Empty Homes for All to See

Karl FitzgeraldCommentaryLeave a Comment

The Sydney Morning Herald is on our side. Today’s headline news includes an article featuring Bubblepedia.net, a wiki set up by Dr Daniel Cox for photos of vacant homes to be uploaded onto the web. What a great idea! We have a Panoramia page with some of our vacant photos uploaded. The article, entitled Empty Homes for All to See, … Read More

Renegade Economists now Podcasting

Karl FitzgeraldCommentary, Multimedia2 Comments

You can listen to the world’s only geonomics radio show by subscribing to our podcast. To have your computer automatically download each week’s show: Open up Itunes, go to the Itunes Store and search ‘Renegade Economists’ then subscribe OR follow these 3 easy steps – copy this link: http://podcast.3cr.org.au/podcast.php?cat=RenegadeEconomists go to your ITunes, Click on Advanced then ‘Subscribe to this … Read More

Oil Speculators Greasing their Wheel

Karl FitzgeraldCommentaryLeave a Comment

Crude oil is the world’s most actively traded commodity. Margin requirements see that speculators have to lodge only 5 – 7% of the total investment in an oil futures contract to gain ownership. This is compared to stocks, where 50% must be deposited upfront. The low margin required and the risk of investment in the land and sharemarkets has seen … Read More

Land Supply & Housing Affordability – more details

Karl FitzgeraldCommentaryLeave a Comment

The real issue forcing land prices up are the huge economic rents available to land speculators. With Jeff Kennett’s move away from Site Value rating to Capital Improved Value (CIV) rating, land speculators can purchase land, sit on it and wait for the property to grow in value. The constant attack on State Land Taxes ensures a continuing trend for them to be weakened, sending the signal to the marketplace that hoarding land is appropriate.

On a local level, the combination of these 2 factors has seen a growth of vacant land in inner urban areas in Melbourne. We believe the reduced supply of land from this speculative trend has applied greater pressure on land prices than Melbourne’s 2030 boundary. The huge upward trend in land prices happened well before the 2002 announcement of 2030.