Cate Bakos

The Property Investment Professionals of Australia (PIPA) has issued a stark warning that changes to Capital Gains Tax (CGT) could trigger a wave of investor sell-offs that would deepen Australia’s rental crisis.

The 2025 PIPA Investor Sentiment Survey found that 35 per cent of investors would stop investing in property if CGT were reduced to 25 per cent after 12 months of ownership. Alarmingly, 19 per cent of investors who had sold one or more properties over the previous year said they did so because of the perceived risk of Federal Government tax reforms, while 51 per cent of current investors cited the same concern as a key reason why they may sell in the next 12 to 24 months.

PIPA Chair Cate Bakos said the findings reveal a rental market on the brink.

“These numbers are not hypothetical because investors are already leaving,” Ms Bakos said. “Our 2025 survey found that 16.7 per cent of investors had sold at least one property in the year to August – up from 14.1 per cent the year before and 12.1 per cent in 2023. “Of those who sold, 19 per cent already did so because they fear tax changes, and another 35 per cent are telling us they will walk if CGT reforms proceed, which is an extraordinary red flag for policymakers.”

The warning comes as SQM Research’s latest data shows the national vacancy rate remains critically low at 1.4 per cent, with several capitals operating at emergency levels: Perth (0.7 per cent), Adelaide (0.9 per cent), and Hobart (0.4 per cent). Even Sydney and Melbourne, at 1.8 per cent and two per cent, remain well below long-term averages.

Ms Bakos said any policy that accelerates investor withdrawal would have immediate and severe consequences for renters.

“When vacancy rates are this tight, removing investors from the market is economically reckless,” she said. “Every investor who sells to an owner occupier removes a rental home from the system and tenants are the ones who suffer the consequences.”

SQM’s data also shows advertised rents rising again in early January, with national rents up 2.4 per cent in 30 days and 5.8 per cent year-on-year, underscoring the pressure already facing households.

“Investors provide more than 90 per cent of Australia’s rental homes,” Ms Bakos said. “If governments want a functioning rental market, they must stop treating investors as expendable because the rental system collapses without them.” PIPA is calling for evidence-based policy design and meaningful consultation with industry to avoid worsening the rental affordability crisis

The post One in three investors poised to sell if CGT reformed appeared first on AdviserVoice.

Lachlan Vidler

Australia’s rental market is under mounting pressure as a record number of property investors exit the sector, driven by rising costs, legislative uncertainty, and concerns over proposed federal tax reforms.

The 2025 Annual Property Investor Sentiment Survey, released yesterday by the Property Investment Professionals of Australia (PIPA), shows that 16.7% of investors sold at least one property in the past year – up from 14.1% last year and 12.1% in 2023.

This marks the highest rate of investor sales since the question was first introduced in the survey in 2022, highlighting a clear and escalating trend that threatens rental housing supply nationwide.

When PIPA first asked the question in 2022, about 17% of investors indicated they had sold at least one investment property in the previous two years or 8.5% annually over the past two years.

“This isn’t just a continuation of last year’s trend – it’s an acceleration,” PIPA Chair Lachlan Vidler said.

“We’re seeing a growing number of long-term investors walking away, and the implications for renters are severe. “

The private rental market is losing stock at a time when demand is surging, and policy uncertainty is only making things worse.”

Rental stock shrinking fast

The survey found that only 42% of sold properties remained in the rental pool because they were bought by other investors.

Meanwhile, 37% were purchased by owner-occupiers and 25% by first-home buyers, effectively removing them from rental circulation.

“This shift is structural, not temporary,” Mr Vidler said.

“Once a property leaves the rental market, it rarely returns. We’re watching the slow dismantling of Australia’s rental supply, and tenants are paying the price through rising rents and reduced availability.”

Investor sentiment deteriorating

The survey highlights a growing unease among investors, particularly around proposed federal reforms.

When asked whether they would continue investing in property if negative gearing was altered, 53% said they would stop investing. An additional 25% were unsure, leaving just 22% willing to continue under a revised negative gearing policy.

