/Cycles

Walk and Learn

WALK AND LEARN Walking is a wonderful way get some exercise, see some sights and learn about history while continually observing how our Five Drivers manifest into both our economy and land prices. Ian and I set off to conquer 25km of the Clare Valley Riesling Trail, while my mum, Michele, and her very good friend Viv, walked from Henley Beach to Adelaide City along the Linear Park bike track. We were walking as part of our 50Fifty Challenge. THE RIESLING TRAIL The Riesling Trail started life as a railway line between the postcard towns of Riverton & Clare in the beautiful Clare Valley north of Adelaide. Originally it was the discovery of Copper at Burra that saved South Australia from potential bankruptcy in 1845 with Clare providing […] 150
By | 2018-09-21T14:58:45+00:00 September 21st, 2018|Cycles, Technology|0 Comments

Trains, Planes & Flying Cars

TRAINS, PLANES & FLYING CARS We often talk about how advancements in technology lead to increased productivity which of course must manifest back into the land price. Humans are wired to direct their energy and labour to the most productive purpose continually striving to create or obtain more by doing less. Currently we are seeing the initial growth in the autonomous transportations sector. For many this just seems too far fetched. They just can’t see the possibilities. Many science fiction films from the 1950s depicted humans fancifully sending rockets to the moon, something that took until the 1969 Apollo 11 mission to achieve. The rapid growth in the autonomous transportation sector will profoundly impact human productivity much sooner than we expect. Rio Tinto is a step closer to automating its 1700 Kilometre Pilbara train fleet after they recently overcame another hurdle being granted a […] 150
By | 2018-09-21T10:52:07+00:00 September 2nd, 2018|Cycles, Technology|0 Comments

The World is a Changing!

THE WORLD IS A CHANGING! Embrace it or be left behind. The emerging technology we are seeing is quite mind blowing – it’s hard to comprehend just how quickly the world is moving. I was watching a show the other day and it was talking about how the guidance computer from the Apollo 11 trip to the moon had a mega 16kb of computing grunt. A decade later ANYONE could pay $499 and get themselves a Commodore 64, the ultimate 1982 home computer – with 4 TIMES the computing power. This lack of computing power probably explains why Neil and Buzz never played a game of Pong while in space. Can you believe that it took this long to just load the game of Pong?! Click below as I’m sure it will bring back some memories… Now we are on […] 150
By | 2018-09-21T10:58:31+00:00 August 17th, 2018|Cycles, Technology|0 Comments

What Happens to Tall Buildings?

WHAT HAPPENS TO TALL BUILDINGS? As technology improves we become more and more productive. Which in turn means that each square metre of land becomes more and more valuable. Given that we have the propensity to ensure that land is used for the most productive purpose, by definition our cities must become more and more dense as we continually build higher and higher. Land will seek to be used for the highest productive value. As land becomes more scarce (and hence more expensive) it pays to amortise this cost by building higher and higher. That is the more floor space you build up, the less the amortised cost of the land becomes. Technology, zoning (government legislation) creative thinking, and available cash will determine how high we reach to the sky. But to build persistently skyward, […] 150
By | 2018-09-21T11:01:40+00:00 August 12th, 2018|Cycles, Education, Property|0 Comments

Ian & Jenny Flack’s London Monopoly Walk for the Fifty 50 Challenge

IAN & JENNY FLACK’S LONDON MONOPOLY WALK FOR THE FIFTY 50 CHALLENGE The game of Monopoly has bonded (and fractured) many family holidays. There are so many economic lessons to be learned from this game, lessons that its inventor Elizabeth Maggie was wanting to convey, but the world as a whole now just seem to totally miss. Jeremy has written before about the interesting origins of the game. Click here to read about this. There are 40 spaces that surround the perimeter of the Monopoly board and myself and my wife Jenny recently physically walked the real board in London; the whole 28 km stopping at all 28 properties; that’s 22 streets, 4 railroads, 2 utilities and a goal, all in their various colors. Thanks to Jenny for the pictures. To learn more about the Fifty50 […] 150
By | 2018-09-21T11:05:51+00:00 August 3rd, 2018|Cycles, Technology|1 Comment

The Thing About Trump!

