THE SHARING REVOLUTION

Sometimes we are asked “Why write so many articles about new technology.  Aren’t you an investment business”

Well yes, we most certainly are an investment business, but one that is a little different.

You see there are two basic reasons we talk so much about technology because it’s a VERY important driver of productivity – which in turn directly leads to increased profitability and increased capital growth.

But we continually hear that this time it is different?

However, understanding how technology evolves can help you realise that this time it’s not so different and in fact things are not so bad or different after all.

I love watching old movies. And when I say old, I mean anything from a year to 100 years old. Remember Charlie Chaplin signed a contract in 1913 with Keystone Studios for $150 a week! 100 years ago, he was in his prime.

I love watching those films.

Casablanca (1942), Singing in the Rain (1952), Rebel Without a Cause (1955), The God Father (1971) and my favourites- ALL the James Bond films!

The technology just gets me in those films.

It reminds me of just how far we have advanced and the productivity gains that we have claimed. It’s like opening a time capsule and seeing how people lived in times gone by. It inspires me as to what the future could hold.

Technology is such an important driver. One that you must not only grasp but open your mind to see the possibilities that it will bring.

Which brings me to the second reason that we talk a lot about technology – to help you see it unfolding in front of you and for you to start to see the possibilities as they present.

When I wrote the blog “OBike” I was trying to illustrate the rise of the sharing revolution and the phenomenal impact this social change will have on the way we live our future lives.

To us older people, our bike was one of those sacred personal things.  I remember my first bike and I bet you do too.  It was a proud moment, riding down the driveway out on another adventure on my (not so new 2nd hand) bike…

But there is a whole generation of the community that just don’t see things this way. These new millennial’s see a bike as nothing more than a communal object, to be pedalled about and then abandoned without another thought.

The whole idea of the “Sharing Economy” is not only alive and well, but thriving and OBike is just an extension to the Airbnb & Uber concept!

So, have you heard of Kohab.com?

“We’re making real estate more affordable through co-ownership. Kohab is creating an entirely new market of buyers and sellers for real estate agents, developers and related services in real estate, including loans, insurance and legals.” kohab.com

This online platform enables multiple parties to purchase property by providing the legal documents, access to funding arrangements and even the property itself.

Kohab facilitates millennials to pool their meagre deposits and co-own a portion of their “ideal” property.

“These types of concepts (Airbnb & Uber) have created a seismic shift in how society views co-sharing in general…As such, Kohab aspires to be the global platform and marketplace for property co-ownership.” Kohab’s co-founder and CEO David Dawson

Of course, it’s not just those spendthrift millennials that this concept could appeal to, Kohab’s website pitches to those wanting to:

Co-own and live together: Combine your budget with a friend, family or a member of the Kohab community to co-own and live together in the home you want, where you want.

Co-invest but not live together: Share the cost of investing by collaborating with others for a greater choice of properties and locations.

Co-own and share a holiday home: Own the holiday home you’ve always wanted by sharing the cost with friends, family or members of the Kohab community.

Many will dismiss such a concept because “they used to own their own bike and have always owned their house independently” but don’t be surprised if this concept or similar really takes off.

Remember the banks are always looking for new ways to extend credit!

A new cycle and new products appear! It never gets old, happens EVERY cycle…Think Radio, Television, Videos, Mobile Phones and now FaceBook and Streaming services.

Typically, the problem with such co-ownership of assets is that ALL parties are “jointly and severally liable” for each other’s loan.

Kohab is claiming that it is in cahoots with the NAB who will offer Kohab.com co-ownership mortgage products where each party will be responsible ONLY for their borrowings.

Who would have ever thought??

Reducing barriers to enter the property market, increasing demand and creating further opportunities for the banking industry to create credit, these progressions ARE this cycle’s manifestation of the drivers.

These products and innovations ARE the way that the underlying drivers of our economy are expressing themselves.

Same, Same, But different.

We have not (recently) seen this type of evolution before. So, it will allow the masses to claim, “But This Time It’s Different”!

Well it is, sort of, as the products and solutions are DIFFERENT – but it’s the SAME because it’s still being driven by the underlying cycle drivers and that’s the most important thing!

Are we saying that Kohab is the “Next Big Thing”?

NO!

We are just saying be aware of it, watch it and see the impact that it has this cycle and then DON’T be surprised when this or a similar concept shapes the cycle as it grows.

See Kohab, like OBike could run into issues.  They say it’s the pioneers with the arrows in their backs.

OBike has driven councils mad with their bikes ending up all over the place. So as OBike pedals off into the distance and a new generation of ridesharing bikes appear, the ones that need to be docked at the completion of your ride (yep you see it, the generation of another government granted license, legislated bike docking stations) just think about how the same could playout for Kohab.

So next time you see one of those discarded grey and yellow bikes on the side of the road, up a tree, or just annoyingly in the middle of the footpath, I hope you think about the “Sharing Economy” and the impact it is having in propelling the economy and property prices higher and higher as this cycle progresses.

I am looking forward to catching up with members attending the Wealth Workshops across Australia in coming weeks. I am sure you will come away with a greater understanding of  how to make the cycle work for you.

IMPORTANT NOTICE

Disclaimer: Any opinions or recommendations expressed here do not purport to Financial Advice but rather should be considered General Advice and does not take into account your personal needs and objectives or your financial circumstances. You should therefore consider these matters yourself before deciding whether the advice is appropriate to you and whether you should act upon it. Should Financial Advice be sought, we suggest you seek such advice from an appropriately qualified advisor. Any yields, rental income, tax rates, interest rates, depreciation rates, inflation rates Dividends per Share (DPS) and Earning Per Share (EPS) etc shown are estimates only and should not be used as a guide to future performance. Past performance is not necessarily a guide to future performance and should not be relied upon for this purpose. Authorised Representative of PGW Financial Services Pty Ltd – AFSL 384713
2018-10-05T16:07:47+00:00

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