Liberal or Labour?

Discussion in 'Property Market Economics' started by 3k_Alan, 16th May, 2019 at 12:41 PM.

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Liberal or Labour? If you are already a property investor.

Poll closed Yesterday at 9:30 AM.
  1. Liberal

    112 vote(s)
    72.3%
  2. Labour

    43 vote(s)
    27.7%
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  1. 3k_Alan

    3k_Alan Well-Known Member

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    If you are currently already a property investor, should you vote for labour or liberal?

    Some people are saying better to vote to labour because they will remove negative gearing. So if you already got all your investment properties you can keep negative gearing while the policies prevent people from becoming investors (harder for new entrants). and somehow this increases your rent? rent is fairly slow to react but some say it will happen.

    OR will remove negative gearing reduce the property value so much you would be in "negative equity"?

    what are your thoughts?
     
  2. 3k_Alan

    3k_Alan Well-Known Member

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    will the capital gains tax reduction apply to new properties or retrospectively (existing investments?)
     
  3. 3k_Alan

    3k_Alan Well-Known Member

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    also I feel labours policy might make people do poor investment decisions... instead of buying in a good location of existing property (old) they buy "new" property just to get negative gearing but that property doesn't grow in value might even drop in value if more and more new properties are build. so people are stuck with their poor investment....?

    but is this good for us that's already investors? less competition?

    like what i'm asking is... labours policies seems like it's trying to hurt us (investors) but help first home buyers BUT... in truth their so silly it much actually benefits us more than first home buyers?

    (like how "the war on drugs" only helped drug dealers.)

    What do you guys think?
     
  4. devank

    devank Look, lets just get on with this, ok? Premium Member

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    I was thinking similarly, as an existing property investor who isn't going to buy any more IPs, am I better off with Labor?
     
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  5. 3k_Alan

    3k_Alan Well-Known Member

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    there is also talk of "impossible for negative gear to be removed permenatly" so after a few years they will be forced to bring it back. so in this interim period, existing investors win (higher rent)?
     
  6. marmot

    marmot Well-Known Member

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    I,d say that negative gearing already allows investors to make poor decisions, as it masks the true losses
    Take it away and you have to be a lot smarter.
    How many people would be prepared to take on bigger losses week in week out , if they could not get the tax concessions.
    Less competition also means less people at Auctions pushing the price up.
    It effects different investors in different ways.
    An investor that has slowly built up properties, and paid them off over time will be in a different position than an aggressive investor that has lots of property, lots of debt , nothing paid off and just expecting growth to continue to make them wealthy.
    If house prices go no where for 10 years , there still sitting on a big pile of debt.
     
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  7. standtall

    standtall Well-Known Member

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    It doesn’t matter what investors think .. voters increasingly have short attention spans and even shorter memories .. a bunch of lies and emotionally charged promises is all it takes to get votes and Shorten isn’t stopping short of making big ones and his voters don’t care if he will have money to do even half of what he is promising.

    No doubt, it’s going to be some really tricky years ahead for the investors.
     
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  8. inertia

    inertia Well-Known Member

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    I'm an investor, but that wont be defining how I vote. I will not be putting either Labor or Liberal as #1, but my preferences will hit Labs before Libs. While I don't think Labor's economic policies are great, I cannot vote for Libs social policies. I'm hoping for a Labor win with a minority government.

    Cheers,
    Inertia.
     
  9. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    I'm not against the Labor negative gearing proposal in part, but I think the proposal has a very serious flaw.

    There is a reasonable argument to be made for claiming losses only against other assets. I don't entirely agree with it, but I can accept it.

    What I'm very much against is the exception for new property. This creates a loophole to be exploited and it imbalances the market in a particular direction. Furthermore it's going to increase investor demand on new properties, increasing prices the the sector of the market that is often where first home buyers get into the market. This is just a stupid policy.

    I also disagree with most of Labor's proposed tax policies. They seem designed to discourage anyone from investing in anything.
     
