LONG term planning

It's hard to think ahead one year let alone 20....but most people in this forum are expecting to live at least another 50 years.....and use property investment to at least partially fund their lifestyle during and after that period.

I'm interested in people's thoughts on how the world in likely to have changed in 50 years - particularly regarding property investment.

Will most of the earth be uninhabitable due to deserification, salinisation, rising water levels & toxic waste?
Will all property be communalised?
Will we all be living in personal dimensions (one family per dimension) or have digitalised ourselves & live in a limitless cyberworld?

What do you believe are the really big trends & their effects on property investment?

Here's something to help you think in the long-term.....an extract from William LeFurge's 'Rapidly Changing Face of Computing' newsletter (see: www.TheHarrowGroup.com):

Quote of the Week.

"Imagine that you could travel back in time to the year 1900.
Imagine that you stand on a soap box on a city street corner in 1900
and you say to the gathering crowd, "By 1955, people will be flying
at supersonic speeds in sleek aircraft and traveling coast to coast
in just a few hours."

In 1900, it would have been insane to suggest that. In 1900,
airplanes did not even exist. Orville and Wilbur did not make the
first flight until 1903. The Model T Ford did not appear until 1909.

Yet, by 1947, Chuck Yeager flew the X1 at supersonic speeds. In
1954, the B-52 bomber made its maiden flight. It took only 51 years
to go from a rickety wooden airplane flying at 10 MPH, to a gigantic
aluminum jet-powered Stratofortress carrying 70,000 pounds of bombs
halfway around the world at 550 MPH. In 1958, Pan Am started
non-stop jet flights between New York and Paris in the Boeing 707.
In 1969, Americans set foot on the moon. It is unbelievable what
engineers and corporations can accomplish in 50 or 60 short years.

There were millions of people in 1900 who believed that humans would
never fly. They were completely wrong. However, I don't think anyone
in 1900 could imagine the B-52 happening in 54 years."

From "Robotic Nation"
by Marshall Brain
http://marshallbrain.com/robotic-nation.htm
Brought to our attention by reader David Schachter.

This quote is from an interesting paper that depicts a 'present and future history' within which, by 2050, autonomous humanoid robots have taken over most of the entry-level jobs of today. But far from the Jetsons' vision of a utopia full of enthusiastic perennial vacationers, the robots have usurped most of the jobs, such as maids and other cleaning personnel, fast food cooks and clerks, and the many other jobs that don't require the spark of human creativity. One result is that 50% of the U.S. workforce is then unemployed.

Marshall makes the economic necessity for businesses of that time to follow this trend quite clear, similar to how businesses once all gave up messengers for the telephone, horse-drawn delivery wagons for trucks, and typewriters for computers -- competitive necessity. At which point he uses the quote above to help us understand why this possibility is FAR from "absurd," even if it seems so from our viewpoint today, "50 years in the past."

Moore Perspective.

Along the way, Marshall also illuminates some of the results of Moore's Law, such as through these excerpts:

"A processor in 2002 is 10,000 times faster than a processor in 1982 was. This trend has been in place for decades, and there is nothing to indicate that it will slow down any time soon. Scientists and engineers always get around the limitations that threaten Moore's law by developing new technologies."

"A 10 MEGAbyte hard disk cost about $1,000 in 1982. Today you can buy a 250 GIGAbyte drive that is twice as fast for $350. Today's drive is 25,000 times bigger and costs one-third the price of the 1982 model..."

"In the same time period -- 1982 to 2002 -- standard RAM (Random Access Memory) available in a home machine has gone from 64 KILObytes to 128 MEGAbytes -- it improved by of factor of 2,000."

"What if we simply extrapolate out, taking the idea that every 20 years things improve by a factor of 1,000 or 10,000? What we get is a machine in 2020 that has a processor running at something like 10 trillion operations per second. It has a TERAbyte of RAM and one or two PETAbytes of storage space (a petabyte is one quadrillion bytes)."

