The Three Monkeys
  • 10 January 2017

The Three Monkeys

The Three Monkeys

We have the three monkeys, hear no evil, see no evil, do no evil.  In my opinion, that is our Members of Parliament, APRA and the RBA.

The APRA madness attack on property investors has allowed the banks, with the approval of the RBA, to exercise greed.  APRA is supposed to be concerned that interest only loans "because of fears borrowers have no strategy for repaying the principal and cold face financial stress as rates rise", have no exit strategy when clearly it's bought to hold long term and pass on in the family estate.

Well to you and me, logic would dictate that someone would have to explain that they're buying a rising asset and would look forward too, at worst case, to sell that asset as the "repaying" strategy.

What is not logical is to turn around and hit these people now with an even higher interest rate.  How does that help their exit strategy? It only helps the banks bottom line.  CBA will lead this greed charge from March 17th by repricing interest only home loans.  Because banking is a monopoly in Australia now, this is a sign to everyone else to do the same.  Yet more money transferring out of the pockets of consumers to the banking monopoly.

Our MPs of course are the hear no evil.  They don't want to hear about this monopoly.  They don't want to take on the big end of town.  They don't want to know that our banks take more than double the share of Australia's Gross Domestic Income than for example, the UK or US banks do.  Combined they take less than 1%.  Our Australian banks are well over 2%.  But don't tell our members of parliament!

Kevin Young

Club Founder

Related Posts

How Roger Galway Turned the ATO into His Side Hustle

How Roger Galway Turned the ATO into His Side Hustle

When most people think about building wealth, they picture grinding through long hours, promotions, and maybe a few smart stock picks. Roger Galway had a different idea. Two decades ago, he realised the nine-to-five grind wasn’t going to cut it. So he started buying property. Now, he owns nine of them across...

No Storm Surge Here: Brisbane’s Budget Holds Steady for Investors

No Storm Surge Here: Brisbane’s Budget Holds Steady for Investors

In the wake of ex-Tropical Cyclone Alfred, which brought Brisbane its wettest day in 50 years with over 420mm of rain in some suburbs and winds reaching up to 60 km/h, the city faced significant recovery challenges. Despite the extensive damage, including power outages affecting over 56,000 homes and businesses,...

Stamp Duty Doesn’t Have to Hurt — Here’s Where It Doesn’t

Stamp Duty Doesn’t Have to Hurt — Here’s Where It Doesn’t

Stamp duty isn’t the most exciting part of buying property, but it can seriously shape what you can afford and how quickly you can grow your portfolio. A national report by SQM Research for the Real Estate Institute of Australia (Stamp Duty: The Relationship to Australian Housing Affordability and Supply, October...

Become a Member Today!

Our mission is to help the average Australian learn the property market dynamics and discover the amazing opportunities that exist in real estate.