What is your technique to evaluate a land or property is actually worth what's selling for?
I use the following methods
1. Housing price must reflect 3-4 times the average income yearly of the locality. If the yearly income is 5k then house price should be 20k Max or who else was the house built for if outside the income reality of the majority 'average income'?
2. Infrastructure like water, electricity, roads, markets, schools, industry and how far and close it is to the property
3. Growth of the locality is driven by infrastructure, industry, govt presence not 'people pressure'. PPL pressure inflate a property true worth and ur spending empty money when it's worth 20k but inflated to 100k, ur paying 80k of ppl pressure money. Infrastructure-industry-govt is what u should base a city on to ensure it's backed up by real value growth.
4. Rental game if it's outside 30% of a single income is not healthy indicator of that city and superficially inflated due to cost of living and wages not being in-line. That's is big signs a terrible market disaster is on the way for those places and isn't a long-term security asset as it will suffer shocks. So find another town, city with better govt or industry future.
What other techniques do u know of or use to evaluate?
I use the following methods
1. Housing price must reflect 3-4 times the average income yearly of the locality. If the yearly income is 5k then house price should be 20k Max or who else was the house built for if outside the income reality of the majority 'average income'?
2. Infrastructure like water, electricity, roads, markets, schools, industry and how far and close it is to the property
3. Growth of the locality is driven by infrastructure, industry, govt presence not 'people pressure'. PPL pressure inflate a property true worth and ur spending empty money when it's worth 20k but inflated to 100k, ur paying 80k of ppl pressure money. Infrastructure-industry-govt is what u should base a city on to ensure it's backed up by real value growth.
4. Rental game if it's outside 30% of a single income is not healthy indicator of that city and superficially inflated due to cost of living and wages not being in-line. That's is big signs a terrible market disaster is on the way for those places and isn't a long-term security asset as it will suffer shocks. So find another town, city with better govt or industry future.
What other techniques do u know of or use to evaluate?
Last edited: