Treasurer Josh Frydenberg has raised fears the property downturn in Sydney and Melbourne could flow into the broader economy, hitting small businesses that have taken out loans on the value of their family home.in Canberra, a fortnight out from his first budget mark a shift from the top levels of the Morrison government which has prided itself on using a "scalpel" to treat over-heating housing markets but now faces price falls largely beyond its control.
Speaking from his office in his western Sydney electorate of McMahon, where prices have fallen by 9 per cent, Mr Bowen said when the market was rising he was regularly confronted by constituents worried about "the crazy prices" but few offered the same level of concern now that they had begun falling.
"I’m worried that if the Labor Party get their chance to abolish negative gearing as we know it and increase capital gains tax by 50 per cent, then that will drive housing prices down with a spillover into the real economy and household consumption," he said.Jessica Hromas "Josh Frydenberg wants us to believe that house prices go down and rents go up? In what universe does that happen?
"It is not something that has to come into force immediately if a Labor government is elected," he said. "We will do it sensibly.""This is a bad policy and it should not be adopted any time. But it is particularly egregious of labor to pretend that it works in both a falling housing market and a rising housing market. It's illogical," he said.
I don't get it. Isn't it a good thing property prices are dropping? Don't people want housing to be more affordable? Shouldn't the housing market be more accessible?
Just watch the downturn if labor get in.
Fixed it SMH. You really do need to be more careful in your reporting! AusVotes2019 WarringahVotes VoteTonyOut
It’s all Bill Shorten’s fault.
Isn’t his job to prevent that?
Yeh we're all pretty worried too Joshie - that's why you and your govt have got to go. On top of everything else, you're incompetent economic managers.
What. So poorer people without huge inheritances can have the dream too? Shocking.
Well that is what happens when you build an entire economy on unsustainable housing price rises
Frydenberg attempting to have it both ways. House prices up 75% then down 15% so being the maths genius I am ,homeowners in Sydney or Melbourne property net worth up 60%, what’s going on Josh ?
LNP should not have pumped up the bubble and now household debt is ? All on the back of housing and low wage growth. What a great legacy you have left us with, tittering on a full blown recession. So many families will be in server financial hardship.
While this may be true, I do wish they would stop 'talking' it down! All that just helps make it come to pass possibly.
On Josh's watch. It's not Labor's fault.
Mostly in baseless lies he's been asked to stop spreading by his own Department. gormless
A “professional” newspaper is unaware we are already in recession? This says more about the newspaper than it says about the man who has presided over driving Australia into recession and absolutely nothing about Labor.
a downturn that has begun on the LNP watch
It’s a bit late for the Treasurer to wake up to what we all know already.
All this under the ‘superior’ economic management of the LNP? Who would’ve thought. More than ever this slimy, sleazy, morally moribund excuse for a political party & government needs to go. auspol
It’s not a “downturn”, though, is it? It’s a very minimal unravelling of the world’s biggest property bubble! Prices are still WAY above what they would’ve been if they’d risen at more “normal” rates!
MickKime Crooks economy the real estate market is exploited to such a level that THERE IS NO REAL VALUE IN HOMES - It’s a Artificially created market for Rich to Invest & Poor keep RENTING FOR LIFE. homesforsale Homeless Homelessness firstworldpoverty
The great economists appear to be leading the country into the financial doldrums!
Negative gear, further builders finances power and authorities who do not care about proper structure pushing houses prices up around Melbourne,that only business builders can by it and demolition it to building as many Council allow them.Bad for locals,young coulpe.1.7 M B.Home
This government has no control over the economy nor do they have any ideas. They allowed a property doom that was doomed. They intended to give corporations large tax rebates. The voted 24 times to stop a royal commission now they are walking away from the recommendations
Armageddon?
