Peter Koulizos, chairman of Property Investment Professionals of Australia shares his insights about what vendors and buyers can expect in the following year.

Tue
19 Feb
2019

The Liberal government organised a roundtable with many of Australia’s top property experts to discuss what changes to negative gearing and capital gains tax would mean for the property market.

The roundtable, which occurred on Monday, was convened by Senator Zed Seselia, the assistant minister for Treasury and finance, and was joined by the Prime Minister and the Treasurer, focused on what could occur to Ausatralia’s property market if Labor’s proposed negative gearing and capital gains tax changes are enacted.

Peter Koulizos, chairman of the Property Investment Professionals of Australia, was one of the experts in attendance, and saw the roundtable as a positive conversation.

“We all have basically the same message, [which] was, if this is introduced, this is going to be very bad for the property market and the economy,” Mr Koulizos said to Smart Property Investment.

Tue
19 Feb
2019

In the ultimate sign of desperation, the Morrison Government has rolled-out several real estate industry lobbyists to campaign against Labor’s negative gearing and capital gains tax (CGT)reforms. From The AFR:

“When you converge the royal commission and APRA regulation with a big fiscal policy change you are asking for trouble,” Mark Bouris said…

The biggest lobby group in real estate, the Property Council of Australia, said the tax would curtail property as an investment option because new stock was only a small proportion of overall housing that investors can buy…

One of the top house price forecasters SQM’s Louis Christopher told the roundtable that if Labor’s negative gearing changes were implemented yields on investment properties would have to rise and and that would mean rents would have to increase…

The extraordinary gathering of interests now openly in cahoots with the Government against the public interest included VGI Partners Global Investments Noel Whittaker, RiskWise Property Research chief executive Doron Peleg, Property Investment Professionals of Australia chairman Peter Koulizos and Real Estate Institute of Australia acting chief Jock Kreitals.

Of course Labor’s policy would “curtail property as an investment option”. That’s the entire point: to stop property investors from crowding-out first home buyers: