GLOBAL SUB-PRIME CRISIS

BANKILEAKS

Click on our Secret Library of Evidence ------>

    BANKILEAKS Secret Library

Loan Application Forms (LAF's)  

    Bank Emails to Brokers  

    Then Click on 'VIEW NOTEBOOK'

Join us on facebook
 

facebook3           facebook2 

BFCSA
MORTGAGE
DISTRESS SOS

What BFCSA Does...

BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.

Visitors

Articles View Hits
631106

Whistleblowers' Corner!

To all mortgage brokers, BDMs and loan approval officers! 
Pls Call Denise: 0401 642 344 

"Confidentiality is assured."

Cartoon Corner

Lighten your load today and "Laugh all the way to the bank!"

Denise Brailey

Led by award-winning consumer advocate Denise Brailey, BFCSA (Inc) are a group of people who are concerned about the appalling growth of Loan Fraud around the world. BFCSA (Inc) is a not for profit organisation in the spirit of global community concern and justice.

Click on the Cluster Map.

  • Home
    Home This is where you can find all the blog posts throughout the site.
  • Categories
    Categories Displays a list of categories from this blog.
  • Bloggers
    Bloggers Search for your favorite blogger from this site.
  • Login
    Login Login form

BFCSA: Triguboff: Parents should mortgage for kids? You cannot be serious Harry?

Posted by on in Consumers Fight Back
  • Font size: Larger Smaller
  • Hits: 1372
  • 0 Comments
  • Print

http://www.macrobusiness.com.au/2014/06/tiguboff-parents-should-mortgage-for-kids/

 

Triguboff: Parents should mortgage for kids

Leith Van Olsen 30 June 2014

 

From one of Australia’s biggest property rentiers, Harry Triguboff, comes more twisted logic, with Triguboff appearing before the House of Representatives inquiry into foreign ownership to on the one hand admit that housing affordability has gotten so bad that parents need to help their children enter the property market:

Parents should understand they need to mortgage their homes to help their children get into the property market, Harry Triguboff says.  …

young buyers should ask their parents to help them finance property purchases.

While on the other, arguing that foreign property purchases helps those priced-out of buying property:

…but offshore buying activity works in favour of local residents by boosting housing supply, Mr Triguboff said. 

“When foreigners invest here, then maybe some people are priced out, correct. But people are given places they can rent, so even though foreigners don’t live here . . . it’s a big advantage we get from having them buy.”

 

To his credit, Triguboff did at least mention that “inefficient planning laws, voluntary planning agreements and local council-enforced bank guarantees” were factors helping to push up house prices, which is correct.  But of course, he failed to mention the impact of Australia’s perverse tax concessions (e.g. negative gearing and capital gains tax discounts), as well as our high tax rates on savings, which have encouraged too much local investment into housing, pricing-out first home buyers in combination with soaring foreign demand.

Nor has Triguboff mentioned that land bankers and property barons are getting an easy ride in Australia, enjoying mammoth capital gains but paying very little tax:

Apartment billionaire Harry Triguboff was surprisingly candid at a lunch held by the American Chamber of Commerce last October.

He told the audience he was able to pay “very little tax”.

“I keep a lot of my properties. And if you keep them and there’s capital gain it’s beautiful,” he says “You don’t pay tax. I don’t lease them so I don’t pay tax on the rent, but I get depreciation.”

He paid tax on apartment sales but that’s where the land banking came in.

“You have to buy lots of empty land,” he said. “You keep the land and it brings you no income, so you claim it against your tax.”

 

Australia’s inflated housing costs and affordability issues will not be fixed by parents helping their children purchase property. This would only add further demand fuel to the housing bonfire.  Rather, a combination of actions are required to reverse policies that have conspired to pump demand and choke supply. These include addressing the myriad of supply-side constraints preventing affordable development, along with the removal of distorting tax concessions preferably in concert with the implementation of a broad-based land tax, as well as the effective monitoring and enforcement of rules precluding foreign citizens from purchasing pre-existing Australian property.

Last modified on
Rate this blog entry:

Comments

  • No comments made yet. Be the first to submit a comment

Leave your comment

Guest Tuesday, 17 September 2019