Similarly, if the CGT discount were reduced to 25% after 12 months of ownership, 35% of investors said they would exit the market. Another 29% remained undecided and 36% said they would continue investing under the revised CGT conditions.

“These figures show a clear erosion of confidence,” Mr Vidler said.

“The mere suggestion of changes to negative gearing or CGT is enough to destabilise investor sentiment. These aren’t fringe concerns – they’re mainstream fears held by thousands of everyday Australians who provide rental housing.”

State-by-State sales breakdown

Queensland continues to lead the nation in investor exits, with 35.5% of respondents selling at least one property in the state – up from 33.4% last year. Victoria followed closely at 30%, while New South Wales saw a sharp decline to 11.8%, down from 25.4% in 2024.

At city level, Melbourne saw an increase, with 22.1% of investors selling at least one property compared to 18.4% last year.

Brisbane followed closely at 19.7%, up from 16.3%. Perth entered the top three for the first time, with 11% of investors selling, while Sydney saw a notable decline to 6.3%, down from 10.2%.

Regional Queensland saw a particularly sharp rise, with 15.8% of investors selling, more than double the 7.6% recorded in 2024.

“Victoria continues to see elevated levels of investor sales, and it’s no coincidence,” Mr Vidler said.

“The combination of rising land tax, new vacancy levies, and ongoing tenancy reforms is creating a climate of uncertainty.

“Many investors are simply deciding it’s no longer worth the risk or the cost to hold property in the state.”

Rising costs and legislative burden

The top reasons for selling in this year’s survey included reducing overall debt exposure (41.7%), rising holding and compliance costs (40.4%), and increased land tax and government charges (32.9%). These figures are consistent with last year’s findings but show a slight uptick in financial pressure.

Operational costs continue to climb. This year, 39% of investors reported increases of between 11% and 20%, compared to 34% last year. More than 21% said costs had risen by 21% to 41%, and 5% reported increases of 41% to 60%.

Despite these pressures, most investors are absorbing the costs. A full 65% said they had passed on just 10% or less of their increased costs through rent hikes – virtually unchanged from last year.

“This shows the resilience and responsibility of Australia’s property investors,” Mr Vidler said.

“They’re doing their best to shield tenants from rising costs, but there’s a limit. Without meaningful support, many will be forced to reconsider their position.”

Policy confusion and communication gaps worsen

Investor awareness of state-level tenancy law reforms remains low. This year, 64% of investors were unaware of Victoria’s new vacant residential land tax.

Additionally, 60% had only moderate or limited knowledge of tenancy law changes across Australia, and 10% said they had never received any communication from their state or territory government – unchanged from 2024.

“This is a failure of engagement,” Mr Vidler said.

“Investors are being asked to navigate increasingly complex regulatory environments with little support or clarity. If governments want to retain private rental providers, they need to do a better job of communicating policy changes and providing guidance.”

Selling pressure intensifies

Investor sentiment around selling is intensifying. This year, 36% of respondents said it was a good time to sell – up from 29% last year.

The top reasons for considering a sale in the next 12 to 24 months was the future risk of federal reforms (51.3%), followed by increased compliance costs (49.8%) and land tax and government charges (49.8%).

Concerns about rental freezes or caps rose to 37.1%, up from 32% last year, while worries about proposed tenancy legislation increased to 32.4%, compared to 28% in 2024.

“These results reflect a broader unease among investors who feel they’re being squeezed from all sides,” Mr Vidler said.

“If this trend continues, we’ll see even greater strain on the rental market, and tenants will bear the brunt.”

A fragile optimism

Despite the challenges, nearly 60% of investors believe the next 12 months is a good time to invest in residential property – down slightly from 63% last year. This suggests a lingering belief in the long-term value of property investment, even as short-term pressures mount.

“There’s still belief in the fundamentals of property investment, but that belief is more fragile,” Mr Vidler said.

“If governments want to preserve the integrity of the rental market, they must listen to investors, provide clarity, and avoid knee-jerk reforms that risk doing more harm than good.

