Scott Morrison on Mortgage Brokers...

Discussion in 'Property Market Economics' started by BuyersAgent, 11th Feb, 2019.

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  1. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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  2. VB King

    VB King Well-Known Member

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    I’ve been reflecting on this over the last few weeks. Particularly the commentary on trailing commissions being money for nothing.

    I have to say I don’t agree. I sort of see the trailing comm as an incentive for the broker to act in their clients best interests.

    If a broker doesn’t put you into the best fit product ... you’ll move and the trailing comm is worth nothing. My view is it’s a much better model than all up front.
     
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    shhhhhhhh

    ta

    rolf
     
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  4. kierank

    kierank Well-Known Member

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    So, a vote for ScoMo is a vote for MBs ;)

    And a vote for BS and the ALP is a vote for the Big 4 :eek:.

    That is a real twist to the RC :D.
     
  5. VB King

    VB King Well-Known Member

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    Yes, and most will not realize what their vote actually means.

    This is not a political forum or thread, but I am frightened by a lot of what BS is saying.

    The repercussions aren’t great news for the country, economy, or investors.

    I suspect - and maybe/probably I’ll be proven wrong - that at this point of the Sydney cycle a good proportion of first time / one time investors will bail out - only this time more suddenly - reducing supply on rental properties and putting upward pressure on rents.

    Hold!
     
  6. Sackie

    Sackie Well-Known Member Premium Member

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    The whole Royal buffoonery is a twisted affair.
     
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  7. trinity168

    trinity168 Well-Known Member

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    It's a 75million taxpayer funded baffoon. I don't know how the bill could possibly go up to $75m?

    At least ScoMo has come out to say ..

    upload_2019-2-12_8-54-12.png
     
  8. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    With 76 recommendations, that's $934,000 per recommendation...

    ... one of which was, "Don't charge fees to dead people." Great value for money!
     
  9. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    I'm of the view that many voices are advising both sides of Parliament that the broker recommendation is anti-competitive and will do more harm than good (as proposed). eg ACCC, States, APRA, Reserve Bank and Treasury would all have input / feedback on this. The emails between parties will eventually leak. Morrision knows this and why he is personally starting a soft leak of his own so its isnt harmful. Its possibly even bait to have Shorten say something stupid that will be election ammo.

    $75m largely reflects how they paid all the legal costs for all those appearing. Royal Commissions fund Barristers, QCs and SCs and nice hotels, airline seats (since the RC held hearings in each capital) and meals.

    If a person is required to give evidence at the Royal Commission, it is usual practice for the Commission to issue a summons to that person. Prior to giving evidence, witnesses will be contacted by the Royal Commission and provided with information about claiming expenses and travel assistance. A person who is summoned to attend and give evidence before the Commission is allowed to be legally represented while he or she is giving evidence.
     
  10. Sackie

    Sackie Well-Known Member Premium Member

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    The gov has absolutely no regard for our money . Luckily it wasn't 375m.
     
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  11. kierank

    kierank Well-Known Member

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    That would mainly be consumed by lawyers :eek:.

    Geez, I pay that much to my legal team annually as their retainer ...:D
     
  12. virgo

    virgo Well-Known Member

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    They are throwing the baby(sorry i meant Brokers!) out with the bathwater...very stupid!
     
  13. TSK

    TSK Well-Known Member

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    Always with the rent increase line, those people bailing out of investment properties will enable first home buyers to get into the market, meaning less renters competing for the pool of housing. IF rents become too high, people will find alternative living arrangements (stay at home with parents, share house etc) or move to a place with lower rents (Fact check: Did abolishing negative gearing push up rents?) - this will cause investors who have over leveraged to bail out and allow further first time buyers into the market.

    "Only when the tide goes out do you discover who's been swimming naked"
     
  14. TSK

    TSK Well-Known Member

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    75M
    Given how much money the banks are putting aside for fines and returning stolen money it's great value. Our system will be better for it. How much will their misbehaviour cost the banks?
     
  15. kierank

    kierank Well-Known Member

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    Unfortunately it is us who will be funding this bad behaviour, either as direct shareholders or via our Super :eek:.
     
  16. TSK

    TSK Well-Known Member

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    Seems fine to me, after all we also profited from their illegal behavior - it might make us think twice about our selection of investment assets.
     
  17. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Consider that the CBA CEO gave testemony specifically designed to cause significant harm to the mortgage broking industry.

    The CBA owns Aussie Home Loans and has minority holdings in Mortgage Choice, the two larges franchise brokerages in the country. The day the report came out, Mortgage Choice shares dropped over 25%.

    You can draw a very directly line that indicates the CBA deliberately devalued its own assets for a greater win somewhere else. There is no way that they haven't done the cost-benefit analysis of this, like they do on every other action they perform.

    The Royal Commission has cost the bans money, but they called for it on their terms. They either figured they'd come out ahead, or doing it their way is a better outcome than being forced into it outside their own terms.
     
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  18. kierank

    kierank Well-Known Member

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    Good luck with that unless you have your own SMSF where one can choose one’s investments ;).
     
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  19. Sackie

    Sackie Well-Known Member Premium Member

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    No industry ever plays 100% by the books and I expect the same ol same ol will carry on in time .

    Anyway I wouldnt let it affect what you invest in. If the investment DD is sound then I'd go for it regardless of who is misbehaving at any point in time . All this RC circus is just another distraction if you let it be that for you.
     
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  20. PMC Property

    PMC Property Sydney, Brisbane, Newcastle, Toowoomba Business Member

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    Yep! It’s looking more and more likely that it will be a complete blood bath of Shorten gets in.

    - Andrew