It already is JoshFrydenberg - and you are the person responsible for managing the economy.
northway_debbie Has Frydenberg come out of a deep slumber ? Australia is in an economic mess thanks to amateurs in the LNP
Well it took him 12 months to come up with the NEG and now says it’s bad policy. Said he was going to do away with trailing commissions now isn’t. Doesn’t know wether he’s Arthur or Martha
List the last 3 Liberal treasurers in order of their effectiveness. 1 2 3 - Hockey/Morrison/Frydenberg auspol
This is about as reactive as you get. Imagine if the Liberals were in govt during the GFC ?
WTF. Well JoshFrydenberg , it looks like your and the LiberalAus 's capitalistic policies have failed. You must admit it was bad management. But you can't blame this on AustralianLabor
MarekRivers CouldntRunATuckshop 🤷🏻♂️ LNPFail Again 🤷🏻♂️
Frydenberg is out of his depth and should resign.
I’m sure somehow JoshFrydenberg you will blame Labor for the property downturn
Oh scoop!
And JoshFrydenberg it is happening on your watch All that scaremongering about Labor can’t be trusted to run the economy You should have been paying attention to what’s happening out there Instead of infighting Too late now the rot is setting in
Let me guess its AustralianLabor fault -
MickKime He’s good at raising fears
JoshFrydenberg wouldn't know if his arse was on fire. Pay this numbskull no mind auspol
So the genius has just twigged to that fact? What leadership! ElectionNow AustraliaVotes auspol
the downturn makes houses/units more affordable Prices should drop another 10% as they were rising too fast Too bad for new investors they should give a chance to new home buyers For too long we have been relying on property&pop growth What r newcomers going to do for jobs?
Trickle trickle.
Wasn't he one of those who oversaw the inflation of the bubble & did absolutely fuck all about it? auspol
Low wage growth with tight disposable household income is a drag on the whole economy. And that is by your design.
Previous buyers are to blame for this, because of the ridiculous prices they were willing to pay for the last 5 years. The bubble had to burst sooner or later. Buyers need to know when to walk away from a purchase, and be patient, as much as a year, especially in auctions.
Duh!
p_hannam Why is he using scare tactics where his party is the one to be scared of?
It already was in the west!!!.. but who would notice!!!
Such earth shattering insight. with more coaching could make treasurer of childrens sporting club
Ben Bernanke did the same and said the same before the sub-prime melt down in the US !!!!!
The property down turn is nothing more than a correction. Housing in the major cities has been ridiculously over priced for too long.
Time for him go, vote them all out
Doomsday is near. Er, I mean, the elections. 😀
Who would have thought?
The fiscally responsible party and responsible clown lowering perception of the market.
Maybe they should do something useful for a change to help the situation. Too late.
The worst treasurer we ever had! I disregard everything he says & hope the rest of 🇦🇺does too!
More alarmism for gullible urban progressives. Property prices go up and down, just like temperatures and climate. Alarmism and fear sells advertising and drives marxist feminist bureaucracy. Henny Penny . . . the sky is falling! Blame Trump! Deniers!
So the treasurer is talking down the economy to score cheap points. Surely these are the end times.
Raise fears. Thats all this government is good at doing. Not providing solutions.
Well done Einstein I didn't know how intelligent Joshy really was, until now. dumbasdogshit fraudenberg JoshFrydenberg auspol
It’s the fear of Labour coming power that’ll lead the economy into power
Of course it will
No shit Sherlock. Should have thought about that when you allowed the housing market to rise at insane unafordable levels 5 x years ago. When U have lack luster wage growth, allow mass population, relax VISAs & support low interest rates- what did you think was going the happen?
Ah, fear, the only item in the LNP policy manual. auspol
But that’s labour’s fault, right ?
No one listening. He's pissing into the wind.
Over priming has fuelled speculation & set housing as a commodity to be milked. Governments have been living off Borrowed CASH.
He’s only just realised this now?
Lols
Yeah, and on whose watch did this all happen?
It's expected Frydenburg. Downturns are rarely selective. 😳
Definitely worth his wages
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