Liberal or labor , who's better for property investors ?

[INVSTOR]

That's because the previous ALP Government spent like a drunken sailor

It's the old story of giving someone $1 then taking it away, they feel poorer even though they are the same as before.

I disagree. Labor has improved my quality of life, Liberal are intent on turning things back to crap, which in the long term will cost anyone in government a lot of $$$ to try to turn things around. Quick fix solutions with no forthought from Liberals are going to end up costing more long term.

 

[Aaron_C]

I disagree. Labor has improved my quality of life, Liberal are intent on turning things back to crap, which in the long term will cost anyone in government a lot of $$$ to try to turn things around. Quick fix solutions with no forthought from Liberals are going to end up costing more long term.

I'm not sure why you think the previous Government improved your quality of life...the only way that could ever happen is with handouts or being a public servant.

 

[Crabnet]

State Liberals aren't doing me any favors on property values or quality of life, quite the opposite. Everyone I speak to feels the same. Whether State or Federal, it's all the same.

The age of entitlement has made you soft. People want the services but begrudge paying for them. Wait til the recession comes. You will feel even worse.

 

[INVSTOR]

The age of entitlement has made you soft. People want the services but begrudge paying for them. Wait til the recession comes. You will feel even worse.

It's already started for me so I'm sure I'll feel better having everyone else in the same boat.

 

[The Fence]

That's the shot, drag everybody down with you to make you feel better.

Sorry, but that aint gonna happen.

State gov makes me feel quite safe and secure, dont know what you're talking about...?

 

[sanj]

Ok, will rephrase then. State Liberals decisions have done me a huge disfavour interfering with me financially, my safety and quality of life.

Can you pls elaborate?

 

[devank]

Taken from blog.. I lost the link.

"The Liberal party tends to focus on the economy, getting the dollar strong, saving up, and creating assets.

The Labour party tend to focus on spending the money that Liberal has saved up, putting it back into the country (hospitals, police force, and whatever else the population wants to see more of).

They both play their part, because the Liberals possibly neglect some of the things that people want, where as Labour may overindulge a bit and overspend, putting interest rates far too high. "

I thought that was nicely summarised.

 

[Crabnet]

Taken from blog.. I lost the link.

"The Liberal party tends to focus on the economy, getting the dollar strong, saving up, and creating assets.

The Labour party tend to focus on spending the money that Liberal has saved up, putting it back into the country (hospitals, police force, and whatever else the population wants to see more of).

They both play their part, because the Liberals possibly neglect some of the things that people want, where as Labour may overindulge a bit and overspend, putting interest rates far too high. "

I thought that was nicely summarised.

Ha Ha. Labor build the assets, the Liberals sell them because the Liberal ideology is that business should build the assets, while Labor are more attuned to what's good for society.

 

[Aaron_C]

Ha Ha. Labor build the assets, the Liberals sell them because the Liberal ideology is that business should build the assets, while Labor are more attuned to what's good for society.

Same as how the NBN is an 'asset' but is now obsolete

 

[HiEquity]

If I survey legislation that directly impacts property investors, such as the Residential or Retail Tenancies Acts, there seems to be no difference between the parties.

Some people say that the Liberals save up money and reduce taxes. Of course, you can't do both without massive cuts to services. For those wondering what has actually happened, the following chart is instructive:

It is clear that Labor has ratcheted up debt and deficit during its time in office by reducing taxation. Historically, the Liberals have taxed more in order to get the budget to surplus. As property investors, we have to decide whether we want low taxes or a budget surplus. Of course, low taxes become a temporary mirage as the interest on the debt incurred winds up. But while interest rates are incredibly low, the honeymoon can go on for some time...

 

[Hoffy]

Ha Ha. Labor build the assets, the Liberals sell them because the Liberal ideology is that business should build the assets, while Labor are more attuned to what's good for society.

Selling the CBA, Qantas and countless state utilities by Labor governments must have been good for society I guess. It's just bad when conservatives do it?

 

[INVSTOR]

I'm not sure why you think the previous Government improved your quality of life...the only way that could ever happen is with handouts or being a public servant.

Will answer another day when I answer Sanj's question.

It's already started for me so I'm sure I'll feel better having everyone else in the same boat.

That's the shot, drag everybody down with you to make you feel better.

Sorry, but that aint gonna happen.

State gov makes me feel quite safe and secure, dont know what you're talking about...?

. Ok, I wasn't serious when I wrote that, of course I wouldn't wish a recession on anyone!

Can you pls elaborate?

One day, when I answer Aaron, as all tied in.

 

[Crabnet]

Selling the CBA, Qantas and countless state utilities by Labor governments must have been good for society I guess. It's just bad when conservatives do it?