"What if we extrapolate ANOTHER 20 years after that, to 2040? A typical home machine at that point will be 1,000 times faster than the 2020 machine. Human brains are thought to be able to process at a rate of approximately one quadrillion operations per second. A CPU in the 2040 time frame could have the processing power of a human brain, and it will cost $1,000. It will have a PETAbyte (one quadrillion bytes) of RAM. It will have one EXAbyte of storage space. An exabyte is 1,000 quadrillion bytes."

Although none of us have a clear picture of what 2050 will look like, Marshall's reasoning (he presents additional supporting data in his must-read article - http://marshallbrain.com/robotic-nation.htm), is very hard to argue with -- consider the well-established history of many technologies' double-exponential growth, and the just-now-beginning NBIC Convergence (the coming together, and therefore synergistic growth, of the previously separate fields of Nanotechnology, Biology & medicine, Information sciences, and Cognitive sciences)!

(If the POTENTIAL for such changes seems like so much poppycock -- please re-read the first three quoted paragraphs at the beginning of this article.)

The question, of course, if things develop as Marshall foretells, is how our society might plan to effectively deal with another 50 years of such exponential changes. Especially considering that the dramatically-high unemployment would be only the very tip of this particular iceberg...

Don't Blink!

Don't believe it - check out this Honda Ad...

asimo-ad.jpg
 
We could offer prospective tennants to rent a ASIMO for every lease signed up for two years, (just whack a bit more on the weekly rent to cover expenses.) And then program ASIMO to do rental inspections and take some photos and email the report and photos directly to our email compliant colour screen mobile phone.. Then we just forward them on to the tribunal, and ASIMO can take the stand..... heheheheh

:cool:

AntC
 
Very thought provoking...Aceducey..however how much has the dynamics changed in the last 100 years as far as the human desire is concerned to acquire a roof...and what effect will it have in the next 100 years... Greed has and will give rise to building much larger dwellings as close to the action as possible, however with the gradual increase in population, and tendency to concentrate toward the urban jungle, prop might still be considered as one of the safest options.

Some of the large consulting firms advising fotune 500 on the consumer behaviour patterns have employed consultants that major in Futurism...and predict the makeup of society in decades to come.

I personally dont foresee any drastic change in the behavioral pattern of humans to preserve their wealth and opt out of brick and mortar structures...unless ofcourse we start developing colonies in space or Mars....!!!!
 
The one constant through time has been human behaviour.

Acey, as for land being communalised, while I'm not sure about that, it is not as far-fetched a notion as one might imagine.

A hundred or so years ago there was this Economist called Henry George.

He become very famous (his website claims that at one time, the only people in the US more famous than him were the President of the time - Thomas Edison - and Mark Twain).

Indeed when he visited Australia he was greeted by thousands of well wishes and supporters in Sydney (and yes he was an Economist).

What made him so famous (and so popular)?

He proposed abolishing all forms of tax save for a tax on land. Effectively, were such a tax to be introduced it would socialise land values - not too dissimiliar a concept to land being communalised.

(a very brief description).

Though he may not exactly be a household name these days, the fact that Henry George Societies still exist in the US, Australia and other parts of the world are testament to the longevity and popularity of his ideas.

Mark

FYI - http://www.henrygeorge.org/
 
I remember reading Henry George Society newsletters when at uni about 10 years ago. I believe they changed their name to
'Tax Reform Australia' and also now advocate taxing natural resources - see www.taxreform.com.au

His ideas were most influential in the early 1900s, particularly in the Labor Party.

How would a Georgian regime affect investors? Land values would fall as land would no longer be something that provides capital growth. In contrast with no taxes on companies and income, shares would look attractive.

For those in property investment, there could be excellent buying opportunities. However for tax reasons we would all focus on yield not capital growth of land. Thus flats or units with small land component would be favoured, and there would be a lot of what we'd regard as overcapitalisation. But we'd all still manage, and might even prosper.

No matter the tax system, people will need a place to live, and many will either through circumstance or desire rent. Thus there will always be landlords and property investors.

