Don’t worry if house prices fall, says Bowen

Original article by Turi Condon, Ben Packham, Greg Brown
The Australian – Page: 1 & 6 : 16-May-19

Property Council of Australia president Stephen Conry says the housing market is "fragile", and it is not the right time for Labor’s proposed changes to the negative gearing regime. Real Estate Institute of Australia president Adrian Kelly warns that the prices of existing properties will fall if Labor implements its reforms, while the Housing Industry Association’s chief economist Tim Reardon says housing rents will rise. Meanwhile, shadow treasurer Chris Bowen has downplayed concerns that homeowners may find themselves in negative equity, arguing that they will only incur a loss if they sell.

CORPORATES
PROPERTY COUNCIL OF AUSTRALIA LIMITED, THE REAL ESTATE INSTITUTE OF AUSTRALIA LIMITED, HOUSING INDUSTRY ASSOCIATION LIMITED, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, SQM RESEARCH PTY LTD

Tax Office to ramp up audits of landlords

Original article by Joanna Mather
The Australian Financial Review – Page: 9 : 18-Apr-19

The Australian Taxation Office has signalled that it will audit about 4,500 taxpayers who claim deductions for rental properties in 2018-19. The ATO undertook 1,500 such audits in 2017-18, after random sampling of tax returns showed that 90 per cent of claims for rental deductions contained errors. Assistant commissioner Gavin Siebert says the ATO uses data analytics and information from a range of third-party sources in its audits. It imposed penalties totalling $1.3m for incorrect rental deductions in 2017-18.

CORPORATES
AUSTRALIAN TAXATION OFFICE

Labor creating a rental famine

Original article by Greg Brown
The Australian – Page: 2 : 7-Jan-19

Liberal senator Dean Smith contends that young Australians would be most affected by Labor’s proposed changes to negative gearing. With 2.1 million renters aged between 20 and 34 in Australia, Smith says Labor’s plans represent an opportunity for the federal government to portray itself as a better option for voters in this age group. Shadow treasurer Chris Bowen says he would be happy to have a debate on whether Labor or the Coalition has the best housing policies for young people.

CORPORATES
LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, SQM RESEARCH PTY LTD

Foreign money needed for build-to-rent funds, says EY

Original article by Nick Lenaghan
The Australian Financial Review – Page: 39 : 1-May-18

Federal Treasurer Scott Morrison announced restrictions on the purchase of residential property by managed investment trusts in September 2017. Luke McIntosh of Ernst & Young claimed at a property forum on 30 April that the restrictions make it hard to attract the foreign capital needed to get the build-to-rent sector off the ground in Australia. Build-to-rent involves the development of housing from which investors make their profit by retaining it for renters rather than selling it.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, ERNST AND YOUNG, SALTA PROPERTIES PTY LTD

Flat incomes, cost of living take harsh toll

Original article by Michael Bleby
The Australian Financial Review – Page: 31 : 5-Feb-18

ME Bank’s latest survey of mortgage holders has found that 46 per cent are spending at least 30 per cent of their disposable income on meeting loan repayments. Although the percentage was slightly down on its previous survey in June 2017, ME Bank noted increased mortgage stress among lower-income households due to greater living costs and little or no increase in wages. ME Bank also found that the percentage of renters who are paying 30 per cent or more of their disposable income on rent payments has increased from 69 per cent to 72 per cent.

CORPORATES
ME BANK, JP MORGAN AUSTRALIA LIMITED, INDUSTRY SUPER AUSTRALIA PTY LTD, RESERVE BANK OF AUSTRALIA, HSBC AUSTRALIA HOLDINGS PTY LTD

Build-to-rent will struggle in Australia

Original article by Larry Schlesinger
The Australian Financial Review – Page: 37 : 6-Sep-17

Melbourne-based Caydon Property Group has started work on its first "build-to-rent" apartment project in the US. However, Caydon founder Joe Russo questions whether the build-to-rent model will be successful in Australia, noting that rising property values means that such an apartment building is likely to be less profitable than selling all apartments off the plan. Mirvac is undertaking a capital raising to finance its first build-to-rent project, while Salta Properties also plans to enter the sector.

CORPORATES
CAYDON PROPERTY GROUP PTY LTD, MIRVAC GROUP – ASX MGR, SALTA PROPERTIES PTY LTD, AMP CAPITAL INVESTORS LIMITED, SCAPE LIVING STUDENT ACCOMMODATION, MACQUARIE CAPITAL PTY LTD, GREYSTAR REAL ESTATE PARTNERS LLC, DOMUS HOLDINGS CORPORATION

It’s Official: Everything is happening later in life

Original article by Roy Morgan Research
Market Research Update – Page: Online : 4-Sep-17

A Roy Morgan Single Source survey has found that Australians are living at home with their parents for longer than they did a decade ago. Some 58% of 18-19yr olds now live at home, compared to 54% in 2007, while 28% of 22-24yr olds live at home (up from 24% in 2007). Meanwhile, 42% of 30-34yr olds are renting, up significantly since 2007 (33%) and now 38% of 35-39yr olds are renting, up from 29% in 2007. Meanwhile, just under a third of Australians aged 30-34 have a home loan (33%), down from 43% in 2007, and 43% of 35-39yr olds have a home loan, down from 51% in 2007. The figures for 40-something Australians are little changed from a decade ago, with 51% of 40-44 yr olds now having a home loan (virtually unchanged from a decade ago). Now only 12% of 40-44yr olds own their home (down from 18% in 2007), and just 18% of 45-49yr olds own their home (28% in 2007). This trend is evident through older age groups.

CORPORATES
ROY MORGAN RESEARCH LIMITED

Sydney unit rents on par with houses as affordability bites

Original article by Michael Bleby
The Australian Financial Review – Page: 3 : 20-Jul-17

Data from Domain Group shows that the median weekly rent for apartments in Sydney rose by 4.8 per cent in the year to June 2017. The median weekly rent for detached houses increased by 3.8 per cent. Meanwhile, the median weekly rent for apartments and houses in Melbourne increased by 5.3 per cent and five per cent respectively. The figures also show that the median house price in Sydney rose by 1.6 per cent to a new high of $A1,178,417 in the June quarter, while the median price in Melbourne rose 3.5 per cent to $A865,712.

CORPORATES
DOMAIN.COM.AU, FAIRFAX MEDIA LIMITED – ASX FXJ

Gearing proposal won’t hit renters

Original article by Michael Bleby
The Australian Financial Review – Page: 36 : 23-Jun-16

Research suggests that the Australian Labor Party’s proposal to impose restrictions on negative gearing would have limited impact on rents. A study conducted by SQM Research suggests that rents would remain largely unchanged for the next few years, due to extra supply. SQM Research MD Louis Christopher calculated that the proposed policy would result in a rise of 1.2 percentage points in average rental yields. An adjustment of either rents rising or prices falling would happen only after four years of the new rules being in operation.

CORPORATES
SQM RESEARCH PTY LTD, AUSTRALIAN LABOR PARTY

Rental growth slows to 20-year low

Original article by Michael Bleby
The Australian Financial Review – Page: 4 : 11-Sep-15

CoreLogic RP Data has reported that growth in asking rents for residential properties across Australia fell by 0.4 per cent overall in August 2014, compared with a 0.3 per cent fall in July. Growth in asking rents eased to 0.7 per cent year-on-year. Sydney was the only capital city to record a rise in asking rents during August. Cameron Kusher of CoreLogic RP Data cites factors such as slowing population growth and continued strong construction activity.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, RP DATA LIMITED