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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.

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BFCSA: Australian Developers warn of 'dramatic slowdown' over stamp duty changes

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Developers warn of 'dramatic slowdown' over stamp duty changes

The Age May 17 2017 - 12:15am

Simon Johanson

 

EXCLUSIVE  Property developers are leading a revolt against the Victorian government's stamp duty changes, with 24 industry leaders signing a letter warning of a "dramatic slowdown" and "significant impact" on construction jobs.

A cohort of high-profile property developers including industry veteran Max Beck, Hickory's Michael Argyrou, young rich-lister Jonathan Hallinan and Evolve's Ashley Williams have written to Treasurer Tim Pallas saying the changes will hurt property buyers and the industry.

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"We believe there will be a significant loss of construction jobs throughout Victoria," the developers said.

About 83 per cent of cranes on Melbourne's skyline are building residential projects.

From July this year, the Andrews government will cut off-the-plan stamp duty exemptions, making investors pay more for apartments.

The changes were part of a package announced in March to tackle housing affordability that included abolishing stamp duty for first home buyers purchasing properties costing up to $600,000, a 1 per cent vacant property tax, and long-term leases for renters.

The off-the-plan stamp duty change will add $27,000 to the cost of a $650,000 apartment, estimates suggest.

Off-the-plan apartment sales have been the main driver of Melbourne and Sydney's recent property boom, and their construction is a significant contributor to economy.

Many city apartments are sold overseas to Asian and other buyers.

Consultancy group Charter Keck Cramer predicts 25,500 apartments will be completed in Sydney this calendar year, with a further 17,090 in Melbourne and 10,300 in Brisbane.

Regulator action

But soaring house prices and high household debt prompted Australia's regulators in March to tighten lending in the $1.5 trillion residential mortgage market, a crackdown some experts believe is behind a recent slowdown in residential real estate.

The regulators' actions, combined with Chinese government curbs on its citizens buying property overseas, have "caused a dramatic slowdown in 'off-the-plan' selling", developers say.

Removing off-the-plan stamp duty exemptions for local investors will make the situation worse as it mainly impacts off-the-plan selling, "reducing construction activity, [and] large-scale investment", they said.

Mr Pallas said the government was monitoring any impact on the property market.

"We make no apology for seeking to level the playing field between investors and home buyers," he said.

"We are making it easier for first home buyers to get their foot in the door, and our initiatives are important steps towards ensuring today's families and future generations will be able to afford somewhere to live."

Investor 'tax'

Evolve Development has several housing estate projects on Melbourne's outskirts and is building apartments in South Melbourne and Docklands. Director Ashley Williams said the off-the-plan change was "basically a new tax" on Australian investors.

"It's a perfect storm of negative sentiment that's obviously going to lead to a reduction in supply," he said.

The overheated housing market and apartment construction is a focus for Australia's Reserve Bank.

"Developments in the labour market and housing market warranted careful monitoring," the Reserve said on Tuesday.

Despite predictions of a massive apartment oversupply, Melbourne has the lowest capital city vacancy rate in the country, at 1.5 per cent.

Demand is being boosted by dramatic population growth. Victoria is the fastest growing state, adding 127,500 people over the year to September 30, 2016.

 

Low income earners and young professionals are being priced out of the housing market, prompting bidding wars for rental properties in inner-city locations.

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