Australians love having a good guy and bad guy
We all recall the community campaign against our banks that led to the Royal Commission into Banking Misconduct. The recommendations from this review have changed banking on many levels. Responsible Lending Laws have created a rigid framework with unintended consequences.
Brokers regularly engage in client discussions to explain why some things are no longer possible. Anyone over 40 years old is now a mature age borrower.
We are embarking on a similar journey with our war against property investors.
Discussion on negative gearing changes unfairly target property investors, despite the principle of writing off expenses being a standard accounting practice across most of the economy. Mining companies write off research & development to reduce tax; Social Media companies write off expenses related to export their profits overseas.
Tenancy laws now favour the tenant more than the landlord.
Has the pendulum of tenancy rights swung too far?
If we don’t have property investors, so who will supply housing to the segment of society that are not in a position or ready to buy?
Are we returning to public housing, where government invests in direct housing in lieu of critical infrastructure such as hospitals, schools, transport, etc. Will corporates become the landlords of the future.
Be careful what we wish for.