“As Australia grapples with housing affordability and rental shortages, the voice of the investor has never been more critical.”

Best locations to invest

Despite widespread uncertainty, investor interest remains strong in select markets.

Melbourne was named the top investment destination by 41% of respondents, up sharply from 26.3% last year.

“This surge reflects renewed confidence in the city’s long-term growth prospects and relative affordability compared to other capitals,” Mr Vidler said.

Brisbane held steady at 16.5%, supported by consistent rental demand and infrastructure investment.

Perth, while still attracting interest, saw a drop to 9.2% from 25.2%in 2023, suggesting many investors believe its growth cycle may be tapering.

Among regional areas, Queensland led with eight per cent of investor interest, followed by Regional NSW at 5.5% and Regional Victoria on 4.1%.

“These areas are seen as offering strong rental yields, affordability, and lifestyle appeal, particularly for investors seeking alternatives to overheated metropolitan markets,” Mr Vidler said.

Support for professional standards remains strong

The survey also revealed continued support for professional standards in the property investment sector.

A resounding 94% of respondents believe that property investment advisors should have formal training or education – unchanged from last year.

Additionally, 85% said that PIPA membership and adherence to a code of conduct would positively influence their decision to work with a property professional.

“Professionalism matters,” Mr Vidler said.

“In a market this complex, investors need trusted advisors who understand the landscape and can help them navigate it.

“That’s why PIPA continues to advocate for higher standards and greater transparency across the industry.”

The post Rental crisis worsens as more investors exit the market – 2025 PIPA Investor Survey appeared first on AdviserVoice.

Nicola McDougall

Startling new research shows hundreds of thousands of rental properties have been stripped from rental markets around the nation with investors offloading properties in Victoria and Queensland in particular – the states leading the war on private landlords.

The ninth annual Property Investor Sentiment Survey by peak industry body the Property Investment Professionals of Australia (PIPA) shows a surge in the sale of rental dwellings.

“A staggering 12.1% of investors sold one or more of their rental properties in the past 12 months around the nation,” PIPA chair Nicola McDougall said.

“About 43% of respondents in this year’s survey sold to an existing homeowner, while 30% sold to a first-home buyer. “Just 24% sold to another investor – down from 33% last year – which means the majority of those investment properties were likely removed from the rental market.”

Ms McDougall said last year’s survey found 16.7% of investors had sold at least one property in the previous two years. “Clearly, this would explain the undersupply of rental properties available for tenants around the nation,” she said.

“These results are yet another stark illustration of the mass exodus of private investors from the market.”

Using 2021 Census as the baseline of 2.477 million private rental dwellings in Australia, it is estimated that hundreds of thousands of rental properties were sold in the past three years, with the majority of these bought by existing homeowners or first-home buyers. 2 | Page

Investors deserting Victoria and Queensland

Drilling down into this year’s survey data, 24.8% of investors sold one or more properties in Melbourne over the past year, while 23.3% sold in Brisbane. Outside of the capitals, 16.4% sold in regional Queensland and 6.4% sold in regional Victoria. At a statewide level, 39.8% of investors sold one or more properties in Queensland over the past year, while 31.35% sold in Victoria – dwarfing the results in all other jurisdictions, according to the 2023 survey.

Ms McDougall said, like much of the country, Victoria and Queensland are in the grips of a rental crisis driven by a drastic undersupply of homes and significant demand from tenants.

“Those states are leading the charge with restrictive, unfair and inefficient legislative reforms that adversely impact property investors,” she said.

When asked to rank each state and territory from best to worst in terms of how positively they support property investors, respondents were in agreement about where they do – and don’t – feel encouraged to invest their money.

“Ranked from one to eight, one being the most accommodating and eight being the least, 57.4% scored Victoria an eight and 23.5% scored Queensland a seven. Just 3.1% of respondents scored Victoria a one and more scored Queensland in the upper quartile than the lower quartile,” Ms McDougall said.

“New South Wales is the place to invest, according to respondents, with 31.5% giving the state a score of one. Western Australia also did well, with 25.8% giving the state a one.”

