The Dailydrex

Thursday, July 18, 2024

BIASED.  JUST LIKE EVERYONE ELSE

RESERVE BANK TO CAP PROPERTY PRICE INCREASES

Australian Treasurer, Josh Frydenberg has announced that Parliament will soon be passing a law that does not allow any property to be sold for more than a two percent increase over its purchase price in any 12 month period.

Mr Frydenberg was speaking at the Real Estate Institute of Australia annual dinner which was attended by property stalwarts including Harry Triguboff from Meriton, Frank Lowey formally from Westfield and James Packer from Crown at the time of writing of this article.

“Australia’s future is dependent on our young people,” Mr Frydenberg said. “And we cannot have our young people excluded out of the property market by rising house prices.”

In a world first initiative, Mr Frydenberg is capping the increase of all properties to two percent above their purchase price in any 12 month period.

Mr Triguboff turned red in anger. “What about a person who bought his house in 1976 for $12,000?” he called out to the Treasurer from his seat in the audience.

“Well Harry,” Mr Fydenberg replied. “I knew I could count on you to put a spanner in the works, but we’ve thought of every aspect of solving the skyrocketing increase in property prices and the answer is simple. All you need to do is calculate the number of years from 1976 to the present, multiply that by two percent of $12,000, and add it to $12,000 to get value of the property today. Pretty simple really. We kept is that way so that even people like you could work it out.”

“That means the $12,000 property bought in 1976 can now be sold for $22,800.”

“Very good Harry,” Mr Fydenberg replied. “And $10,800 is a very tidy profit in any bodies language, isn’t it.”