You cant have it both ways fellas…

You cant have it both ways Mr Government...

References based on “Major banks tighten loans to property investors” in the Australian.

With interest rates at an all time low, many average Australians are looking to boost the post retirement income through property investment, and rightly so.

The government is actively trying to keep people at work to ease the burden on the aged pension whist actively destroying the possibility of wealth creation through rental properties. What the ????

Will you PLEASE make up your mind. do you want people to be financially independent in retirement or not?

“There’s probably four or five different levers they can pull — product features, price, fees, serviceability of what loans qualify and what don’t. But price is probably the one lenders do to get an immediate response.

According to CLSA’s seasoned analyst Brian Johnson, National Australia Bank, Commonwealth Bank and Westpac will no longer offer additional discounts above published “package discount” rates for investor loans.”

The usual stupid government approach, if your a ‘go getter’, lets make it more expensive for you and harder for you to be successful!! Why add costs to one of the few avenue’s open to working class Australians to create a wealth portfolio.

“It led to “differential pricing” between owner-occupied and investment property lending, such as NAB’s Advantedge business offering a 15 basis point discount on the former.”

Finance-in-BusinessWhats wrong with ‘differential pricing’. A home owner gets one loan here or there over 40 years. An investor gets multiple loans or ‘products’ over the same period. The guy providing more business every where else gets a discount so investors with multiple loans deserve recognition by Lenders in the form of discounts and benefits single loan customers don’t deserve. If you go to a place like Repco as a consumer, you pay full retail price for your goods. If your a mechanic you get a massive discounts on your supplies – up to 25%. Why should property investors be selectively singled out to pay more?

The government needs to make up its mind. It is either going to support wealth creation by individuals so that in retirement they don’t need the pension to survive or they need to suck it up and save more money so they can support our aging population. You cant have it both ways fellas…

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