It is important to use commonsense and be aware of what some “interpretation” really mean. If something sounds too good to be true, then it is more than likely so.
Real estate investment is a long term investment, and more than likely your investment will grow in years to come. The simple logic is that once a block of land is occupied or owned, total remaining area of land available is reduced.
Can a property depreciate in value? Yes it can, especially properties purchased at peak time. Due to all the hype and Fear of Missing Out or FOMO, property prices are pushed up artificially. the margin of over-valuation not only have to incur all extra rates and charges, but also land tax if it is in Victoria, the value is added to the rest of the properties in Victoria.
A property depreciates in value because the building and the contents within are badly run down. However, it will reach a point that these factors can no longer affect the true value of the land it is built on.
Why am I not confident in buying a property without inspecting it? Not knowing where it is situated, I have no idea about the surround, and its growth potential. Furthermore, it is important to ask the agent point blank whether the property is on reclaimed rubbish dump. Under some of the negative physical factors, property value can fall and may never increase at all. The out-of-pocket costs can be enormous and the sooner to cut the losses, the better.
The Capital Improved Value CIV stated in the council rate and valuation is a reasonably guide of the property value. In recent years, there are a lot of Apps and fly-by-nighters promised to give you a ‘valuation” within minutes, and even in seconds. Indeed they do, but how accurate are they? Why do these Apps and free “valuation” exist?
The reliability of the “guess” based on just the address only without taking into all the physical, environmental and emotional factors into account is as good as believing a pig can fly. Similarly, many gurus give free seminars must be as saintly as mother Theresa. It is not cheap to hire a conference hall, free “lunch” and surrounded by a team of staff or contractors, some of them may have to travel long distance.
Surely, there is no free lunch, and if they are making so much money, why don’t they use the same method or strategy to make more instead of creating competition?
If you have doubt or unsure about what I have blogged to date, please ask for clarification.
Thank you for reading.
Real estate investment is a long term investment, and more than likely your investment will grow in years to come. The simple logic is that once a block of land is occupied or owned, total remaining area of land available is reduced.
Can a property depreciate in value? Yes it can, especially properties purchased at peak time. Due to all the hype and Fear of Missing Out or FOMO, property prices are pushed up artificially. the margin of over-valuation not only have to incur all extra rates and charges, but also land tax if it is in Victoria, the value is added to the rest of the properties in Victoria.
A property depreciates in value because the building and the contents within are badly run down. However, it will reach a point that these factors can no longer affect the true value of the land it is built on.
Why am I not confident in buying a property without inspecting it? Not knowing where it is situated, I have no idea about the surround, and its growth potential. Furthermore, it is important to ask the agent point blank whether the property is on reclaimed rubbish dump. Under some of the negative physical factors, property value can fall and may never increase at all. The out-of-pocket costs can be enormous and the sooner to cut the losses, the better.
The Capital Improved Value CIV stated in the council rate and valuation is a reasonably guide of the property value. In recent years, there are a lot of Apps and fly-by-nighters promised to give you a ‘valuation” within minutes, and even in seconds. Indeed they do, but how accurate are they? Why do these Apps and free “valuation” exist?
The reliability of the “guess” based on just the address only without taking into all the physical, environmental and emotional factors into account is as good as believing a pig can fly. Similarly, many gurus give free seminars must be as saintly as mother Theresa. It is not cheap to hire a conference hall, free “lunch” and surrounded by a team of staff or contractors, some of them may have to travel long distance.
Surely, there is no free lunch, and if they are making so much money, why don’t they use the same method or strategy to make more instead of creating competition?
If you have doubt or unsure about what I have blogged to date, please ask for clarification.
Thank you for reading.
