They are now priced out of reach of the majority of home owners who are trying to get a foot into the market. While thousands remain empty there are also a huge number of investors are holding onto many of these houses and rather than rent them out they are only interested in capital gains.
Successive governments are to blame although they repeatedly ‘pass the buck’ to their former colleagues rather than face up to the crisis that is now in their court. It is my guess that many politicians are also multi-home owners themselves which is why the crisis continues.’
In 1999 the then Liberal government under John Howard brought in a scheme called ‘negative gearing’ to minimise the tax paid on properties by investors. While this had a huge impact on locals buying up the Real Estate and paying off mortgages through the rents charged it has drained the country of sustainable economic benefits.
While it was once the great Australian dream to own one’s own home the unfortunate fact is that it is now a nightmare. Overseas and multi-home investors have shrunk the number of available properties to the point where prices have soared out of reach. Houses are rising so far in value that even tiny bits of land between then are selling for astronomical sums.
Now the government is in a bind. Again it is the Liberal Part, under Malcolm Turnbull, that has the weight of this nightmare to deal with. While he is a multi-millionaire who lives in a prime harbour side mansion it is a thorn in the side of those who live on the streets or struggle to pay rents to greedy landlords.
So the question remains: how many politicians are multi-home owners and is this the reason they are refusing to allow negative gearing to overturned? Their argument against that action centres around suggestions that the property market would collapse and greatly affect the economy. The reality is that this is what most people want to happen.
John Howard was one of only two Prime Ministers who lost his seat while in office. His approach to the economy and certainly his introduction of negative gearing has now cost this country dearly. With the next budget only 5 weeks away the current treasurer is scratching his head to figure out a way around the anger that is brewing about home ownership.
Young people and old folk are unhappy and looking for alternatives in the political arena as the polices of both Labor and Liberal have let them down. The opposition Labor Party is now campaigning hard to get negative gearing overturned but many are asking why they never did it when they were in office over an 8 year period that ended just 3 years ago. This is not a new problem.
It is, however, another case of humans living through hell under the auspices of a World Order that is ruled by the laws implemented by Constantine some 1700 years ago. While man has endeavoured to create his own heaven on earth he has achieved the opposite especially when it comes to wealth creation and looking after those who struggle to acquire a home of their own.
Ever since the start of 2017, the dollar has been in an almost constant decline.
In fact, the PowerShares DB U.S. Dollar Bullish ETF (NYSE: UUP) has dropped over 12% from its 2017 highs, despite a 2% gain.
UUP is an exchange-traded fund that measures the dollar against six other currencies. When the dollar strengthens relative to the others, the price of UUP goes up.
Generally, the dollar is seen as a safe haven, somewhere for investors to put their money in times of market uncertainty. And since we have seen a market that went straight up over a 15-month period, there was less demand for safety assets like the dollar.
But that can only last so long. Right now, there is a fear of inflation in the markets due to higher employment and wages.
When the economy is strong, inflation usually follows. That’s because when people make more money, they spend more. And when more money is spent, there’s more in circulation, and the excess supply makes each dollar less valuable.
However, inflation fears are likely overblown due to the fact that we haven’t seen an economy this strong since before the financial crash.
When inflation gets too high, it sends production costs up and business slows. But right now, inflation remains steady around 2%.
That may seem high, as it was around 0% for all of 2015 and some of 2016, but in the big picture, it’s normal. In fact, it’s seen as healthy.
As a reference, inflation had gotten over 4% in 2005 and 2006, right as the economy showed signs of slowing.
Many are wondering how to profit from this analysis.
Demand for the Dollar
The dollar could easily get stronger from here as well.
Right now, a huge part of the world’s economy has extremely low interest rates. Much of Europe, for example, is under 1%, and they aren’t planning on raising rates aggressively anytime soon.
The United States, however, has a rate of 1.5%. This isn’t high, but we could easily see that go over 2% this year if the economy stays healthy.
That would also increase the rate of government bonds, which is 2.86% right now. As the rate get higher, international investors will begin to buy more U.S. bonds, which increases demand for the dollar and sends its value up.
How to Profit
Even though the only way to directly invest in the strength of the dollar is through UUP, there are other ways with higher return potential.
One is buying call options on the UUP fund, but that’s much riskier, as you could lose your whole investment.
Another way would be buying a leveraged ETF against a different currency.
For example, the VelocityShares Daily 4X Long USD vs. EUR ETF (NYSE: DEUR)returns four times the percentage that the dollar appreciates against the euro.
There are also similar funds that produce the return of the dollar against other currencies, like the pound (NYSE: DGBP), the yen (NYSE: DJPY) and the Australian dollar (NYSE: DAUD).
Many investors who buy gold and silver bullion coins and coin collectors who study coins, have probably never considered collecting copper pennies to make a worthwhile profit. You’ve probably heard “a penny saved is a penny earned,” because the lowly penny is worth one cent. While most pennies are worth a meager face value, did you know that all copper pennies are worth double their face value?
