TAYLOR ROWE
With innovation exceeding the current demand, investors gradually stepping back and limited bank loans on offer, it is easy to jump to conclusion.
Brett Gillan is a current investor who wishes to keep his company under wraps, he stresses the anxiety has begun to develop.
“Ultimately, when you see interest rates this low, you automatically want to enter the market, but when banks aren’t lending the loans required, it’s hard to fill empty spaces. What this means is, when empty spaces become prominent, investors and contractors start to freak out. This is where it all begins,” Mr Gillan said.
A look at the history books shows there is also an obscene amount of symbols that inform us we are due.
In 1966 there was a severe credit crux and liquidity disaster, 1973 highlighted the oil embargo catastrophe with oil prices rapidly increasing, 1980, banks and brokerage houses only marginally avoided a collapse with interest rates surpassed at 22%, 1987 saw 22% vanish from the Dow in one day, 1994 the bond market wore-out, 2001 Wall Street were targeted after 9/11 outbreaks and finally 2008 saw the Global Economic crisis in action.
What do these all have in common?
It is the 7 year Economic Crash concept.
According to history it would make sense the next one should have been in 2015. So now authorities and professionals say we are overdue and it could explode any second.
Scott Rowe, the director of advertising and marketing for the leading Australian magazine, property investor, has an opposing view and highlights that the Government could be at fault in regards to the complicated process of constructing property.
“There is no shortage of people willing to develop and there is no shortage of people willing to buy if it was made easy. The obstacle is the 3 tiers of government in Australia that cause conflicting bureaucratic rules and regulations that can change developments mid development,” Mr Rowe said.
Ultimately this is only the beginning.
The year isn’t over, it could happen any day, any minute or any second.
It is a ticking time bomb.
