All Topics / Opinionated! / Writing is on the wall – Labour will win
- propertypowerMember@propertypowerJoin Date: 2006Post Count: 312
Looks like Labour will form the government. How will it affect real estate market?bardonParticipant@bardonJoin Date: 2004Post Count: 557
John Howard will be looking for somewhere to live and Kevin Rudd might rent out his house in Norman Park Brisbane.jtwMember@jtwJoin Date: 2005Post Count: 57
I have already started sand bagging my position for any economic bombshells.
Here is an interesting thought.
Let's say you had a really bad tennants. They weren't paying thier debts and are wrecking the house. They run up a debt that is sending you broke. In fact you discuss passing this huge debt on to your kids to pay off it is so big. You finally evict them.
Put in a really good tennants that looked after the place, paid on time, and had not caused you a problem in 11 years.
You get ahead, and pay off the mortgage you once though would drown you. Golden days instead. But you get bored with your new found economic prosperity. What could go wrong you say? So you decide to kick them out and bring back the Tennants from Hell. (After all they had nice new Kevin 07 T- shirts now).
Hmmmm. Quite an interesting choice.bendbanksParticipant@bendbanksJoin Date: 2007Post Count: 46
The really sad thing is that their (alp) 1st budget will still have all the good work from Peter and John still there. The 2nd one, well if they have any money left I'd be very surprised but like Peter said if they touch that future fund I'll personally stick my foot up the Wayne Swans butt.
You really have to ask the ? of the greater Australian population as do they really think that having faster broadband and a laptop is worth F7*(king up the country.
And just in case they (the greater Australian population) have not worked it out yet the reserve bank is independent so NO one can tell them what to do.
To my fellow investors check your landlords insurance and if you don't have it then get some cause the fun is about to begin.hallgMember@hallgJoin Date: 2006Post Count: 31
Housing affordability was mentioned more than once by Mr Rudd as an issue in this election. Must confess i cannot recall what his solutions were? Could we see alterations to tax law such as depreciation rates and CGT?? I guess time will tell.
HallghbbehrendorffMember@hbbehrendorffJoin Date: 2006Post Count: 293Rudd has Charisma, Youth and Elusive slogans but these are not the things required to successfully run a country. Does anyone in the labour party actually have any experience with the opperation of a country…or even a coffee shop for that matter ?
We shall see if the same thing happens every time the reds are in power:
Budget deficits and sub 10% interest rates.
Maybe it will be different this time around ? though improving from a highly experienced government who brought the greatest prosperity Australia has ever seen with a government of political recruits may prove difficult.propertypowerMember@propertypowerJoin Date: 2006Post Count: 312
I agree guys. I am concerned about the future of our economy. Interest rates may have gone up 6 times but the average interest rate under John Howard is still 5% lower than average interest rate under labour.Luke TaylorParticipant@world-changerJoin Date: 2005Post Count: 415
I am really surprised people have forgotton so quickly ,only 6 months on from, labours constant ongoing displays of fighting and disunity ,all from within their own ranks, now we have voted them in to run the country.
This country is the best it has been for years under Johnny and Peter ,s phenominal leadership,and the huge surplus we have now!!
I just hope Rudd doesnt spend the countrys hard earned savings fund like he announced he was going to ,spending 50% of it straight away on schools and hospitals he reckons.
Luke Taylor | Hope Property Investing
Property Support,Strategist and Buyers AgenthbbehrendorffMember@hbbehrendorffJoin Date: 2006Post Count: 293
Interest rates will increase no matter which government is in power (Labour/Liberal) but I believe that by labour now gaining control it will amplify the situation and result in a sharper and more powerfull increase in interest rates and inflation.
Labour will literally spend spend spend and we will probably see budget deficits (The best way to predict future behaviour is from past behaviour) and this is what the labour party always does.
Employment laws will go back into the dark ages and by trying to increase a few peoples wages by a dollar or two will have huge negitive impacts on unemployment. Employees will discontinue to employee people because of the red tape sinews attached and bosses will be very hesitant to hire new staff, This will lead to an increase in unemployment, less money in the ecconomy, more dole payments and repossessions.
