How The Royal Commission Has Affected Property Investors
  • 13 December 2018

How The Royal Commission Has Affected Property Investors

Firstly, the royal commission is not an investigation of trading banks.  In my opinion, our banking monopoly has successfully sidestepped an enquiry into the trading bank. Example, there was no investigation of why the banks have been able to increase interest rates when the RBA has dropped rates?!  This never ever happened before Rudd.  Why now?  The enquiry cannot check into this.

The enquiry will be used by the banks to wrongly accuse brokers of all ills and push to further reduce the returns going to Brokers. They will want the trail removed.  This will lead them totally and only owning you the borrower with the broker having no ongoing chance or duty of care.

In other words, the banks will use this enquiry to further fatten their pockets at your expense.

I do not believe the Royal Commission will help or harm investors in the long term.  In the short term, they will be acutely aware of bad publicity and pay a better corporate citizen role when dealing with you.  This will not last for more than 12 months.

So where is the REAL harm to investors?

It is APRA.  Scott Morrison has handed the controls of the economy across in my opinion to Wayne Byers (Chairman of APRA), who has set out to make our banking monopoly the 'safest banks in the world'.   I believe that they already were, but his actions will be driving the economy into recession.  We would be there now if it was not for the sensible reserve bank keeping interest rates down which in turn keeps the dollar down which in turn floods the country with more profits from our exports which are written in US dollars.  Our export volumes are up increasing this return, not into your pocket unfortunately but they do feed into our Gross Domestic Product (GDP).    This gives a false indication of your “Wealth”.  Unless you own a mining company you are not receiving this wealth.  However, the local and state governments are benefiting from a flood of rising royalties which should be channeled back into job creation.  This is where your wealth will rise.

The good news!

While Scott Morrison has handed control of the economy to Wayne Buyers (in my opinion) we have impending State and Federal elections which will force him to take control back and listen to you, the voters.  I believe he will belatedly take APRA's foot off of our throats and release credit back into the community.

How can we make money from this?

This money will rush into the market and force up prices of property and shares.  So, get in now but buy the right property in the right place that suits the rental market and employ the right funding.  While 90% of investors will get this wrong historically, send your enquiries to enquiries@propertyclub.com.au and free of charge we will give you the benefit of our research to direct you to the next boom area.

Regards,

KY

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