Renters in Mount Maunganui are being kicked out of properties to make room for Airbnb guests. Here’s why the local council needs to stay out of it.
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.
How many hours of your time do things cost? The facts are astonishing…And they give credence to the millennial whinging about how baby boomers had it easier.
Very rarely do you find a situation where one person orders a service and someone else is bound to pay it. With letting fees, that’s the unfortunate case.
Frustratingly, it seems like the mainstream media have only one side of the argument to offer — that houses have nowhere to go but up.
When an expert on mobile tech predicts a big shake-up, we listen. Because a change in mobile likely affects more people than a change in any other tech sector.
KiwiBuild has started to roll. What many believed would be the silver bullet to New Zealand’s housing crisis has been disappointing.
Heard of the ‘wealth gap’? It’s become a common buzzword in recent years, particularly here in New Zealand. You’ve probably heard it thrown around. I sure have…
The ASX 200 shed another 60-odd points on Tuesday, or 1% of its value. Is this another sign of global growth peaking? Probably.
If we keep up the current rate of inflation, it will mean that the increasing price of goods could outstrip increases in wages.
People, regardless of language or background, tend to spend money in roughly the same way. And, when investing, there are common tendencies that affect every investor.
Forget bonds or letting fees…Forget appeasing your landlord…These guys want you to be a happy customer…and to stay with them for as long as possible.
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.
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.
The Winklevoss twins know a thing or two about emerging trends…and since winning the Facebook case, they’ve become heavily involved in the cryptocurrency field.