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ISCOVER
Staff Reporter
Market forces are aligning to produce arguably the best property investment conditions we have seen for some time, Property Investment Professionals of Australia chair Ben Kingsley has claimed.
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“The current environment is bringing a new wave of investment activity and great opportunities for financial services professionals including brokers,” Mr Kingsley said.
“We saw four cash rate cuts throughout 2012 of 125 basis points, bringing the official cash rate in 2013 to an historical low of 3 per cent and, as a result, we’re seeing an abundance of very attractive home loan rates.
“Combine this with very strong rental yields and low vacancy rates across many property markets, and the impetus to invest in property is stronger than it’s been in quite some time.”
New figures released from the Australian Bureau of Statistics this month confirm that investment activity is beginning to gain momentum, with the value of investment housing commitments (trend) rising 1.5 per cent in February 2013, or $115 million, Mr Kingsley said.
Moreover, property prices are beginning to see some upward growth, as the property market gathers pace. According to RP Data, dwelling values across the combined capital cities recorded a 2.8 per cent rise in the March quarter – the strongest result seen over the past three years, and a good indication the market is on its way up.
“And to top all of this off, Australians’ mushrooming interest in property investment via self-managed super is only going to add to the opportunities in this space,” Mr Kingsley said.
While increasing momentum in property investment spells obvious opportunity for any industry professional, there is opportunity for savvy operators to benefit even further, according to Mr Kingsley.
“Financial services providers have the chance to really take this opportunity that growth in property investment presents and amplify it, by specialising in property investment as a QPIA – Qualified Property Investment Adviser,” he said.
“A QPIA is a formally educated, qualified property investment specialist who can advise investors not only on an individual property selection, but develop a long-term property investment strategy that meets the client’s individual needs and long-term aspirations.
“What could be a better addition to a mortgage broker’s service offering than that? Not only can a QPIA-accredited broker provide clients with the appropriate finance to fund their investment activities, they can offer a complete, much more holistic service that can magnify their earning potential as well as create a much stronger, much more long-term relationship with the client.”
