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What is the strongest influence on worldwide property markets?

  1. Investors

    0 vote(s)
    0.0%
  2. Governments

    2 vote(s)
    100.0%
  3. Media

    0 vote(s)
    0.0%
  4. Population growth

    0 vote(s)
    0.0%
  5. Social trends

    0 vote(s)
    0.0%
  6. Something else

    0 vote(s)
    0.0%

What are the greatest influences on worldwide property markets?

Discussion in 'General Property Investment Discussion' started by nmb, Jan 18, 2016.

  1. nmb

    nmb Well-Known Member

    There are many factors to take into consideration when looking to acquire property in markets around the world. However, what do you think are the greatest influences on worldwide property markets and property prices?
     
  2. antshtty123

    antshtty123 New Member

    Government plays a pivotal role in the real estate sector of any country another major role is played by nature.. like Climate, chances of Natural disasters etc which is not available in the voting option. Ex: If provided with two option like investing in the real estate sector of Japan or in China what would you choose? ofcourse China right! because it is less prone to earthquakes and tsunami etc.
     
  3. PropEx

    PropEx Member

    Not sure if you can put property into a worldwide category, but I get your point. To answer your question, I would have to say that yield and capital growth are the main factors, hence the best deals in the world move in a cycle.
     
  4. nmb

    nmb Well-Known Member

    Does the media play any role in influencing investor sentiment?
     
  5. PropEx

    PropEx Member

    Hugely so, I would say that the media plays a part in everything these days. An example of media playing a part(I mean media, not as in newspapers or TV, but on a smaller scale) is in bond trading(and stock markets obviously). Everyday companies come out with what they think the resistance and support lines are in a certain market. If they give these sheets to enough people then they will be the resistance/support lines. Sure, you get natural support/resistance lines, but also man made ones from history. Take 6,000 in the FTSE for example, that is a natural one, but there are other man made ones. Sorry, that isn't the best example I have ever come up with and to be fair I am not explaining myself very well.
    Anyway, yeah, the likes of a tabloid could say that the market is going up and everybody rushes out and buys that particular product, but what is the term that is used for the likes of Times Magazine etc putting it on their front cover and it turning out not to be the case? Something like the Front Cover Index or Magazine Cover Index? It isn't any of the terms I just used, but something like that and for the life of me I can't remember what it is called.

    I suppose the point I am trying to make is that, even if the media makes people buy things, history tells us that they are hugely wrong a lot of the time.

    P.S. I will give the first person that tells me the correct term I am thinking of about the front cover being wrong a chocolate biscuit. My mind has gone blank.
     
  6. nmb

    nmb Well-Known Member

    I think the term you are thinking of is a "self fulfilling prophecy" when enough followers take action whether the information they are acting upon is correct or not. I have some experience of stocks and shares and I appreciate your example which is basically support lines created by moving averages.

    However, support lines, graphs and moving averages are based upon historic patterns and the economic situation we are in today is not something any of us will ever have experienced before (or likely to experience ever again).
     
  7. PropEx

    PropEx Member

    Yeah the term is self fulfilling for the support lines etc, but the term I was thinking of for the magazines such as Times etc was Magazine Cover Indicator. Sorry, no chocolate biscuit for you.
     
  8. nmb

    nmb Well-Known Member

    Ah well at least that will help with my diet lol

    The media do have a massive influence on some of the less experienced investors although even the more experienced will tag along if they see the hot money following.
     
  9. PropEx

    PropEx Member

    Yeah definitely, it is a herd mentality in most walks of life.
     
  10. nmb

    nmb Well-Known Member

    @PropEx I would be interested to hear your views on a contrarian investment policy - effectively going against the trend - selling into strength and buying on weakness.
     
  11. PropEx

    PropEx Member

    Look no further than Warren Buffett for that!
     
  12. nmb

    nmb Well-Known Member

    He hasnt done too badly has he :)
     
  13. PropEx

    PropEx Member

    A perfect example of him is when he invested in oil the other week. Most other people were saying it is going to drop further, but he bought. He knows he can't tell where the bottom of the market is going to be, but still saw value at the price he bought it at.
     
  14. nmb

    nmb Well-Known Member

    Then again he doesnt always get it right - he bought Tesco shares when they started to get in trouble and everyone was selling. However, like a true professional investor he sold as soon as he realised the mistake and took a big hit. They have since fallen further.

    A professional investors knows when to bank a profit as much as when to take a loss - taking a loss is not an easy art to perfect as it goes against the ego of many "experts". However, as they say "pride comes before a fall" - if you get an investment wrong just get out and dont let your heart rule your head.......

    One simple way to test your own investments on a regular basis is to ask yourself "Would I buy this investment today?" - if you would, great, if not, then why not?
     
  15. PropEx

    PropEx Member

    I was a bond trader for over 10 years and it is very difficult to admit you put on a bad trade and get out of it straight away. A lot more difficult than it sounds, just human nature I suppose.
     
  16. nmb

    nmb Well-Known Member

    A man after my own heart - I was a stockbroker for 15 years and I agree, admitting you got an investment wrong is often harder than taking a profit on your good ones. Its easy to build up those tax losses lol Not too bad if you have the profits to offset against lol
     
  17. PropEx

    PropEx Member

    I often got a bigger buzz being down in the morning and getting back to even in the afternoon than making a few grand on the open. Strange!
     
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