http://www.contrarianprofits.com/articles/gold-finishes-week-strong-nears-900-an-ounce/2209 Access market-beating ideas from the world's top investment gurus on stock market investing, the gold market, ETFs, Forex trading and real estate values. Tue, 18 May 2010 05:09:46 -0500 http://wordpress.org/?v=2.8.5 hourly 1 http://www.contrarianprofits.com/articles/gold-finishes-week-strong-nears-900-an-ounce/2209/comment-page-1#comment-1258 rickreel44 Fri, 23 May 2008 12:36:28 +0000 http://www.contrarianprofits.com/articles/gold-finishes-week-strong-nears-900-an-ounce/2209#comment-1258 Reinforced concrete development started with a flower pot patent in France in 1867. Application in building construction only commenced a little more than a hundred years ago. High rise condominium with multiple owners did not become popular until about 30-40 years ago. Even though reinforced concrete has many virtuals, it's far from perfect. Corroded steel would expand in volume and crack the concrete. Problems with aging of reinforced concrete buildings are already surfacing in other countries. Even though we should have full confidence in the quality and integrity of the engineers and contracting personnel in this country, we have to realize that reinforced concrete high-rise buildings have only a relatively short history. Such buildings are not meant for perpectuation. We have yet to deal with the first problem of having to tear down a high rise condominium with multiple owners. After a condominium building is torn down, the previous owner of a luxury 1200 sq. ft. unit would be reduced to having the rights to the equivalence of a 50 sq. ft. plot of land. One wonders if the price of that land at that time would be sufficient to cover the demolition cost. With large numbers of owners in each building, when it comes time to tear them down, the financial and legal problems, as well as pricing and social problems, would be daunting. This asset destruction process is slow but sure, and presents itself as a time bomb for the real estate market place, particularly for the larger cities with the most wealth. However, the financial market normally price in or discount for many years of prospects in advance. May be the time to address the issues in the market place is now. Reinforced concrete development started with a flower pot patent in France in 1867. Application in building construction only commenced a little more than a hundred years ago.
High rise condominium with multiple owners did not become popular until about 30-40 years ago. Even though reinforced concrete has many virtuals, it’s far from perfect. Corroded steel would expand in volume and crack the concrete.
Problems with aging of reinforced concrete buildings are already surfacing in other countries. Even though we should have full confidence in the quality and integrity of the engineers and contracting personnel in this country, we have to realize that reinforced concrete high-rise buildings have only a relatively short history. Such buildings are not meant for perpectuation.
We have yet to deal with the first problem of having to tear down a high rise condominium with multiple owners. After a condominium building is torn down, the previous owner of a luxury 1200 sq. ft. unit would be reduced to having the rights to the equivalence of a 50 sq. ft. plot of land. One wonders if the price of that land at that time would be sufficient to cover the demolition cost.
With large numbers of owners in each building, when it comes time to tear them down, the financial and legal problems, as well as pricing and social problems, would be daunting.
This asset destruction process is slow but sure, and presents itself as a time bomb for the real estate market place, particularly for the larger cities with the most wealth. However, the financial market normally price in or discount for many years of prospects in advance. May be the time to address the issues in the market place is now.

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