Pennies minted from 1909 to 1982 were made of 95% copper, and 5% zinc. You might not think of copper as worth much monetarily, but it is an extremely important metal. Copper is widely used in industry, especially in electrical, construction, transport, and many others areas. This is why copper fetches a fairly good price because it is also the best conductor of electricity, doesn’t tarnish and is malleable. To find copper’s melt value, we need to know that a pound of copper is currently worth about $3.12. 154 copper pennies equal one pound. So 3.12 divided by 154 is about 2 cents for each penny.
Since every copper penny’s value is 2 cents, it can be a small investment. The more copper pennies you have, the greater the investment. So, how do you still get a copper penny for its face value? First, you can find pennies prior to 1982 by examining your everyday change, or you can buy rolls from banks.
In addition to the fact that each copper cent is worth twice as much, its numismatic value is also important. Examining the dates and conditions of each coin the way a coin collector would, might give your copper even more value. But you don’t necessarily need to have the knowledge of a seasoned coin collector. Many rolls contain older “wheat” cents which were minted before the modern Lincoln cent (1959 – now). It’s easy to spot a wheat cent – look at the dates, minted between 1909 and 1959 and the reverse side on which the words “ONE CENT” are centered between two stalks of wheat.
Depending on condition, wheat cents are rarer and more valuable. The better the condition, the more they will be worth. When I hunt rolls, I usually find wheat cents in “good” to “very good” condition. These could fetch a price of 10-15 cents on eBay. It’s not uncommon to find many old wheat cents and copper Lincoln/Memorials in a bank box of 50 rolls. To get a better knowledge about conditions and prices I would go online and search for “value of pennies by year”, or “what’s my coin worth.” You can also buy the latest “Official Red Book: A Guide Book of United States Coins” which are available at bookstores or on Amazon.com.
Boxes of pennies you buy from the bank contain $25 of pennies in 50 rolls, which totals to 2,500 pennies. Unless you want to go through each roll and examine each one by one, you can buy a copper penny sorting machine that lets you separate the coppers from the zincs. If you’re not in a hurry to separate them, you can purchase a basic “E-Z Copper Penny Sorter” from $30 to $60. For quick sorting of lots of pennies, you will need a “Ryedale Apprentice Penny Sorter” which sells for $500.
Another reason to collect copper pennies is that someday when the Mint takes them out of circulation, it will be legal to melt them into bars. Bars are much more manageable to put aside instead of holding on to huge jars or bins that can contain hundreds or even thousands of pennies.
Are you willing to invest in a more long-term and reliable organic traffic source for your website? Then let’s look at a search engine that can assist you in increasing your traffic.
Interview an Influencer or Get Interviewed by a High-traffic Website
Have you heard of Tim Ferriss, the author of the Four-Hour Work Week?
His podcast is nowadays a staple content type that he provides to his viewers. Tim’s show has world-class performers who share their insights on a variety of topics, and he is well-liked on social media. Do Tim’s fans enjoy the show? So far, the show has received over 50 million downloads. On most days, it’s the most popular business podcast on iTunes.
Interviews, whether on video or audio, are inherently conversational, lively, and engaging. The great aspect is that it’s a win-win situation for both sides. The interviewer is exposed to a new audience, while the interviewee is able to provide his website visitors with new fascinating and authoritative information. You can ask an industry influencer to share your interview with their followers on social media if you interview them. Consider the organic traffic you’ll get from their social media followers, which number in the hundreds of thousands. Consider the level of interest generated by a prior Derek Sivers interview on the Tim Ferriss Show. Derek shared the show’s URL with his 283K followers on Twitter. It won’t hurt if you establish a relationship with the influencer as a result of the interview.
Similarly, being interviewed by a high-ranking website can result in a significant increase in search engine traffic. Harsh Agrawal’s blog, Shoutmeloud, received 35,000+ views in a single day after he was profiled by YourStory. That was the blog’s most popular search engine traffic source (with 600,000+ monthly visitors). Because interviews provide consolidated value, they can be used as a long-term lead generating source for your company. Consider how many bloggers you’ve learned about through interviews on YouTube and other high-authority websites.
You may also conduct a Reddit AMA if you have a very compelling storey to tell. Mateen’s AMA got about generating $85,000 in profit by selling TeeSpring shirts/hoodies received 2000 page views. He also boosted the number of visitors to his website on a daily basis.
By registering as a source with HARO, you can also answer queries from journalists. On HARO, Christopher from Snappa came across this question from Inc Magazine about the future of content marketing. He swiftly responded with a thorough response. He was mentioned in Inc a few weeks later as a result of this. HARO is an excellent strategy to have your brand mentioned on authoritative news sites such as Entrepreneur and Inc. Those backlinks will enhance your search engine traffic and increase your marketing strategy by improving your reputation in Google’s eyes. Contact an SEO agency to find out how you can do this and how they can manage it for you while you work on the bottom line of your business.