All Topics / Finance / Advisors question

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  • Profile photo of redwingredwing
    Participant
    @redwing
    Join Date: 2003
    Post Count: 2,733

    Hi guys..just wondering if you’ve heard of the income/costs delta and if you use/consider the equation ??

    REDWING

    “Money is a currency, like electricity and it requires momentum to make it Effective”
    Count The Currency With This Online Positive Cashflow Calculator

    Profile photo of AdministratorAdministrator
    Keymaster
    @piadmin
    Join Date: 2013
    Post Count: 3,225

    ‘Delta’ in financial terms means ‘The change in price of a call option for every one-point move in the price of the underlying security. also called hedge ratio.’

    I cannot quite see where it comes into play in real estate.

    Pisces

    Profile photo of AdministratorAdministrator
    Keymaster
    @piadmin
    Join Date: 2013
    Post Count: 3,225

    >>The change in price of a PROPERTY VALUE for every one-point move in the price of the CASH RATE.<<

    What exactly do you mean by ‘every one point’ move ?

    One point as in one percentage point ?
    One point as in 1/100th of one percentage point ?

    Properties aren’t like shares or interest rates.
    Share prices go up 2 cents, 10 cents, 60 cents, perhaps several times a day, up, down, up, up, down etc.

    That just doesn’t happen to property just as it doesn’t happen to the price of bread.

    (So let us call it) the ‘Rob Ratio’, it is just balderdash, of no value, no substance whatsoever.

    Its only possible use is perhaps for trying to impress beginning investors by intellectually bamboozling them, your formula has no practical use for property investors as such.

    Pisces

    Profile photo of Stuart WemyssStuart Wemyss
    Member
    @stuart-wemyss
    Join Date: 2003
    Post Count: 598

    Pisces, Rob… settle down you too. Stop being childish and unprofessional! We all have to respect our differences of opinion and there are make ways to skin a cat. There is no right or wrong… just different approaches.

    Your constant digging at each other ruins the feeling of the forum. It would be great if you could stop it. Thanks.

    Cheers

    Stu

    Profile photo of Stuart WemyssStuart Wemyss
    Member
    @stuart-wemyss
    Join Date: 2003
    Post Count: 598

    So I guess you’re not going to stop it!

    Remember that defamatory comments are not allowed on the site so I will just delete any response that contains these statements. Maybe then you will see this silliness is futile.

    Cheers

    Stu

    Profile photo of redwingredwing
    Participant
    @redwing
    Join Date: 2003
    Post Count: 2,733

    [jerry]Go Stu..[thumbsupanim]

    Play nice Guy’s

    REDWING

    “Money is a currency, like electricity and it requires momentum to make it Effective”
    Count The Currency With This Online Positive Cashflow Calculator

Viewing 6 posts - 1 through 6 (of 6 total)

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