Could it get any worse

Anyone watch this ?

seriously why would anyone bother growing wealth, the odds are stacked against you

This interview was depressing.....

Bill Shorten interview with Leigh Sales tonight on 730

 

Looking at it objectively, I think that the Labor policies are actually fairly reasonable and encourage new properties to be built.

 

Yup. Depressing .
We’re crossing our fingers and toes that he doesn’t get in

 

We dont need new properties to be built we have oversupply.
That’s why markets are falling

 

On the flip side .... anyone watch high quality reporting by yes you guessed it....ACA on Steven Dickson scandal. Note attention to detail, groping 12 times... yes 12

 

The market has fallen because it's hard to get credit to buy. I'd love to expand my portfolio but can't easily raise the money.

If they build them, and there's tick, the people will come.

 

There was over 2 hours of footage provided by Al Jazeira which was closely scrutinised by ACA .

 

Yes credit squeeze, but how will building help? When no on can buy due to credit squeeze??

 

Building won't help. Need the money. Unless perhaps the developers provide credit. Meriton Apartments used to do just that. 3 years interest only and they'd guarantee a tenant.

 

No it isnt.

 

Its perhaps accurate to say fewer can buy, and it's especially accurate in the more expensive markets - but plenty can buy in cheaper markets so its not reasonable to say no one can buy . They may not be able to drive prices higher - but we should be honest enough in these debates to assess things fairly and accurately . The political bias in some of these posts stinks. It ignores facts, in favour of a political position. Prices aren't sitting above 7 x income anywhere except SYD and MEL.. That's the first thing that we should accept.

I think people should also consider that in 12-18-24 months when construction stops on most the pipeline projects that are going up now, and most major infrastructure projects are nearing completion, and unemployment has the very real potential to blow up because tradies and engineers and their suppliers have no work , people might just be grateful for some policies driving new construction... no?

Isnt it just possible that these policies and a modest relaxation of the assessment rate, and perhaps some RBA cuts which would render neg gearing almost redundant anyway ( by that I mean if you are NG reliant with a rate starting with a high 2 or low 3, I will have, nor should anyone else have - any sympathy for you. You shouldnt need propping up) , might just combine to be what the doctor ordered...???

We also know there is now a shortgage of more than 300,000 affordable rentals nation wide... so the proposal to reintroduce some form of NRAS version 2 might just be a really well timed thing. We have investors crying out for yield moreso than ever , and the NRAS version 2 is proposing to offer 15 years of tax incentives rather than the 10 available first time around, and we have a looming construction work cliff, and we have a need for the accommodation.... I dont think its a simple as - we dont need new homes. No one can afford to buy them.

Yes Im biased- I want another NRAS. But I'm also pragmatic. I understand whats coming and I am able to see how the ideas may be very well suited to the times ahead.

Think bigger everyone ...... connect some dots. Its only 16 days until we get to stop talking politics for another 3 years

 

Yep - and if you aren't flexible enough to withstand a change in government (the potential of which happens every three years) then perhaps you need to rethink your investment philosophy.

I agree it's not an oversupply - expect perhaps in piddly units that always oversupply and then catch up - but more a case of hard to get credit. Trust me on this. We're currently jumping thru hoops we've never even seen before, simply to get 40%lvr

 

Up to a point.

But anyone thinking of buying a new build for investment certainly gets negative gearing benefits, but the minute they own the house the benefits are for them only.

What will that do to the “shiny new home” value, which immediately becomes a “pre-owned house with no ng benefits when sold” prospect?

Will the negative gearing benefits outweigh possible drop in value?

And yes, I know you are “never going to sell”. But life has a funny way of throwing curve balls that change plans when least expected. You must always consider the possibility of resale.

I can already hear the spruikers sharpening up their sales tactics.....
Marg

 

Investment strategies need to be robust enough to be able to survive and make money regardless of who is in government. But that doesn't mean you don't vote to get the best cards dealt to you as much as possible .

And that's certainly not voting for Bad Boy Billy and his henchmen .

 

That's only if you're selling to a stretched investor who doesn't have enough equity to ensure it's positively geared - and suspect the banks won't lend to those in any case ... the other 70% of the market is made up of owner occupiers

 

I'm not sure how Labor's policies will increase construction. I'm not aware of any policies that releases more land, or fast tracks approvals, makes it easier to subdivide, etc. Developers are also having trouble accessing credit, there's nothing that makes credit easier for them.

There's actually no evidence that the first home buyers grants being restricted to new properties actually caused more new properties to be built. Why would this be any different?

What they have proposed will increase demand for new properties which without increased supply, will increase prices for new properties. Longer term the developers will increase profits which might mean that a few might take on more projects, but that knock on effect is very speculative and would take years to realise.

I can cope with cancelling negative gearing against personal income, but leaving a loophole for new properties is bad economics. It puts investors in direct competition with those who Labor says they want to help - the first home buyers.


From what I can see the Labor tax policies are designed to reduce tax benefits to the wealthy and I think they achieve that. They also reduce tax benefits to the middle class that are trying to get ahead including the middle class self funded retirees. The policies certainly are attractive to low income or those that aren't thinking of their financial future, but they are hurting almost anyone with financial aspirations.

 

I wish there was a political party that catered to the centre.

 

As far as I can see and according to recent data practically all Property markets in Oz are falling or flat??? Nasty stuff
Canberra holding its own

 

Thats why I say, why create wealth when Labor is aligned to those that are not interested in their financial future. Perhaps just jump on the gravey train

 

I wish there was a political party that catered to the 'reasonable person' benchmark. Unfortunately these days reasonable people are a minority group that nobody cares about.