Increasing taxes number one reason to sell

Ms McDougall said it remains clear investors are selling up or avoiding buying due to attacks by governments disguised as reform that make owning a rental difficult.

“At a time when tenants can least afford it, the people providing the vast majority of rental homes are selling up in droves,” she said.

Respondents cited the following as major reasons for selling over the past year: – Governments increasing or threatening to increase taxes, duties, and levies that make property a less attractive asset to hold (47%) – Changing tenancy legislation (43%) – Talk of rental freezes (34.6%) – Rental increase limits or caps (27.7%)

Tellingly, these reform-related stressors were cited as selling reasons disproportionately to rising interest rates and higher loan repayment costs (40.1%), negative cash flow due to higher mortgage costs (23.2%), a need to reduce total borrowings (33.1%), or offloading an underperforming asset (18.8%). 3 | Page

Brisbane-based property investor Merwyn Machado dumped one of his Brisbane investment properties last year when changing laws and soaring costs became too much.

“It didn’t make sense to be negatively geared and cop rising land taxes and council rates again and again,” Mr Machado said.

“Plus, the Queensland Government seems determined to try to ram through legislation that prevents landlords from looking after their property. I still have two investments in Brisbane, but I’m wondering why given the different ways the government and council are slugging me with taxes.”

More rental pain on the horizon

Unfortunately, in another sign of more pressure to come for tenants, the survey found 38% of investors feel it’s likely they will sell within the next year for myriad reasons, a staggering increase from the 19.2% in last year’s survey, Ms McDougall said.

“Again, it’s not a mystery why so many investors are planning to exit the market. Should governments further increase or introduce new taxes and compliance costs, 47.2% of respondents said they would be forced to increase rents.”

In recent times, Victoria has rolled out a $5 billion land tax hike and mooted caps on rental price increases or a rent freeze, while Queensland implemented, and then abandoned, a bizarre land tax grab last year, and introduced capped rent increases with retrospective application this year.

“Both states continue to talk about further punitive rule changes being on the agenda, which strips away surety from investors and makes owning a rental in Victoria and Queensland highly unattractive,” Ms McDougall said.

A core characteristic of repeated attacks on investors in recent years has been to paint property investors as greedy and opportunistic, she said.

“It’s unfair and unhelpful, especially given our research shows 92% of investors are grappling with higher holding costs because of interest rates, higher mortgages, and inflation.

“Despite that, 55% of investors said they were passing on just 10% or less of these higher costs to their tenants. Another 26.9% reported passing on 11% to 25% of extra expenses in the form of rent increases.”

This year’s PIPA Property Investor Sentiment Survey heard the views of 1,724 investors during the month of August – a record response.

PIPA’s membership base includes qualified property investment advisers, as well as a range of professionals whose business operations form part of the property investment process. These include financial planners, property buyers and advocates, accountants, mortgage brokers, real estate agents, conveyancers, depreciation specialists, lenders, and developers.

The post Proof the war on investors is only hurting tenants, as hundreds of thousands of rentals disappear appeared first on AdviserVoice.

Ben Kinglsey

The Victorian Government’s new investor land tax grab – announced in its State Budget yesterday – will hurt aspirational and hardworking property owners the most, according to the Property Investment Professionals of Australia (PIPA) and the Property Investors Council of Australia (PICA).

Analysis of the new policy has found that a Victorian investor will land holdings worth $1 million will be slugged about $2000 in extra land tax per year – or about $20,000 over the next decade – however, the tax will continue to increase along with land values throughout that time, so the cost to investors will likely be much higher.

PICA Chair Ben Kingsley said the policy would result in hardworking Victorians paying for the government’s incompetence for decades. “This is what happens when you have so much debt as well as continued economic mismanagement and self-serving governance,” Mr Kingsley said. “Victorians will be paying for the government’s incompetence for not just years, but for decades. “It’s a classic case of which policy is going to cause the least amount of political damage, so, they go after the aspiring and hardworking Australian, but aspiration in Victoria is officially dead under the Labor Government.” PIPA Chair Nicola McDougall said the new land tax grab appeared to be modelled on the Queensland Government’s similar failed policy last year.