THE THING ABOUT TRUMP! I was surprised by the reaction to my blog “The Locational Value of North Korea” sparked. I wasn’t making any political statements or endorsing the actions of those investors that have chosen to purchase a new beautiful off the plan Trump apartments in North Korea’s pretty seaside location of Wonsan…… The point of the blog was not to say the Trump’s vision was correct or fair or that Dennis Rodman is the real economic brains behind North Korea – but to make the point as to how Donald see the world. How he thinks. It’s different you know. He might be the president of the USA. He might be the “Most Powerful Man in the World” – or 2nd most, if he really does work for the Kremlin?! However, regardless of his position, title or how […] 150
By | 2018-09-21T11:12:11+00:00 July 23rd, 2018|Cycles, Education, Property|0 Comments

What Happened to Negative Gearing?

WHAT HAPPENED TO NEGATIVE GEARING? I’m sure you’ve heard the news that Trumpy and the Rocket Man are now besties. The media has been stuffed full of their historic meeting that took place in Singapore, where together they tucked into their prawn cocktails and mango kerabu served with fresh octopus and a honey and lime dressing …. Oh, the highlife some get to live! And yet just a few weeks before that we were fixated on the Royal Wedding – which has been all but forgotten. The news cycle is lightning fast these days. So, it’s easy to forget that not long ago, Treasurer Scott Morrison (on behalf of the Turnbull Government) presented to the House of Representatives, the 2018 May Budget. Do you even remember what was announced Budget night? I’m sorry to challenge your long-term memory, but I’m hoping that […] 150
By | 2018-09-21T11:18:19+00:00 July 6th, 2018|Cycles, Property|0 Comments

The Locational Value of North Korea

THE LOCATIONAL VALUE OF NORTH KOREA If you have ANY doubts whether the real-estate cycle will continue then watch the clip below. Its taken from a press conference given by Donald Trump after his historic 2018 Summit with North Korea leader Kim Jong-un Listen carefully to what Trump says. Whilst the drivers remain embedded into our economic DNA, the cycle MUST find a way to manifest into a BOOM BUST cycle. Every cycle will be different, but the same. Trump on the Locational Value of North Korea: This clip shows how Trump is a real-estate developer at heart. This is how he sees the world and we think his actions will drive this cycle to be the BIGGEST we have ever seen! GET ON BOARD! “They have great beaches. You see that whenever they’re exploding their cannons into the ocean, right. […] 150
By | 2018-09-21T11:23:14+00:00 June 20th, 2018|Cycles, Property|1 Comment

Fifty50 Challenge

FIFTY50 CHALLENGE There are several guaranteed ways to wealth that I can think of: Choose your parents wisely Choose your partners carefully Choose your country shrewdly As Australians, it’s this last point that we have all got right. We talk endlessly about the 5 underlying drivers of our economy and while those 5 drivers remain embedded into the underlying DNA of our economy, they must manifest into a Boom Bust cycle. Understanding these drivers provides us with an enormous competitive advantage in the investment decisions we make. The quality of these drivers ensures the productive nature of our economy continues to advance at a rapid rate. We take our superior infrastructure for granted. Our quality network of roads, water, communication and electricity and our education system is supported by pre-schools, schools, universities and other learning institutes. Although many […] 150
By | 2018-09-21T11:25:55+00:00 June 8th, 2018|Cycles|0 Comments

Growing Up

GROWING UP I loved the long summer school break as a kid. Spending days at the beach and riding about with my mates. Occasionally we went away for a week or two as a family, but those summer holidays were long and ensured that there was plenty of time to spend with mates. Winter is here and although the cold has set in, as a family we’ve been discussing what to do over the upcoming June break. The family is split – skiing in the snow or chase the golden sun? My two boys, Judd and Rhett are very similar in many ways but also so different. One for the snow. One for the sun. Although there is only 17 months between them, physically they look decades apart! Juddy (14 yrs old) looks almost a man standing 186 cm,  yet “Little Rhettsy” barely […] 150
By | 2018-09-21T11:30:36+00:00 June 1st, 2018|Cycles|0 Comments