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  10. Lacrim

    Lacrim Well-Known Member

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    I'm voting for the party that will result in a (larger) spike in rents. That would probably be Labor.

    But one thing I don't like about them is their unstoppable tendency to keep tampering with the status quo.
     
  11. Zoolander

    Zoolander Well-Known Member

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    Protip: You can edit a post to add in afterthoughts if its only been a few minutes. No need to post 3 times in the space of 6 minutes...

    Vote for Labour if you have enough cash to buy your next place outright (no new bank loan needed). The flawed policy should wreck prices of existing homes and also deter investors so you’re competing with small fry first home buyers.

    Vote Liberal because they’re not proposing rocking the property boat.
     
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  12. 3k_Alan

    3k_Alan Well-Known Member

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    being able to claim loss against income is an "automatic stabilizer" and automatic stabilizers are important for a developed economy to be healthy. Labour's idea of removing them I think isn't a good thing. But on the other hand Bill Shorten guy's argument is negative gearing gives investors unfair advantage. Investors snap up more and more property while first home buyers can't? This has some truth to it but just getting rid of negative gearing isn't the best way to go about it.

    Yeah I fully agree. first home buyers often buys those apartments or new town houses or units etc in new developments. If you make only these get negative gearable I think it would only increase competition for first home buyers.

    I think at the end of the day, sorry if this offends any first home buyers... but in my honest opinion. Anyone can afford to buy a property, just depends on how good of a property you want. If you are earning below average income how can you out offer or outbid other bidders for a really good property that everyone wants? instead of coming up with twisted policies, that would really hurt Australia's economy and maybe even Australia dollar, why not instead upskill yourself, learn a trade be a bricklayer which earns a lot in this day an age. Even with 100 new policies, people who worked hard will still be buying properties from under them and first home buyers will still complain on missing out?
     
    Last edited: 17th May, 2019 at 1:55 AM
  13. essendonfan

    essendonfan Member

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    What is interesting is the record pre-election/early votes that have already been cast. Estimated 5 million early votes of the 16 odd million eligible voters.

    That is massive, yes it is a trend - but I think those votes will tell the true story

    1. Are people rushing to vote the government out?
    2. Are people rushing to stop the other party getting in? - personally, I have heard alot more noise about number 2, people really have a dislike for Bill and Chris (and from people who are normally very quiet about elections)

    Will that carry through to the government staying in. I gave them no chance when they changed leader - but I think this has tightened up. I still think Labor get in, but will there be a majority to get these tax changes through?

    Oh and back to the OP - I think Labors tax changes, are poorly thought out and costed.
     
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  14. Illusivedreams

    Illusivedreams Well-Known Member

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    Very few times you are better off with Labour is becoming more socialist party.
    A softcore Greens.
     
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  15. Illusivedreams

    Illusivedreams Well-Known Member

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    Very few people buy something to loose money to claim losses.

    In my opinion it's a by product, makes easier to hold marginally.
     
  16. Sackie

    Sackie Well-Known Member Premium Member

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    Closet socialists. Always been the case.
     
  17. Someguy

    Someguy Well-Known Member

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    Saturday is a working day for many and with the slow removal of penalty rates it may eventually become a working day for the majority (for the sake of productivity why not make the standard working week 6 days) to me no surprise that many are voting early as they will be working on Election Day.
    Instead of complaining about early votes slowing the process how about they make a procedural change to speed it up.
     
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  18. wilso8948

    wilso8948 Well-Known Member

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    Option 3. Can't be effed standing in line on a gorgeous Sat morning getting handed brochures with no promises of a sausage sizzle. Bunnings on the other hand is well a truly cooking by 8am.
     
  19. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    I've been voting early in every election for about 15 years. It's quicker and easier. I'm often busy on Saturdays so it's a hassle to stand in a queue.
     
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  20. albanga

    albanga Well-Known Member

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    Labors policy is a development marketers dream! Think about how much easier it is going to be selling to the uneducated when you can compare negative gearing benefits versus none.

    Forget no growth! They will just use median values and property doubles every 7 years.
     
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