The Banking Royal Commission

[Power Raid]

What a load of baloney.

do you disagree that the wealthy are the only ones able to negative gear all assets (houses, shares, R&D, technology, innovation, medical research etc etc)?
do you disagree that the poor and ordinary can only negative gear new property at inflated prices?
do you disagree that new homes when sold, losing their negative gearing, won't drop in value in the secondary market?

#denial

 

[Taylor]

People also won't choose to be $150,000 in the debt hole by selling their home. There are only so many investors that can sell out before it leaves people living.

 

[Hawk Dork]

I think there was/is an argument to be had about whether prices had to fall (particularly around whether there was a "bubble" or not) rather than for the rapid growth to just slow a bit. You can slow down a hot market without it necessarily going backwards.

Interest rates were the traditional handbrake

 

[its free real estate]

I think there was/is an argument to be had about whether prices had to fall (particularly around whether there was a "bubble" or not) rather than for the rapid growth to just slow a bit. You can slow down a hot market without it necessarily going backwards.

Not if the purchase of housing in the hot markets was predicated on the growth continuing.

The cost of Sydney housing and the yields involved means it needs continued capital appreciation just to break even. A flat market and you’re losing cash hand over fist.

 

[Hawk Dork]

do you disagree that the poor and ordinary can only negative gear new property at inflated prices?

the price will be the same for rich and poor

do you disagree that new homes when sold, losing their negative gearing, won't drop in value in the secondary market?

they wont have investors wishing to negatively gear bidding for them

 

[Power Raid]

You can still rent a property without negative gearing and you can purchase the property under group collective companies, such a unit trust but neither would represent value for renters as those will both need to be in the black.

That means the best value rentals will be the negatively geared built to lowest standard boxes on the edge of the suburbs, from an investor point of view.

That's a bit of a recipe for a ghetto.

with a class system, you need a place for the under privileged to live.

 

[Taylor]

the price will be the same for rich and poor

they wont have investors wishing to negatively gear bidding for them

They might if rent is high enough to mean the property price plus capital growth minus expenses works out in the black.

 

[Power Raid]

the price will be the same for rich and poor

yes but the value won't and how they participate will be different. You will see an increased demand for new properties just like you see with the first home owners grant. I was making 35% to 50% pa in WA when they announced it in the GFC.

Just like then, the poor and ordinary pay more and the property developer kills the pig

they wont have investors wishing to negatively gear bidding for them

investors will go where ever there is value

a smart investor will book end the lemmings, raping the ordinary by selling to them at higher prices and then preying on them when they sell into weaker markets.

 

[NSWCROW]

 

[Papa G]

There's nothing wrong with bagging a shit recommendation.

 

[Scotland]

Yep, mortgage brokers are the problem. FMD.

 

[Bombermania]

While understanding Haynes reasoning for it but that recommendation is possibly flawed not just due to the impact on the brokers but for allowing the banks to charge an upfront fee to borrowers that enter a branch.

Sure you can eliminate trailing commissions and you could require the broker to reveal the fee to the borrower but the banks should be paying the broker for recommending one of their 30 year loan products. A product which enables the bank to amend the rate of interest and potentially earning the bank more than the value of the original loan.

A broker is essentially acting like a real estate agent or recruiter and they are not paid by the buyer or candidate so I am not convinced we should be treating brokers differently. The vendor should be the one paying.

 

[Craven Morehead]

Heads are starting to roll.
NAB's Thorburn and Henry gone.
https://www.abc.net.au/news/2019-02-07/nab-trading-halt/10790670

 

[Papa G]

The 7:30 Report and 4 Corners really are no different to A Current Affair and 60 Minutes. I've come to realise that.

 

[NSWCROW]

 

[Nuggs Bunny]

What does a mortgage broker actually do that a sufficiently motivated human being can't do themselves?

 

[Pessimistic]

What does a mortgage broker actually do that a sufficiently motivated human being can't do themselves?

How does a virus protection software engineer get experience of about and creating viruses?

 

[Nuggs Bunny]

How does a virus protection software engineer get experience of about and creating viruses?

I don't follow

 

[its free real estate]

The 7:30 Report and 4 Corners really are no different to A Current Affair and 60 Minutes. I've come to realise that.

They were better 10-20 years ago.

 

[its free real estate]

What does a mortgage broker actually do that a sufficiently motivated human being can't do themselves?

Access to RPData valuations (which are reasonably accurate) was handy for me.

 

[Pessimistic]

I don't follow

Poacher turned gamekeeper?

 

[Papa G]

If you're a comfortably middle class established person with financial nouse and a sizable deposit, then a mortgage broker is probably unnecessary. For everybody else, it's entirely advisable.

 

[Balls In]

Rudd's Ken Henry looking great. I'm sure his lefty mates would agree.

 

[Dry Rot]

Ken Henry is an arrogant ****wit. Just look at his Mining Tax Mk1.

 

[kranky al]