Bouris calls on government to help borrowers
By
Kevin Eddy
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4/08/2010 6:00:00 AM
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5
comments
The former founder of Wizard Home Loans has called for the federal government to introduce a Seventies-style homeowners' rebate.
Mark Bouris, now chairman of wealth management firm Yellow Brick Road, told Broker News that instituting a rebate of up to $1,500 for taxpayers (not including those in the highest tax band) would help the property market as well as "rewarding those who get hammered by the Reserve Bank every time there's a growth spurt in Australia".
"Stimuli like the First Home Owners Grant only inflate prices and puts money in the pocket of developers and banks," said Bouris. "By giving a means-tested rebate, limited to a certain type of borrower, you limit pricing distortions and you reward those who are paying their mortgages, rather than it just being a gift."
Bouris added that the rebate could be a temporary measure, and could help mitigate the effects of likely interest rate rises by banks due to the price of wholesale funding.
"There's definitely going to be a bank rate rise after the election, due to the increasing cost of funds," he said. "Consumers are ultimately powerless in this situation - which is another reason why the government should consider some kind of fiscal relief."
Related stories:
Bouris returns to home loans market
Latest Comments
Total:
5
comment(s)
Wayne on
04 Aug 2010 10:11 AM
Anything that reduces the manipulation of the property market must be a good idea. Bouris is right - Govt. interference with grants is absolutely crazy. It doesn''t help the consumer, only all those who benefit from a real estate sale - agents, bankers, brokers, developers, solitors, State Govt. Stamp Duty, REI, RP Data etc, etc - the list goes on.
Wozza on
04 Aug 2010 10:15 AM
Know why he Mark calls his company the Yellow Brick Road - Dreamer!
WalterF on
04 Aug 2010 10:32 AM
I understand that entrepreneurship and business drives and creates wealth within an economy but maybe the housing market should not be an area where wealth can be created by those who do not build new dwellings. Maybe it should be that if people want to invest in property it should only be in the new home sector. It must all be too complicated to believe that there can be a solution. As for internationals who can buy property, no way, they just add to the problems of shortage and pushing prices up. Anything that makes it easier for people to buy but also pushing prices higher will never be a workable alternative. It will only feed those who make money on turnover and growing debt.
Paul on
05 Aug 2010 03:37 PM
Let the free market decide where the price of houses should be. More manipulation will only distort the true level further. Should house prices recede, then the buyers will come back into the market when true value is perceived. At the moment, houses are far too expensive due to the decades of easy credit. Also as a result of interest rate manipulation by Fed Bank.
Spinner on
05 Aug 2010 09:31 PM
Mark has a good idea. Why not focus on a one off payment shared with Banks on the mortgages in arrears. Straighten the ship and we all move forward.
Wozza - whats your dream?