Property Market Insights by Property Club

APRA Is Making You Money

Property Club Insights By Kevin Young

By now you have all heard of my bananas story and what drives up prices of bananas. Fewer and fewer bananas in the store! Wayne Byres from APRA is doing exactly this from his attack on property investors.

Forget the fact that it is misguided, poorly researched and counter-productive. This last bit is where we are making money. We know the supply chain has gone critical. A third of construction sites around the country are mothballed. The Club is doing one development and there is no way I am going to proceed with construction with the current restrictions on seed investors that banks require before jobs can start.

So we know there is less supply coming in in the months and year ahead. We know that this is going to force up prices!!

rising-prices

Eighteen months ago I predicted, when APRA came out with its foolish edict, that it wouldn’t contain property prices in Sydney and Melbourne, but speed it up. With normal supply anticipated I had earlier, predicted that Sydney and Melbourne would reduce to a normal annual growth rate in 2016. After Wayne Byres blunder I predicted eighteen months ago that in fact, we would have an APRA boom. The prices in Sydney and Melbourne would continue to rise on the back of rising demand, rising population yet falling supply.

How Can You Make Money?

First, realise that you need to keep on expanding your property portfolio. If you haven’t got one at the moment that you should get started because APRA’s property boom is here and now.

Paradoxically, your Mentor can show you that for a range of reasons, now is one of the best times this century to buy property for investment. Many many of our members are paying nothing each week to hold investments which will ensure them to be pension free in the years ahead.

Equally, there are many people out there, many many, who will be put off by the bank’s credit squeeze brought on by APRA, to not continue with their investment journey and these people are destined to end up on the taxpayer funded pension.

Wayne Byres is guaranteeing future poverty for these people.

Credit Squeeze!

margin-lending_0There is a credit squeeze on. Byres is forcing banks to require greater deposits. to convert interest only mortgages to principal and interest, forcing up the repayments 40%. Banks have a secret KPI encouraging their managers to orchestrate low valuations on property and for the first time in Australia’s history, enforce a margin call on those borrowers that they know have spare cash.

This is a massive transfer of wealth from consumers to a banking monopoly and in 2009 I then predicted that we would be seeing the biggest transfer of wealth in Australia’s history. It has happened.

Our banks are now taking nearly $3 in every $100 income in Australia. In England, for example, it is less than $1. England have banking competition.

So getting funds s difficult and it is putting off many many investors. That’s where the Club strength is there to help you. We have a far-flung Broker network with many many contacts with the major banks, the tiny “competition” banks and other funders. If you are a Club member we can help you. If you are a Club member we can show you how to avoid Byres’ APRA poverty future. We can show you how to look after yourself and ensure that you aren’t forced, for a long, long lifetime on the pension.

We are now living longer than ever and will be spending more years in retirement than we actually did work. Byres doesn’t want you to continue borrowing and expanding your wealth during these long, long years. I do, your Mentor does and your Branch Manager does.

How can we help you? Become a Member Today!

Kevin Young
Property Club Founder