It's all you Investors to Blame!

[Rixter]

Where would you ever draw that conclusion from my posts?

Investors are simply part of the the cycles of supply/demand.

Would you please explain how investors have no impact on supply/demand?

Cheers

Pete

See post #1 and title of this thread you've posted in.

 

[turk]

See post #1 and title of this thread you've posted in.

Rixter

I've read the title of the thread and post #1,it doesn't explain why you think investors have no impact on prices.

 

[Rixter]

Rixter

I've read the title of the thread and post #1,it doesn't explain why you think investors have no impact on prices.

Cool, now read post #9.

 

[turk]

Cool, now read post #9.

Ah Rixter, you're missing my point, my posts are in answer to your post #63

'Investors' dont drive the property markets. Its the 'owner occupiers' that do.

My contention is it is neither only PPOR or investors that drive the market
but supply and demand in total that drives the market and that at times
the impact of each group may vary regardless of whether they are the majority or not.

Cheers

Pete

 

[Rixter]

Ah Rixter, you're missing my point, my posts are in answer to your post #63

'Investors' dont drive the property markets. Its the 'owner occupiers' that do.

My contention is it is neither only PPOR or investors that drive the market
but supply and demand in total that drives the market and that at times
the impact of each group may vary regardless of whether they are the majority or not.

Cheers

Pete

Supply & demand for sure...yeah your missing my point - that post #63 is in relation to multiple IP investors (as per post 1).

 

[turk]

Supply & demand for sure...yeah your missing my point - that post #63 is in relation to multiple IP investors (as per post 1).

Thanks Rixter,

Accepting that multiple IP investors may not drive the market I'm still curious as to why you think it's only the owner occupiers that drive the market.

Cheers

Pete

 

[Rixter]

Pete, in generalised terms, the owner occupiers are the emotional majority. I dont term investors with a couple IPs at best in the investors category. I guess as in most things it all comes down to one's own perspective.

 

[Telejazzer]

@Rixter and turk. Can we just forget about investors and owner occupiers and talk about what really drives the market?

Would you agree that emotions (greed and fear) generally drives the market? Making stacks of money in a relatively short amount of time (greed) and fear of missing out for example?

Would you agree that emotional buyers whether investors or owner occupiers drive the market?

 

[turk]

Pete, in generalised terms, the owner occupiers are the emotional majority. I dont term investors with a couple IPs at best in the investors category. I guess as in most things it all comes down to one's own perspective.

WARNING, anyone reading this thread please note that unless you have more than 2 IPs you are now no longer classed as an investor.

 

[turk]

@Rixter and turk. Can we just forget about investors and owner occupiers and talk about what really drives the market?

Would you agree that emotions (greed and fear) generally drives the market? Making stacks of money in a relatively short amount of time (greed) and fear of missing out for example?

Would you agree that emotional buyers whether investors or owner occupiers drive the market?

Telejazzer

Absolutely spot on, fear and greed have always driven markets whether the buyers were investors or owner occupiers .

Prime example was after the 1987 share market crash, investors jumped out of equities(fear) and into property and even though they were in the minority they helped drive(greed) the property market.

Cheers

Pete

 

[Rixter]

WARNING, anyone reading this thread please note that unless you have more than 2 IPs you are now no longer classed as an investor.

You seem to be a very confused turk - thats my benchmark, get your own lol .

Like I said everyones perception in most things in life can be different. Whats reality for one person can not be so for some one else as the subconscious mind cant differentiate between the two. It simply accepts what the conscious mind has fed into it over a period time based upon one's experiences to that date. Its what makes life interesting.

 

[Rixter]

@Rixter and turk. Can we just forget about investors and owner occupiers and talk about what really drives the market?

Would you agree that emotions (greed and fear) generally drives the market? Making stacks of money in a relatively short amount of time (greed) and fear of missing out for example?

Would you agree that emotional buyers whether investors or owner occupiers drive the market?

Yes fear and greed emotions drive the markets - stock & property. The stock market is more affected than the property markets due to liquidity factors where as the time required to complete a property transaction can create a dampening effect on emotion.

 

[Telejazzer]

Yes fear and greed emotions drive the markets - stock & property. The stock market is more affected than the property markets due to liquidity factors where as the time required to complete a property transaction can create a dampening effect on emotion.

Well put together mate. The others in the thread made very good points too. In the end, you have to make the decision what to do based on the information you gathered and that's what makes the market doesn't it?

 

[BayView]

Yes I know that, I was just trying to make a point that investors/speculators do drive prices as well to an extent. Otherwise no asset class would ever go up in value.

This would be true of the Stockmarket, because the only participants in it are investors and speculators.

With housing, the majority are O/O's, and a number of them own a holiday house as well, which is not an IP..

The percent of people who are only in property purely for the money-making aspect of it is very small.

 

[Telejazzer]

Yes I know that, I was just trying to make a point that investors/speculators do drive prices as well to an extent. Otherwise no asset class would ever go up in value.

Hi Aaron, so being in the finance game (I assumed from your signature), is this your experience with the investors/speculators that you broker for? That they are willing to pay more than the market to get what they want? Do they have the attitude that they want properties to go up in value rapidly? Are they emotional buyers? Does the sharemarket affect their investing or buying behaviour?

What about the OP? Are investors to blame for the rapid rise of properties?

I meant no sarcasm with my questions. I really would like to know your observation which I hope you would share since you're in it.

 

[Aaron_C]

Quite the opposite - all the investors I've met always try to get the best possible price. Obviously no one wants to pay more than they have to but even investors can get caught up in the emotion of buying properties. I see it all the time at the auctions I attend

 

[locko24]

even investors can get caught up in the emotion of buying properties.

Investors, yes. Good investors, no!

 

[Aaron_C]

For every good investor there's 10 more which are 'bad'

 

[Ms Jade]

Just noticed that this thread has been revived - and can't believe it was 4 years ago!

Regarding the influence of investors in the RE market, they are obviously a bigger influence in some areas than others. In West Heidelberg, where 46% of houses are rental stock, I'd assume the market is more susceptible to investor sentiment than Brighton, for example (22% rentals).

 

[Rixter]

Yes the number of investors that have more than 3 properties really drops off. (Less than 1% of total investors are the figures I've seen). IMHO these are the serious real investors who are investing towards the goal of total financial independence.