Meant most of, almost all people saw it as an investment.
Well, if they saw
it as an investment.
I think it makes sense for us to consider it then as an investment.
So, let's start by asking, in investment terms, considered, since the
respondents themselves tell us, we see, I see this as an investment.
Let's ask how they saw it as an investment.
So, what are the facts that we want to pull out from this,
that corresponds to how our market
participants evaluated their purchase in investment terms?
Once we've done that, we'll then turn to
this sort of other factors about where they
got this information from and how they came to these points of view, and so on.
But let's limit our discussion for the moment simply
to this question of evaluating their purchase as an investment.
So, what would we like to say?
What's, what are some of the characteristics that our participants?
Told us about their purchase in that regard.
Yes.
>> Low risk. >> Low risk.
[SOUND]. >> How to make
cash in the future investment [INAUDIBLE]. >> Oh.
[SOUND]. >> And also.
>> Appreciation. Appreciation of the asset, yep.
Wait a minute, hang on.
It's not just appreciation, they actually, we actually have
a number. How much did they expect it to appreciate?
[CROSSTALK].
>> Ten >> 12
>> 13 >> 14
>> 13
>> About 13.5% per annum, right?
So, so it's not only that they expect that house price to go up, they expect it to
go up roughly 13.5% per annum, which means, in
other words, over a decade, the asset will triple
in value.
Okay, so yes, so they're expecting low risk, expect an appreciation.
Yes?
>> Lower interest rates? [SOUND].
Our respondents are full of opportunity cost, issues.
One of which is lock in low interest rates, right?
Interest rates are low, the cost of borrowing is low.
It's a good time to move into this market,
because I can lock that low cost of borrowing into, into my purchase.
>> Disappointment in the stock market. >> Yes.
So, what we see is a lot of our respondents are
making comparisons between housing as an asset and equities as an asset.
[SOUND].
And they're evaluating housing as a better place for them to park their money.
>> Tangible investment. >> Tangibility, that's right.
[SOUND].
Nice thing about a house is, you can buy it and redo the kitchen.
If you buy 1000 shares of Microsoft, you're not redoing anything, right?
It's just sitting there for you.
So, that idea of tangibility, you can actually go and inspect the asset.
>> They used the past to predict the future.
>> Okay, so we have.
[SOUND].
Experience, definitely good information they
feel that, that's certainly true.
It's a market that I know about, I'm informed
about, I actually can bring my own knowledge to
bear, so it's not a sense of a market
which is characterized by lack of, lack of information.
Whereas, what is the market that's characterized
by that sense of, I just don't know?
>> [CROSSTALK].
>> Stock markets, right?
One of the things that we find [with] our respondents.
What's the problem with equities? I don't know anything
about it. All I know is, I send off a cheque.