Property

They say it can’t be done, but here at Money Morning we attempt to broadly forecast what’s coming next for the economy.

Once you understand the underlying forces which drive the economy, you will have access to insight that few people ever attain.

It has less to do with the movement of central banks or the stock market.  Or movements in interest rates, inflation, or some other mechanism.

It’s based on the real estate market.

What happens in the real estate market underlies the economic cycle. And the cycle simply continues to repeat.

 

Property Markets History

A man by the name of Homer Hoyt identified the repetition of this real estate cycle in a book written back in 1933, called ‘One Hundred Years of Land Values in Chicago.’

A study of history as Homer Hoyt did it, with a focus on land values, proved the economy moved in a very clear sequence of roughly 18 to 20 year cycles.

It’s directly related to land price and it repeats regardless of government policies and the type of government in power.

And nothing has changed since Homer Hoyt wrote the book in 1933. The real estate cycle simply keeps reaffirming itself.

The financial reforms initiated after the global financial crisis, have only guaranteed yet another real estate cycle, as that crisis was not financial in nature.

It was a land crisis

And whilst the underlying cause of the cycle is ignored, the real estate cycle must repeat.

Read more

Our $1 Billion Shadow Economy

Today, we unveil New Zealand’s $1 billion secret — a shadow economy running right under our noses. It’s got massive implications for taxpayers…and a twist that involves the RBNZ.

NZ Housing Could Fall 48%

Unless you’ve been living under a rock, you’ll know that the New Zealand housing market is laughably expensive. Frankly, you’d be lucky if you can afford a rock to live under.

Money Morning NZ: Stock Market News, Finance and Investments