Interest rates will skyrocket, the government will be broke and property prices will be forced down by a recession leading to many golden investment opportunities (if you didn't get capsized in the storm)
This is my prediction for the future, grim as it may be for some, but prosperous for people whom are prepared.
Now is a good time to start liquidating paper assets and have money in the bank.
I expect interest rates to be lower in six months to a year. Labour pumped the Liberals about how interest rates have been increasing. Let's see what the "miracle worker" can do now the acid is on him.
I hope we don't see unions raise their ugly heads and set us back 20 years.
And I don't want to hear about how it's the Liberals fault for the next three years. You can bet your bottom dollar this claim will surface soon enough.diclemMember@diclemJoin Date: 2003Post Count: 537
I agree with the general theme of the above topics, especially the post by jtw.
I was at a birthday BBQ saturday night and obviously surrounded by Labour voters. They were ecstatic about the result. I was feeling a little ill myself!
Where are the Labour voters on the forum? Or are property investors more inclined to favour the Liberals?Scott No MatesParticipant@scott-no-matesJoin Date: 2005Post Count: 3,856
KRudd will have to weave some magic if he is to look good (& not be playing the blame game over the next 36 months).
Firstly, he will have to contend with a weakening AUD which has been making the rising cost and extent of our imports including rising oil prices.
Secondly, once new workplace laws are passed, how will he address the lack of growth in employment (3.4%)
Thirdly, interest rates are currently respectfully low due to the strong economy & the reserve bank using the rate to temper the markets even though it has made warnings about the need to continue to increase rates.
The costs of meeting climate change requirements will require alot of government investment (possibly borrowings).
The bail out of the state health and education systems will lead to further government spending.
Has KRudd been set up for a fall? Highlighting his inexperience at the helm?
What a great platform for the next election – interest rates UP, unemployment UP, inflation UP, Business confidence DOWN, economic growth DOWN, AUD DOWN.
I will sit back and wait…..YossarianMember@yossarianJoin Date: 2006Post Count: 136
I'll happily deliver a touch of reality:
*in spite of a huge mining boom, Australia is running a current account deficit the largest in its history (funny how that particular measure has gone out of favour). In other words, when in the best position in a lifetime to sell more than we buy, Howard has ignored addressing the fact that we are continuing to run up the international credit card. If the US economy slows and China's output eases, watch the number increase…..
*related to the above is the massive increase in govt spending and middle class welfare which has a gone a long way to overheating the economy and in spite of the RBA sending out lots of warnings, Howard proposed to increase the pressure with $40 odd B in additional cash added to the system. The only way the RBA won't move again in February to have another go at slowing spending will be if the banks move independently to pass on their increased funding costs caused by the US sub prime crisis b4 Christmas – I'd bet on most doing something over the next two weeks.
*the average Australian can no longer afford to buy a house. A plasma TV sure. Cheap gear made in China, lots. A roof over their heads…wait until your parents die.
*Howard has reduced our spending on education to well below the OECD average and into banana republic territory….but the sills crisis is someone else's problem. In 10 years time and in the absence of a change of attitude or government, we'd have a bunch of unemployed truck drivers who used to make $100K a year in the mines and no engineers, scientists or tradies to build the next industry. Remember when we used to worry about being China's quarry and Japan's beach rather than celebrate it?
* in short, Howard was Menzies. Managed to ride a boom but did nothing with it but make people feel better about their present but neglect their future. When his legacy is written it will be one of wasted opportunity and a minor tax.
So Yossarian, you believe, given time, Rudd will turn the current account deficit into a surplus?
He's going to bring interest rates below 5% and make it so everyone can afford the house they want. I'm looking forward to this. I'll hold off buying my townhouse for the time being then.YossarianMember@yossarianJoin Date: 2006Post Count: 136wezwaz wrote:
So Yossarian, you believe, given time, Rudd will turn the current account deficit into a surplus?
He's going to bring interest rates below 5% and make it so everyone can afford the house they want. I'm looking forward to this. I'll hold off buying my townhouse for the time being then.
