Last night Channel 10 broadcast an important programme both for us as individuals and as property investors. Cool Aid highlighted how our day-to-day activities generate greenhouse gases and contribute to global warming.
I hope you saw it and decided to make some changes to your lifestyle to help save the planet.
I must admit, I’ve been a “greenie” for more than 25 years and one of our objectives in moving to the farm was to live a more sustainable lifestyle. Even though we’ve tried to minimise our impact on the environment and grow our own vegetables, there is still more that we can do and we found the suggested action steps suggested at the end of the program very helpful.
One of the guests on the program was Al Gore who has become a champion for the environment with his book, movie and DVD called “An Inconvenient Truth.” If you haven’t already seen the movie, I suggest you get hold of the DVD and watch it. It could save your life!
Another guest on the program was scientist, Dr. Karl Kruszelnicki.
He made two important points that property investors need to keep in mind.
The first one was the issue of some scientists who argue that climate change is just a normal phenomenon and is nothing to worry about. Dr Karl pointed out that there are many different types of scientists and that scientists generally focus on specific areas until they become specialists in that area.
He argued that the only scientists you should listen to on the issue of climate change are those who specialise in climatology.
While the others may still be scientists, it doesn’t mean they have any particular knowledge of the subject area and may be just voicing their opinion without having researched the matter fully.
This is a very good point and one that is just as relevant to property investors as it is to the issue of climate change.
You see, many would be property investors seek guidance from people who are not successful property investors in their own right (but who nevertheless have an opinion about the benefits or otherwise of property investment). These are people such as work colleagues, professional advisers who are not property investors themselves or friends and family.
That is a very dumb strategy!
It’s the same as asking your motor mechanic for a second opinion after your doctor has told you that you need brain surgery to remove a malignant tumour. You wouldn’t do it, would you?
So therefore, whenever you seek guidance from someone, make sure they have the credibility and experience to advise you intelligently and that they are not simply giving you their opinion. Make sure they walk their talk!
Smart investors base their investment decisions on facts, not on peoples’ opinions.
Dr Karl made another important point which will have an impact on property investors around the world. While I can’t remember the exact statistics, he pointed out that a significant percentage of the world’s population lives close to the coastline and no higher than 20 metres above sea level.
He actually stated, with the high probability that sea levels will rise in the future, there will be a significant drop in real estate values of properties which we now consider to be highly desirable and very valuable.
Can you conceive the possibility of the multi-million dollar harbourside mansions around Sydney harbour becoming next to worthless?
Ouch!
Just think of all the infrastructure that could be underwater!
How will some people catch the train to work?
Al Gore pointed out that even the World Towers memorial site could be underwater in Manhattan.
I have been saying this for about 10 years now and some people have said I’m crazy.
Now I know I’m ahead of my time a bit on this one, but I actually had a waterfront property in Sydney and sold it, so I’ve put my money where my mouth is.
As far as I can see, it is very unlikely that global warming is not a reality and that the human race has not contributed to the rising temperatures.
Just the massive population explosion over the last 100 years and the industrial revolution, should be enough to make most thinking people realise that all of this can’t simply take place without having an impact on our environment.
Fortunately we can still do something about the current situation. The changes will not occur overnight, so there is no need for despair. However, inaction will not save us either.
Here are some action steps you can take as a result of reading this post:
1. Examine your current lifestyle and make some decisions to reduce your contribution to carbon emissions in your home or business. Visit: www.coolaid.com.au for ideas.
2. Learn more about climate change and the environment and support leaders who take active measures to reduce carbon emissions and support sustainable energy and lifestyle policies. The time for talk is over. We need to take action now.
3. Consider where you live now and how rising sea levels and rising fuel prices will affect your wealth, your lifestyle and your ability to earn an income. Think about what changes you can make ahead of time.
4. Consider where your investment properties are located and how their values may change in the future. Consider not only the issue of rising sea levels, but also that some areas are receiving far less rainfall, that some areas may turn to desert while other areas may become wetter. Consider also that some businesses may collapse because they are based around certain landmarks, or natural features which may be inaccessible or destroyed in the future.
5. Ask yourself what you can do to help reverse the trend towards increased global warming, to educate others and to re-allocate your money to areas that are likely to prosper with the changing conditions. Let me warn you: it will take courage to venture into unchartered waters and some people will criticise you for it, however those investors that ignore the crowd and do what they consider to be right, often end up making the most money.
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Technorati Tags: climate change, cool aid, Dr. Karl Kruszelnicki, property investors, real estate investing
Hans :: Mar.05.2007 ::
Personal, Real Estate Investing, General ::
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