“It does seem like the Victorian Government has taken an illogical page out of the Queensland’s Government’s ill-fated and investor-focused land tax playbook from last year, and we all know how that worked out for them,” Ms McDougall said.

“This absurd policy will no doubt lead to the exodus of investors in Victoria who are already struggling with significantly higher mortgage repayments that dwarf any increases in rent over the past year.”

Mr Kingsley said investors will desert Victoria in droves – just as they did in Queensland last year – with renters set to pay higher rents because of the policy folly.

“Victoria has the highest stamp duty of any state and territory in the country, so, this policy is like rubbing salt into a wound,” Mr Kingsley said. “Anyone looking to buy property in Victoria will look elsewhere, because this policy says that Victoria is closed for business. “Borderless investors will simply shop elsewhere where they are not being slugged by sky-high stamp duty and land tax, which will have a hugely detrimental impact on rental supply.” Ms McDougall said it was illogical that any State Government would implement such a policy during a prolonged critical undersupply of rental properties.

“It beggars’ belief that at a time of record low vacancy rates, rising rents, and increasing overseas migration – many of whom will initially choose to live in Melbourne but may find nowhere to rent – that the Victorian Government would even consider implementing such a ridiculous policy,” Ms McDougall said. “This is yet another example of politicians having no understanding of how bad policy impacts investor behaviour, especially those aspirational and hardworking property owners who are set to be slugged the most by this latest financial impost.”

The post Land tax grab to hurt aspirational and hardworking Victorians the most appeared first on AdviserVoice.

Nicola McDougall

Years of knee-jerk property policies and legislation created the current rental crisis, according to the Property Investment Professionals of Australia (PIPA).

At the 2023 PIPA Brisbane breakfast seminar on Wednesday last week, an expert panel outlined potential solutions to the critical rental undersupply, but also explained some of the reasons how the rental crisis was created.

PIPA Chair Nicola McDougall said nearly a decade of knee-jerk policies in the property investment space in particular had reduced the volume of investors and ultimately the supply of rental properties across the nation.

“Since late 2014, we have seen investor-targeted APRA lending restrictions come and go; negative gearing and Capital Gains Tax laws continually on the chopping block; emergency tenancy laws enacted during the pandemic; and mooted rental caps now being the latest attack on investors,” Ms McDougall said. “Given property investment should be a long-term strategy, no wonder hundreds of thousands of investors are offloading their properties in reaction to the head-spinning array of financial and legislative imposts that are forever levelled at them.”

REIQ CEO Antonia Mercorella, CoreLogic Asia-Pacific Executive Research Director Tim Lawless, and financial and housing market expert Pete Wargent were the expert panellists who presented potential solutions to the current southeast rental crisis at the 2023 PIPA Brisbane breakfast seminar on Wednesday.

Ms Mercorella said legislative issues were continuing to have an impact on the psyche of investors to the detriment of rental supply.

“Investors are becoming increasingly frustrated with legislative intervention that effectively handcuffs them and limits what they can and can’t do in a way that we don’t necessarily see in any other asset class,” Ms Mercorella said.

“You only have to look at the number of properties that have been transferred from the long term permanent rental market into short-term letting, as well as the volume that have been sold to see their frustration in action.”

Mr Wargent said while there is currently a rental shortage that is pushing rents higher that situation is invariably followed by a glut.

“I know it doesn’t feel like it today, but it wasn’t so many years ago here in Brisbane that there were units going up all over the place and rents were falling,” Mr Wargent said.

“There’s billions and billions of dollars of capital being raised in the bill to rent sector, so, we’re likely going to get a glut in three or four years’ time.

“The rental shortage will be solved in time, so, it’s more a question of what do you want the rental markets to look like?”

Likewise, Mr Lawless said long term trends in the rental market were vastly different to the double-digit annual increases of the past two years, with rents typically increasing at around three per cent annually.

