PIPA In the News

Find out if you are an observer, speculator, collector, or investor. 

It’s nice to believe we’re unique but, in truth, human patterns of behaviour are predictable.

This isn’t always a bad thing – particularly for professional advisors like me who’ve operated in a specialist field for some years.

It helps us identify what’s driving people to act in certain ways, so we can help guide them through their property investment journey.

One of the most important steps in the process is to identify which of the four categories of investor types they fall into.

This enables us to establish specific strategies that help them tackle their perceived limitations and move toward becoming sophisticated investors.

When it comes to investing in property, trying to time a purchase to maximise a potential future profit over the shorter term is incredibly difficult. This applies equally to investing in a property that you will call your home or one you intend to rent out.

When investing, taking a short-term view can be problematic due to the difficulty in picking when prices have reached their bottom or their peak. We never have the benefit of capitalising on hindsight.

A recent report by Property Investment Professionals Australia (PIPA) examined the change in median price in Australian capital cities over a longer term.

In Perth from 2003 to 2018, prices increased by 106 per cent, performing better than Sydney, Brisbane, Adelaide and Canberra.

NEW research from the Property Investment Professionals of Australia (PIPA) has found that investors who try to time the market could lose hundreds of thousands of dollars.

The analysis looked at every capital city market over the past 15 years to determine whether time in the market or timing the market produced the best capital growth.

The results show that an investor who tried to time the market could potentially lose nearly $140,000 over the 15 years.

PIPA chairman Peter Koulizos said most investors simply don't have the skills or knowledge to expertly select the best markets to invest in over the short-term.

One common piece of advice property investors get when starting is to time the market to achieve the best capital growth. However, a study by the Property Investment Professionals of Australia (PIPA) found that doing so could actually cost investors thousands of dollars.

Investors who try to time the market could potentially lose as much as $140,000 in a 15-year period, according to the study.

"Trying to time the market is not only extremely difficult for most investors, but the transactional costs of buying and selling multiple times, including stamp duty and capital gains tax, eat up a significant chunk of your potential profit," PIPA chairman Peter Koulizos said.

New research from the Property Investment Professionals of Australia (PIPA) has found that investors who try to time the market could lose hundreds of thousands of dollars.

Anew analysis from the Property Investment Professionals of Australia has revealed the dangers of trying to time the market for investors, who could stand to lose up to $140,000.

The analysis looked at every capital city market over the past 15 years to determine whether time in the market or timing the market produced the best capital growth.

The results showed that an investor who tried to time the market could potentially lose nearly $140,000 over the 15-year period.

PIPA chairman Peter Koulizos said most investors simply don’t have the skills or knowledge to expertly select the best markets to invest in over the short-term.

One of the great 21st century traps is that within the palm of our hand we hold a mobile device connected to the largest database of information in the history of the planet – and it’s creating a false sense of security for its users.

We love taking the spark of an idea, or the crux of a question, and googling madly for answers. Soon enough, we’re patting ourselves on the back for coming up with what appears to be the ultimate solution or strategy.

We are now an ‘expert’ who’s formed an opinion on the subject, and are eager to share it with all and sundry.

Among all the life-topics up for discussion in our connected world, real estate is one that gets more than its fair share of attention. Most people have purchased a property at one stage or another.

Rentvesting can give you the best of both worlds.

Just make sure you do your research and run the numbers.

Can't afford to buy in the area where you live? There is a way to enjoy the lifestyle of your favourite suburb and still get a foot hold in the property market. Rentvesting - owning an investment property while renting where you live - is gaining traction. Research from Property Investment Professionals of Australia shows a third of first-time buyers are shunning the owner-occupied dream and instead investing in a property and continuing to be tenants elsewhere.

While it can offer the best of both worlds, rentvesting calls for plenty of research to be sure it stacks up as an alternative to buying a home. On this score, Angus Raine, executive chairman of the Raine & Horne property group, doesn't mince his words. "Today we have historically low interest rates and more affordable home prices," he says. "It's time to stop saying, 'I can't afford to buy property in my area', and start looking at buying in a more affordable suburb even though it may mean a bigger commute. If your budget doesn't allow this, consider rentvesting." Check the numbers Taking your first step on the property ladder as an investor rather than owner-occupier will mean missing out on the first home owner grant and any savings on stamp duty. These are entitlements that can really add up. In Victoria, for example, first home buyer benefits can total up to $51,070.

A new report says it will cost $6.2 billion to fix Australia's "construction crisis" -- so how can you avoid being stung, if you're buying today?

Thousands of apartments nationwide have defective cladding installed, with billions needed to fix a variety of major issues including water leaks, fire safety breaches and catastrophic structural failures. That's according to a new report from Equity Economics, commissioned by the Construction, Forestry, Maritime, Mining and Energy Union (CMFEU), which says the already-infamous woes of several Sydney unit towers may be just the tip of the iceberg in Australia's apartment sector.

"Australia’s construction industry has reached crisis point," the report, titled 'Shaky Foundations', claims.

"From cracking apartment buildings to massive cost overruns in public infrastructure, there is not one part of the sector that isn’t failing in some way."

Property adviser and part-time surfer, Paul Glossop, believes the key to finding success as a property investor is similar to searching for that perfect wave.

He says having the right mindset (confidence before paddling out), finding the right location (reading the surf to select the right place to position yourself) and building a strong network of advisers and support around you (your friends out on the water), are important steps for riding the wave of success towards your property investment goals.

In his book, A Surfer’s Guide to Property Investing, Glossop tells of his 10-year journey to build a successful property portfolio, as well as the tips and tricks he learnt along the way to achieving financial freedom.

The Property Investment Professionals of Australia is warning consumers about the risks of property investment spruikers as interest rates hit record lows.

PIPA Chairman Peter Koulizos said that a confluence of factors was likely to reignite spruiker activity in property markets in the months ahead, which had the potential to financially devastate the unwary.

“Interest rates are rock bottom, lending is loosening up, plus first home buyers have been given a helping hand from the government deposit guarantee,” he said.

“While all of these factors are much needed good news for the property sector generally, they also create the ideal conditions for unscrupulous operators to potentially entrap novice buyers and investors.”

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