An inward gold rush


With the ever increasing prices of real estate in Auckland and the capital cities of Australia I wonder when the rich  will start buying properties and splitting the land and building onto a leasehold title as much of London City has been for centuries (To the Queen of England Рshe also owns the mapping, gps and satellite rights to the country).

Perhaps the much touted property crash in the Antipodes will not eventuate as I, and many others, have predicted.

The release of the Panama papers will have shaken some to the core and they will seek to divest themselves of illicit capital in different ways that are more opaque.

There is a massive imbalance between these Antipodean properties and the historical averages worldwide (About 1.5 to 3 times the average salary has always covered the cost of an average house in an average suburb).

With the pressures on the economies of Europe caused by ‘refugees’ who are set to leech every Euro from them within 15 years, rich Europeans will seek to invest in safer economic climes. An historical aversion to Asia’s investment ‘safety’ and a preference for countries who speak English, respect the law and are politically stable (Oops Australia!) leaves the Antipodes open to an inward gold rush. Who wants a warehouse in Calais beside rioting refugees when there is one in the safe environment of Mascot?

Logically, there is every reason for property to crash as an investment – it is simply unaffordable. Million dollar suburbs (where every property starts at $1m) are increasing and the vast majority of workers cannot and will not afford it. So remember where you read this first!