How rising values influence our markets

Post on 14-Dec-2014

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This presentation goes all the way back to the original real estate purchase in the US and then runs fast forward to today's market. Along the way, the concept of rising values over time is well supported by history and demographics. So sure, we have our problems dujour yet over time, they too will be nothing but another historical footnote on the road to the future

Transcript of How rising values influence our markets

Values & Influence

What Really Makes the Market Move?

BROUGHT TO YOU BYMARK TAYLOR 602-361-0707

In the Beginning

The Dutch purchase Manhattan for $24 on May 4th, 1626

Long Term Investments Certainly – this is the grand daddy of

let’s just see how that works out using historical rates of return

384 Years Later….

$24

$...?

At a 6% Rate of Return =

$125,217,060,205.89

That’s over 125 Billion Dollars

Even just the deed for a piece of neighboring land recently sold for $156,000

POPULATION

What Factors Influence Value and Rate of Return?

The population in a much larger area was about 24,000

Now, in NYC alone, there are 8 Million People

17901800

18101820

18301840

18501860

18701880

18901900

19101920

19301940

19501960

19701980

19902000

20100

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

NYC Population

And as of Jan 2010, an average 1273 square foot condo sells for $1,607,510

$15,000,000

1.9 cents / acre

$18,250,000

Or this home on 4.6 acres which was placed on the market for $150,000,000

INCOME

Negative Influence

Goebbels said that “a lie told once remains a lie but a lie told a thousand times becomes the truth”.

The Great Depression

Agrarian Society

Industrial Society

Knowledge Society

Thank You for Your Time

Mark Taylor CDPE, CMPS, CSSPE,REDS602-361-0707

Looking forward to being of service