“Over the short to medium term the rental supply outlook is looking pretty glum. From a new dwellings’ perspective, approvals are at their lowest level in more than a decade. Across the medium to high density sector, dwelling approvals have mostly been below the decade average since 2018,” he said.

“It’s encouraging to see more funding for social and community housing in the wings but, from a federal funding perspective, these aren’t budgeted until 2024 and you would expect that even then it will take a couple of years for this supply to be completed.

“Rental supply from private sector investment is still going backwards after the number of investment home loans has consistently declined since early 2022.”

CoreLogic data shows that average monthly rental prices have increased by $290 over the past year, but repayments on a $500,000 mortgage have increased by a bit over $800 per month.

PIPA Chair Nicola McDougall said the number of investors active in the market had fallen to the lowest level since August 2020, according to the latest ABS Lending Indicators.

“Higher interest rates, as well as the three percentage point servicing buffer, is preventing many investors from transacting, which is reducing the supply of rental properties even further,” she said.

“The last time the number of investor loans was this low was in the early months of the pandemic when most of us were in lockdown and everyone was fearful of what lay ahead. That is an extraordinary comparison to make, and situation to be in again.”

At the breakfast, Ms Mercorella said it was vital that legislation and regulatory frameworks worked in all markets and not just for specific moments in time.

“We know what a healthy vacancy rate looks like – it’s between 2.6 per cent to 3.5 per cent – and we are sitting well below one per cent across most parts of Queensland, so, we are worlds away from a healthy market,” Ms Mercorella said.

“But governments must accept responsibility for the position we find ourselves in here in Queensland. There are around 640,000 residential tenancies and the vast majority of these are being provided by private investors, who do the heavy lifting when it comes to housing Queenslanders.

“The more you legislate, the more you’re just going to drive people away from permanent rental markets and either into short-term letting or into selling.”

Mr Wargent said property under- and over-supplies are always remedied over time as more supply is constructed and consumer behaviour changes.

“When rents rise too quickly, people start pushing back. They either move to a different city, they stay at home, they live with their parents for longer, we see average household sizes increasing and more people flat sharing,” Mr Wargent said.

“If you want to encourage investment in any sector – it doesn’t matter if it’s energy, property, or whatever – you need a stable regulatory framework to give people confidence to invest in. Knee-jerk reactions or price caps never work in economics traditionally.

“A good starting point needs to be removing the current lending assessment buffer. That was an extraordinary measure for an extraordinary time and if people want to borrow, then let them borrow.

“There’s no point in stopping people from borrowing if they want to supply the market.”

At the breakfast, Mr Lawless said that new supply and increased investor activity were both on the horizon, but there was no quick fix to the current rental crisis.

“Once there’s some stability in the market, we are likely to see more investment, however, governments should also have a bigger stake in rental home ownership,” Mr Lawless said.

“If you look at dwelling approvals historically, back in the ‘70s and ‘80s, governments were building about 10 per cent to 15 per cent of housing stock. Over the past 15 or 20 years, that’s consistently been around two per cent to three per cent.

“So, they’re really passed the chalice of rental housing responsibility to the private sector and now they’re trying to regulate the private sector – I think unfairly.

“The biggest thing they can do is to take a bigger stake of home ownership – which could be in the form of social and community housing – but there’s no immediacy in delivering that to the market when it’s so severely needed at the moment.”

The post “Knee-jerk” policies created rental crisis – PIPA appeared first on AdviserVoice.

Mr Koulizos replaces outgoing chairman Ben Kingsley, who stepped down after five successful years at the helm of PIPA. Mr Kingsley remains on the PIPA board of directors.

M Koulizos was first elected to the PIPA board in 2015 and is a South Australian property academic at both TafeSA and the University of South Australia.

Affectionately known as the “Property Professor”, Mr Koulizos brings more than 20 years of real estate and investment teaching to the chair position as well as personal experience as a successful investor and property developer.

“I am honoured to be elected as the PIPA chairman, especially as the association is going from strength to strength thanks to the stewardship of outgoing chairman Ben Kingsley over the past five years,” Mr Koulizos said.

