Big call NC. For a start, you're assuming the house of Saud (who reportedly control 10% of listed US equity wealth) would let them bypass OPEC (and not the meeting Dubya went to in Austria recently). Wonder why the majority of 911 hijackers were Saudis (like Bin Ladin) yet no repercussions were felt in Saudi Arabia?If the US had spent there Trillion from the Iraq war rolling out renewable instead of desperatley seeking Oil security they could of retained there place as undisputed economic powerhouse - I just hope Australia learns from this huge error.
I buy for capital gain and most importantly in the not so distant future a hedge for INFLATION.
Crikey how do you do that? Do you do that? Is it worthwhile if you are on the average wage?This is about the only sensible argument for continued price growth, and its a very real risk, depending on Central bank actions we could see some huge Inflation in the coming years - Its pretty scary really. Is why i like Gold.
And further I beleive the most econmically sensible way to be in Realestate (if you must) is to Rent the place you live in and Negatively gear a Investment property to reap the same tax breaks as Investors.
hello,
stats show that dwelling starts are down,
they are building more boutique complexes for owner-occupiers
so instead of a tower with 200 units they will build a tower with 50 units, exclusive etc, lifts which service only one unit
thankyou
robots
Crikey how do you do that? Do you do that? Is it worthwhile if you are on the average wage?
This is why in years to come developers will not build units because investors are extremely hesitant to buy of the plan in these multi-level complexes (this has been happening for the last couple of years)
So what will they build?
Agreed. Only about a decade ago retirement villages were pretty dull affairs. These days they are right up there with the best five star resorts with indoor and outdoor pools, gyms, restaurants, bars, community centres,I'd dissagree and add in what I feel Robots is alluding to.
With well off BB's wanting ti downsize I believe they will want to go to some style of "Lifestyle" retirement complex, which is upmarket and has all the trappings they are accustomed to like coffe shop's, wine bars, wood fired Pizza restaurant's, and also have on site staff to take care of certain aspects of their life.
They will still want to remain in the areas that they have frequented as well.
There is evidence of this sort of thing happenning.
Dave
Agreed. Only about a decade ago retirement villages were pretty dull affairs. These days they are right up there with the best five star resorts with indoor and outdoor pools, gyms, restaurants, bars, community centres,
tennis courts, bowling greens, etc. Plus transport for shopping and other outings. Plus complete security and emergency call buttons for onsite management. Choose from stand alone houses, or apartments. Do your own garden or have it done for you. Pretty damn attractive imo.
Can't argue with that. We're talking about a medium term crisis not the end of civilisation. Medium term = 20 years duration from start to end in this context.It is all about timeframe and perspective. Certainly over the intermediate 5-10 year horizon we can expect a strong effect upon world growth by increasing energy shortages and risng energy costs feeding into the costs of products including food.
And the rising cost of energy will feed inflation and associated energy demand destruction via reduced economic growth will lead to stagflation.
I still think that commodity countries will have a better time of things as countries are forced to re-engineer their energy infrastructure to accomodate the new energy paradigm of renewables etc. In fact later developing countries such as China, India and parts of Asia will have an advantage to some degree as their infrastructure is relatively new and may be adapted to incorporate new technologies as they are developed. Western countries infrastructure is all generally immediate post WW2 war 2 vintage and in desperate need of renewal.
Cheers
Shane
Property prices do stagnate for years. Rockhampton prices were flat for pretty much an entire decade after the end of the 80's property boom, and probably only started to show some life in the early 2000's. There is an abundance of land in regional area's which typically enables large developers to generate supply through large scale housing and unit developments. Development guidelines are typically less restrictive than in inner city area's of the larger Australian cities as well.
That being said, inflation is another factor to consider in all of this, as I've raised in other posts in this thread. Labour shortages and wage inflation can push up the cost of producing housing and can also push up rentals and prices. Because regional area's start from a low population base this effect can be exaggerated significantly, particularly if there is significant migration into area's as a result of something like a resources boom (or simply a flight from expensive capital city property prices). The reverse is also true when everyone leaves again when the party's over though.
The House Price Crash in 2010
A thought-provoking article by Graeme Kennerley
A million dollar house sold for $450,000... sounds unbelievable? Then read on....
I want to put on public record the reasons why I predict that the upper part of the New Zealand residential property market will loose as much as 60% of its value starting around the year 2010.
It's all about demographics and, in particular, the generation of people known as the Baby Boomers. These are defined as the people born in the years following World War Two, (between the years 1946 and 1964). This generation was delivered at a birthrate four times higher than at any other time known in history.
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