Just have a look at what’s happening to credit data: This chart comes from Veda’s consumer credit demand index…
It shows that the drop in interest rates has been followed by a massive upsurge in borrowing. But this is all pretty normal. This is exactly what you’d expect credit and finance to be doing on the back of record low interest rates.
And maybe that’s why it’s barely rated a mention in the press.
There’s no shock value. Nothing sexy. No body parts in the back of the car.
But for investors, this is probably the most important story of the year because we’ve got houses on one side of a see-saw and interest rates, like some oversized King Kong about to come smashing down on the other…
Once King Kong Lands, Watch House Values Go Bananas
Money has never been this easy.
Never.
And the whole world’s gone wild with EZ fever.
At the beginning of the month, the RBA cut rates, taking them to the lowest level in 50 years. And if you ask me (and most economists… and taxi drivers and hair-dressers) they could go even lower yet.
But money in Australia, even at 50 year lows, is relatively expensive compared to what’s going on in the rest of the world.
All of the G7 now have interest rates set at less than one percent. They’re zero in the US and Japan. Super Mario Draghi’s even talking about taking rates into negative territory in Europe.
Yep. EZ fever is spreading. In the last month or so, there have been interest rate cuts in the eurozone, India, Australia, South Korea, Kenya, Poland, Mongolia, Belarus, Austria, Belgium, Hungary, and Turkey, just to name a few.
Even the thriving financial centre of Botswana got in on the action. Not to be outdone, the governor of the central bank of Moldova told the newspaper boy to get back on his donkey and tell everyone that they were cutting rates too.
It’s unprecedented. The world as never seen money as easy as this.
And what does it mean?
Flooding the world with cheap money means a vast share of it will get pumped straight back into shares and property
In fact, it’s already started.
In the September quarter last year, residential land values increased 3.8 percent for the quarter.
In December last year, new home sales were up 6.2 percent, and 3.3 percent for the quarter, showing the housing market was building a solid and broad base from which to launch it’s run.
It’s a foregone conclusion that property prices must rise.
You might think prices cannot boom like they did ten years ago, but let’s look at the facts
In 2012, Australia’s population grew by 382,500, according to the ABS.
To put that in context for you, it means we added the equivalent of ANOTHER CANBERRA to our population last year.
In April this year, Australia’s population clicked over 23 million for the first time ever, according to a report by BBC News.
And by 2056, the ABS projects that the count will be 42.5 million — almost double where we are now. RP Data says the Australian population increases by one person every 1 minute and 31 seconds.
All of this means three things:
- More new houses will have to be built, every year to cope with a rapidly growing population (who all want to live in or near the big capital cities)
- Their will be less supply than there is demand. And guess what happens when there is less supply than demand…
- The price of existing housing stock in prime, metropolitan locations MUST rise to reflect growing demand.
That isn’t speculation. That’s just an economic truth. It happens in all aspects of the economy. Remember when the majority of the banana crops were eliminated by cyclones a few years ago – prices soared from $2 to $3 a kilo to $15 a kilo overnight. And that’s exactly what’s going to happen to house prices as the population grows. Yes…
The Same Principle that Made Banana Prices Soar Will Send Housing Prices Through the Roof
The question is: what are you going to do about it?
The answer is probably, nothing… unless you can predict the areas which are about to rise with a certain level of conviction. And that’s exactly what we’re going to teach you at THE GREAT REAL ESTATE BOOM AHEAD SUPERCONFERENCE where you’ll learn how to read the market like a Nostradamus.
But you don’t have to be, because at my THE GREAT REAL ESTATE BOOM AHEAD SUPERCONFERENCE seminar I’m going to show you how to predict the future of the property market like Nostradamus.
Imagine that…
- You’d know exactly when to buy to emulate the results of the tens of thousands of property investors, and speculators who got rich on the back of the 2000 boom. You could literally become a millionaire and set yourself up for retirement in less than a decade.
- You could load up on houses and apartments… tallying up enough rental income as prices shoot upwards fast
- You could build a property portfolio without the anxiety that plagues most investors. Get into the best areas at the bottom of the market… then let the momentum of the market take care of the rest.
Listen, I know this sounds too good to be true. Economists won’t even admit there’s the slightest possibility the economy could be cyclical and predictable, but all of the research you’ve just seen points to the fact it is.
And I’m going to show you exactly how to “pick the market like Nostradamus” when you attend…
ليست هناك تعليقات:
إرسال تعليق