Funny you should say that. I almost added farmland. Any hard asset that has value or produces value outside of Australia would do.
For a 50-year horizon, I have some worries about farmland that is not cultivatable though. Watching how ethical philosophy is going, I am not so sure we'll be eating dead cow in 50 years. I'd be going for land that can produce a relatively reliable and sustainable wheat crop without the need for irrigation. A lot of the Eastern Darling Downs would be in that category. I also hear New England land prices are still pretty depressed, but have not investigated myself.
Iowa acreage has taken off recently, and it is pretty much as you describe. Reasonably fertile grasslands good for grains or tubers. Recent drought notwithstanding, fairly decent rainfall. Potatoes, wheat or possibly soy.
Interesting call on the rise of vegetarianism. Meat consumption is rising in India, although not nearly as fast as China. The Chinese are happy to be vegetarian for 8 days per year, but meat has long been considered a symbol of wealth. Even in vegetarian India, they eat a lot of dairy products, so if not beef cow, then at least dairy will see a lot of growth in the next 20+ years.
"Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works". -- John Stuart Mill
Interesting to note the same old negative predictions from the same posters posting today. Now Perth is 15% up from there.
They were sold a lemon and they just keep sucking on it no matter how bitter the taste gets.
Definition of a doom and gloomer from 1993 The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
Sales have fallen off significantly over the past 6 weeks according to the president of REIWA. Although that was expected as activity is based on confidence which took a massive hit recently. Still at levels not seen since the late 90's.
I take that means everyone saw it coming except you.
New home sales still at 20 year lows..... "yawn"
Did I miss anything?
Yes you did, you missed the 15% growth about to happen despite me telling you it would happen. Oh well can only lead a horse to water, can't force them to drink.
Yes you did, you missed the 15% growth about to happen despite me telling you it would happen. Oh well can only lead a horse to water, can't force them to drink.
That's very clever Mike.
I felt the same way about growth in 2012 which is why I held property until June this year.
But things have now changed.
But you can't (or rather don't want to) see it.
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be rising.
RP data shows quarterly growth of 0.33% which is below inflation and so a fall in real terms. Since December 2013, the index has actually fallen. The only period of decent growth was between October and December last year.
Since the day I settled, the index has increased by only 0.03% (that equates to $300 on a million dollar property). After paying rent, my equity has pulled in just over 20k nett from a variety of non property instruments.
There are properties on the market that I could buy today that are down on 2007 prices and would see me make a comfortable gain (after all transaction charges).
I didn't decide to sell on a whim.
Maybe you are expecting a spring bounce but I can't think of a reason for one.
All the new building happening is going to increase supply while at the same time, migration is falling. Rental vacancies are up by a third since last spring.
Economic conditions are very different to a year ago.
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be rising.
RP data shows quarterly growth of 0.33% which is below inflation and so a fall in real terms. Since December 2013, the index has actually fallen. The only period of decent growth was between October and December last year.
Since the day I settled, the index has increased by only 0.03% (that equates to $300 on a million dollar property). After paying rent, my equity has pulled in just over 20k nett from a variety of non property instruments.
There are properties on the market that I could buy today that are down on 2007 prices and would see me make a comfortable gain (after all transaction charges).
I didn't decide to sell on a whim.
Maybe you are expecting a spring bounce but I can't think of a reason for one.
All the new building happening is going to increase supply while at the same time, migration is falling. Rental vacancies are up by a third since last spring.
Economic conditions are very different to a year ago.
As I said, I disagree.
I think you are not watching key movements and likely outcomes moving forward.
Time will reveal who is right and I am happy to let history be the judge.
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