The Good, Bad & The Ugly - Rental Yields Increasing

By Kevin Young

The good are hardworking Australians who are being sucked dry by their banks.

The bad is our Government who are refusing to look at key issues and performance indicators and the ugly, APRA chairperson Wayne Byres.

I am of the view that Mr Byres has single-handedly has devastated the Australian economy and transferred vast amounts of money to the banking monopoly and offshore shareholders. Many Australians are unaware that approximately 50% of after-tax bank profits go to overseas shareholders.

Our Government Ministers have the power to stop this - why aren't they?

Let's have a look at the top Wayne Byres blunders

1. My Byres stated that his "aim is to make Australia banks the safest in the world". In reality, after the banks were set loose by Rudd in 2008, they formed a massive monopoly, Australian banks have never been safer.

2. Wayne Byres has allowed the banks to pass the banking levy to its consumers, not paying it out of profits as first directed. Instead, investors have been hit for a further 1%.

3. Wayne Byres stated this his “charter is not to affect property prices in Australia”. Unfortunately, the draconian measures implemented by APRA have not only heavily impacted housing prices but has also affected consumer spending and households savings. See Household Income Chart (stealing your cash).

4. My Byres has increased the serviceability standards of loans in Australia. These changes were implemented as if we high wage growth, high inflation, and high interest rates. Unfortunately, setting your serviceability standards on high inflation, high wage economy in low inflation, slow wage growth economy means that people can’t get loans. The result is that bank rejections jump from 2% to a massive 40%. See Investor Loans Chart.

5. The first time ever Wayne Byres has presided over a push to increase bank greed by getting you to pay principal and interest. Primarily used only for your home or non-income producing asset. In my experience, principle and interest loans have never been recommended for the purchase of an appreciating asset.

Satisfying Mr Byers aim to make Australia's banks the safest in the world, this change has seen Australian monthly mortgage repayments jump 50% and in some circumstances shortening the terms of the loan.

In the case of one of my loans, the repayment has jumped for $1,500 a month to $11,500 a month. Thank you, NAB. Thank you, Wayne Byers. Thank you, Government.

So what can you do? Send this on to your federal member and forward their comments back to me. Insist on a written response, I’d love to see how interested your elected Federal Member is in your future. It would appear that Wayne Byers and APRA certainly aren’t.