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Calls for more investor education and less lending restrictions
Posted on Tuesday, June 02 2015 at 4:17 PM
The Property Investment Professionals of Australia (PIPA) believe moves to tighten lending to investors aren’t the most effective way to cool booming capital city markets.
“While we welcome and endorse a responsible approach to lending, we are concerned about APRA’s (Australian Prudential Regulation Authority) market intervention and don’t believe their lender-by-lender approach is the most effective means to control the property market,” Ben Kingsley, chair of PIPA, says.
Kingsley says the restrictions could also impact markets that are in recovery.
“We recognise that marketplaces like Sydney and Melbourne are posing concerns as new and existing investors are potentially speculating in trying to capitalise on boom conditions, and we have been active in warning consumers to be careful about this.
“However, there are plenty of other property markets in Australia and these measures are an unfair imposition on investors who want to invest in other parts of our country.”
Kingsley says there are two other measures PIPA believe would create a more sustainable property investment industry – consumer education and industry regulation.
“The government, APRA, ASIC, RBA and the state consumer affairs departments need to join forces and invest in a consumer education campaign to explain to Australian investors the truths about property investment,” he says.
Kingsley says by adding more regulation to the mix, consumers will be protected and well advised.
“The government needs to be proactive and make progress on putting a minimum standard of education or qualification in place for those providing property investment advice, so we can be sure that Australian investors, who are looking for support to make well-informed investment decisions, can receive the same level of appropriate guidance provided to anyone investing in other assets, such as equities.”
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