Far from it. That particular cat is out of the bag, running around the house and swinging from the curtains. The key issue for Rudd should be to get the current account issue back on the agenda and start to plan for the day with the mining boom is no longer paying the bills.
You remember the days when our political leaders planned for the future beyond the next election and were prepared to tell their constituents what the didn't want to hear….that's what we need now.
Interest rates have another .50% to go over the next 6 months just based on the heat in the economy. The momentum gathering over the last few years can't be managed quickly without risking some serious hurt. With luck Rudd's first decision will be to do the common sense thing and delay the big ticket spending items until the economy stops racing.AnrobelParticipant@anrobelJoin Date: 2007Post Count: 33
Do not mean to offend anyone but only Yossarian has a clue about what it happening. His honesty has my fullest respect. And the rest of you, for God sake please read “Robert Kiyosaki” latest book on the global prediction and read the financial review.The question is, did we vote for the party that will make us rich quicker or slower? Or the one that makes the Interest rate (IR) takes too long to get to the level that allows Investors pick up cheaper properties. If you are worry about IR rise in the future, you are not thinking like an Investor. If you are forced to sell your properties because of the IR increases, you need to read more Investing books, rather than whinging. The days of 17% IR in the 80’s made lots of smart investors richer.If you are losing your job or get paid less because of either Workchoice or Union driven workforce, Good!!! That is for thinking that your job is your greatest security. The reason why we are in this website and reading lots of books like R.Kiyosaki is to realise relying only your job is the greatest mistake that 90% of the population makes. For those who pumped more money into your super recently because the ex Gov’s promises, I am sorry to hear that. It will take me too long to explain.In summary, who cares who is elected to power. Find ways to get yourselves financially free rather than waiting for the government to help you with housing affordability etc etc. Think about it: housing affordability can increase by increasing the availability of land/new houses near/in your investment properties till there is an oversupply. Your tenants will then move out of your IP and buy those cheaper houses next door. You lose your rental income and then also the value of your house decrease. Can you imagine everybody in Australia get to live their “Australian dream” and no one rents at all? Catch my drift? This website will close down.“I am sorry” if anyone is offended, “But I am not apologizing”
Wezwas, you will be waiting for a while if you want interest rate to get <5%. Oh by the way, I am sure there are plenty of rental properties around…. Want to move to Port Augusta? You can rent mine once the next tenant moves out, while you wait. Oh try Roxby Downs I am sure you will enjoy the endless view there, while you rent
Come on kokjhoonwong, I think people in this post are just commenting on how they see the new government, not so much complaining about how it affects their investments.
As far as 5% interest rates are concerned, I'm only drawing a conclusion from the blurb that the Labour Party went on with leading up to the election. They continually rammed it down the throat of the Liberals about the increase in interest rates. One has to conclude Labour can lower interest rates, otherwise what the hell were they on about. Wouldn't have been just to gain a bit of political mileage would it?
Oh, sounds like Mr Kiyosaki has pumped out his next book, has he? What, predicting global doom and gloom? Robert Kiyosaki is very high profile and has a loyal following, but when he speaks it doesn't mean he's right.
How do you see the dismantling of Workchoices? Unions back with full force and the ability to strike at the drop of a hat? What about the influence of people like Shorten and Combet?
Hi Wezwas. Labor did not advertise to lower IR. The Reserve Bank is an independent party that controls IR based on numerous internal and international factors. This is the irony of the whole thing: Liberal promoted IR being all time high when Labor was in power. They accused them of mismanagement. But when there were 6 IR rise since Liberal was in power, they quickly claimed that it is oil price, drought etc etc. Hmm. I rest my case. OK I voted for Liberal but you will be shocked to know why I did it. So I am not telling.Very often that speculators are wrong especially a financial planner who I grilled the other day. When a guy like (R. Kiyosaki) who is worth so much and stand besides some of the best, I think we should at least listen.Being in this website means to share how we can help each other win. Any real Investors out there who knows what is the best plan to win with the change of govt. Would love to hear your plans and predictions.
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