The Government’s Remedy for Mascot Towers
By Bailey Compton 25 Jan 2023
Reasonable or not reasonable?
The Building Commissioner announced last week the solution for the owners of Mascot Towers. The Government’s bail–out package is to pay the mortgages of owner occupiers. Is that a reasonable solution?! Quite frankly, it is purely political, lacking in vision and empathy.
Let’s look at those who are helped, the owner occupiers. They are paying the mortgages of these people. If you have been diligent, paying your loans and reducing your repayments, you are punished. This helps the over–leveraged and the poor payers. If you are highly leveraged, this is a godsend. If, like one couple, who put their life savings into a 2.2 million dollar penthouse and only owed $400,000, this is not fair. These retirees will have nothing to start again. Their equity is extinguished.
Leverage thought we had a rental crisis. Well the Commissioner told landlords what he thinks of them. He said, “investors won’t be covered because they knew the risk”. What an encouragement to invest in NSW.
Additionally, it is crap that investors know the risk. We purportedly have a building code and high standards. This is true! It was this government’s Labor predecessor that robbed the industry of its integrity. By moving to private certifiers, there was no watchdog on the builders. Investors put their trust into a system that was flawed.
Who won??? The Banks. Their mortgages are covered.
It is always said that Labor looks after the consumer! Really! I never thought a bank was a domestic consumer.