"Land is what increases property not the dwelling on it. We actually have plenty of land..its controlled so the masses get shafted...And have to work like slaves to put basics on the table and a roof over the head."
1. glass has a high energy component. Transport costs of SiO2 to glass factory. Heat to melt SiO2 2. Bricks Tiles etc has a high component of energy; 3. plumbing, copper, plastic, anything manufactured has a high energy component. 4. bull dossers, drilling, earthmoving equipment & all infrastructure has a high energy component therefore land it self has a high energy component. 5. Opportunity cost of location has imputed substitution of energy savings inverse to distance from centre of city, which is also factored in to price of land;
6. Accordingly, Most value in land & buildings is in the energy component & as this energy component goes up so to do replacement costs & second hand value.
7. Peak oil & global warming may cause higher energy costs.
8. peak uranium, peak coal etc peak everything may contribute to rising energy costs.
9. substitution effects of aluminium to copper also has an increase in energy component.
10. me thinks its a safe bet that property values of new & second hand property will rise from supply side cost push inflation. Demand pull from loose monetary policy will accommodate it.
11. Land labour & capital will all adjust to accommodate rising energy costs. rising property values redistribute wealth to allow substitution effects of differing proportions of land, labour & capital with labour taking a big hit unless feudal/caste system is introduced during peak oil/global warming.
