In today’s show, we’re going to talk about the future of our property markets.  It’s important to understand what the markets will be going over the next five, ten, or fifteen years and what sort of properties will be in continual strong demand so that they outperform the averages.  I’m going to do talk about that in two separate segments.  Firstly I’m going to explain an important factor shape our futures, and it’s not the normal demographics I talk about. You’ll be surprised.  In the second segment with Dr Andrew Wilson, we’re going to talk about the apartment markets. Because we’ve had a building boom in apartments, many people said we had an oversupply that was going to lead to a crash. In some segments of the market that didn’t occur, but in other segments it did.  Also, in my mindset moment, I’m going to tell you about the first car, and what that has to do with success and money.  This will shape the future of our cities  I’d like to have a chat about one of the major factors that’s going to shape our cities and property markets in the future.  Property investing is a long-term game, and you want to own the kinds of properties that are going to grow at wealth-producing rates of return in the future.  Many people are saying that we can’t have the same sort of capital growth that we had in the last 10-15 years over the next decade or so. It’s just not possible.  There are so many factors that could be involved that I don’t want to predict exactly what capital growth will look like in the future. But I do want to suggest that what we should be looking for are properties that are going to outperform the averages.  The significant growth in our capital cities over the past couple of decades came about because of two major factors: A significant drop in interest rates Many households moved from single income to two-income households  What’s ahead in the future?  A period of significantly lower interest rates, at least for the next decade Wages growth will remain low, despite strong job creation and low unemployment levels  Despite business profits and the low unemployment, wages are not going up. Workers are not only taking home less money, but they’re getting less bang for their buck. I see some major workplace changes on the horizon.  A lot of existing jobs won’t be needed in the future. More and more jobs will be done by fewer people. An accelerated hollowing out of the middle class There will be more lower paying jobs, temporary jobs, and casual jobs.  Don’t blame Big Brother or the government, though. A lot of this has to do with Artificial Intelligence coming. A lot has to do with offshoring of manufacturing and other jobs. But it’s all changing.  Michael Matusik created a great table where he explains the difference that he sees amongst the distribution of different jobs in Australia moving forward. He classes people as being either high-income earners, low-income earners, or middle-income earners.  The trends are more important than the exact figures, but he suggests that over the last 25 years or so, 30 percent of us were high income earners, but it’s actually dropped to around 25 percent now and will drop to 20 percent over the next 25 years.  Middle-income earners were around 50 percent in the past, but have dropped to 40 percent and will continue to drop to around 30 percent.  Meanwhile, low-income earners previously made up around 20 percent of Australians now make up around 35 percent and will increase to around 50 percent.  Michael writes that 47 percent of existing jobs could be obsolete by 2030, and that demand for the remaining jobs will be halved over the next decade. And most of the jobs affected will be in the middle and higher wage levels.  So what does this mean for the property market? Where are property value