Quick Hits #1 - How productivity gains drive up Land Prices - Property, Australia's Favourite Obsession

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Quick Hits #1 - How productivity gains drive up Land Prices

Productivity drives land prices. Understanding this concept is a key to property investment and underpins much of what we will talk about on PAFO.

As humans we always want to create more from fewer inputs. Less time, less raw materials, less labour, less cost, and history proves that throughout the ages humans have accomplished this. Travelling further, faster, and cheaper. Consuming more with ever-increasing living standards.

Yet as TVs, cars and other technology become better and cheaper, land continues to increase in value because as all these advancements and gains make us more productive. The more productive, the more profitable, and since land is priced upon the capitalisation of its future profitability, these gains feed directly back into land prices.

This is why despite its beautiful location, a house in William Creek is significantly cheaper than one in Noosa.

Understand this concept and you will unlock the key to why Property IS Australia’s Favourite Obsession and the common thread that will flow throughout the stories of our guests on this podcast.

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About the Podcast

Show artwork for Property, Australia's Favourite Obsession
Property, Australia's Favourite Obsession
We can't get away from it - everybody has a connection to property, as a tenant, a homeowner or as a landlord; hence our obsession with it!

About your host

Profile picture for Jeremy Calnan

Jeremy Calnan

I just love investments and I’m obsessed with property.

Ever since I was a young kid and mum used to take me along to open inspections, I’ve had a keen interest in property.

Discussion around our kitchen table used to regularly include the topic of property, I guess you could say it’s in my genes.

Having worked as an investment professional since the early 1990’s the GFC prompted me to ask the question “What causes the share market to crash at regular intervals”.

I found the answer to this question in the study of land economics, which surprised me, until I really thought about it, and then I couldn’t believe I hadn’t seen it sooner!

Once I understood land economics and the true drivers of the property market, I was provided with a unique insight into how property interacts with the credit and share markets.

More importantly, it brought me back to my obsession with property!

I live in the beautiful city of Adelaide with my wife Alice and my spare time is spent watching my two sons playing AFL football or just relaxing with family and friends.

Professionally I’m a director of Calnan Flack an Investment, Financial Advice and Education Company with my time divided between funds management and the creation of financial education for clients.

Jeremy Calnan (AR 244353) and Calnan Flack Pty Ltd (AR 446976) are Authorised Representatives of PGW Financial Services Pty Ltd – AFSL 384713.

See calnanflack.com for more information.