Property Investment Professionals of Australia (PIPA) has expressed concern about the widespread moves by lenders to up their interest rates, saying it could be to the detriment of the broader property market and its investors.
PIPA chair Ben Kingsley said increasing interest rates for existing investors appeared to be an “opportunistic move by banks” that could have potentially harmful flow-on effects.
“Increasing borrowing costs for investors, and in some cases owner-occupiers, who bought into the market some time ago seems unfair and detracts from what should be the common goal of creating a balanced property market,” Mr Kingsley said.
Speaking to SMSF Adviser, he said that in general, PIPA is against market intervention and manipulation.
“We have been calling for industry regulation for years without any government of the day doing anything about it. We are concerned about the changes that are occurring and we still believe a consumer awareness campaign about the risks of investing in property is a better approach than market intervention,” he said.
“SMSF trustees are usually more knowledgeable and more advanced investors and they know the long-term investment returns for certain types of direct property investment, so this market manipulation is disappointing,” Mr Kingsley added.
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
- 22 Sep 2017ASIC permanently bans SMSF property spruikerBy Miranda Brownlee
- 22 Sep 2017Male SMSF investors ‘bigger risk takers’, says reportBy Staff Reporter
- 22 Sep 2017Lawyer flags subdivision trap with downsizer contributionsBy Miranda Brownlee
- 22 Sep 2017ATO urged to address ‘unknowns’ with LRBA reportingBy Miranda Brownlee
- 21 Sep 2017Lost and unclaimed super climbs to $18 billionBy Lara Bullock
- 21 Sep 2017ATO to release further guidance on reservesBy Miranda Brownlee
- view all
- Male SMSF investors ‘bigger risk takers’, says report
Male SMSF members tend to hold a greater share of assets in higher risk investments including domestic shares and property in comparison to ...read more
- Lawyer flags subdivision trap with downsizer contributions
SMSF trustees planning to make downsizer contributions have been warned that if a property has been subject to a partial sale in the 10 yea...read more
- ATO urged to address ‘unknowns’ with LRBA reporting
The ATO has been asked to provide further clarity around the events based reporting requirements for LRBA repayments, with the new requireme...read more
- view all