Is Land Finite?
Those of you who pay rates will know, I hope, that two almost identical blocks of land next to each other will attract the same rates bill, irrespective of the value of the houses that you and your neighbour have built.
The amount of land we have available for building on or otherwise developing, be that here in Australia or any place else in the world, is somewhat flexible because land can be “reclaimed” using bulldozers and land fill, which doesn’t always result in land suitable for building on.
The price of real estate continues to rise in most parts of the world because the supply/demand ratio continues to diminish supply in the first instance and thus increase demand.
Is an investment in real estate guaranteed to go up in value because of this law of supply and demand?
Don’t answer “yes” too quickly!