Valuing a propertyThe way i see it, there are 2 things to focus...

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    Valuing a property


    The way i see it, there are 2 things to focus on when valuing a property

    Land value per sqm: surroundings , infrastructure ect
    Cost of building.

    So for example you have a house that is valued at $800000

    Land value is $450000
    Cost to build is $350000

    So if there is a 25% drop in prices does this come off the value of land ?
    The cost of building , labour cost ect are not dropping so the answer would be yes.
    My thoughts on the rise of property in the past is that it has been driven by a lot of factors but one topic that hasn’t been discussed is the cost to building.

    I cannot see the property prices decrease more than say 20%, any more will require the tradies and builders to take a pay cut, cannot see this happening soon.

    JC
 
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