Powered by MOMENTUM MEDIA
realestatebusiness logo

Breaking news and updates daily. Subscribe to our Newsletter!

Home of the REB Top 100 Agents
Breaking news and updates daily. Subscribe to our newsletter

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

rpm logo latest

Labor’s neg gearing policy will spawn a new generation of spruikers, cautions industry body

By Tim Neary
07 May 2019 | 1 minute read

Labor’s negative gearing proposal will flood the market with spruikers and endanger the financial lives of thousands of Australians, according to the Property Investment Professionals of Australia.

PIPA chairman Peter Koulizos said the policy would encourage unscrupulous operators into the market looking to take financial advantage of everyday investors.

“When you financially incentivise people to buy a particular product, spruikers are not far behind because they see an opportunity to make a lot of cash very quickly,” he said.

Advertisement
Advertisement

“There is currently no legislation to protect consumers from dodgy operators pretending to be property investment experts.”

Mr Koulizos said that industry research already shows that Labor’s policy is based on incorrect modelling.

He said the assumptions it makes regarding the number of investors who already buy new property and the revenue it believes it will raise are both inaccurate.

“It will be like the pink batts fiasco all over again, which was another terrible Labor policy,” Mr Koulizos said.

“This time, it is an ill-conceived negative gearing proposal that is being rolled out too quickly and is likely to have financially catastrophic consequences for investors.

“We’re talking about people investing hundreds of thousands of dollars into properties that are likely to be overpriced and inferior in every way possible.”

Mr Koulizos said the $18 million fine imposed on We Buy Houses and its director, Rick Otton, for misleading property buyers and investors last year proved that regulation of property investment advice is needed.

“If Labor’s absurd policy comes in, expect more investors to lose their life savings to corrupt charlatans who have no fear of the consequences because of the lack of regulation in the property investment advice space.”

Mr Koulizos said that PIPA has developed codes of ethics and conduct, which all of its members voluntarily agree to abide with, as well as professional standards of accreditation and education for the property investment industry, including a Qualified Property Investment Adviser (QPIA) accreditation course.

Labor’s neg gearing policy will spawn a new generation of spruikers, cautions industry body
caution exclamation
lawyersweekly logo

Subscribe to our RPM
mailing list

 

Do you have an industry update?

top suburbs

12 month growth
Travancore
49.78%
Timboon
49.57%
Dolphin Point
49.51%
Nyah West
49.42%
Preston Beach
49.29%
Newington
48.97%
Killcare Heights
48.89%
Wundowie
48.77%
Homebush
48.44%
Glenside
48.28%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to Newsletter

Ensure you never miss an issue of the Real Estate Business Bulletin.
Enter your email to receive the latest real estate advice and tools to help you sell.