Australia - really?

Sir/Ma'am - seeking your thoughts humbly.

Aussie properties are way too highly priced and in super speculative territory,
only because we are facing an immigration boom,
much like Detroit in 1940s during the car manufacturing boom don't you think?
When workers from the southern states and global migration were aimed at Detroit then.
By the powerful corporations - Ford, Packard, Dodge, Chrysler etc.

America was importing workers from Europe who could barely just spell "C.A.R."
If they could spell it - they had the skills. apparently!

Sydney/Melbourne 2017 = Detroit 1950s

We in Australia have lost our competitive edge, vis-a-vis the world.
Our manufacturing is dead, (Ford/Toyota closed it's last plants)
I asked around and apparently, our innovation to the world economy, is a lawn-mower at best, (I hope and wish to be corrected by the forum friends, if this is not true)
no space technology, no robotics, no AI no machine learning.
Australia has had it too easy. For too long.
29 years of no recession. really!
Where in the world are we living in so isolated!
did someone forget to mention it's a global economy we live in.
all booms must follow a bust. And all busts eventuate to a boom finally?

what have we produced - to be in the next competitive advantage scale.
Globally. Against China? any patents/copyrights of significance?
I would like to know please...
digging up Coal and Iron ore at best,
Saudi in the making perhaps,
hard ore (not even the know how to make metals- like value-add steel perhaps).
India, China Korea, Japan, are way ahead.

No Microsoft, Apple or Google, either. US and even Europe are ahead again.
How can we sustain growth and take care of our young and elderly population when we don't value add.
Sorry, but just my thoughts!

Lucky country yes,
Lucky country running out of luck soon? Yes definitely......!!!

don't mistake me - I love our Australia. And it's current lifestyle.
Just not it's future prospects...

The Big question is - would you rather invest in Asian stocks than Aussie property?
For your kids and theirs?

Unless something is done. Now.
Am hoping for it. (as I have a few million invested here in the lucky country)

With kind regards,

 

What has apple google microsoft etc done for detroit?

 

I beg to disagree. Australia is a lucky country, but this luck didn’t fall from sky or was delivered by higher power. Aussies like a whinge, but they are also incredibly innovative and hard working bunch of people (immigrants included). A rather sceptic electorate that is generally very law abiding and hard working created the fundamentals for a sustained economic performance.


It’s not just sheer luck that Australian economy managed to adjust to a number of “certain death” milestones. Australia has had its fair share of speculative excess. the land bubble in Melbourne in the 1880s; the Poseidon nickel bubble of 1969–1970; and the stock and property market bubbles of the late 1980s.

The mining boom went and the economy is still chugging along. The dot com bubble popped and the economy still chugged along.

The ship rocks but she ain’t going down.

 

This is not unknown. Both politicians and business are trying to make competitiveness better...it takes time.

 

Nice post
Great perspective
We do need to start looking generations and 100s of years ahead.

If you listen to the politicians today's Australia is about "jobs and growth" = immigration to keep the growth and the jobs of a subsistence economy will follow.

I'd love to hear of a plan for a sustainable australia not relying on exports or immigration.

But we have a here and now government policy, anything considered to be foresight takes 20-50 years implementing and is obsolete before started/finished

 

Nice, and I hope so too...
@Noobieboy can the rocking ship sustain and eventually soar?
The verdict is out I presume.

 

I fear that if it wasn't for the enormous anchor (superannuation)
The ship may well have been swept away with the tide and capsized

 

Takes time I agree,
but not when our property prices have risen ahead of this time.
Globally speaking.

When a 2 bedroom unit in whoop whoop is priced at 350K.
(with 3500 people as population and we are not "producing" value)

my friend, unless you tell me something different,
I am waiting...

 

I'm not saying property prices are justified or unjustified. All I am saying is that there are no short cuts to increasing competitiveness.
There are only a few avenues
1 decrease costs of doing business and/or
2. Increase output and/or
3. Increase quality/value of products or new innovative stuff.
All three are hard to do and take time.

 

,[/QUOTE]

From what I read ""5 years from now"" ,the way people invest will have evolved again and again,and the ability of AI will surpass a lot of human decision making..So that brings up the simple question with Australian ASX listed companies how valuable will any companies specialised knowledge really is..
Then you only have to look at the price slide in costs of sensors,that have made it possible to process massive volumes of information about physical systems from wind turbines to the bearing and brakes motors on trains a long time before any human will detect the faults..
There will always be winners and losers in the way some high horse riders invest ..

 

Heaps of opportunities . Now and in the future . More opportunities than one could handle . Problem is many just don't see it.

 

You forgot millions of acres of agricultural land, massive gas reserves, a buch of other smaller commodities, safe and democractic government, financial stability, free market economy, wide ranging trade partners, low corruption, tourism, education, steady population growth etc etc.

Try to see the glass half full!

 

Well my friend, @Leo2413 , that is the problem isn't it?

If you had asked a local common man what he wanted in 1900s,
he would have said "a Faster horse".
Henry Ford thought differently.
The world changed with that idea. Horses were gone. The motor technology was in,
(though called horse power still!)
We need innovations to value add.
Or we will be swept away by those innovating countries,
none of which are in Australia right now.
That is the problem statement - so why are our prices so high?
Why is the price of a 2 bedroom unit in Bendigo thrice the price of the same product in Beijing?

And what is going to sustain these transactions?
20 years later,

 

Not sure where you are talking about, but you can buy a 2 bedroom unit in Brisbane (population around 2.4 million) for less than $350K.

There is more to Australia than just NSW.
Marg

 

Mongolia has the same @Blueskies
Or Kazhakistan for the matter,
need more drivers than education, financial free market economy,
just saying...

 

I didn't know Australia was in NSW

 

Australia sells the dream of a peaceful, safe and accepting country where all are free to build any life they choose.

Value? priceless . Demand to live here ? Massive . Real estate prices ? Long term will keep rising.

Australia will do just fine.

 

I don't really know how to respond to that. GDP of Mongolia is $36bn. Top five richest people in Australia could beat that.

Kazakhstan has gas but comparison breaks down at that point. It is a borderline dictatorship where political dissent is suppressed corruption is rife and they have a history of human rights abuses. They are also about 1/3 the size of Aus by GDP, how is that anything like Australia?!