How much have you paid?

Discussion in 'Investment Strategy' started by Bayview, 28th Jun, 2016.

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  1. Sackie

    Sackie Well-Known Member

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    Location:
    Vaucluse, Sydney.
    I agree Marisa, I was referring to IP as in just a plain buy and hold type stock. But when your talking about development then I agree there's more to it. I have never bought in a rezoned area with no comparable sales but I would think that you would look at very similar stock your building, closest to the area your building as possible to get some bearings on value. I would assume as you have said that banks will do the same to get an idea on valuation. :)
     
  2. wategos

    wategos Well-Known Member

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    NSW
    Investors create demand, demand pushes prices up. Simple.
    The idea that investors push prices down because they bargain hard is just ludicrous.
     
  3. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,034
    Location:
    Vaucluse, Sydney.
    Demand is created when there is something worthwhile having. If there is limited stock of that thing then demand goes up. When investors, FHB and anyone else purchase more of the stock then supply goes down and demand continues to go up until a price is reached where that 'worthwhile' thing becomes less and less worthwhile at the new price point. Then demand will move elsewhere.'

    Investors don't 'create' demand, its created by the wants and desires of people. When investors buy and prices go up, it is because the wants and desires of people still think the item is worth having. Then at a certain price point it will end.
     

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