“While PIPA’s membership and brand is growing solidly, our fight for regulation in the property investment advice space continues with far too many investors still losing significant sums of money due to unscrupulous spruikers masquerading as advisers.”

Mr Koulizos’ aims for 2018 includes a greater focus on the education of PIPA members to ensure they continue to uphold the very high expectations of all of their clients and to set the benchmark for property investment advice best practice.

Melbourne-based PIPA board director David MacMillan has been elected as the association’s deputy chairman.

The PIPA board also elected Sydney-based Paul Glossop to the board of directors. Mr Glossop is a licensed buyers’ agent and also has formal qualifications in education and architecture.

The post PIPA elects new board chairman appeared first on AdviserVoice.

Ben Kingsley

With the 2017 Federal Budget looming, the Property Investment Professionals of Australia (PIPA) is urging the government to take a sensible approach to housing affordability policy.

As the peak body for the property investment industry, PIPA has long campaigned for greater education around property investment as well as regulation of property investment advice and remains dedicated to supporting a healthy, sustainable property investment industry.

PIPA chair Ben Kingsley held discussions on housing affordability with government representatives in April. He said the association welcomed the federal government’s decision to rule out changes to negative gearing and hoped this was reflective of a well-considered approach to addressing affordability issues both on the buying and renting sides.

“Housing affordability is challenging, but there’s no easy fix. We welcome the government’s focus on this issue but urge them to adopt sensible measures that reflect the national market needs, rather than any of the radical changes that have been floated by some corners of the market such as axing negative gearing and SMSF property investment.

“PIPA supports thoughtful and varied solutions that promote supply and cool demand and consider the long-term viability of the market and broader economy.”

Mr Kingsley said no policy would ever reduce the price of quality property in the inner suburbs of major capital cities due to continued strong demand versus limited and geographically-constrained supply. However, he believed strategic policies could work to encourage more supply in urban locations.

“Potential polices that could stimulate supply include measures that encourage developers to build more family-friendly accommodation, such as three or four bedroom units. Incentives to encourage the release of bulk land lots in new greenfield areas could also boost supply.”

As for the demand side, Mr Kingsley emphasised that regulation and education remained key.

“Property investment advice needs to be regulated. This would remove spruikers and speculators from the market. Educating investors about the real and current risks of property investment and ensuring they are not pressured into poor investments would help to moderate demand and avoid budding investors getting their hands burned.”

The economic benefits of the Australian property industry

According to data from CoreLogic, residential housing stock alone is estimated to be worth $6.9 trillion, which is more than three times Australia’s total share market capitalization of $1.7 trillion and our total superannuation pool of $2.2 trillion.

“Any policy changes that could impact the value of this asset class, need to be thoroughly considered,” Mr Kingsley said.

“The residential property cycle plays a significant role in the country’s overall economic performance, as we’ve seen by the recent strong stamp duty receipts in New South Wales which have helped to fund the state’s robust infrastructure program.”

Mr Kingsley also reinforced the role property played in building everyday Australians’ wealth.

“While high property prices can be incredibly frustrating for those trying to enter the market, we need to remember that property is a key feature of many everyday Australians’ wealth creation strategies,” he said.

“Property is an accessible, trusted source of wealth that can help just about anyone build a better future. We need to be very careful when it comes to playing around with measures that could hurt the value of these assets.”

The post Critical time for housing measures: PIPA appeared first on AdviserVoice.

Ben Kingsley

With the provision of property investment advice continuing to go unregulated by the Federal Government, the Property Investment Professionals of Australia (PIPA), is experiencing strong demand for its property investment advice course as practitioners from a range of backgrounds seek to incorporate qualified property investment advice into their service offering.

Over the year to September, the number of students enrolled in PIPA’s QPIA (Qualified Property Investment Adviser) course increased by 36 per cent, with 233 students currently enrolled in the specialist qualification.

PIPA Chair Ben Kingsley said it was encouraging to see professionals opting to proactively increase the professionalism of the property investment industry.

