Renovating the House

Renovating the House

Yes we have just renovated Parliament House or rather the ALP has found it won’t sell at the forthcoming election auction shortly & hence some renovating was required. The Lifestyle Channel has been very successful with its programmes on selling houses after a makeover. Will it work for the ALP?

The owner of a house up for auction or sale is always very aware of the cosmetics they have applied to improve the selling price. So too we very aware of the cosmetics the ALP has applied to win the next term.

The owner of a house up for sale is also very aware of the problems that still exist & which are frequently structural & too expensive to fix. In many cases the house owner is keen to move & accept a lower price. However the ALP is not keen to move so do we accept a lower price.

The cosmetics have not changed the fact that underneath nothing has changed. There is still the belief that big government can do better with your savings than you can. That is the core structural problem.

It is being recognised elsewhere that at some time you must life within your means e.g. UK where they have had to bring in austerity measures after finding the rot left by the previous Brown & Blair Labour governments.

Do we want to the ALP to continue & produce the same rot as the Euro zone & the PIIGS have done. They have completed a list of failures & flip flops & they hope that Kevin Who will take it with him as he moves to the backbench & that all will be forgotten & forgiven.
Thus the ALP needs to make some structural improvements. They have trotted out many times that they saved the country from recession & saved 200,000 jobs. Where did they find that number & did they save the sale.

The structural changes need to focus on both sides of the balance sheet. I.e. in reducing the government spending & government waste & downsizing big government. They tried the taxx increase e.g. RSPT to pay back the stimulus but business & mining & you & I said there is nothing left for you to take. Enough is enough. Hence the renovation was required.

Governments in any form must do what a family must do i.e. Increase the income & reduce expenditure so as to live within ones means. This is the structural & in fact philosophical change that needs to be done. We don’t believe it is in the ALP makeup or other parties to do so. They have tried & not necessarily given up on the increase to their income & taxx take.

It also came out this week that Tony has a 710K mortgage which for whatever reason he forgot to declare. Maybe the compliance from Big brother was too big for him. Welcome to the real world. Tony certainly needs our help & needs a structural change.


His interest only mortgage will cost him $60,000p.a. which means no principal reduction?
His taxx on say 200K is say $74,000

So he has $66,000 left to live on

That’s the same struggle which most families have.

He needs our help & a structural change. Yes Tony is well off as his business expenses & superannuation are paid by yes the government. However does he have enough time to pay off that large debt? Welcome to the club Tony where many have huge debts & will need their super to pay it off when they retire or are ‘chopped’ to the back bench. When this occurs they have less super & hence even more reliant on the pension.

We only recently have had cries for help from a 60 year old with a $450,000 mortgage. How many such mortgages are on banks asset ledgers & considered prime & low risk. At some time Tony & others will realise that the bank is a very expensive landlord & hence the awaited deflating of house prices. Rental investors in the 60 year club will realise the income from their renter is insufficient & sell & lower prices will occur.

Thus we will see the structural change that needs to occur.

We suggest that many families are paying too much in taxx & mortgage to the bank. There is a structural change that can be made & it costs not to make that change. It reminds us of the analogy of the frog in boiling water. If it is cooked slowly it isn’t aware that it is being cooked.

Let’s improve yours or Tony's lifestyle as our active wealth strategy does for others

Welcome to call on 3848 1088 or email or book via our websites. Tony our lines are open & Kevin Who we may help you with your redundancy package.


John McAuliffe