Please post your thoughts about price takers and price makers as discussed in the July edition of Insider.
Newsletter will be sent on Saturday 31 March 2004.
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
The winds of change are upon us. I couldn’t agree more.
Thanks for the newsletter, it’s always good to have a read of your newsletter.
Steve, you have purchased some 35 properties in New Zealand in the last 12 months. Do you have any intentions of pursuing any more properties in the future, there…or do you feel that you will slacken off a bit.
JaffasoftIn regard to the newsletter, thanks i learnt something new in relation to submitting an offer, i didn’t know you could put two offers in on the one offer.
Hi Steve,
Honestly????
You may think this a bit harsh, I just read different terminology used for expressions that have been around since man bought his first cave!!! Let me demonstrate…..
Price Takers – followers
Price Makers – leadersPrice Takers – the herd
Price Makers – the stockmenPrice Takers – the thinkers
Price Makers – the doersblah blah blah…..and so on and so on….
Different words, same concepts. The market itself; cyclical as always, data based, seasonal and predictable. The only thing that isn’t predictable, although many will argue it is, is the “timing” i.e. the length (duration) of each cycle.
As for the seminar you and Dave are attending, yes I agree “very cheesy” but hey, it’s your money, and if you get something out of it, then it’s money well spent. But me personally, I’d rather be heading up to sunny Qld with cossie, towel and sun tan lotion in hand; at least I’ll get a tan!!!
Cheers,
Jo
Yeah – I hate that terminology – Price Takers and Price Movers. We aint in no lecture. Keep it simple Stupid.
Been reviewing Economics 101 text books?
Seriously though – most property investors are price takers as they will only realise a price the market is willing to pay. Price makers would really only relate to companies like Meriton or Mirvac who create a vast amount of property and then demand a price which is mostly accepted.
The economic theory has been a bit bastardised in this instance.
Overall Steve I’m a bit concerned about your direction. First it was a fear based invitation full of CAPITAL LETTERS and exclamation marks!!!!! urging me to pay for a seminar before it was too late, and now trotting out this tired old line about buying low and selling high.
Hi Steve,
Always look forward to your newsletter. It has timely topics in an easy to read format.Thanks also for answering my question on vendor financing.[biggrin]
Appreciate all we learn on this forum too.
Diane
Anubis,
Hmmm – from reading your reply it seems that you may have missed the point of the newsletter, especially considering you mention something I didn’t even talk about (i.e. ‘buy low and sell high’).
It was not an attempt at economics 101, nor is the name of the terminology the critical issue. Indeed, I regard theory alone, which is often based on unrealistic assumptions, to be too arbitrary for my liking.
Nevertheless, I was not talking about market makers, which IMHO includes land wholesales (like the ones you mentioned). These guys are a force unto themselves due to their economies of scale (i.e. buying power).
The point I was trying to make is a lot more micro in application. That is, at an individual investor lever we remain in control of our buying and selling decision yet not all of us are active in exercising our ability to make a decision. Therefore, those who are passive are forced to react to the market while those who are active can position themselves to maximise gains and minimise losses.
As for your opinion about my direction… *Sigh* I write a free newsletter which I hope is informative, yet really exists to get members thinking by being both topical and relevant.
If it is not meeting with your requirements or interest then I’m sorry but I do the best I can with the available time.
Finally, it was a pleasure to help you Diane – thanks for asking your question in the first place.
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
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