Tuesday, 24 May 2016

Real estate industry negative gearing scare - linked to Lieberals; Morrison

There's been some bizarre report going around the real estate industry lately predicting pretty much the end of life as we know it in Australia if Labor's plans for negative gearing come to fruition. 

However it's come to light from an email that treasurer Scott Morrison had a meeting with an important real estate industry figure, where the idea for the report was dreamed up.

I suspected so. I wouldn't trust a word that came out of the real estate industry. They want to keep property prices sky high, why would they want any different? 
Research intended for use in a bid to discredit Labor's negative gearing campaign was commissioned after a meeting between Scott Morrison and a close friend and senior figure in Australia's property industry. 

But the draft report contains a series of factual errors and makes bold claims of a "resale price cliff" and "social dysfunction" that have alarmed some in the real estate industry to whom it has been circulated. 

An email obtained by Fairfax Media shows Greg Paramor, the managing director of property company Folkestone, discussed the need for a study critiqueing Labor's policy with Brian Haratsis, the executive chairman of advisory firm MacroPlan Dimasi. Mr Paramor, who is a friend of Mr Morrison and former president of the Australian Property Council, made the request after his encounter with the Treasurer. 

"Greg recently had the opportunity to meet with The Hon. Scott Morrison to discuss negative gearing," the email notes. "As a result of that meeting, Greg agreed to provide a report to the Treasurer – he asked Brian Haratsis to undertake a study on the impact of the proposed negative gearing changes." 

The email, sent from an unnamed person inside Mr Paramor's company, was sent to senior industry figures last week. Sydney Morning Herald