If the Derivex interest free loan product does command an increasing proportion of the home and investment loan market, there seems to be a double edge sword for government.
1. The dilution of the effect of RBA monetary policy
2. Reduction in “losses” on IP as claimed through the Tax Office by investors, effectively maintaining additional revenue for the ATO/government.Of course, the take-up of this product will determine how the above factors actually play out.
What do others think?
James
I was wondering about this too. The RBA controls the economy through interest rates, and a IFL does seems to be affected by one of the main controls the Gov has! In the end though if a Gov. really wants to limit something they can, all they need is enough info. and they can impart legislation.
Also while it seems to be an amazing product I believe property has had it’s run for the while. hence I don’t think property prices will rocket up due to IFLs.
Rgds.
Lucifer_au
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