From Michael Pascoe-Domain:
The authorities might do well to reflect on the role of our tax system in encouraging interest-only loans but ASIC, with its consumer focus, should be wary of travelling too far down the nanny-state path.
Turns out more than 70 per cent of interest-only borrowers earn more than $100,000 a year. Most of them are not average punters.
…They’re not for everybody and it certainly is important for the financial system for borrowers and lenders to see an equity buffer built up.
But it would make more sense to attack the core of the housing affordability issue than to throw another volume of red tape at the system.
I’m yet to see an housing affordability measure that passes muster with Mr Pascoe-Domain. Last week it was tougher foreign buyer laws that failed his affordability test. Today it is ASIC macroprudential.
Given the extraordinary array of house price boosting policies that make up the politico-housing complex, it is curious that Mr Pascoe-Domain is so appalled at the few efforts that are made to stabilise the system for the good of all.
Last week those in favour of bringing transparency and the rule of law to the property market were called racist. Today those in favour of macroprudential measures are called dithering socialists.
I’m not sure what we should call an Australian of influence that privileges the rights of foreign criminals and rabid specufestors over local youth and the rest of us when it comes to established houses and financial stability but the phrase “complete wanker” springs to mind.
