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How do you determine intrinsic value of a property
What are some of the ways to determine how much a property is worth intrinsically?
thanks
It's a moving target.
But you can get a rough estimate.
There are a couple of websites that give you a pretty good figure.
You should be able to exit the position with almost 100% guarantee that you will be able to recover your investment with that figure.
Be careful though, we are in a time of price volatility.
So recovery depends on how much of the money is actually yours and how much is at the mercy of the banking system.
And of course, how quickly you need to exit.
I can't resist giving you the real (but not useful) answer.
It's the area. The area available to photosynthesis.
As long as there's enough water to support a living thing, to convert that sunlight into some form of stored energy.
Development potential plays a part. I won my last thee tenders by working out that the property is intrinsically worth more than the market was likely to pay.
Hi V.
That's quite a good one.
There are several.
I shouldn't really endorse any particular one (or even what search engine to use).
just to be impartial.
The way they most likely would do it is by averaging historical data.
How they sort that data would make a slight difference in price.
I think in Auckland the historical data would be ever so slightly higher than it should be, while outside Auckland could be lower.
But like I say, its a moving target.
Be warned though, ever so slightly could be the entire price of your deposit, houses costing what they do.
Possibly a better way for you, would be to drop into the real estate agents in the area you like.
They are unusually helpful, now that sales are not as easy.
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