When a major emotional event takes over the entire media space, government can get a lot done. They do things you no longer get to hear about that otherwise you might.
This is important within the real estate cycle.
Whilst the virus raged, Mr Trump accelerated his revolving door.
Witnesses to Trump’s impeachment process have been summarily dismissed. Policy experts have been cleaned out of the National Security Council. The number 3 at the Defence Department was ousted.
Trump also accelerated what he could down south and the building of his wall. Those affected, landowners mainly, couldn’t get out to complain or campaign against it in person.
I mention this to you only within the terms of the real estate cycle. It’s a common pattern to see. By the end of the cycle loyalists to the leader are installed in key institutions to the cycle.
So dissenting voices are least likely to be heard right when they are most needed – at the real estate cycle peak.
We saw this at the last extreme too, back in 2007. It’s well documented in my book The Secret Life of Real Estate and Banking.
At the next real estate peak, no one will be in important positions to question the ruling ideology. Make sure you are aware of this as we go into 2026.
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Charoen Sirivadhanabhakdi is at it again. Thailand’s richest man wants to build yet another ‘tallest’ building in his home country. There aren’t any firm details yet. And no official height has been mentioned either.
But the new building is likely to go higher than the current Thai tallest, the Magnolias Waterfront Residences as IconSiam. That one stands at 318 metres.
Completion is set for around 2026. Tall buildings are a great indicator we use for where you are in the cycle.
Bangkok is the world’s most visited city now by the way. It gets even more tourists than Paris.
Notably – and this is important – Charoen’s company, Asset World Corp, has been adopting an ‘aggressive growth strategy’ for some years now. That’s if media reports are anything to go by.
That simply means he’s using other people’s money to fund all his developments. Again, this is very important to the real estate cycle.
In 2026, this is where credit problems will start: in aggressively growing real estate companies. And their bankers. This is what you look for and closely examine as you move into the extreme. What to look for is documented in the final chapter of my book.
As it happens, Thailand is also in the midst of spending more than US$21 billion expanding Bangkok’s rail transit system. They’re extending rail lines, building high-speed rail links and a rather large station hub at the centre of it all.
It’s expected that all this will connect eventually to Singapore, and then to China.
You know what that means. Even more tourists, more travellers, more building, and more bank credit being extended.
And still higher land value. Which is even better for all the tall buildings slated for construction. This is the cycle. It’s why you just have to own land to do well during the cycle.
Because all the gains in society end up in the land price. It’s why land prices must go higher, over time.
Go HERE for a lot more information about this.
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The United Nations (UN) latest report expects the world’s population will rise by a billion people in the next 13 years.
The total will grow from 7.6 billion to 8.6 billion by 2030 and reach 9.8 billion by 2050, the UN predicted.
The UN also said population growth had slowed slightly in the past decade because women are on average having fewer children.
The total is, however, still rising at the rate of 83 million people a year and could reach 13 billion by the end of the century.
In addition to this, increased life expectancy means that the number of people aged 60 and over will more than double by 2050 to 21 billion. The number aged 80 or over will triple to 425 million and reach almost a billion by 2100.
It is suggested most of the growth over the next few decades will be in Africa.
All these new arrivals will need a place to live. It will likely add to land price pressures would it not?
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Switzerland is one country that has opted for negative interest rates this decade.
New research from Credit Suisse Group is showing that such negative rates are producing even worse home unaffordability figures.
Doh.
Amidst declining cash returns – indeed having to pay the bank for the luxury of holding your cash – investors are looking to the property market for positive returns.
Investors are “buying up residential properties with a view to renting them out” noted the Group’s report.
Your Property Sharemarket Economics (PSE) research shows this will end badly. It also shows you when this will end.
Go HERE for a lot more information about the timing.
Best wishes
Phil Anderson
and your Property Sharemarket Economics team.
P.S – Your Property Sharemarket Economics team, based on the studies of Phil Anderson, have three secrets. Only subscribers to the PSE service get them.
Number one; the 18.6-year real estate cycle, and how it repeats, obviously.
Number two; the ‘Decade Cycle’. This is how the Dow and US markets move from years ‘0’ through ‘9’ each decade. It’s basically repeated for several hundred years now.
Number three, our ‘Financial Timetable’. And that’s top secret.
Phil takes you through this Financial Timetable in his classes. If Phil’s Timetable does not impress you when you see it with Phil and your own eyes, if you don’t say under your breath: “That’s so impossible, I refuse to believe it”, (or something similar) Phil will offer to refund you the cost of your subscription.
Click HERE to get started.