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The federal government needs to stop grandstanding, says franchise head

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Julia Corderoy | 25 Jun 2015, 07:50 AM Agree 0
The head of a major franchise has questioned the federal government's inquiry into home ownership, calling on them to stop grandstanding and take action
  • Regional Broker | 25 Jun 2015, 08:59 AM Agree 0
    Great comments, serious reform is needed and the FEDS need to start IMMEDIATE and vigorous enforcement of the rule around Foreign investment in RESI housing.
  • Balanced Broker | 25 Jun 2015, 09:11 AM Agree 0
    I think Mortgage Choice are the ones grandstanding here. It is the same with the Housing Industry Association - all parties worried about their own interests. It's clear lending standards are not the motivator for reduced affordability, and Mortgage Choice are open to prepare a submission. Feels like PR grandstanding to me. We all know this is a complex issue where a long term focus is required like we have with pension reform.
  • Peter Beattie | 25 Jun 2015, 09:26 AM Agree 0
    The land economics graduate playing professor again.
  • GC | 25 Jun 2015, 09:34 AM Agree 0
    Foreign investors are NOT pushing up prices and neither are investors. It's about time the B.S. emotion was taken out of this discussion. Domestic & O/O purchasers account for the majority of purchasers.

    The only thing that allows property prices to increase is affordability. The auction clearance rates on a weekly basis is hovering around 80%+ so I think its fair to say that people can still afford the properties they are purchasing.

    When purchasers decide they cant afford the price then properties will stabilise and possibly reduce on a minor level - this would be a standard correction as seen every 5-7 years as part of the normal cycle.

    The Govt. inquiry will produce nothing of relevance as there is nothing they can do. I feel this is nothing more than hot air with the Govt. wanting to been to be doing something.

    The Govt. doesn't control the property market, the country can no longer afford the lavish handouts to First Home Owners as seen in the past and the banks control the flow of money.

    Affordability will ALWAYS be difficult as it ALWAYS has been. History is a good indicator of the future and history has taught us you just have to do what is necessary to get what you want and if you really want it you can manifest a way to achieve it.....and STOP whining.

    Also, I firmly believe its about time we stopped expecting the Govt. to do everything for us and expecting handouts. Its not up to the Govt. to get people into a house and make it affordable.
  • Rex Wood | 25 Jun 2015, 10:33 AM Agree 0
    Lets stop talking about 'house prices' like some great amorphous mass of stuff. They're not. The price and affordability of property in Balmain is vastly different from Dunedoo.And I would estimate other areas in the country. The same thing exists in the UK [see the Guardian interactive map].
    The same differential would exist in other states and cities.
    So if you want to get your knickers in a twist about affordability, competing O/S investment, escalating prices, etc. then be specific and stop throwing around gross and often misguided generalities. Leave that to the pollies, that's their area of specialty!
    The price of property in Orange has gone up by about... 2% in the last 5 years, and even that is on a small geographic section of the total urban footprint.
    The price of property in Lilyfield is a whole different ball game!
  • SA | 25 Jun 2015, 12:38 PM Agree 0
    GC you sound like one of the fortunate financially educated ones who know how to get what they want. Finance - savings and value of money must start at school and home although some parents are not able to be good role models.
    Singapore has a very good and Govt regulated system of using your super to purchase your home- we could use some ideas from here for some sections of First Home Buyers.
    Is Affordability the same as getting more people into their own accommodation? It needs a bipartisan and lateral thinking Govt approach to provide low cost housing/accommodation. The current debate about what people refer to as 'Affordability' is simply a fictional concept in our democratic society of supply and demand
  • BJ | 25 Jun 2015, 02:31 PM Agree 0
    Apologies in advance for any hint of sarcasm. Just another case of vested interest grandstanding.
    If and when the Sydney/Melbourne party comes to an end, there will, with no doubt whatsoever, be deafening silence from the ever so informed kitchen economists.
    Oh, but the flip side will be Mr Flavell commenting that with prices so low, it’s never been a better time to get into property.
  • GC | 25 Jun 2015, 02:53 PM Agree 0
    Balanced Broker - I think its fair to say John Flavell, given his history has significantly more experience in the industry than you have so you might be well advised to think before you commit to writing anything.

    It's not really a complex issue as you indicate. Property is extremely affordable if you are prepared to go to the outer suburbs. Unfortunately its those who want to buy in the inner suburbs who are complaining and wanting prices to drop.

    Think for a minute about the consequences to the financial sector if property prices were to drop more than the usual correction of say 5%. The damage this would do to the equity balance with the lenders could be significant and this is something we could not deal with. APRA is already looking at this issue and deeper involvement by APRA could be catastrophic. Every time a Govt department gets involved in the financial sector things get worse.

    The Govt. is well aware they cant fix this, as there really is nothing to fix. The property market is governed by emotion, greed and above all---CAPITALISM. Remember the famous comment from the movie "Greed is Good". Its always there hovering in the back of our minds as we all want as much as we can for our properties. We have created this supposed "problem". We want as much as we can get when we sell but dont want to pay when we buy.

    The problem with the Govt. is that they just dont have the guts to tell people the truth because the Australian public dont want to hear it. We have become a nation of whiners who want the Govt. to do everything for us.

    All I can really say is WAKE UP AUSTRALIA!!!!!.....AND GROW UP.
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