Why the nasty response?
Nope I don't know where you got that idea from. Who said that there was something wrong with selling state and federal assets? Not me.
I said that Labor is more likely to build them where the Libs have the ideology that the state shouldn't build assets.
They have only agreed to fund a broadband plan this election because they have decided they would be at a political disadvantage without that policy.
They would rather private enterprise built it but as you may know, private enterprise aren't willing to fund the complete rollout. They only want the good bits and require much higher commercial returns than the government.
In fact part of the enabling legislation for the NBN includes steps to sell it once it has been completed and has been running for a while.
Perhaps an overseas pension fund will snap it up as they are quite satisfied with utility type returns on their investment. That's why they buy toll roads, pipelines and etc.

On a similar vein, I'm not sure about hospitals and schools. Some say it would generate some much needed cash for the governments if they privatised the hospitals and education facilities so they would have to be run for a profit.
Australia Post, though, no problem. Float it on the ASX.

 

[Hoffy]

Why the nasty response?
Nope I don't know where you got that idea from. Who said that there was something wrong with selling state and federal assets? Not me.
I said that Labor is more likely to build them where the Libs have the ideology that the state shouldn't build assets.

Lol, not nasty at all. I just think your initial statement was nonsense and pointed out the obvious problem. Generalisations rarely stack up.

 

[BayView]

Ha Ha. Labor build the assets, the Liberals sell them because the Liberal ideology is that business should build the assets, while Labor are more attuned to what's good for society.

I think one thinks Micro - Labor, and the other thinks Macro - Liberal.

Macro is encouraging investment, building businesses - which then employ people, building a better economy.

Micro is looking after the little bloke - making sure the poor are fed, the workers have their rights, and get regular pay rises and handouts/welfare/ maybe less taxes and so on (although I can't see the current Labor getting out of deficit without increasing taxes, because they are not encouraging businesses to start, to grow, or to stay in Aus.)

So, which one is more important? Neither really; depends n who you talk to I guess.

But I reckon that without a growing economy, strong employment, investment in businesses which then flow on to more employment and taxes and revenues etc, the micro stuff becomes non-existent.

Pretty hard to quibble over workplace issues if there isn't one.

 

[Intrinsic_Value]

The answer for property investors (not speculators) is incredibly simple.

Its what will improve your IV over the long term.

And what will be the underlying driving force????

Movements in average wealth, not interest rates, not government policy, but wealth.

 

[BayView]

It is clear that Labor has ratcheted up debt and deficit during its time in office by reducing taxation. Historically, the Liberals have taxed more in order to get the budget to surplus. As property investors, we have to decide whether we want low taxes or a budget surplus. Of course, low taxes become a temporary mirage as the interest on the debt incurred winds up. But while interest rates are incredibly low, the honeymoon can go on for some time...

What were the tax cuts for during those times, and why did they reverse their direction?

After 08, taxes went back up according to the graph...

Meanwhile, interest rates have been steadily going down, and yet no one is growing, no one is borrowing, no one is spending, unemployment is growing..

One of my major tyre suppliers told me earlier this year that the first half of 2012-13 fin year was their worst 6 months of sales on record...and they have other mates.

Oh yeah; and the interest bill on the deficit is growing at a stellar rate per day.

Last estimate was they have lost approx $30bill since May?

 

[Ideo]

It's starting to pick back up in planning/engineering and doing the ground work for new developments.

Architecture is still struggling. But things are improving.

Australia is in a recession caused by our own whingeing and fear from the media. We are talking ourselves into having one.

Given the state people have got themselves into over having one of the few functioning economies in the world over the past 4 years, I'd hate to see how we'd handle something actually going as wrong as what happened elsewhere in the world.

 

[Aaron_C]

With the house price boom in Sydney/Melbourne right now hopefully everything starts up again.

 

[Crabnet]

What were the tax cuts for during those times, and why did they reverse their direction?

After 08, taxes went back up according to the graph...

During the Howard Costello period tax receipts were flooding in from capital gains tax, company tax and personal income tax as tax thresholds were passed. Howard Costello decided in one of their budgets to reduce personal income tax levels in iirc 5 stages.
As a pre election promise Rudd committed to honour the tax cuts so some of the scheduled reductions were introduced during the Rudd Swan government.
Of course now we are caught with our pants down because the economy is turning and growth is subdued.
The volume of tax is increasing but so is the economy. The rate of increase in tax is what has declined. So can't keep up with all that recurrent expenditure and tax concessions written into government budgets going back many years.
Petrol tax freeze.
Super concessions.
Health rebates.
Things like those are having bigger and bigger impacts on the budget as years go by so some may be unsustainable at current growth levels.

Regarding tax growth.
e.g. MRRT not returning as much as expected because the mining companies have a couple of years worth of deductions to offset the tax.
Capital gains tax down as people are carrying forward GFC losses into future tax years.
Globalisation means some large companies aren't being taxed in the jurisdiction where the income was earned, instead it's transferred to a tax haven.
Just to maintain employment the economy needs to grow at 3% to keep pace with the increasing population. Growth is forecast to be below 3% for a while so unemployment will inevitably rise.

And the interest on the deficit isn't such a worry with interest rates so low and probably going lower.