Hall of Famer
- Aug 14, 2011
- AFL Club
- West Coast
- Other Teams
- Mclaren Mercedes F1
Not policy, its the legislation & the regulatory bodies:There is an inconsistency in government policy.
A house is supposed to be a family's big chance to invest for the future.
But when the future comes, the oldies don't want to cash in that investment. That is where the younger generation could buy property: from retirees supporting themselves.
'.... the RBA’s mission to stimulate employment means it is holding rates lower. This is the opposite of what an overheating residential market needs.
We do have a bank regulator – the Australian Prudential Regulatory Authority – and it is there to make sure the banks are operating well and there is no deterioration in lending standards.
The problem is that on paper the banking industry is humming away nicely – after all, interest rates have never been so low so bad debts are within a normal range.
But they are looking the wrong way – the banks are fine, it’s the customers that are facing trouble.
When something finally triggers government action, it may be much too late.'