Peter
 
the robots have usurped most of the jobs, such as maids and other cleaning personnel, fast food cooks and clerks, and the many other jobs that don't require the spark of human creativity. One result is that 50% of the U.S. workforce is then unemployed.
You can already buy robotic vacuum cleaners like www.roombavac.com and robotic lawn mowers (can't remember the name but was quoted AUD$4000 over a year ago when I emailed the local distributor).

If robots do take over a lot of "non-creative" work and vast percentages of the population became unemployed, then I shudder to think what percentage of unemployed will then be channelling their "creativity" into crime.

Armoured car and home fortresses could be the trend and high-security/compound living could become more popular (or high-security high-rise!)

What a bleak outlook... I hope the world doesn't go this way but I imagine if it happens then the USA will get to this stage a lot sooner than we ever would.

A more positive and peaceful outcome would be for humanity to enter an age of enlightenment where all that untapped creativity is channelled into people making their livelihood in the arts, entertainment and other creative pursuits. More musicians, painters, sculptors, actors, poets, writers, photographers, etc
 
Re: Re: LONG term planning

Originally posted by mmerlin
If robots do take over a lot of "non-creative" work and vast percentages of the population became unemployed, then I shudder to think what percentage of unemployed will then be channelling their "creativity" into crime.

I see a growth industry in robot repairs :p

I remember where I did my appretiship a boss of a Japanese car company came for a visit and proudly said he had a robot to put stickers on oil filters costing 2X the agerage life wage of a person and we did the same thing with a mechanical method costing under $1000 he was not a happy camper :D

bundy
 
I fear for our future.

We have the capacity to do Armagedeon like destruction to our planet to such an extent that we shudder to comprehend!

It only takes one idoit to do untold damage to this world beyond mine and your worst imaginable nightmares. Just ONE idiot. One error.

As curious humans we rise to the challenge to push beyond the realms of our current beliefs of reality. Technological advancements will outstrip our ability to move with change. We challenge the barriers like an eager child reaching for a prize, but with little thought of the consequences of our actions.

The nuclear bomb. Green house. Cloning.

The world must change.

But what about cancer, famine and war.

They remain. Are they not worthy challenges to have been wiped out.

Keen

:(
 
Re: Re: LONG term planning

Originally posted by mmerlin
A more positive and peaceful outcome would be for humanity to enter an age of enlightenment where all that untapped creativity is channelled into people making their livelihood in the arts, entertainment and other creative pursuits. More musicians, painters, sculptors, actors, poets, writers, photographers, etc

But who's going to pay for it?

Funding for arts and creative outlets is already exceedingly slim. Without increasing taxes the government needs to be financially sensible and with important services like education, health, infrastructure and defence all ready underfunded the chances of "recreational" pursuits being given a priority are slim.

Law enforcement is already overstretched with "lesser" crimes against property being effectively ignored, leaving insurance companies, to foot the bill, and the "savings" <sic> are passed on to us.

I think much of the problem comes down to education with much of today's youth being ignorant of financial managment. This is not their fault, but they gotta eat, and if no-one is going to give them money to do something constructive, they their creativity is going to be funneled into other money making ventures.

We need to take time to guide our youth and our children. They need subtle guidance to find a path that works for them.
 
Here's a direct property implication, significant increases in available land:

Man made island will be visible from space
Currently under construction off the coast of Dubai is a new development known as Palm Island. The Island, coincidently, is the shape of a giant palm tree and when complete will include 2,000 villas, 120 kilometres of beach, shopping complexes, a marine park and up to 40 luxury hotels including the Hydropolis Hotel located 20 metres under the water. The island has been called the 8th man made wonder of the world and is so big that when complete it will be visible from the moon.

REF: The Property Insider Library
www.quartile.com.au

Cheers,

Aceyducey
 
Though on a much smaller scale, does anyone else remember the 'Floatel' off the Queensland coast in the late 80s?

It was talked about at the time as being this huge floating complex, that could be towed to follow the sun.

Anyone know what became of it?

Peter
 
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