The recent moves to dampen property investor activities by the Australian Prudential Regulation Authority (APRA) is not the right long-term solution, according to a property body.
The Property Investment Professional of Australia (PIPA) has called for the need for improved consumer awareness and comprehensive regulation of the property investment industry.
Commenting on the banks' lending restrictions by either changing their lending criteria or charging investors more to take loans with them, Ben Kingsley, chair of PIPA said it was not a solution to cool the Sydney and Melbourne property markets.
"While we welcome and endorse a responsible approach to lending, we are concerned about APRA's market intervention and don't believe their lender-by-lender approach is the most effective means to control the property market," he said.
Kingsley said the measures are an unfair imposition on investors who want to invest in other parts of Australia and that there would be many investors losing money after the upswing cycle..
"I can guarantee you, once losses are experienced in the next few years, those consumers will want to blame someone and will look to blame the Government for not protecting them - even if they made their investment decision themselves decision themselves or bought via a property spruiker."
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