Let $G=\mathbb R^*$ act on $X=\mathbb R^3\setminus\{0\}$ by pointwise multiplication. That is for any $t\in\mathbb G$ and $(x_1,x_2,x_3)\in X$ we have $$t\cdot(x_1,x_2,x_3)=(tx_1,tx_2,tx_3)$$
Is the resulting quotient a smooth manifold?
I know from this answer that I only need to check that the action is smooth, free and proper. Smoothness and freeness are easy.
How do I show that the action is proper?
I have to show that the map $\theta:G\times X\to X\times X$ given by $\theta(g,x)=(gx,x)$ is proper (inverse image of compact set is compact) or equivalently - for each pair of pints $x,y\in X$ there are neighbourhoods $V_x$ and $V_y$ of $x$ and $y$ respectively such that $H=\{\ g\in G\ |\ gV_x\cap V_y\neq\emptyset\ \}$ is relatively compact in $G$. But I am unable to do this. Any help would be appreciate.
Thank you.
The following reformulation of properness is often very useful in practice.
Now, we can easily prove that your action is proper by proving that the second item in this proposition holds.
Let $(x_n,y_n,z_n)\in\Bbb R^3-\{0\}$ and $t_n\in\Bbb R^*$ be such that $(x_n,y_n,z_n)$ and $(t_nx_n,t_ny_n,t_nz_n)$ converge. Then, $$\lim_{n\to\infty}(x_n,y_n,z_n)=(x,y,z)\in\Bbb R^3-\{0\}.$$ Since $(x,y,z)\in\Bbb R^3-\{0\}$, one of the coordinates is non-zero, and hence we may assume without loss of generality that $x\neq 0$. Hence $x_n\to x\neq 0$ as $n\to\infty$. In particular, $x_n\neq 0$ for all $n$ large enough, so $$\lim_{n\to\infty}\frac{1}{x_n}=\frac{1}{x}.\tag{1}$$ (By removing enough of the first elements of the sequence.) Now, we are given that $(t_nx_n,t_ny_n,t_nz_n)$ also converges, so $$\lim_{n\to\infty}t_nx_n=a,\tag{2}$$ for some $a\in\Bbb R$. Putting $(1)$ and $(2)$ together, we get $$\lim_{n\to\infty}t_n=\lim_{n\to\infty}t_nx_n\frac{1}{x_n}=\left(\lim_{n\to\infty}t_nx_n\right)\left(\lim_{n\to\infty}\frac{1}{x_n}\right)=\frac{a}{x}\in\Bbb R.$$ The second equality is justified since both limit exist. So $t_n$ converges in $\Bbb R$. The last thing we need to check is that the limit is actually in $\Bbb R^*$. But this must be the case as otherwise $$\lim_{n\to\infty}(t_nx_n,t_ny_n,t_nz_n)=(0\cdot x,0\cdot y,0\cdot z)=(0,0,0)\notin\Bbb R^3-\{0\}$$ (because $(x_n,y_n,z_n)$ converges to $(x,y,z)$). This shows that the action is proper and hence the quotient $(\Bbb R^3-\{0\})/\Bbb R^*$ is a manifold.
(The manifold that you constructed with this quotient is called a real projective space, and is usually denoted $\Bbb{RP}^3$.)