Albo cashes investment property as negative gearing reform scrapped

This may seem like a cheap shot. But optics is everything in politics. Only a day after Labor dumped the negative gearing and capital gains tax reforms taken to the past two elections, leader Anthony Albanese sold his Marrickville investment house for $2.35 million, banking a $1.2 million gross profit:

Anthony Albanese

A specufestor delight!

From the article:

[Albanese] and former NSW deputy premier Carmel Tebbutt sold their Marrickville investment property for $2.35 million.

The bullish sale price more than doubles the former couple’s purchase price of $1.115 million nine years ago and comes less than five days before it was scheduled to go to auction.

To be fair, Australian federal politicians have always had a high degree of investment property ownership. Liberal or Labor, it doesn’t matter.

After Labor was punished at the ballot box last election for actually trying to improve housing affordability, it stands to reason that it would pull the policy this time around. Who can blame them? It is far more popular to bribe home buyers with subsidies than to take tax concessions away.

We get the leaders we deserve.

Unconventional Economist
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Comments

    • Charles MartinMEMBER

      He’s just taking scomos advice of having a go and getting a go. Albo is a role model for the workers that the ALP represent.

  1. kannigetMEMBER

    So One article Albanese is the Devil incarnate for dumping the policy and then a few articles later and its an understandable position… Can I assume that some of the comments on the previous article have resonated a bit and the view is softening somewhat or are we seeing the rise of clickbait articles designed to outrage?

    • adelaide_economistMEMBER

      Agreed but after the “Juliar” fiasco over the ‘carbon tax’ and the way that dogged them for years I doubt the ALP wants to go anywhere near such a blatantly obvious and identifiable backtrack. I’m pretty certain a very hefty share of Australian media, no doubt with zero self interest, will hold them to account over that particular backflip should it happen.

    • TailorTrashMEMBER

      It would be nice to think that Albo has found a soul and wants to clear his decks for a shake up if he gets across the line . But doubt it . Wonder if he has any other investment properties .

  2. adelaide_economistMEMBER

    It’s been said before but when 2/3 of people either own their own homes or are hocked up to the eyeballs in debt it’s hard to support policies that will negatively impact the biggest asset/liability in your entire life. People who bought years ago want the easy life of avocado toast brunching (or have gone guarantor for their children) and newer buyers are so stretched they can’t afford to support anything that will shave the value of their house even by 10 or 20%.

    I’m pretty certain the most of the 1/3 of the population who don’t own or have a mortgage are very unlikely to vote Coalition/LNP regardless so that’s pretty much the electoral calculus behind the decision I’d say. It’s hard to be altruistic when a piece of garbage untouched since the 1970s costs 6 to 12x your income (depending on how touched by the bubble your residential location is).

    • Fishing72MEMBER

      Hard to decide whether it’s p1ss funny or devastatingly sad when a suburban sh1tbox at fckn Marricville (!!!) is listed in Domain as “Prestige property “.

      $2.5M gets you something I’d consider a bland existence if I was being generous and consignment to an overcrowded, denuded sh1thole if I was being honest.

      Each to their own I guess but the fact that you’ve got to be a multimillionaire to live there or that a multimillionaire would want to live there…..lololol

      • lol @ Marrickville. Couldn’t pay me $2Mil to live there now. No garage space or yard in most places. Flights overhead etc..I didn’t mind Sunday markets at the primary school. Lots of hipters but (I’m probably 1 of them),

        • Absolute BeachMEMBER

          Gav it’s an insane price for what it is, or where it is. Up here you could buy a solid beachfront house AND a block of 4 walk-up units to live off the rent. And retire.
          In purely fundamentals it makes even less sense. So assuming a $500,000 deposit and a $2m loan the repayments are $8,673 a month according to Westpac. That is at a comparison rate of 3.14%…..which is crazy low. Add in rates, insurance and upkeep. So let’s say about $108k p.a. I can’t imagine sleeping well at night if the rates move up (which they always do…eventually) and that forces a correction in values (which it usually does). So, is the value a result of mania not based on fundamentals? The rent won’t be $108p.a. Yes, obviously you could NG it but then it assumes capital gains to make any actual money. Is that property going to increase a similar amount for the new owners over the next 9 years? If yes, it’s a $5m box. Try the maths again at $1m down and $4m mortgage. The two lines (one being property price and the other being average income growth) that SHOULD dictate real estate prices have been diverging for years. At some point the gap becomes untenable. Just like in so many prior corrections.

          • It doesn’t make sense to me, but I suspect people are not buying these with $500k deposits. More likely selling a semi for $1.5k and borrowing $500k to trade up to a detached dwelling..still stamp duty and other costs don’t make it cheap and the house looks like it needs a lot of work (a lot of deferred maintenance).

            Only way this makes sense is if you believe (as I do) that we will see negative rates. But I’m not willing to wager on it. Not with that much leverage. And Sydney is nice, but I have no family there to keep me in that city. I’d rather move elsewhere in NSW or QLD or even Adelaide.

  3. Duke_Wellington

    ahh look as long as he saves us from all that rape he is still the best choice? right???

  4. SoMPLSBoyMEMBER

    “Things have value
    Because somebody buys them,
    Because somebody pays money;
    If you can find a buyer,
    Even a lie is worth a thousand yen.:
    Kobo Abe

  5. Wait till everyone with kids need to stump up the mill $ for them to get the dogbox.

    • Yes, this. When the hands of the grandkids, kids, nieces and nephews are all outstretched they may finally realise what they have voted for.

  6. “Robert Gordon Menzies retired as Prime Minister on 20 January 1966. At 71 years of age, he planned to withdraw from politics and devote his time to writing, reading and travel.

    In 1965, a group of Menzies’ supporters and friends, aware that after years of public service he was not a wealthy man, had clubbed together to buy a suitable home for his use on retirement. Menzies had at first resisted, but had agreed to the plan when it was decided to sell the home after his death and donate the proceeds to charity.”

    *sigh*

    • That really puts it in perspective. Makes you stop and think how did we ever get to this point. Is there any hope that we could ever go back to some semblance of ethics and duty to people and country from our politicians. Alas, I am a pessimist.

      • kierans777MEMBER

        Neoliberalism. When society has been engineered to be consumers first, to be unhappy to buy, buy, buy, when the God of Growth is worshipped above all else, and society is meant to serve the economy that is how we ended up where we are.

  7. Maybe his divorce came through.

    In any case, I’d rather Australian politicians own property than own shares in companies.

  8. Or that he basically just figures it’s an unsustainable boom and that it might be a smart thing to get out at or near the top.