We all hear this term thrown around a lot but what do people here think is the actual definition of "overpriced"? The question is not whether Australian housing is overpriced or what are evidence something being overpriced.
My understanding is this: Overpriced means sellers demands a higher price than the buyers are willing to pay for it and is very similar to the term "under-demanded"
I believe that when buying property, you need the folowing principles:
.Objectivity . Pragmatism . Research what is currently happening
If a home is not correctly priced, it just will not sell, we have all seen those properties lingering...all the 3 principles were not implemented. You avoid ....
We all wish to purchase a property that presents good value..
I'm sure we've all bought items ..other than property ..bought it full price then see it being advertised cheaper a few weeks later ....a dud deal which makes you feel conned
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$ It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do. Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
We all hear this term thrown around a lot but what do people here think is the actual definition of "overpriced"? The question is not whether Australian housing is overpriced or what are evidence something being overpriced.
My understanding is this: Overpriced means sellers demands a higher price than the buyers are willing to pay for it and is very similar to the term "under-demanded"
For me the supply=demand price only tells you whether something is overpriced or under priced in the short term. In the long term the price of an asset should be determined by cost/return ratio. Unfortunately with housing this is much more complex then many people realise eg:
- simply looking at gross/net yield does not tell you every thing about a property; yields can be low if the underlying asset can provide much higher yields with further investment; i hear people saying - the rent on a house is 2 or 3% yield so it is over priced but you can upgrade that house; build a new house and get 5% - 6% yield which is what many owners plan to do at some stage
I'd say anything is overpriced if an equivalent 'thing' is available at a lower price.
So simple and yet 100% correct.
Ignore posts by The Whole Truth · View Post · End Ignoring The forum fuckwit goes RRRAAARRRGGHHhhh - But not a fuck was given..................by anyone.
According to IVS: Market value is defined as the estimated amount for which an asset should exchange on the date of valuation between a willing buyer and a willing seller in an arms length transaction after proper marketing, wherein they had acted knowledgeably, prudently and without compulsion.
For me the supply=demand price only tells you whether something is overpriced or under priced in the short term. In the long term the price of an asset should be determined by cost/return ratio. Unfortunately with housing this is much more complex then many people realise eg:
- simply looking at gross/net yield does not tell you every thing about a property; yields can be low if the underlying asset can provide much higher yields with further investment; i hear people saying - the rent on a house is 2 or 3% yield so it is over priced but you can upgrade that house; build a new house and get 5% - 6% yield which is what many owners plan to do at some stage
That might be true for investments but what about other items bought for consumption like a home or a car or a TV?
I believe that when buying property, you need the folowing principles:
.Objectivity . Pragmatism . Research what is currently happening
If a home is not correctly priced, it just will not sell, we have all seen those properties lingering...all the 3 principles were not implemented. You avoid ....
We all wish to purchase a property that presents good value..
I'm sure we've all bought items ..other than property ..bought it full price then see it being advertised cheaper a few weeks later ....a dud deal which makes you feel conned
I tend to be a late adopter of technology so I waited til I could get my 40" flat screen TV for $400. Had a quiet chuckle at the guy from work who paid $6000 a few years earlier for a rear projection TV. It was out on his front lawn a few months ago.
Skamy will probably tell me off for waiting around for TV prices to crash.
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