Both sides of politics target the $24 billion super property lurk

Discussion in 'Property Market Economics' started by Redwing, 23rd Apr, 2017.

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  1. Redwing

    Redwing Well-Known Member

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    Both sides of politics target the $24 billion super property lurk

    The little-known superannuation tax lurk that has pushed $20 billion into the property market in just under five years is under attack, with Labor promising to ban private superannuation funds from borrowing and the Coalition foreshadowing new restrictions.

    As The New Daily recently reported, self-managed superannuation fund borrowing arrangements have grown almost tenfold, from $2.5 billion in June 2012 to $24.3 billion last December. The lion’s share of that is going into commercial and, increasingly, residential property.

    That has been a concern for regulators, with the Murray inquiry into the financial system in 2014 recommending SMSF borrowing be banned, warning “further growth in superannuation funds’ direct borrowing would, over time, increase risk in the financial system”. The Reserve Bank concurred.

    Opposition Leader Bill Shorten on Friday announced he would ban SMSF borrowing if Labor comes to power as part of a bid to “cool an overheated housing market partly driven by wealthy self-managed super funds. Allowing this [SMSF borrowing] to continue would increase risk in the superannuation system and crowd out more first home owners”.
     
  2. sash

    sash Well-Known Member

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    Another hole they are plugging for property....no property in SMSF and no access to super for property.

    Nothing compared to what the major banks are about to do in the next few months....to encourage people to take P&I loans or pay more in rates.......

     
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  3. Realist35

    Realist35 Well-Known Member

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    Sounds like a perfect storm for property market might be around the corner. Maybe time to put brakes on property and turn to shares.
     
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  4. Cactus

    Cactus Well-Known Member

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    So if smsf and investor m&d's leave the market who will provide housing for renters? The gov already axed nras.


    Sounds like the perfect storm for rental vacancy tightening and yields increasing.
     
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  5. sash

    sash Well-Known Member

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    Yep. ;)
     
  6. euro73

    euro73 Well-Known Member Business Member

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    The share market is as volatile as a rollercoaster, unfortunately
     
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  7. Zoolander

    Zoolander Well-Known Member

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    Would be good seeing rents going up more so if repayment pressures mount on the investors remaining. Thats if all investors with loans feel the heat en mass.
     
  8. Propertunity

    Propertunity Well-Known Member

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    I think you are overestimating the market share that SMSF purchases represent, which must be minuscule in the overall scheme of things.
     
  9. HUGH72

    HUGH72 Well-Known Member

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    Window dressing by the government so they can say they are doing something in regards to housing affordability.
     
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  10. wombat777

    wombat777 Well-Known Member

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    Have an open mind. Volatility in shares can be an effective tool if used carefully.
     
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  11. Scott No Mates

    Scott No Mates Well-Known Member

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    By making renting more unaffordable in order to make purchasing look cheap?