In data analytics class, you'd get a C+ for effort. If you really wanted to make those kind of inferences, you would need to frame the data differently; for example, you would want to understand the suburbanites allocation of income as a "basket of spending" that could be measured in % of spending (housing 35%, food 20%, etc) in a time series. The fact the productivity gains in the fast food industry makes food cheaper does not reconcile with a situation where the suburbanites choose to eat fast food because its the cheapest available.
Whilst I supects ya means that ta be a criticism Jon(?), I reckon it could also just maybe be interpreted as a hint - Just dependin' on wot one's personal values 'n aspirations 'n judgments (prejudices even?) dictates they should reckon (and do) about such stuff ...
I think it's an observation. Neither a criticism nor hint.
The difference between land that is valuable and land that is not, is the wealth created by people putting it to use. The percentage of the population who create wealth is incredibly small.
Consider James Watt, inventor of the steam engine. One guy. And yet his invention created wealth, health, prosperity and longevity for literally hundreds of millions of people (and also led to the bloodiest wars in human history). But the invention does nothing on it's own. To build steam engines, you need to invest capital. As you make a profit, you re-invest more capital.
So the owners of capital follow the wealth creators (inventors, innovators, entrepreneurs), and capital (which is simply excess productivity) flows to the wealth creators, who in turn create new wealth for millions. If you follow the capital, which is following the wealth creators, you can ride the rising wealth like a tide (the generous description), or suck on it from the margins like a parasite.
And while this is a perfectly fine strategy for investment, it is one that is not within your control. You always need to be following the capital and the wealth creators it is flowing to. If you are unable to do that, eventually they will leave the location that you are invested in, and land prices will fall accordingly. (Detroit being the perfect example.)
For example, I probably wouldn't invest in Brisbane in the long term. I don't see much entrepreneurial or innovative activity going on there. There is a speculative boom going on, but hot money flows are incredibly fickle, and I think it will come to a sticky end.
But hey, I know nothing.
Bardon
16 Jan 2017, 09:52 AM
The more successful the economy the higher the land appreciates in value.
That's too broad to be useful, and you are confusing value with price. Unless you mean "market value" which is synonymous with price.
The more capital that flows to the creators of wealth in a given location, the higher the land appreciates in price. It's value remains largely unchanged, unless it is farmland, and modern agriculture makes land less valuable as it extracts fertility. Sometimes, a service station which leaks petrol into the ground for 20 years can lower the value significantly, which is reflected in it's market price.
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