Latest news with #TheBarefootInvestor
West Australian
21-05-2025
- Business
- West Australian
Barefoot Investor: Scott Pape said young people should be ‘p**sed off' with RBA's call to cut interest rates
On Tuesday, the Reserve Bank of Australia cut 0.25 per cent off the cash rate. The new rate of 3.85 per cent is the lowest Australians have experienced since 2023. But, finance guru Scott Pape — better known as The Barefoot Investor — said young people should be 'p**sed off' with RBA's latest move. He explained that while the cut would ease mortgage repayments for millions of Australian homeowners, it would likely make it harder for young people to join the property ladder because house prices will rise in coming months. 'If I was a young person right now I would be pretty p**sed off,' Mr Pape told 'Every time a young person gets close, it just keeps getting more expensive.' He also blasted Labor's First Home Buyers Guarantee — it enables eligible home buyers to buy a home with as little as five per cent, instead of the normally required 20 per cent and it is expected to come into effect on January 1, 2026. 'It's stupid, totally stupid,' he added. 'People shouldn't be buying a home in one of the most expensive cities in the world if they can't afford it. 'I don't understand how a responsible government can stand by and say this is a good thing.' On the other hand, Michael Yardney from Metropole Property Strategists urged eager first home buyers to get in quick before the incentive kicks in and the price of entry level homes skyrockets. 'Property prices will skyrocket in early 2026 when Labor's five per cent deposit scheme comes into effect — get in before the crowd,' he said. 'Sure, prices seem expensive but that's what your parents said. Who wouldn't like to buy their parents' home for the price they paid.'
Perth Now
21-05-2025
- Business
- Perth Now
Why young people should be p**sed off with RBA rate cuts
On Tuesday, the Reserve Bank of Australia cut 0.25 per cent off the cash rate. The new rate of 3.85 per cent is the lowest Australians have experienced since 2023. But, finance guru Scott Pape — better known as The Barefoot Investor — said young people should be 'p**sed off' with RBA's latest move. He explained that while the cut would ease mortgage repayments for millions of Australian homeowners, it would likely make it harder for young people to join the property ladder because house prices will rise in coming months. 'If I was a young person right now I would be pretty p**sed off,' Mr Pape told 'Every time a young person gets close, it just keeps getting more expensive.' He also blasted Labor's First Home Buyers Guarantee — it enables eligible home buyers to buy a home with as little as five per cent, instead of the normally required 20 per cent and it is expected to come into effect on January 1, 2026. 'It's stupid, totally stupid,' he added. 'People shouldn't be buying a home in one of the most expensive cities in the world if they can't afford it. 'I don't understand how a responsible government can stand by and say this is a good thing.' On the other hand, Michael Yardney from Metropole Property Strategists urged eager first home buyers to get in quick before the incentive kicks in and the price of entry level homes skyrockets. 'Property prices will skyrocket in early 2026 when Labor's five per cent deposit scheme comes into effect — get in before the crowd,' he said. 'Sure, prices seem expensive but that's what your parents said. Who wouldn't like to buy their parents' home for the price they paid.'
Sky News AU
21-05-2025
- Business
- Sky News AU
Barefoot Investor Scott Pape slams RBA's interest rate cut as hindering young people entering housing market
The latest interest rate cut delivered by the Reserve Bank of Australia has provoked a scathing reaction from the Barefoot Investor, who says potential homebuyers should be 'pissed off' by the move. The RBA slashed the cash rate on Tuesday from 4.1 per cent to 3.85 per cent in its second interest rate cut for mortgage holders this year. The move is expected to provide financial relief to cash-strapped Australian homeowners around the country, and the Big Four banks have confirmed they will pass along the rate cut to their customers Barefoot Investor Scott Pape has slammed the central bank's decision however, claiming although the interest rate cut will help people with their mortgage repayments, it will not be as beneficial for young people trying to get on the property ladder. Mr Pape has long been known as a finance guru since rising to fame after his best-selling and eponymous finance book 'The Barefoot Investor'. 'If I was a young person right now I would be pretty pissed off,' he told 'Every time a young person gets close, it just keeps getting more expensive.' The Barefoot Investor also warned Labor's five per cent home deposit plan announced last month will do 'a lot of damage'. The policy, set to come into force from January next year, will allow young Australians to put down a five per cent deposit to try and get a foot on the property ladder. '(The policy's) stupid, totally stupid,' Mr Pape told 'People shouldn't be buying a home in one of the most expensive cities in the world if they can't afford it.' Other industry experts also sounded the alarm over the plan shortly after it was announced, including Helia chief executive Pauline Blight-Johnston, who previously said the Labor government policy created a 'risk for lenders'. 'It is still important that the LMI industry is around to support investors and upgraders who all need access to LMI,' Ms Blight-Johnston said. RBA Governor Michele Bullock called Tuesday's announcement a "confident cut", but also said she would be looking out for economic uncertainty from the ongoing US trade war. "I think it's a confident cut in the sense that we think this is the right decision at this point in time," Ms Bullock told reporters. "Where this leads us in the future is a little more uncertain. I'd have to say probably a lot more uncertain, given everything that's going on."
