Crystal Ball Gazing

[Michael Croft]

From: Michael Croft


A month ago I would have bet pounds to peanuts that a Liberal win was assured in the federal election. Now it appears that Labor is ahead in the polls and may actually win in the poll that counts.

If this happens on Saturday I would suggest that property investors take another look at Canberra particularly at the sub $250k family home type. The reason being that with a Labor win the towns major employer will be hiring.

If you couple this with the latest 0.5% US rate cut and the indications that ours will follow by 0.25% in December (probably not this morning). The median priced house in Canberra will be in for more of a boom than it is currently experiencing.

As usual this is not advice just my two bobs worth.

Michael Croft
"The best parachute folders are those who jump themselves."

 

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Reply: 1
From: Sergey Golovin


Hi Michael,

Also all Consulates and their people, their and our security personal, our own bureaucrats, advisors and their support groups, lobby groups and their representatives, etc., they all will go back to Canberra.

Hopefully we will get bit more space here in Sydney.

Serge.

 

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Reply: 1.1
From: G V


Hi Michael and Serge,

Does it mean that Canberra will continue to boom whereas Sydney will go backward i e more property for rent, decline in property value etc.

GV

 

[Michael Croft]

Reply: 1.1.1
From: Michael Croft


Hi,

I won't even attempt to analyse what it means for Sydney or any other city for that matter. I'll just stick to my knitting thanks, but Canberra will do very nicely if a change of govt happens. What it means for the rest of Australia I'll leave to your political persuasions.

Michael Croft

p.s. I heard this great statement this morning "For your information I have a question for you ............"

 

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Reply: 1.1.1.1
From: Kevin Forster



Although there seems to be a slight change in the ALP from the big spending, high taxing times. These days the emphasis seems to be on fiscal responsibility.

Having been through a change of government in Victoria, the current government doesn't do much, no big projects or initiatives just maintain fiscal responsibility. This could happen at a federal level.

Neither major party seems to be planning anything big this election - content to fiddle around at the edges so it doesn't' matter who gets in, I don't think anything will change as far as property is concerned.

Just my thoughts

Kevin

 

[new class]

Reply: 1.1.1.1.1
From: Tom Cleary


Just been browsing through the Labor party policy on housing
http://www.alp.org.au/policy/health/affordable_housing.html
and came across the following.
Wondering if someone could put on their read-between-the-lines specs and decipher it, especially the last sentence.
Regards
Tom


Testing New Models Of Affordable Housing
Labor will allocate $9.4 million over two years to the Housing Advisory Committee to allow them to further investigate and develop new models for the provision of affordable housing including determining the feasibility of public-private housing partnerships.

While Labor believes strongly in the public provision of affordable housing, it also recognises the potential role of institutional investors in the expansion of affordable housing stock.

Utilising the expertise and research of organisations such as the Affordable Housing National Research Consortium, Labor in government will explore and test innovative strategies to encourage private investment in affordable housing and home ownership. This may include the establishment of frameworks that enable long-term headleasing and the development and implementation of strategies that ensure a housing mix, such as community housing models and the encouragement of joint ventures with the private sector.

If the private rental market is to meet the current undersupply of affordable housing, institutional investment in the private rental market must be encouraged.

In short, if we are to address housing affordability generally we can no longer rely solely on small landlords and their single investment property.

 

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Reply: 1.1.1.1.1.1
From: Sergey Golovin


May be it is time to become big landlord? Not to big but rather biggish.

On more serious note - looks like they want to investigate bit closer the UK model, where big corporations quite happy to manage and renovate government housing commission but not to owe it.

But then again have look from another point of view; every time government tell us "We will look after small business..." it means big problems for small business, like it is now.
And when they say – we’ll look after big business...Like it used to be and would be again.

So, basically what I am trying to say is it would be plenty of opportunities for small landlords. Why? Well, simply because they (The Government) will leave us alone and will get very busy with "big" ideas.

It is sort of herd mentality on political sense. While the herd heading one way…

Serge.

 

[Michael Croft]

Reply: 1.1.1.1.2
From: Michael Croft


Yes fiscal responsibility is all the rage but there is a little more "leakage" towards the public service with a Labor govt. There have been rumblings in the corridors of power that economic rationalism has gone too far and that a little social conscience is required. As they say, it may not happen over night but it will happen ;^)

Michael Croft
"The best parachute folders are those who jump themselves."