At 7.6 million sqkm, Australia is the sixth largest nation on Earth, behind Russia (17M sqkm) and the USA, China, Canada & Brazil (all about 9M sqkm). We are about 300% the size of India with just 2% of India’s population. As a better comparison in terms of first world economies, the USA has about 20% more land mass that Australia, but 300 million more people live in that country.
I couldn’t really reconcile that – (modern) Australia and the USA were “formed” in to nations at around the same time period, with American Independence and the colonization of Australia both occurring around the late 1700’s. With about 240 years of national development, there is a wide gap in where our two nations are in terms of population. The only thing I could think of was that Australia had more arid and dry terrain in its central regions than the USA. But I don’t think that could be the whole reason.
It seems everyone has a point of view on the property market these days. And it is great that so many individuals, companies (semi-government, government & private), financiers and industry bodies can put out so much information, facts, stats, figures and opinions on the current and future state of our real estate market.
The challenge is much of it is contradictory, inflammatory and in some cases inherently biased.
Being bombarded by all sorts of conflicting information can make it very challenging for investors to sort through what is relevant and then reach a conclusion. I have found that if you have an opinion, you will by default search for and then find information that tends to back up that viewpoint.
Politics is a subject that may not be interesting to some, but it is important to all. Our elected politicians and their advisers and party administrators, decide on our behalf, how to govern our nation. They make the policies, rules and laws that directly affect our everyday lives and more importantly our futures. That means the ability we may have within the bounds of the law to create and retain a standard of living and wealth for ourselves and our families.
If you want a better life, I submit that you simply must be aware of who proposes to lead our nation and how they propose to do it.
When I first head the term “Brexit” casually mentioned, I thought someone was talking about a new breakfast cereal. I didn’t connect that it was a cute term for a “British exit” from the European Union (EU). I didn’t think that Britain would vote to leave the EU, nor it seems did British Prime Minister David Cameron who called the vote seemingly to placate rambunctious members of his back bench. In case you missed it, the result was 52% of the 70% of eligible voters who turned out, voted to leave. And Mr Cameron found himself in an untenable political position, offering his resignation.
Referendums on subjects this huge invariably get voted down – and that’s because most people just can’t deal with change, opting to stay with the status quo. Some good recent examples of that are the Scottish Independence vote, lost 45%/55% and the vote taken in 1999 here in Australia for a Republic, again lost 45%/55%.
Do you remember when you were younger, much younger, when much of your day was spent playing in an imaginary world where anything was possible?
I am reminded of this by my little three year old guru who comes up with exciting new things to see, say and do every day. I arrived home last week to find him dressed in his super hero outfit, out in the hallway looking for spiders, while waving his “magical” joss sticks around his head.
As an adult, my imagination is still as strong as ever, however when everyday life gets in the way – work, family, spouse, bills, health, responsibility, it is very easy to fall in to the practical pattern of living. In doing so, we lose that power of imagination to reflect and affect things that can happen in our lives.
For what is at the birth of our dreams if not imagination?
If you have ever spent much time with a baby, you will know that they don’t know much about routine or tradition. Or that you need to do certain things in certain ways at certain times. They know only when they are hungry, tired or wet. Everything else is a complete open slate for them to draw upon each day. It is the way they learn to experience the wonders of our world.
When did we forget to live like that?
If you always do what you have always done, you will get what you have always gotten. And if what you have always gotten does not equate to what you have always wanted, perhaps it might be time to try something different?
I always thought I was quite open minded and willing to try new things. Yet, I have recently realized that perhaps this is not so and I have been caught up in the routine of life. My routine.
I am loathe to make comment on the most lackluster political election campaign I can remember. However, there are some really interesting parallels in what is going on, or more correctly, what is not going on, in the Federal election campaign, with what is required to be successful in your financial life.
Are there any of you out there wondering why the incumbent Liberal Government and the Labor Opposition are reported to be about 50/50 in polling expectation, when just a few months ago, the Libs were 20 points in front?
Read on – I will link it up for you.
Since 1983 I have been fascinated with the annual BRW Rich 200 list and the people who made the list. Upon reading it for the first time, I realized that many of them made their money in property or stored their wealth in real estate. I figured if it was good enough for them, then property would be for me.
This year, for the first time, 83 year old Harry Triguboff, a Chinese born son of Russian immigrants, became the first residential developer to top the list with an estimated wealth of $10.62 Billion. Not only did Mr Triguboff top the list, but of the remaining 200, 53 have made their fortune in property, with around another 15 or so having made their money in another industry and then ploughed the wealth in to real estate.
I just can’t understand why there is so much white noise around property investors and negative gearing. Much of the negative press and commentary has been coming from the “green eyed monster” approach, where the “evil rich investors” who are utilizing legal methods to lower their level of personal taxation and grow their wealth, are blamed for the high pricing of Australian real estate.
It’s just rubbish.
And it’s disappointing to see people trying to get ahead in life by property investing are being vilified. The same taxation rules apply to share investors and business owners. So why is property singled out?
Last week I received an interesting email from a former student who was a member of one of my mentoring groups, thanking me for the updates and asking me a really interesting question.
I’ll repeat it for you here:-
“I’ve been hearing through a few people that an economic crash is facing us later this year or early next year. What do you think about this prediction? Some good friends of mine are “cashing” up in preparation for what they feel is an inevitable crash. I’ve also just received an email from the people who manage Robert Kiyosaki and during his upcoming presentations in Sydney and Melbourne, he will be talking about the crash he believes will be happening later this year. I was just interested in your opinion as I remember you predicted something was amiss just before the last financial crash.”