"The truth is that there are no good men, or bad men. It is the deeds that have goodness or badness in them. There are good deeds, and bad deeds. Men are just men."
Overall land prices will continue to warm up during the year as they continue to gather momentum towards the mother of all booms in ten years’ time although the rental market will remain soft. The supply of money will also continue to grow and find its way into land values as normal.
Looking at the US for an indication of where we are going we should expect to see an increase of on line lending with a goal to arranging a mortgage “without speaking to anyone” a bit of a stretch for 2016 as will P2P mortgages be a bit too ambitious for 2016 although we might see an increasing trend in the use of P2P for the deposit and closing costs emerging with a happy medium of 25% P2P and 80% traditional creeping in and the savings on arrangement fees, lower rates and no LMI costs going towards higher prices. We could even see a market trend developing whereby inner city or tourist type properties best suited to Airbnb higher cashflow occupancy creating higher demand and sale prices for this type of property. Any improvements in credit availability or increased rent through P2P, online lending or Airbnb will be bullish for property as the land value will take all of the increased earnings created by easier credit or higher cashflow.
China won’t crash and we will start to see the completion of some of the early milestone stages of the unparalleled infrastructure expansion such as some of the projects as part of the mind blowing new Silk Road project. Some would say that Singapore property will double once the rail hits there but this is far later than 2016 but an indication of how this boom is warming up. The worldwide infrastructure boom will continue to increase land prices in all areas that are affected. In Australia this boom will be most pronounced in Sydney and Melbourne with increased land values resulting in huge state govt windfall gains, triggering huge infrastructure budgets that produce higher demand which will eventually result in some wage breakouts appearing in the construction sector in Sydney before the end of 2016.
We might even start to see an increased appetite for ballsier investment commitments being made during the latter half of the year due to the reduced penalties for insolvency that are scheduled to begin in 2017.
Might be too early for a rate rise in 2016 which should occur when our employment levels continue to improve and eventually hit the bank’s full employment target of 5.3% unemployed.
With the renewal of gas sales agreements scheduled in 2016 domestic gas consumers will be forced to pay more for their gas as they will have to compete against international consumers on a price basis. The NSW CSG freeze may have to be lifted in 2016. We should also see the commitment of the first Aussie standalone commercial scale production of shale gas in the NT basins, if so, then properties like these below would represent excellent buying opportunities for those prepared to bet on the developments proceeding.
The bears will continue to utilise their prolific gift of a sixth sense for seeing crashes that aren’t there and will hold out throughout the year with their blind faith in the next crash which will be just over the horizon and getting closer by the end of 2016.
Okay its time for a review.
Most predictions on target with the following comments.
On line lending and new innovative products still over the horizon.
AirBnB did get traction.
The infrastructure boom is well and truly on and wages in that sector have risen in Sydney and Melbourne as have State govt windfalls.
The worldwide infrastructure boom is on and yes Singapore is heating up.
Domestic gas supply is in a crisis in the eastern states and prices have went up and can only continue to do so.
Shale gas is off the table in NT and was scratched in early January, fracking moratorium, price of oil, APA tariffs too high to get it to Galdstone, so I got that one wrong. But its coming back with a bang.
Most predictions on target with the following comments.
On line lending and new innovative products still over the horizon.
AirBnB did get traction.
The infrastructure boom is well and truly on and wages in that sector have risen in Sydney and Melbourne as have State govt windfalls.
The worldwide infrastructure boom is on and yes Singapore is heating up.
Domestic gas supply is in a crisis in the eastern states and prices have went up and can only continue to do so.
Shale gas is off the table in NT and was scratched in early January, fracking moratorium, price of oil, APA tariffs too high to get it to Galdstone, so I got that one wrong. But its coming back with a bang.
Nice one.
And that's how the suburbanites "reckon". Almost the same as saying Brissie Broncos are not the favorites for the NRL but they should win more games that they lose in the season.
After that you claim say "look, it happened. I must be some kind of forecaster".
And that's how the suburbanites "reckon". Almost the same as saying Brissie Broncos are not the favorites for the NRL but they should win more games that they lose in the season.
After that you claim say "look, it happened. I must be some kind of forecaster".
That's better than your kind of predictions roddy, where you get everything horribly wrong.
That's better than your kind of predictions roddy, where you get everything horribly wrong.
Wrong about the Brissie Broncos Roddy? More a Storm fan myself and didn't pick them to make the grand final last year. Had zero effect on my self esteem.
1) Sydney house price +7% 2) National house prices +5% 3) Gold continues its terminal decline, falling below US$900 4) Unemployment rate falls to 5.7% 5) Still no house price crash in any major Australian city 6) More bears vanish from APF to be replaced by new bears spruiking same tired old doom and gloom 7) Rastus, Golly and Terry continue to chase Shadow obsessively around the forum, trying in vain to score a point 8) Bears continue to bleat and wail about trolls and sockpuppets at every opportunity 9) Macrobusiness continue to get everything wrong 10) At least one of the States reintroduce First Home Buyer Grants for buyers of existing property
Lets go through these, shall we.
1) Sydney house price +7% - too conservative 2) National house prices +5% - too conservative 3) Gold continues its terminal decline, falling below US$900 - nope, still well above that predicted level. 4) Unemployment rate falls to 5.7% - Not bad, Rose to 6% before falling to 5.6 % 5) Still no house price crash in any major Australian city - yup 6) More bears vanish from APF to be replaced by new bears spruiking same tired old doom and gloom - abuse 7) Rastus, Golly and Terry continue to chase Shadow obsessively around the forum, trying in vain to score a point - he left having claimed to have sold all his/her IP's (far too early) 8) Bears continue to bleat and wail about trolls and sockpuppets at every opportunity - abuse 9) Macrobusiness continue to get everything wrong - everything was not wrong. 10) At least one of the States reintroduce First Home Buyer Grants for buyers of existing property - perhaps someone can identify which state did this ?
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