Farmers fear property price slide

19 Nov, 2010 06:04 AM
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NEW National Farmers' Federation president Jock Laurie has warned that uncertainty over water rights could jeopardise banks' willingness to lend to rural communities and lead to a plunge in property prices.

Mr Laurie said banks had been very supportive of farmers through the drought but the uncertainty over water reform could change this, The Australian Financial Review reports.

"To have banks continue to have confidence in rural industries, they need to be operating under a piece of legislation they know that their borrowers can operate under and have confidence their equity levels are going to be maintained," he said.

"When you remove that certainty, you put jitters into the property market.

"As soon as you put jitters into the property market, you all of a sudden affect the equity levels of all borrowers."

The Australian Financial ReviewSource: http://www.afr.com
Date: Newest first | Oldest first

READER COMMENTS

The Serf
19/11/2010 12:32:07 PM

Jock its called "Security of Tenure"; since the enactment of the Australia Act 1986 there is No tenure and No security, its just becoming evident now that’s all; the only tenure is Freehold of the Crown; there is none in Freehold of the State; 80% of the country is leasehold of the State which is worse still. Jock can you explain (or anybody for that matter) how does a Mortgage work when you do not own the land??? When you only lease it either in pure leasehold or in State Freehold??? If you don’t own the land what are you Mortgaging??? Is it just the Instrument of Title which is only a License to occupy the land??? How do you value that??? Thats surely not ownership, is it??? There are Billions currently on loan from banks both national and international with zero security when examined on a world perspective. There has been no legal determination since 1986 regarding the changed status of Security or Tenure but it's coming....

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