passive, all these armchair experts....sitting in the comfort of their homes (either part owned or rented) they get paid for their comments... who are they, what qualifications do they hold...
almost all the economists out there today have no idea of what they are talking about...they are wrong 99% of the time...whats the problem...were their economics studies flawed, and do they all use the same erronous modelling software
most get paid for their articles, or appearance fees...so its in their interest to make outlandish statements...to get more clients, more fees then we have the others, writing books, doing tours or the stock brokers, or those interested in the stock market.... they see so much money going into housing, they wish they could get just a fraction of that money for stocks...
I am accused of being ignorant, because I like property... so lets see....
***the stockmarket has lost about 40% since 2007...from 6500 to 7000, down to 4000 or so now ***cash on deposit, pays an average 5%, less inflation, so thats another losing proposition ( deflation, devaluation reduces the income to a 10% per annum loss of capital)
***property has risen on average 30-40% since 2007, depending on the location, and the particular house
only now, the median price has dropped a tiny percent.... and that drop is questionable....
so I have been on a winner since 2007...
( the CPI figure, that is supposed to be a gauge on inflation, is so flawed....it is manipulated for other reasons, most would not be aware of....it is more like 10% per annum, rather than the fudged figures of 3%)
Property at least keeps pace with inflation, and that is a proven, thats why it does not devalue. Cash on deposit is being devalued at 10% per annum...that is the difference in the buying power of one dollar each year.
I am a numbers person, I love playing with figures, and I know my accountancy, I know all the terms and plays with Balance Sheets and Profits and Losses. My career has been a Taxation Professional, the Legal side, specialising in Law, and an important side of that is as a Taxation Accountant. Then there is the Wealth Creation part of the business. It all comes together, under the one umberalla.
In the old days, before the massive manipulation of the financial services industry, the CPI figures, and the Off Balance Sheet transactions, together with all the new derivative products...... One could safely say, split your assets into the 3 main asset classes, of Cash, Stocks and Property. That way while one asset class was taking a hit, the other two would climb. You were safe. that is no longer the case.
In this 'new age world' of Bots, derivatives, margin loans, and playing against the big boys, stocks are far too manipulated for the average investor.
So too, the situation with Cash on Deposit. There is no honesty with the banks, and the massive devalution in the form of the CPI, it all works against the depositor, the consumer.
What is left, is ' a roof over their heads' scenario....the humble home, whether it is rented or purchased. Everyone needs a roof over their head.
Up until the early 1970's, the govnut spent money on building public housing, for the low income earners.
It was our taxes at work. Except like the BER recently, the govnuts paid almost triple the cost for housing, versus the same cost by a local developer.
So the system was changed, TO allow private developers to provide housing, far cheaper, and they would be rewarded with an incentive, of taxation benefits, towards the cost of borrowing and depreciation. (the same benefits given to investors in the stock market, and ordinary businesses)
Are we there yet ?
Stocks have lost about 40% since 2007 Cash has lost around 50% since 2007 Resi Property has risen ...lets say 30% (being really conservative) Dont ask me about Commercial property returns....(outside of the Listed Trusts and Companies, where the Cowboys play, where it is all about gambling and huge salaries, with no returns)
