WA Perth or Melbourne??

That sounds like a better than average gain in Brisbane. Is it inner Brisbane?

 

No, 20k's out. I think I bought well and chose one of the best parts of the suburb. Owners were desperate to sell - had moved to Darwin and it was PPoR, they fell out with friends/non-paying tenants and wanted to buy a home in Darwin. Purchased before home open.

 

Ohhh... awesome! That's the way to go.

 

Yes, grateful to my parents doing inspections for me

 

The new reality will be to forget about property ownership as a reasonable investment and buy shares in IT service companies instead. Given the rapid development of AI which will result in massive un/under employment, and the aversion in Australia to increased immigration it is unlikely that property will be a good medium to long term investment.

People put onto a living wage, rather than earning a decent wage, will not be able to pay much in rent let alone buy property. The curtain might be lowering on living large on the back of capital growth in property and it won't matter if you are in Perth, Melbourne or Timbuktu.

 

Wow, that's a big call.

 

My partner and I both work in the city and the commute from Canning Vale is a bit of a pain. Traffic on Ranford road is crazy. The house is probably a little big for us also and we are hardly ever at home. We could easily live in a much older 2x1 or 3x1 villa or townhouse that is closer to the city. Como/Brentwood/Bateman/Vic park would be ideal. Something where we could manufacture a little equity could be good.

 

Like they say..you make your money when buying.
I'll bet that you took full advantage of the sellers desperation to sell and offered accordingly yo achieve the gains you quote.
Nothing wrong with that at all... I say this based on 20km out achieving that kind of $ gain in that time period would most likely be (in by far the most part) due to purchase price.

 

Won't happen. I studied something similar at uni in the early 90's. Computers were becoming so powerful they would make people so productive there would be massive un/under employment, leading to a leisure crisis. I had to write a serious academic essay on this upcoming leisure crisis. Well, what went wrong? We have less leisure time, not more. We always fear new technology. In reality, life goes on.

 

New technology begets newer technology... we can all do more, make better decisions using more useful info... but you have to move with the times to get the biggest gains...

 

... and life goes on! In some ways it would have been nice to pick up a bit more leisure time

 

AI is the the difference between computers in the 90s and computing which is happening now and in the near future. The commentary is that many occupations are at threat from blue collar jobs through to tertiary professions such as medicine and law. Countries such as Canada, Switzerland and I believe the Nordic states are discussing the living wage. Switzerland has already voted on the same.

I'm not in fear of change, as change is the only constant in life, but I am suggesting that the change on the horizon has the potential to significantly change what we now accept as normal. A similar thing happened with the industrial revolution when society changed from an agrarian state to an urban existence.

 

I don't question any of that. My issue is with every advance there are predictions of massive job losses leading to widespread unemployment. But this never seems to eventuate. People are actually quite adaptable. Things change. People adapt.

 

Not exactly, I didn't find out all of the details until after offer was accepted. I spoke to around 5 agents in the area regarding a few listings of properties for sale and got a good idea of what buyers were looking for and good streets. A property in the next street with similar qualities and same roof area had just sold for $485,000. This home was listed for $450,000. I offered $435,000 on condition they gave answer within a day and 4 week settlement. There was some malicious damage and a bit of grief from tenants but all ended ok. Roughly $5000 replacing cut wires on smoke alarms, cleaning, etc.

 

I agree, the way I see it, this is what makes humans more advanced than anything on Earth and we adapt. These days you don't have a lot of processors - remember the days of filling forms and having another person to enter it into a database? The Internet basically removed that need but now we might have database experts, IT experts and with it a whole host of managers and support team.

Someone will have to service the robots, align them, adjust them etc and create new ones for new industries. We just got smarter, not working harder.

 

Cool. As Westminster suggested see a good accountant before proceeding. I don't know the market well in the areas you suggested but a quiet street in Yokine could be worth considering also. I haven't followed the market as I sold my three bed 80's villa about two years - three ago and I think some properties in nice streets are good value.

 

That's the difference between the past and the future. In the past the machines needed us to keep them working. AI will mean they will be able to care for themselves.

I do not think that such a change is a bad thing, I am just suggesting that such change will result in property no longer being the aspirational asset that it currently is which will result in diminished values and returns.

 

Big call... population inflation will continue to occur, and people need places to live.

Yes, but machine learning now means computers are actually smarter and more capable than humans. Looking at the recycling industry, for instance. And the prediction is that it's the middle class work that will be automated, as the savings are worthwhile and the work sometimes menial intellectual work which can be automated.

I think the more interesting change will be with the introduction of self-driving electric cars. Self-driving will make roads more efficient, and electric cars mean that living on a main road will actually be desirable and convenient, as there's less pollution and the cars are virtually silent.

 

Agreed and the changes don't stop there. Self driving plant and equipment, cleaning robots, fully automated factories, computerised surgery. It means a lot more people with a lot of time on their hand collecting what will be known as the living wage. The only people making money will be those that sell services which most living wage receivers can afford

 

I have heard the time on their hands scenario before. I have studied the impending leisure crisis at university nearly 20 years ago. It never happened.

"Just because technology can do something doesn’t necessarily mean that it will. Just because certain jobs are at risk of automation doesn’t mean that new ones won’t emerge.​

The dystopian narrative which accompanies much of the debate about the balance between humanity and technology isn’t a foregone conclusion, it’s simply one potential scenario of many."​

Will robots actually take your job?

Sorry, but I am suffering from a severe case of crisis fatigue. To name a few, I have lived through the peak oil crisis, the Asian economic meltdown, the leisure crisis, the hole in the ozone layer, GFC, global warming, ocean acidification and about a dozen catastrophic property collapses that never happened. To me the prediction of mass unemployment is nothing new. It's wrong because it assumes that millions of new jobs won't be invented to replace the jobs that will be displaced. How many jobs exist today that did not exist 20 years ago? How many jobs will exist in 20 years that don't exist now.

The prediction of mass unemployment is very poorly thought through and I will say it again. It won't happen.