From Steve McKnight's newsletter:
Winners & Losers As you can now hopefully see, we are in a period of immense change. While this will be the start of difficult times for those who are set in their ways, it also marks the beginning of massive opportunity for those who can adapt.
Will You ThriveHere's a list of the losers and winners from the current political and financial landscape:
Or Just Survive?
Losers
Winners
- The Liberal and National Parties, and those organisations that support their power bases. All will need to reconsider their positions and start anew. This will take years.
- Battling homeowners who will take a hit in the hip pocket every time interest rates rise. You can't eat houses and those with big mortgages will have to think creatively as the financial burden increases.
- Investors who are negatively geared. The new lower tax rates will make negative gearing less attractive since less tax is levied, and so less tax can be 'saved'. Also, increased interest costs will only add to the cashflow shortfall.
- Speculators relying on general market growth. Rising interest rates will stifle demand which will result in flatter growth.
- Homeowners and investors who need to sell quickly and are forced to take a much reduced 'fire sale' price. The available pool of buyers will shrink as affordability worsens. If you can hold out then you may get your price, but those who need to sell fast will suffer.
- Consumers who bought using expensive debt products such as credit cards, personal loans, '24 months interest free' etc., and who are unable to repay the debt in full.
- Those who bunker down and hang on to loss making or poor performing assets believing that a loss isn't made unless the asset is sold. An inability to act or lack of access to cash will severely limit your opportunities to bag a bargain.
- The Labor Party and new members of parliament who now enjoy the power to change the country.
- Trade unions and those traditionally aligned with the Labor movement. Union participation is currently at around 22% of the workforce. This will be the low point, with a revival starting from here.
- Service providers who have aligned themselves with the Labor party and will be awarded lucrative government contracts. While the tender process is somewhat transparent, party favourites will be rewarded for their loyalty.
- As interest rates drift higher, those who have fixed rate mortgages. Such borrowers will have secure finance and a historically low rate.
- Cashed up investors who have the funds to be able to snap up great deals, particularly in the commercial property arena, as a result of vendors who need a quick sales price.
- Developers with guaranteed pre-sales. The certainty of a pre-sale will provide comfort in an otherwise unpredictable market. Pre-sales will also help with gaining finance approval.
- Self-funded retirees, pensioners, and others who rely on interest income, since cash deposit accounts will attract higher returns.
- Property investors who can provide low cost housing, since the Labor party has promised tax credits and incentives for those who build in this market.
- Those who can capitalise on emerging trends and new opportunities.
It's your choice -Looking back over the list, are you poised to be a winner or a loser? There's still time to be victorious, but urgent action is needed.
will you be a winner or a loser?
What's your opinion?



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