“Although property investment advice still remains unregulated, we are committed to driving higher standards to protect consumers and ensure they benefit from the wealth creation benefits that well-selected, strategic property investment can bring.

“Property has become a favoured investment class among Australian investors and one that requires as much due diligence as any other asset. We are seeing practitioners from a range of backgrounds, including mortgage broking, financial planning and real estate services, formalise their property investment knowledge to offer a professional, qualified service.”

Mr Kingsley said there were several catalysts driving the trend.

“In many cases it’s inbound demand from clients looking for assistance with their property investment strategies. In other cases, we hear that practitioners are simply becoming aware of clients’ less than strategic approach to property investment and they’re looking for a way to help. There is also growing recognition that property investment advice is simply very complementary to a range of professions.”

Enhanced professional development focus

As PIPA’s membership grows, the association has been focusing on growing its team and professional development offering to enhance support for members.

Nicola McDougall has joined as the association’s new part-time Corporate Affairs Manager while Peter Mastroianni has been appointed as PIPA’s part-time Members Officer.

Ms McDougall, who also sits on the PIPA board, brings a decade of experience in property research, analysis and journalism. She will work closely with Chair Ben Kingsley to raise the profile of the association and grow its professional development offering.

Ms McDougall will also work in close partnership with Mr Mastroianni, who will be responsible for membership recruitment and engagement, ensuring PIPA continues to grow and evolve to meet its members’ needs.

In line with its enhanced focus on professional development, PIPA will launch its inaugural member breakfast series in Sydney this week, followed by Melbourne and Brisbane. The events will offer members an exclusive capital city market review from CoreLogic expert analysts Tim Lawless and Cameron Kusher, and an association update from Ben Kingsley.

“As the association grows, we are focused on building out our professional development offering to provide members with more networking opportunities and valuable insights to support them to service Australia’s property investment community,” Mr Kingsley said.

The post More practitioners seek property investment advice qualification: PIPA appeared first on AdviserVoice.

Ben Kingsley

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.

“Housing finance data is a good indicator of where the market is headed, but it’s important that APRA and the RBA look closely at the data and really understand where the heat is coming from.

“For example, if the number of borrowing commitments from investors for established dwellings has increased significantly, more may be needed to calm investor activity. On the other hand, if finance for new builds has increased, market intervention may not be necessary, because of the lag time in which the data flows through. In other words, if construction approvals are slowing then lending data will soften over time. It’s a fine line our regulators are treating between slowing demand versus jobs and economic growth, short to medium term.”

[1] Seasonally adjusted estimates

The post All eyes on ABS housing finance data: PIPA chair Ben Kingsley urges regulators to move cautiously appeared first on AdviserVoice.

PIPA speaks out on proposed negative gearing policy.

The Property Investment Professionals of Australia (PIPA) has warned that the Australian Labor Party’s (ALP’s) proposed policy changes to negative gearing are hinged on insufficient economic modelling and broad assumptions.

“The models are dangerously misleading. Such major reform requires comprehensive and detailed modelling. Until there is real evidence to support such a policy, which industry experience tells us doesn’t exist, the opposition should be very careful about changing negative gearing and capital gains tax provisions.”

“Our message is clear – $6.5 trillion[1] worth of Australians’ wealth is tied up in property. That’s roughly three times that held in superannuation and equities. Don’t play with this unless you know what you’re doing.”

Mr Kingsley said the ability to claim expenses associated with a geared business or investment was a principal foundation of the Australian tax system.

“This policy should not be changed in isolation, outside of a complete review of the nation’s taxation policy,” he said.

“Property investment plays an important role in supporting Australians in their pursuit to be self-sufficient retirees and reduce the burden on the public purse to support an ageing population. Moreover, the property market is a significant contributor to economic activity, providing one in four jobs in our economy.

“Labor’s proposed removal of negative gearing on established housing is a poorly-informed policy that will drive property price reductions, increase rents, stifle new property construction, rather than encourage it and cause job losses. Is that a good policy?”

The post Don’t play with fire: PIPA Chair Ben Kingsley warns against proposed changes to negative gearing appeared first on AdviserVoice.