News.com.au
30-04-2025
- Business
- News.com.au
‘Dumb and dangerous': The Barefoot Investor slams Anthony Albanese, Peter Dutton
Leading financial expert Scott Pape has slammed the major housing policies of both Anthony Albanese and Peter Dutton as 'dumb and dangerous'. The best-selling author, known as The Barefoot Investor, declared the proposed solutions to Australia's crippling housing crisis won't help many, if any – and will likely make things much, much worse. 'Labor wants to slash deposits to five per cent, which is as dumb as it is dangerous,' Pape wrote in his regular column in the Herald Sun. 'Remember, the US subprime crisis was created by politicians making it easier for broke people to buy homes.' The Coalition isn't doing any better on the housing policy front though. 'Not to be outdone, Dutton, the so-called economic conservative, is promising to allow first home buyers to raid their super and write off their mortgage interest.' Both policies will put significant upward pressure on home prices by driving demand without stimulating short-term supply. '[They are] like turning up at an auction and handing everyone a suitcase full of cash. It doesn't make homes cheaper. It just lets buyers bid higher – and history shows they always do. 'And the result? It drives house prices higher. It drives rents higher. It's madness.' Housing innovation expert Ehsan Noroozinejad, a senior researcher at Western Sydney University, agreed with the assessment. '[Labor]'s five per cent deposit and shared equity scheme ease upfront costs, yet they also lift demand, which can nudge prices higher unless supply keeps pace,' Dr Noroozinejad said. The Coalition's proposal to make first home buyers' mortgage interest repayments tax deductible will also 'supercharge demand immediately', he said. 'They all put more bidding power in buyers' pockets, a recipe for price escalation if building lags.' The prime minister has committed $10 billion towards building 100,000 new homes specifically for first-time buyers. While it's a welcome pledge, it could wind up being a drop in the ocean. 'It covers barely a quarter of the 400,000 dwelling shortfall forecast against the national 1.2 million new homes [in five years] target.' And as Housing Industry Association managing director Jocelyn Martin said, the volume of new dwelling completions is currently at its lowest level in more than a decade. 'And it has remained at that level for three years,' Ms Martin said. 'All three tiers of government have added additional, unnecessary costs, to delivering a new apartment and detached home over the past five years. [They] need to work together to bring down the cost of delivering a new home to market.' It has never been harder for young Australians to buy their own home, CoreLogic research director Tim Lawless said, thanks to an imbalance between housing supply and demand combined with a cost-of-living crisis, high interest rates and low savings. Those with a typical household income now need to spend eight times their salary to buy the median-priced dwelling, Mr Lawless said. 'Similarly, a median-income household purchasing the median value dwelling with a 20 per cent deposit would be dedicating just over half their gross annual income to mortgage repayments.' To put that last measure in perspective, the consensus among economists is that spending more than 30 per cent of one's income on housing costs is a sign of financial distress. 'The cost of owning or renting a home has been pushed higher, placing immense pressure on many Australians, particularly first-time homebuyers and renters,' Mr Lawless said. On top of that, research by the Australian Housing and Urban Research Institute found just 11 per cent of first-time buyers can get into their own homes without facing major financial constraints. It found 84 per cent of young Aussies face setbacks in scraping together a deposit, while 71 per cent face repayment constraints. Despite the problem worsening over recent years, Mr Pape said both the major parties had failed to offer practical or meaningful solutions. Instead, he said it seemed 'both have designed their policies to fit on a highway billboard – big font, feel-good slogan, eye-roll logic, paid for with borrowed money'. 'And in doing so they've turned the great Australian dream into a financial trap,' he said. Housing advocacy group Everybody's Home said Labor's promises have fallen 'well short of what's needed' to seriously address the housing crisis. 'In fact, some elements could make it even worse,' spokesperson Maiy Azize said. 'To make housing more affordable, we need to get rid of tax breaks when it comes to property, not create more.'
